Madras High Court
V.Subramanian vs Union Of India on 2 November, 2011
Author: K.Chandru
Bench: K.Chandru
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 02/11/2011 CORAM THE HONOURABLE MR.JUSTICE K.CHANDRU W.P.(MD)No.5405 of 2011 W.P.(MD)No.5406 of 2011 W.P.(MD)No.5408 of 2011 W.P.(MD)No.5410 of 2011 W.P.(MD)No.5412 of 2011 W.P.(MD)No.5413 of 2011 W.P.(MD)No.5537 of 2011 W.P.(MD)No.5540 of 2011 W.P.(MD)No.5543 of 2011 M.P.(MD).No.1 of 2011 W.P.(MD).No.5405 of 2011 V.Subramanian .. Petitioner Vs. 1.Union of India, represented by The Under Secretary to the Government of India Department of Financial Services, Ministry of Finance, New Delhi-110 001. 2.State of Tamil Nadu represented by The Inspector, City Crime Branch, Tiruchirappalli City Police, Tiruchirappalli-620 021. 3.Central Bureau of Investigation represented by The Inspector, Central Bureau of Investigation(CBI)/SPE Kathirkadvu, Kavloor, Cochin-682 017. 4.Reserve Bank of India represented by The Manager Reserve Bank of India Customer Services Department Central Office 1st Floor, Amar Building Sir M.P.Road, Fort Mumbai-400 001. 5.Syndicate Bank represented by The General manager Syndicate Bank Regional Office Leelavathi Building 69, Armenian Street, Chennai 600 001. 6.Canara Bank represented by The General Manager, Canara bank Credit Policy Section Risk Management Wing Head Office 112, J.C.Road, Bangalore-560 002. 7.Indian Bank represented by The General Manager (CR) HO/Credit Division Indian Bank 66, Rajaji Salai Chennai 600 001. 8.Bank of India represented by The Zonal Manager Bank of India Coimbatore Zone STAR House 324, Oppanakkara Street Coimbatore 641 001. 9.State Bank of India represented by The Deputy General Manager State Bank of India Local Head Office Circle Top House 16, College Lane Chennai 600 006. 10.Institution of Valuers represented by The Honorary General Secretary Institution of Valuers Head Office 4, 5 & 6, Vishal Market Mukherjee Nagar (W) New Delhi-110 009. ... Respondents PRAYER Writ Petition filed under Article 226 of the Constitution of India praying for the issuance of writ of Certiorari calling for the records of the second respondent FIR in Cr.No.2/2004, dated 11.02.2004 and to quash the same as illegal, arbitrary and unconstitutional insofar as the petitioner is concerned. !For Petitioner ... Mr.K.P.Vijayakumar ^For Respondents ... Mr.C.Fernandas Rathinaraj for R1 Mr.M.Govindan for R2 Special Government Pleader Mr.S.Rozario Sundar Raj for R3 Mr.K.Ramamoorthy for R4 Mr.R.Pandivel for R5 Mr.Madhavan Kutty for R6 Mr.S.Suresh for R7 Mr.M.Senthil Kumar for R8 Mr.S.Sethuraman for R9 Mr.Pala.Ramasamy for R10 :COMMON ORDER
Nine writ petitions were filed by the same petitioner. The petitioner is a assisted person assisted by Mr.K.P.Vijayakumar.
2. Out of these nine writ petitions, W.P.(MD)No.5405 of 2011 is filed to quash an FIR in Cr.No.2 of 2004, dated 11.02.2004 as illegal arbitrary and unconstitutional insofar as the petitioner is concerned.
3. In W.P.(MD).No.5406 of 2011 is concerned it is for the writ in the nature of Prohibition prohibiting the third respondent in the writ petition, namely Central Bureau of Investigation (CBI), represented by The Inspector, Central Bureau of Investigation(CBI)/SPE located at Kathirkadavu, Kaloor, Kochi, Kerala State from proceeding in S.C.No.35 of 2007 on the file of Special Judge (CBI/SPE)-I, Sessions Court, Ernakulam, Kerala State, so far as the petitioner is concerned.
