Tuesday, November 11, 2025

Environmental & Consumer Protect. ... vs Delhi Administration & Ors on 3 October, 2012

 

Environmental & Consumer Protect. ... vs Delhi Administration & Ors on 3 October, 2012

Equivalent citations: AIR 2013 SUPREME COURT 1111, (2013) 1 JCR 235 (SC), (2012) 120 ALLINDCAS 163 (SC), (2012) 2 CLR 1206 (SC), 2012 (9) SCALE 692, 2012 (2) CLR 1206, 2012 (10) SCC 197, 2012 (120) ALLINDCAS 163, AIR 2012 SC (CIVIL) 2843, (2012) 7 MAD LJ 405, (2013) 2 MAD LW 200, (2013) 1 ORISSA LR 396, (2012) 4 SCT 342, (2013) 1 SERVLR 521, (2013) 1 CPR 569, (2012) 4 ICC 386, (2012) 9 SCALE 692, (2012) 2 WLC(SC)CVL 705, (2012) 95 ALL LR 901, (2012) 6 ALL WC 5685

Author: K. S. Radhakrishnan

Bench: Dipak MisraK. S. Radhakrishnan

                                                                             REPORTABLE
                        IN THE SUPREME COURT OF INDIA
                         CIVIL ORIGINAL JURISDICTION
                    WRIT PETITION (CIVIL) NO. 631 OF 2004

Environment & Consumer Protection Foundation             .. Petitioner
                                   Versus
Delhi Administration & Ors.                              .. Respondents

                               J U D G M E N T

K. S. Radhakrishnan, J.

1. This Court’s jurisdiction under Article 32 of the Constitution of India has been invoked by the petitioner, a registered charitable society, seeking various directions to improve the conditions of Government and aided schools and also school run by the local authorities so that the constitutional objective of providing free and compulsory education under Article 21A of the Constitution of India would be a reality.

2. The Writ Petition was filed in the year 2004 and since then, several interim orders have been passed giving directions to the States and the Union Territories to provide the basic infrastructure facilities like toilet facility, drinking water, class rooms, appointment of teachers and all other facilities so that children can study in a clean and healthy environment. While the matter was pending before this Court, the Parliament enacted the Right of Children to Free and Compulsory Education Act, 2009 (in short ‘the RTE Act’). The constitutional validity of the RTE Act was challenged before this Court and this Court, vide its Judgment dated 12.4.2012 in Society for Unaided Private Schools of Rajasthan v. Union of India and Another (2012)6 SCC 1, upheld its validity and gave various directions, some of which are as follows:

a) In exercise of the powers conferred upon the appropriate Government under Section 38 of the RTE Act, the Government shall frame rules for carrying out the purposes of this Act and in particular, the matters stated under sub-Section (2) of Section 38 of the RTE Act.
b) The directions, guidelines and rules shall be framed by the Central Government, appropriate Government and/or such other competent authority under the provisions of the RTE Act, as expeditiously as possible and, in any case, not later than six months from the date of pronouncement of this judgment.
c) All the State Governments which have not constituted the State Advisory Council in terms of Section 34 of the RTE Act shall so constitute the Council within three months from today. The Council so constituted shall undertake its requisite functions in accordance with the provisions of Section 34 of the Act and advise the Government in terms of clauses (6), (7) and (8) of this order immediately thereafter.
d) Central Government and State Governments may set up a proper Regulatory Authority for supervision and effective functioning of the Act and its implementation.

3. This Court, therefore, directed the Central Government, appropriate Government and other competent authorities functioning under the RTE Act to issue proper directions/guidelines for its full implementation within a period of six months from the date of the pronouncement of that judgment. This Court also directed all the State Governments to constitute State Advisory Council within three months from the date of that judgment. Advisory Councils so constituted were directed to discharge their functions in accordance with the provision of Section 34 of the RTE Act and advise the Government in terms of Clauses (6), (7) and (8) of this Court’s order. The necessity of constituting a proper Regulatory Authority for effective functioning of the RTE Act and its implementation was also highlighted. The Central Government was also directed to frame rules, in exercise of its powers under Section 38 of the RTE Act, for proper implementation of the RTE Act.

