Shamsher Singh vs State Bank Of Patiala

Ranjit Singh, J

The present appeal is directed against the order dated 2nd December, 2015 passed by the Tribunal below dismissing the S.A. filed by the appellant. Grievance of the appellant is that the S.A. filed by him has been arbitrarily and whimsically dismissed without assigning any reason. The Counsel for the appellant contends that the impugned order would call for interference simply on the ground that it contains no reason in support.

The Tribunal below has dismissed the S.A. by passing the following order:

"The Counsel for the applicant states that the matter was listed for settlement and no settlement has been arrived at. Counsels were asked to argue the matter, as there is interim protection since 2013. The Counsel for the applicant states that matter was for settlement so he has not brought his brief. He states that he is unable to argue the matter and his application be treated as his arguments. No arguments have been advanced by him.

In view of this, I do not find any merit in this S.A.

S.A. is dismissed.

Copy of the order be supplied to the parties as per Rule and after due compliance the record be consigned to record room."

Perusal of the order reproduced above would show that the S.A. filed by the appellant has been dismissed without assigning any reason. The inability expressed by the Counsel to advance submission stands noticed in the order. It is also noticed that the Counsel stated before the Tribunal that his S.A. application be treated as part of his arguments. From this, the Tribunal has viewed that no arguments had been advanced and had gone ahead to dismiss the S.A. by simply stating that the Tribunal did not find any merit in the same.

This mode of disposing the S.A. is not only highly undesirable but even is not legally permissible. The Court or Tribunal are required to decide the cases filed and listed before them. The Counsels are only engaged to assist the Court or Tribunal and even if no assistance comes forward from the Counsel or no submissions are made, the Court or Tribunal cannot refuse to perform its duty and responsibility to decide the lis on merits. Once the Counsel for the appellant had stated that the S.A. application be considered as part of his arguments, the Tribunal was required to take note of the grounds raised in the S.A. and decide if any cause was made out to interfere in the case or not.

While deciding any case, the Courts or the Tribunals are required to notice the facts, grounds of challenge and then give reasons as to why the grounds or the pleas raised are lacking in merits or otherwise. Nothing of this sort is done and the S.A. is dismissed by stating that it contains no merit. The order is cryptic and non-speaking order. Such an order certainly cannot be sustained.

Even on some earlier occasions this Tribunal has expressed itself about the need and requirement of recording reasons while disposing of the cases by passing a speaking order with reason. Legal position in this regard was elaborated while deciding Appeal No. 353/2011 titled Indian Bank v. Aman Goel & Ors., decided on 21st May, 2014 by observing as under:

"Recording the order in such a brief and cryptic mariner leaves the party grouping in dark about the reason for which its plea is rejected. Requirement of passing a speaking or reasoned order may not need any emphasis. Whenever, it is found that the cases are dismissed or allowed without recording any reason, the Courts have not hesitated to set aside such an order. Right to reasons is indispensable part of sound judicial system. An affected party can know why the decision is given against him only if the reasons are recorded in support of the issue which is formed. The order passed by the Tribunal below indeed is very cryptic. It gives no reasons whatsoever and is based only on statement made by the Counsel for respondent No. 4 and that too in the absence of Counsel for the party which had filed OA before the Tribunal below. Recording of reasons for the passing of an order is held not only desirable but also necessary as it imparts clarity and reduces the chances of arbitrariness in the passing of the order. It also enables the higher Courts or Tribunals while considering the matter in exercise of appellate or constitutional jurisdiction to find out whether the decision arrived at was justly and fairly reached after a due consideration of all facts bearing on the matter, uninfluenced by any extraneous consideration. Thus, recording of reasons is an essential part of adjudicatory process and cannot be dispensed with. The Courts insist upon disclosing the reasons in support of the order on the ground that party aggrieved has an opportunity to demonstrate before the proper forum that the reasons on which the order is based were erroneous. The other ground is that obligation to record reasons operates as a check against the possible arbitrary action by an executive authority vested with the exercise of quasi-judicial powers."

Legal position was also reiterated while deciding Misc. Appeal No. 61/2015 titled Ms. Public Service Station & Ors. v. UCO Bank, IV (2015) BC 26 (DRAT) = decided on March 17, 2015. Relevant observations are as under:

"Before resting the appeal, one aspect may call for notice. One of the grievances by the Counsel for the appellant is that the impugned order is a non-speaking order. There is a substance in this submission so advanced. The Tribunal below has not even taken note of any fact or the background in which this prayer was made in the MA for recall of the ex-parte order. It can be expected from any Court or Tribunal to assign reasons in any order which is passed. Recording of reasons for the passing of an order is not only desirable, but also necessary as it imparts clarity and reduces the chances of arbitrariness in the passing of order. Reasons enables the Higher forums while considering the appeals, etc. to find out whether the decision was arrived at justly and fairly and after due consideration of all facts bearing on the matter, uninfluenced by any extraneous consideration. A party is entitled to know the grounds on which the authority has passed the adverse order against him. Generally speaking, Courts insist on giving reasons so that the party aggrieved has the opportunity to demonstrate before proper forum that the reasons on which the order is based are erroneous. Recording of reasons also operates as check against possible arbitrary action."

It is noticed that despite legal position having been so clarified, the Tribunal below still has chosen to pass the impugned order without assigning any reason. Dismissing the S.A. entails a serious consequence for such an applicant who has filed the same and, as such, the Tribunals dealing with S.A. are required to consider these with all seriousness which dealing with S.A. deserves.

In view of the above, the impugned order cannot be sustained. The impugned order is accordingly set aside. Since the impugned order is being set aside on the ground of it being a non-speaking order, it is not considered necessary to issue notice to the respondent-Bank.

The case is remanded back to the Tribunal below to consider and decide the issue raised in the S.A. on merit by passing a speaking and well-reasoned order after giving opportunity of hearing to the parties. The appeal is accordingly disposed of in limine in the above terms.

In view of the disposal of the appeal in limine, no orders are called for on the waiver application.