4. W.P.(MD).No.5408 of 2011 is for a Writ in the nature of Certiorarified Mandamus pertaining to the proceedings of the 7th respondent namely, Indian Bank represented by The General Manager (CR), HO/Credit Division, 66, Rajaji Salali, Chennai-1 seeking to set aside an order dated 01.11.2010 and after setting aside the same seeks for a direction to the said Bank to reinstate the petitioner's name in all kinds of panel of valuers considering the service area for the whole State of Tamil Nadu. By the impugned order dated 01.11.2010 the Indian Bank informed the petitioner that they found certain deficiency in the professional services rendered by the petitioner and therefore, they refused to accede his request made by way of representation dated 13.10.2010.
5. W.P.(MD).No.5410 of 2011 is once again for a similar relief to him as against the Bank of India vide their order dated 14.10.2008. By the said order the Bank of India represented by Zonal Manager, Coimbatore Zone, informed the petitioner that their branches at Pannankombu and Thuvarankurichi have recommended discontinuance of the service of the valuer. Further he was not available in spite of attempts and also his involvement in CBI cases, where he was arraigned as an accused.
6. W.P.(MD).No.5412 of 2011 is to challenge the order sent by the Deputy General Manager of the State Bank of India, Local Head Office, Chennai. By the said order, the Bank informed the petitioner that the inclusion of the Valuers in the panel maintained by the Bank will be after considering various norms regarding qualification experience, and member of Institution of Valuers and the needs of the Bank. The Bank did not make any discrimination on the basis of caste or creed. The review of Panel Valuers for Tiruchirapalli centre was done in the year 2005 and it was found that there was no need to include any new valuer in the panel. It is also stated that the persons who are not qualified as per RBI guidelines were empanelled by the Bank was also denied.
7. It is also stated that the allegation of the petitioner that the Vice President of Institution of Valuers used his influence to make the bank not to include the petitioner's name was also denied. It is also stated that no valuer was included in the panel after 2005. It was further informed that the Bank cannot include any person as a Valuer when the criminal case is pending against him. They are also asked for comments from the branches concerned. On receipt of such complaint and after the need of any new addition, the Bank will consider the question of extending the names in the panel.
8. W.P.(MD) NO.5413 is for a direction to the 10th respondent namely, Institution of Valuers represented by the Honorary General Secretary to grant a compensation of 65 lakhs for the willful offences of atrocities committed including caste discrimination against the fellow members and others and it must be responsible for the degraded present socio-economic status of the petitioner due to willful commission of unlawful activities.
9. W.P.(MD).No.5537 of 2011:- In this writ petition, the petitioner has sought for a suitable monetary compensation as victim of police atrocities for the arbitrary, malicious, and illegal detention for 18 days from 09.09.2006 to 27.09.2006 and further harassment by way of conditional bail on 30.11.2007 by the second respondent, State of Tamil Nadu represented by the Inspector, City Crime Branch, Tiruchirappalli City Police.
10. W.P.(MD).No.5540 of 2011 is for calling for the records from the fifth respondent, the Syndicate Bank and seeks to set aside an order dated 03.08.2010. By the impugned order the Syndicate Bank informed the petitioner that pursuant to the representation dated 10.07.2010, they are not in a position to accede to his request for inclusion of his name in the panel of valuers, since the matter is pending investigation by the CB CID police.
11. In W.P.(MD).No.5543 of 2011 the petitioner challenges an order dated 10.01.2011 issued by the Canara Bank and seeks to set aside the same as illegal, arbitrary and unconstitutional and for a consequential direction to include the petitioner's name in all kinds of panel of valuers in the State of Tamil Nadu maintained by them. By the impugned order, dated 10.01.2011, which was sent pursuant to the petitioner's representation dated 22.11.2010, he was informed that his name was removed from the list of panel valuers and the allegations made vide letter dated 22.11.2010 was baseless. The delisting of the petitioner from the panel was done on the basis of extant guidelines in vogue.