4. On the basis of directions issued by this Court in this Writ Petition, some of the States have responded by furnishing the details of infrastructure facilities available in the schools situated in their respective States. This Court noticed that some of the schools have not provided proper toilet facilities for boys and girls and in some of the schools, it was noticed, that there is no provision for drinking water as well. Detailed interim orders were passed by this Court on 29.4.2011 and 22.9.2011. On 18.10.2011, this Court passed the following order:

“We have heard the learned counsel for the parties. It is imperative that all the schools must provide toilet facilities. Empirical researches have indicated that wherever toilet facilities are not provided in the schools, parents do not send their children (particularly girls) to schools. It clearly violates the right to free and compulsory education of children guaranteed under Article 21-A of the Constitution.
We direct all the States and the Union Territories to ensure that toilet facilities are made available in all the schools on or before 30th November, 2011. In case it is not possible to have permanent construction of toilets, at least temporary toilets be provided in the schools on or before 30th November, 2011 and permanent toilets be made available by 31st December, 2011.
We direct the Chief Secretaries/Administrators of all the States/Union Territories to file their affidavits on or before 30th November, 2011.”
5. Again, on 5.12.2011, this Court reiterated the directions as follows:
“In our previous order dated 18.10.2011, we clearly indicated that it is imperative that all the schools must provide toilet facilities; empirical researches have indicated that wherever toilet facilities are not provided in the schools, parents do not send their children (particularly girls) to schools. It clearly violates the right to free and compulsory education of children guaranteed under Article 21-A of the Constitution. Office Report dated 3rd day of December, 2011 indicates that despite opportunity granted, the States of Tamil Nadu, Gujarat, Chhattisgarh, Meghalaya, West Bengal, Arunachal Pradesh, Punjab, Goa, Tripura and Union Territory of Lakshdweep have not filed their affidavits. One more opportunity is granted to these States/Union Territory to file their affidavits. Let the affidavits be filed within two weeks from today. No further time shall be granted for this purpose.
We are told that the Ministry of Drinking Water and Sanitation is the concerned ministry. We request the learned additional Solicitor General appearing on behalf of the Union of India to take instructions from the Ministry of Drinking Water and Sanitation and file an affidavit within four weeks from today, indicating therein the latest position about the problem of drinking water in the country.”
6. The situation that we get in few States has been elaborately dealt with by this Court in its interim order dated 13.1.2012. Some of the States have taken some positive steps, but some the States still lag behind. Taking note of all those aspects, this Court passed an order on 12.3.2012, the operative portion of which reads as follows:
“The Chief Secretaries of various States were directed to ensure that separate permanent toilets for boys and girls are constructed in all the schools in their respective States on or before 31st March, 2012 and in case it was not possible to construct permanent toilets, then at least emporary toilet facilities were directed tobe made available on or before 28th February, 2012 and it was directed than an affidavit to that effect shall be filed by the Chief Secretaries on or before 28th February, 2012.
In pursuance of the aforesaid directions of this Court, affidavits have been filed by the States of Uttar Pradesh, Assam, Meghalaya, Mizoram, Chhattisgarh, Punjab, Nagaland, West Bengal, Andhra Pradesh, Maharashtra, Uttarakhand, Odhisha, Karnataka, Jharkhand, Himachal Pradesh, Goa, Municiapl Corporation of Delhi and the Union Territory of Lakshadweep. These States/union Territories in their respective affidavits have indicated that they have either constructed the toilets for boys and girls or they would complete it before the stipulated date that is before 31st March, 2012.
According to the Office Report dated 3rd day of March, 2012, following States have not filed their affidavits:
1. Tripura
2. Tamil Nadu
3. Sikkim
4. Gujarat
5. Bihar
6. Rajasthan
7. Jammu and Kashmir
8. Madhya Pradesh
9. Kerala In the interest of justice, we grant one more opportunity to these States to file their respective affidavits within two weeks from today, failing which the Chief Secretary of the State concerned shall remain present in this Court on the next date of hearing. No further time shall be granted.

