Page 18 - Banking Finance April 2016

LEGAL UPDATE

Judgment which decides Fresh auction for setting up a modern abattoir in
an appeal for the first
time to give reasons for Meerut
conclusion
The Supreme Court set aside the judg- therefore, a fresh advertisement was
The judgment of a court which de- ment of the Allahabad High Court and issued. The selected firm moved the
cides an appeal for the first time must ordered a fresh auction for setting up high court, which quashed the fresh
give reasons for its conclusion, the Su- a modern slaughter house in Meerut. bids. The state government and the
preme Court reiterated in the case, The court in 2006 had emphasised the corporation moved the Supreme Court.
UP Transport Corporation vs Mamta. need for modernising
In this case, a youth died in a road slaughter houses. The UP Allowing their appeal in the
accident. The family claimed compen- government, therefore, is- judgment, State of UP vs Al
sation and the motor vehicle claims sued policy guidelines and Faheem Meetex Ltd, the
tribunal awarded her Rs 24.76 lakh. followed the private-public apex court stated that the
participation model for ur- corporation has discretion
The corporation appealed to the ban local bodies according to pre- in accepting or rejecting
Allahabad high court, arguing that scribed standards. bids, especially when there were only
the deceased person also contrib- two bidders and more competitive of-
uted to the accident and the com- The state called for tenders and one fers were required. Moreover, the ten-
pensation amount was dispropor- private firm out of two bidders was se- der was made in 2010 and because of
tionate. The high court dismissed the lected. Later, the finance department the passage of six years it was all the
appeal with a cryptic order contain- raised some procedural objections and, more important to call for fresh bids.
ing no reasons. The corporation ap-
pealed to the Supreme Court, argu- SC dismisses Visakhapatnam Steel Plant appeal over ar-
ing that under the Civil Procedure
Code it was obligatory on the part of bitration award
the high court to discuss and decide
on the factual aspects argued. The Supreme Court has dismissed the appeal of Rashtriya Ispat Nigam Ltd
('Visakhapatnam Steel Plant') in its dispute with
The Supreme Court accepted this Prathysha Resources & Infra Ltd over the arbitra-
contention and sent the case back to tion award. The steel plant floated a tender for
the high court to review the facts. transportation of goods to the port and the oppo-
The judgment emphasised that the site party was the successful bidder.
factual aspects must be considered
in the first appeal when the court Disputes arose over rate of escalation and payment,
passes its order; otherwise the courts which was referred to arbitration by a retired judge.
hearing further appeals would not His award in favour of the transport company was challenged by the steel plant.
be able to decide the case fairly. The district judge set aside the award. On appeal, the Andhra Pradesh high court
approved of the award. The Supreme Court also upheld the award.

No litigant should suffer on account of vacancy in the tribunal

A single member of the Appellate Tribunal of Value Added Tax can function as the appellate tribunal under the Delhi VAT
Act, the high court ruled, rejecting the arguments in a number of appeals moved by companies, led by Franke Faber

India vs Commissioner. Initially, there was a chairman and two members. Later, two vacancies
arose with the judicial member alone functioning. The question was whether one person could
constitute the tribunal. The high court said yes. "No litigant should suffer on account of the
delays and uncertainties only because a vacancy is created in the appellate tribunal," the judg-
ment said. The decisions taken by the single member shall be valid and they shall not be sub-
jected to "collateral attack" by raising the validity of his appointment.

18 | 2016 | APRIL | BANKING FINANCE