12. These nine writ petitions in which the petitioner claims can be classified in to six categories. The first category related to the quashing of an FIR in Cr.No.2 of 2004, dated 11.02.2004. The second category related to prohibiting the criminal case pending in S.C.No.35 of 2007, dated 17.02.2007 on the file of Special judge,(CBI/SPE)-I, Sessions Court, Kochi, Kerala State. The third category related to seeking for inclusion of his name in the panel of valuers with various National Banks, to which the petitioner had earlier send representation and the same was denied. The fourth category related to the removal of the name of the petitioner from the panel by the Canara Bank for certain reasons and the delisting is challenged. The fifth category related to grant of compensation from the State Government for the illegal detention for the period from 09.09.2006 to 27.09.2006 which was arbitrary, malicious and for the further harassment done to him during the conditional bail upto 30.11.2011. The sixth category related to the actions of the Institution of Valuers for the various illegal acts done by them and the demand for compensation for the 15 days suffered by him.
13. Before proceeding to deal with the case of the petitioner in these writ petitions, it is necessary to set out the backdrop leads to filing of the present writ petitions.
14. A status report was filed by the Inspector of Police, CBI/SPE/Kathirkadvau Post, Kaloor, Ernakulam District, Kerala dated 12.08.2011. In the status report it was brought to the notice of this Court that the petitioner was accused No.3 in a case registered by the CBI/ACB/Cochin Branch on 16.03.2004. The case is filed under Sections 120-B r/w 420, 467, 471 IPC as well as under Section 13(2) r/w 13(1)(d) of Prevention of Corruption Act, 1988. The first information was sent to the Court as early as 16.03.2004.
15. The substance of the allegation against the petitioner was that he prepared a valuation report for the lands, which was given by M/s.Daraja Ventures (P) Ltd., by abusing his official position and prepared inspection report which enable the said company to get advance money and the Canara Bank has suffered a loss of Rs.82,32,005/-.
16. It was also stated that a charge sheet has been filed on the completion of investigation. The charge sheet also covered the name of the petitioner. A total number of 66 persons were cited as prosecution witnesses and 115 documents were filed as list of documents along with the charge sheet. Insofar as the petitioner is concerned, Document Nos.20, 23 to 26 directly links the role of the petitioner. The trial is pending before the Special Judge- I, CBI, Ernakulam in S.C.No.35 of 2007. The Special court is yet to frame charges and the petitioner himself had filed a discharge application under Section 227 Cr.P.C. before that Court on 29.12.2009 in M.P.No.4400/2009, which is also pending.
17. It is also the stand of the CBI that a loan amounting to Rs.80 lakhs was extended by the Overseas Branch of Canara Bank, to a private company on the basis of collateral security. The bank while processing the loan application sought for a legal opinion of their Advocate from the panel and valuation report of the property from the panel valuer. Since the property was situated at Tiruchirapalli, the valuation report is obtained from Tiruchirapalli and the person who valued was in the panel of Canara Bank, Tiruchirapalli and the investigation also reveal the document pertaining to the property was a forged one and no such property ever existed. The petitioner who is accused No.6, in pursuance of the conspiracy with other accused persons had prepared a sketch showing the property with its boundaries and valued the property for the Canara Bank.
18. This bogus valuation report along with sketch allowed the bank to get misguided and it had advanced a stock loan to a third party. The CBI also had searched office of the petitioner. Incriminating documents including job order book, Accounts Book Phone Message Book and a file containing copies of false valuation reports were seized from the house was produced as Documents Nos.23 to 26 before the criminal Court.
19. He was shown as accused No.3 in the First Information Report and after investigation, he was shown as accused No.6 in the charge sheet filed before the special Court. It was also stated that charge sheet was only made on the basis of evidence available. It was averred that the writ petition was not maintainable.
20. The first writ petition namely W.P.(MD).NO.5406 of 2011, wherein a writ in the nature of prohibition was taken up first for disposal. It must be noted that admittedly, the case is still pending before the Special Judge, (CBI/SPE)-1, Sessions Court, Ernakulam and comes under the jurisdiction of Kerala High Court. The petitioner had also filed a discharge application before the said Court. Therefore, at this stage it is not clear how such a writ petition that too prayer for Writ in the nature of prohibition will lie against a Special Court functioning in Kerala State. The offences also took place within the State of Kerala.