Learned counsel appearing on behalf of the Ministry of Drinking Water and Sanitation has handed over an affidavit of Sujoy Mojumdar, Director (Water), Ministry of Drinking Water and Sanitation, Government of India. In the affidavit it is mentioned that under the “Total Sanitation Campaign” (TSC), the Central Government supplements the efforts of the States in providing sanitation facilities in the rural areas, including identified existing rural Government schools and Anganwadis by providing them with financial assistance and technical support. It is further submitted in the affidavit that under the TSC, at present, School Sanitation Hygiene Education Programme is operational in 607 districts spread across 30 States and Union Territories and a total of 11,99,117 school toilets have been financially assisted under the TSC. The cumulative progress of school toilets unit blocks financially assisted under the TSC in the entire country till 29.2.2012 are as follows:

              Project Objectives             -           13,14,636


              Project Performance                  -          11,99,117


              Percentage-wise progress       -           91.21%


In paragraph 9 of the said affidavit it is stated that provision of sanitation facility in Government schools is made by States within their TSC allocation. Out of the total of Rs.3068.51 crore approved for School Sanitation under TSC, s.2268.28 crore (cumulative) has been reported as expenditure and utilized by the States. The State-wise details of financial progress and utilization under TSC till 29.2.2012 are tabulated and enclosed along with the affidavit.

In paragraph 10 of the affidavit it is mentioned that as per information provided by the Department of School Education and Literacy, Ministry of Human Resource Development, the number of Government schools with sanitation facility available, as per their District Information System for Education (DISE) 2010-11 is as under:

Total Number of Govt. Schools - 10,96,064 Government Schools with Girls Toilet - 6,24,074 Government Schools with Boys/ Common Toilet - 8,24,605 Let copies of this affidavit be supplied by the Registry to the learned counsel appearing for the States/Union Territories within one week from today.
Mr. Ravindra Bana, learned counsel appearing on behalf of the petitioner submits that after this Court has dealt with the problem of electricity, potable drinking water and toilets for boys and girls in the Government schools, the other main problem which is still persistent in most of the schools is regarding teachers and infrastructure. In order to ensure compliance of Article 21A of the Constitution, it is imperative that schools must have qualified teachers and basic infrastructure.
Learned counsel appearing on behalf of the National University for Educational Planning and Education undertakes to file a comprehensive affidavit giving therein up-to-date position about the availability of teachers and infrastructure in schools.
Let a comprehensive affidavit be filed by all the States/Union Territories regarding teachers and infrastructure in schools within three weeks from today, with an advance copy to the learned counsel for the petitioner and the counsel for the States/Union Territories.”
7. We notice that some of the States have not fully implemented the directions issued by this Court in Society for Unaided Private Schools of Rajasthan (supra) as well as the provisions contained in the RTE Act.

Considering the facts that this Court has already issued various directions for proper implementation of the RTE Act and to frame rules, there is no reason to keep this Writ Petition pending.

8. We also notice that Section 31 of the RTE Act has also conferred certain functions on the National Commission for Protection of Child Rights and also on the State Commissions. Section 31 reads as follows:

“31. Monitoring of child’s right to education.- (1) The National Commission for Protection of Child Rights constituted under section 3, or, as the case may be, the State Commission for Protection of Child Rights constituted under section 17, of the Commissions for Protection of Child Rights Act, 2005, shall, in addition to the functions assigned to them under that Act, also perform the following functions, namely:—
a) examine and review the safeguards for rights provided by or under this Act and recommend measures for their effective implementation;
b) inquire into complaints relating to child's right to free and compulsory education; and
c) take necessary steps as provided under sections 15 and 24 of the said Commissions for Protection of Child Rights Act.
(2) The said Commissions shall, while inquiring into any matters relating to child's right to free and compulsory education under clause (c) of sub-section (1), have the same powers as assigned to them respectively under sections 14 and 24 of the said Commissions for Protection of Child Rights Act.
(3) Where the State Commission for Protection of Child Rights has not been constituted in a State, the appropriate Government may, for the purpose of performing the functions specified in Clauses (a) to (c) of sub-section (1), constitute such authority, in such manner and subject to such terms and conditions, as may be prescribed.” We are confident that those statutory authorities will also examine and review the safeguards for the child’s rights and recommend measures for their effective implementation.

9. We are, inclined to dispose of this Writ Petition with a direction to all the States to give effect to the various directions already given by this Court like providing toilet facilities for boys and girls, drinking water facilities, sufficient class rooms, appointment of teaching and non- teaching staff etc., if not already provided, within six months from today. We make it clear that these directions are applicable to all the schools, whether State owned or privately owned, aided or unaided, minority or non- minority. As the writ petition is disposed of, no orders are required to be passed on applications for intervention and impleadment and the same are disposed of.