21. When asked how this Court is competent to issue such a Writ of prohibition outside the territorial jurisdiction of this Court, the learned counsel for the petitioner produced a text book published by Buttersworths/Lexis Nexls on "Writs and Other Constitutional Remedies" authored by one Asim Pandya. A reference was made to pages 90 and 91, where the scope of Article 226 and the power to issue writs were discussed. A reference was also made to the passage wherein the author had opined that a writ petition can be instituted in an High Court after the amendment made Article 226 and it has a wide scope and the territorial jurisdiction of an High Court is available even if a part of cause of action arose. The author of the Book also made reference to the case in Navinchandra N.Majithia v. State of Maharashtra reported in AIR 2000 SC 2966. However, this Court is not inclined to accept the broad legal proposition culled out from the book.
22. On the contrary, in respect of criminal offences, the jurisdiction of an High Court is well defined. The Supreme Court vide its judgment in Mosaraf Hossain Khan v. Bhagheeratha Engg.Ltd reported in 2006 (3) SCC 658 dealt with the scope of power under Article 226 of the Constitution while exercising its extraordinary jurisdiction in interfering with the orders of Magistrates taking cognizance under Cr.P.C. It was held that an High Court under Article 226 should not ordinarily interfere with an order taking cognizance by a competent Court of law. Only an High Court in whose jurisdiction the order of the Subordinate Court would have the jurisdiction to entertain an application under the Article 226 of the Constitution of India. The High Court also must remind itself about the doctrine of forum non conveniens also. It is necessary to refer to the passages found in paragraphs 25, 28 to 29 in that judgment which are as follows:-
25. It is no doubt true that in a criminal matter also the High Court may exercise its extraordinary writ jurisdiction but interference with an order of the Magistrate taking cognizance under Section 190 of the Code of Criminal Procedure will stand somewhat on a different footing as an order taking cognizance can be the subject-matter of a revisional jurisdiction as well as of an application invoking the inherent jurisdiction of the High Court. A writ of certiorari ordinarily would not be issued by a writ court under Article 226 of the Constitution against a judicial officer. (See Naresh Shridhar Mirajkar v.
State of Maharashtra9.) However, we are not oblivious of a decision of this Court in Surya Dev Rai v. Ram Chander Rai10 wherein this Court upon noticing Naresh Shridhar Mirajkar9 and also relying on a Constitution Bench of this Court in Rupa Ashok Hurra v. Ashok Hurra11 opined that a Judicial Court would also be subject to exercise of writ jurisdiction of the High Court. The said decision has again been followed in Ranjeet Singh v. Ravi Prakash12. It is, however, not necessary to dilate on the matter any further. The jurisdiction of the High Court under Section 482 of the Code of Criminal Procedure was noticed recently by this Court in State of U.P. v. Surendra Kumar13 holding that even in terms thereof, the Court cannot pass an order beyond the scope of the application thereof. In Surya Dev Rai10 we may however, notice that this Court categorically stated that the High Court in issuing a writ of certiorari exercises a very limited jurisdiction. It also made a distinction between exercise of jurisdiction by the High Court for issuance of a writ of certiorari under Articles 226 and 227 of the Constitution. It categorically laid down that while exercising its jurisdiction under Article 226, the High Court can issue a writ of certiorari only when an error apparent on the face of the record appears as such; the error should be self-evident. Thus, an error according to this Court needs to be established. As regards exercising the jurisdiction under Article 227 of the Constitution it was held: (SCC p. 689, para 24) "The power may be exercised in cases occasioning grave injustice or failure of justice such as when (i) the court or tribunal has assumed a jurisdiction which it does not have, (ii) has failed to exercise a jurisdiction which it does have, such failure occasioning a failure of justice, and (iii) the jurisdiction though available is being exercised in a manner which tantamounts to overstepping the limits of jurisdiction."
28. We have referred to the scope of jurisdiction under Articles 226 and 227 of the Constitution only to highlight that the High Courts should not ordinarily interfere with an order taking cognizance passed by a competent court of law except in a proper case. Furthermore only such High Court within whose jurisdiction the order of the subordinate court has been passed, would have the jurisdiction to entertain an application under Article 227 of the Constitution unless it is established that the earlier cause of action arose within the jurisdiction thereof.
29. The High Courts, however, must remind themselves about the doctrine of forum non conveniens also. [See Mayar (H.K.) Ltd. v. Owners & Parties, Vessel M.V. Fortune Express16.] (Emphasis added)
23. Significantly in that judgment, even the decision quoted by the author of the Book and relied on by the petitioner i.e. Navinchandra N.Majithia's case (cited supra) was referred and explained. Therefore, when a competent Court namely the Special Court in State of Kerala is seized of the matter, it is not open to this Court to issue a writ in the nature of prohibition and such a writ petition will not lie.
24. This Court also lacks territorial jurisdiction to deal with a matter seized by the Court in State of Kerala and the power to deal with the the grievance of the petitioner, is the High Court of Kerala and not this Court. Therefore, the W.P.(MD)No.5406 of 2011 is liable to be rejected. Accordingly, W.P.(MD).No.5406 of 2011 will stand dismissed.
25. In W.P.(MD).No.5405 of 2011 once again the prayer is to quash an FIR in Cr.NO.2 of 2004 dated 11.02.2004. It is a case registered by the Inspector of Police, Special Crime Branch, Tiruchirapalli. The case was registered on the basis of a specific complaint by the Branch Manager, Syndicate Bank, S.R.College Branch, Tiruchirapalli. Subsequent to the criminal case, the petitioner had applied for bail, which was granted with conditions. He also filed modification and the same was also granted by the Special Court, Tiruchirapalli. The conditions imposed was also subsequently relaxed on 30.01.2011 by the same Sessions Court. It is at this stage, the petitioner had come forward to quash the first information report as illegal arbitrary and unconstitutional.
26. The contention raised by the petitioner was that there was no legal provision under which the police can register a complaint for the valuation report which was said to be a forged document. He cannot found fault if the document was a forged one. Hence, the criminal proceedings are void. The State Police ought to have transferred the bank fraud case to the CBI for lack of its jurisdiction. Therefore, the first information report was invalid. A reference was also made to the Judgment of the Supreme Court in Ramesh Kumari v. State (NCT of Delhi) & others (2006 (2) Supreme 243 = 2006(2) SCC 677). It was also claimed the valuer is not a investigator and he only follows the identification of the property to determine its market value and they cannot be experts. The entire initiation of the case was that the investigation was without jurisdiction and it will lead to miscarriage of justice. Reliance placed upon Ramesh Kumari's case (cited supra) seeking for transfer of investigation to CBI by the petitioner is inappropriate. The case does not help the petitioner as can be seen from the passage found in paragraph 5 of the said order, which is as follows:
"5.The views expressed by this Court in paras 31, 32 and 33 as quoted above leave no manner of doubt that the provision of Section 154 of the Code is mandatory and the officer concerned is duty-bound to register the case on the basis of such an information disclosing cognizable offence."
27.Further, in that case, all the parties have agreed for transferring the case to CBI which is more or less by consent order as can be seen from paragraph 7 of the order, which is as follows:
"7.In this case, admittedly, the complaint was filed against the police officer. Learned counsel for the parties are not at variance that in such a situation the interest of justice would be better served if this Court directs CBI to register the case and investigate the matter."
28. However, this Court is not inclined to go into the question of quashing a first information report at this stage. The allegations showed that the petitioner was responsible in a conspiracy. Even those allegations related to any banking transaction, it does not mean that the State police has no jurisdiction to enquire into the complaint. Ultimately, after the investigation, even if any final report is filed before a competent Court, there will be time enough for the petitioner to object to the report. Because a first information report was registered on a complaint of cognizable offences and the investigation had proceeded, leading to the arrest of the petitioner, it will not be a ground to invalidate a F.I.R. The competency or otherwise will be decided only when the final report is submitted by the investigating officer. The petitioner cannot forestall the police from taking a decision after the investigation is completed.
29. As to the limitation of this Court to interfere with a first information report came to be considered by the Supreme Court in Shashikant V CBI reported in (2007) 1 SCC 630. The Supreme Court in paragraphs 30 and 32 held as follows:-
"30. The first respondent is a statutory authority. It has a statutory duty to carry out investigation in accordance with law. Ordinarily, it is not within the province of the court to direct the investigative agency to carry out investigation in a particular manner. A writ court ordinarily again would not interfere with the functioning of an investigative agency. Only in exceptional cases, it may do so. No such case has been made out by the appellant herein. The nature of relief prayed for in the writ petition also is beyond the domain of a writ court save and except, as indicated hereinbefore, an exceptional case is made out.
32. So far as the decision of the first respondent herein, not to register a regular case so as to take up an investigation into the allegation against the officers concerned, is concerned, the appellant may have to pursue his own remedy keeping in view the fact that the first respondent before this Court has furnished the details of its findings in the preliminary inquiry as also the result of the departmental proceedings initiated against the delinquent officers."
30. The Supreme Court also held that quashing of a criminal complaint cannot be done in a writ petition under Article 226 on the basis of assertion of the accused. The facts may have to be established on evidence at the trial. This principle was laid down in Veera Exports v. T.Kalavathy reported in (2002) 1 SCC
97. In paragraph number 10, it was observed as follows:-
10. . . .This is a fact which will have to be established on evidence during trial. At this stage the High Court could not have quashed the complaint merely on the basis of an assertion in the reply.
31. Further, the Supreme Court in Rukmani Narvekar v. Vijaya Satardekar reported in (2008) 14 SCC 1 dealt with the scope of the high Court in quashing a criminal charge or a complaint under Article 226. After referring all the previous case laws, the Supreme Court held that the defence of an accused cannot be looked into at the time of framing of the charge sheet. Only in a rare and an exceptional case, the defence can be taken note of. In paragraph 22 it was observed as follows:-
"22. Thus in our opinion, while it is true that ordinarily defence material cannot be looked into by the court while framing of the charge in view of D.N. Padhi case6, there may be some very rare and exceptional cases where some defence material when shown to the trial court would convincingly demonstrate that the prosecution version is totally absurd or preposterous, and in such very rare cases the defence material can be looked into by the court at the time of framing of the charges or taking cognizance. In our opinion, therefore, it cannot be said as an absolute proposition that under no circumstances can the court look into the material produced by the defence at the time of framing of the charges, though this should be done in very rare cases i.e. where the defence produces some material which convincingly demonstrates that the whole prosecution case is totally absurd or totally concocted."
32. In the light of self imposed restraint of this Court, this Court is not inclined to quash the FIR, even at the stage of investigation. Hence the writ petition in W.P.(MD).No.5405 of 2011 will stand dismissed.
33. W.P.(MD).No.5537 of 2011 the prayer is based upon the result in W.P.(MD).No.5405 of 2011. The petitioner seeks for compensation as a victim of police atrocities. The petitioner has come out on bail and the conditions imposed on the bail have been relaxed. The investigation is not over and hence the question of considering any compensation for the alleged unlawful detention will not arise. With reference to allegation of inflictment of torture either mentally or physically, such issues can be decided only after the completion of the investigation and the final report if any filed is thrown out by a competent criminal Court. At the stage when petitioner has been freed on bail, such questions cannot be considered and the grant of compensation will not arise. Hence, W.P.(MD).No.5537 of 2011 will also stand dismissed.
34. W.P.(MD).No.5413 of 2011 the issue is relating to the petitioner being unfairly treated by the Institution of Valuers and therefore he is liable to get compensation of Rs.65 lakhs and that there was caste discrimination by the institution of valuers is concerned, it must be noted that such institution of valuers is only a private body and not amenable to writ jurisdiction of this Court. For this proposition one has only to refer to a decision of the Supreme Court in Zee Tele films Ltd Vs. Union of India reported in 2005 (4) SCC 649.
35. The contesting respondent is only an Association of Valuers run by is own bye-laws. It is necessary to know about the Institution of Valuers (For short IOV) and its various functions which will clearly show that it is a Non- Governmental Organisation and registered as a society. The official website of the IOV describe its role and functions as follows:
"The Institution of Valuers (IOV) is a premier organization of valuation professionals in India, embracing about 70% of recognized valuation professionals in the country from across various specialisms and geographical regions of India. It was the first national professional valuation society to be established in 1968 (Registered under the Societies Registration Act XXI of 1860) with branches in the majority of States of India. It has the global status of premier valuation organization with current membership reaching over 20,000 valuers.
IOV is amongst the top five valuers association of the world on the basis of registered valuation professionals. The Institution of Valuers brings into its fold valuers of immovable property, agricultural lands, coffee estates, stocks, shares and debentures of companies, shares of a partner in a partnership, business assets including goodwill, jewellery, precious stones and ornaments, works of art, life interest reversions and interests expectancy, tea estates, standing forests, mines and quarries, machinery, electrical equipments, industry, etc. IOV being the premier valuation association of India assists and guide general public, government and semi-government bodies in all types of valuation matters. IOV assists and guides general public, government and semi-government bodies in adjudicating valuation related disputes through its Experts Council, certifying valuation professionals and developing valuation standards. IOB guides its members to stick to and follow principles of valuation while valuing properties and assets to avoid variance in value of properties of similar nature. IOV imparts, encourages and arranges for training of the valuation and survey work of all types. It also hosts its semi-annual valuation Conferences and seminars to discuss advances in methodology and public valuation policy. IOV has been in the process of establishing and maintaining libraries and publish magazines, periodicals and books. The IOV is a founder and publisher of the Indian Valuer, Monthly periodical, a leading national research periodical of the valuation. IOV grants diplomas or certificates of Fellowship or Membership to the members who are eligible for the same by experience and/or general qualifications. It also holds examination in all branches for valuation work for enrolment of members.
This Institution has been formed to assist in the task of formulation of ideas, spreading knowledge and education on matters relating to valuation for the Central and State Governments and General Public. It also renders advisory service to Valuers, Government Departments, Banking institutions and the General Public in solving their problems and overcome difficulties in valuation techniques through its monetary journal Indian Valuer (which the members of the institution get free of cost) and also by holding Seminars/Lecturers/Work-shops regularly, all over India.
The fellowship of the Institution is awarded only to the highly qualified engineers and other competent valuers, having at least 10 years practical experience in valuation work in different categories of assets. All members are bound by code of conduct and professional ethics as propounded by the Institution."
Therefore, the petitioner seeking for compensation from a private organization on any grounds including the grounds set out in the writ petition, is not feasible for compliance. It is for the petitioner to work out his remedy elsewhere. In view of the fact that such a writ is not maintainable, W.P.(MD).No.5413 of 2011 will also stand dismissed.
36. W.P.(MD).No.5543 of 2011 relating to delisting the petitioner from the panel of valuers by the Canara Bank is concerned, the said question cannot be considered. The reasons assigned in the order dated 10.01.2011 i.e. that delisting has been done in the light of the guidelines kept with the bank and that the petitioner was facing a criminal case cannot be lightly brushed aside.
37. The panel of valuers are maintained by the bank for its own convenience. Hence, the relationship between a bank and the petitioner is contractual in nature. It is for the bank to retain a particular valuer. If there are any strong and compelling reasons are available, it is always open to the Bank to delist any person from the list of its panel. The allegation that it was due caste discrimination, he was removed cannot be believed in the light of the pending first information report against the petitioner by the Tiruchirapalli police as well as the pending criminal case before the Special Judge at Kochi. Hence the attempt by the petitioner for setting aside the impugned order cannot be countenanced by this Court.
37. In the present case, by the impugned communications, the petitioner was informed about the norms fixed by each bank and also non inclusion of any fresh valuers in the existing banks as well as the reports obtained from the branches regarding the conduct of the petitioner in the grant of false valuation report, which resulted in a CBI investigation and filing of a charge sheet. These materials strongly suggest that this Court cannot give a direction to the banks to retain the name of the petitioner in the panel of valuers without his coming out unimpeached by the criminal Court. Until such time, the bank can be guided by the materials which cannot be ignored. The materials relied on cannot be considered either irrelevant or illegal in such circumstances.
36.Though nationalised banks are amenable to writ jurisdiction, it does not mean every action of such banks can be called in question for a judicial review by this court. In matters of contract, unless the orders are wholly arbitrary or unreasonable, the court will decline to exercise its jurisdiction. In this context it is necessary to refer to a judgment of the Supreme Court in Indian Bank v. Godhara Nagrik Cooperative Credit Society Limited reported in (2008) 12 SCC 541 and in paragraph 16, it was observed as follows:
"16.It is one thing to say that the public sector banks having regard to the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 should discharge their functions keeping in mind the larger public interest but ordinarily in the matter of enforcement of contract, they are to be governed by the terms thereof, which would not be amenable to writ jurisdiction of the High Court unless the actions of the banks are found to be wholly arbitrary and unreasonable."
38.In the very same case, when a complaint was made by the cooperative society about the unfair action of nationalised banks, the Supreme Court took note of the role played by the cooperative banks themselves in the mater of fraud and as the matter was pending before the the criminal court, it was opined that the High Court should not have gone into such issues. In paragraph 39 of the order, it was observed as follows:
"39.The question as to whether fraud has been committed by the officers of the bank is pending consideration before a competent criminal court. There are other various disputed questions which are required to be gone into in the said proceeding. The role played by some of the respondent-writ petitioners is also in issue. Such seriously disputed questions of fact, in our opinion, could not have been gone into by the writ court."
Hence the attempt by the petitioner to challenge the delisting by the respondent bank from the panel of valuers cannot be entertained. Hence W.P.(MD)No.5543 of 2011 will stand dismissed.
39. In respect of the four nationalised banks which had rejected the petitioner's applications for inclusion in their panel of valuers are concerned, it must be noted that a panel of valuers are maintained by the banks only in aid of the banks. If a particular valuer was facing criminal case, there will be no justification to have his name included in their panels.
40. Further, the inclusion or exclusion of any name in the panel of valuers is a discretionary acts of the banks. Only when discretion had been exercised improperly, this Court cannot go into the said issue under Article 226 in the matter of purely contractual in nature. Therefore, the writ petitions are liable to be rejected. Accordingly, W.P.(MD).Nos.5408, 5410, 5412 and 5540 of 2011 stand dismissed.
41. Further, the counsel for the petitioner finally made a statement that the petitioner belongs to the Scheduled Caste community and therefore, the Court must show sympathy in dealing with the matters.
42. When matters are covered by legal precedents, rule or law enjoins this Court not ignore the legal precedent in the matter of granting relief. If the allegations against the petitioner that false or vexatious or malicious cases were launched against him, either in the criminal law on in any other proceedings, Section 3(viii) of the Scheduled Castes and the Schedule Tribes (prevention of Atrocities) Act, 1989 makes such acts as offences. Even in case of malicious prosecution, the petitioner can work out his remedy by approaching the appropriate forum. But, it must be noted that under Section 22 of the Act protection has been given for actions taken on good faith. It has been specifically provided that no suit, prosecution or other legal proceedings shall lie against the Central Government or the State Government or any officer or authority of the Government or any other persons for anything which is in good faith done or intended to be done under this Act. Therefore, unless the petitioner makes out an extraordinary case, before an appropriate forum, the question of considering the last submission of the counsel for the petitioner will not arise in these writ petitions.
41. In view of the above factual matrix and legal precedents, all the writ petitions will stand dismissed. Consequently, the connected miscellaneous petitions are closed. No costs.
jikr To
1.Union of India, represented by The Under Secretary to the Government of India Department of Financial Services, Ministry of Finance, New Delhi-110 001.
2.State of Tamil Nadu represented by The Inspector, City Crime Branch, Tiruchirappalli City Police, Tiruchirappalli-620 021.
3.Central Bureau of Investigation represented by The Inspector, Central Bureau of Investigation(CBI)/SPE Kathirkadvu, Kavloor, Cochin-682 017.
4.Reserve Bank of India represented by The Manager Reserve Bank of India Customer Services Department Central Office 1st Floor, Amar Building Sir M.P.Road, Fort Mumbai-400 001.
5.Syndicate Bank represented by The General manager Syndicate Bank Regional Office Leelavathi Building 69, Armenian Street, Chennai 600 001.
6.Canara Bank represented by The General Manager, Canara bank Credit Policy Section Risk Management Wing Head Office 112, J.C.Road, Bangalore-560 002.
7.Indian Bank represented by The General Manager (CR) HO/Credit Division Indian Bank 66, Rajaji Salai Chennai 600 001.
8.Bank of India represented by The Zonal Manager Bank of India Coimbatore Zone STAR House 324, Oppanakkara Street Coimbatore 641 001.
9.State Bank of India represented by The Deputy General Manager State Bank of India Local Head Office Circle Top House 16, College Lane Chennai 600 006.