10. We make it clear that if the directions are not fully implemented, it is open to the aggrieved parties to move this Court for appropriate orders.

……………………………….…J (K. S. RADHAKRISHNAN) …………………………………..J. (DIPAK MISRA) New Delhi, October 3, 2012 ITEM NO.1C COURT NO.11 SECTION PIL [FOR JUDGMENT] S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS WRIT PETITION (CIVIL) NO(s). 631 OF 2004 ENVIRONMENTAL & CONSUMER PROTECT. FOUND. Petitioner(s) VERSUS DELHI ADMINISTRATION & ORS. Respondent(s) Date: 03/10/2012 This Petition was called on for judgment today.

For Petitioner(s) Mr. Ravindra Bana,Adv.

For Respondent(s) Ms. Sunita Sharma,Adv.

Ms. Sushma Suri,Adv.

Mrs. Anil Katiyar, Adv.

Mr. D.S. Mahra,Adv.

Mr. Khwairakpam Nobin Singh,Adv.

Mr. Sapam Biswajit Meitei,Adv.

Mr. Manjit Singh,AAG, State of Haryana Mrs. Vivekta Singh,Adv.

Mr. Tarjit Singh,Adv.

Mr. Kamal Mohan Gupta,Adv.

Mr. Atul Jha,Adv.

Mr. Sandeep Jha,Adv.

Mr. Dharmendra Kumar Sinha,Adv.

Dr. Manish Singhvi,AAG, State of Rajasthan Mr. Irshad Ahmad,Adv.

Mr. Sanjiv Sen,Adv.

Mr. P. Parmeswaran,Adv.

Mr. Ranjan Mukherjee,Adv.

Mr. S. Bhowmick,Adv.

Mr. S.C. Ghosh,Adv.

Mr. Sunil Fernandes,Adv.

Ms. Vernika Tomar,Adv.

Ms. Astha Sharma,Adv.

Mr. Amitesh Kumar,Adv.

Mr. Ravi Kant,Adv.

Ms. Prerna Mehta,Adv.

Ms. Binu Tamta ,Adv Mr. G. Prakash ,Adv Mr. Gopal Singh ,Adv Ms. Hemantika Wahi ,Adv Mr. Naresh K. Sharma ,Adv Ms. Pratibha Jain ,Adv Mr. Surya Kant ,Adv Mr. Shrish Kumar Misra ,Adv Mr. Tara Chandra Sharma ,Adv M/S Arputham,Aruna & Co. ,Adv Mr. Irshad Ahmad ,Adv Mr. V.G. Pragasam ,Adv Mr. S. Rajappa ,Adv Mr. Krishnanand Pandeya ,Adv Mr. Ramesh Babu M.R. ,Adv Mr. Radha Shyam Jena ,Adv Ms. Asha Gopalan Nair ,Adv Mr. Abhijit Sengupta ,Adv Ms. Bina Madhavan ,Adv Mr. Jagjit Singh Chhabra ,Adv M/S Corporate Law Group ,A.O.R. Ms. Vibha Datta Makhija ,Adv Mr. Kuldip Singh ,Adv Mr. S. Thananjayan ,Adv Mr. Abhishek Atrey ,Adv Mr. G.N.Reddy ,Adv Mr. Sudarshan Singh Rawat ,Adv M/S. Bhatia & Co. ,Adv Ms. Prerna Mehta ,Adv Hon'ble Mr. Justice K.S. Radhakrishnan pronounced reportable judgment of the Bench comprising His Lordship and Hon'ble Mr. Justice Dipak Misra.

In terms of signed reportable judgment, the writ petition is disposed of.

                 |(A.D. Sharma)                        | |(Renuka Sadana)                      |
|Court Master                         | |Court Master                         |


(Signed reportable judgment is placed on the file)

State Bank Of India vs Athena Energy Ventures Pvt Ltd on 24 November, 2020

 

State Bank Of India vs Athena Energy Ventures Pvt Ltd on 24 November, 2020

         NATIONAL COMPANY LAW APPELLATE TRIBUNAL
                       NEW DELHI

              Company Appeal (AT) (Ins) No.633 of 2020

[Arising out of Order dated 4th March, 2020 passed by National Company
Law Tribunal, Hyderabad Bench in CP(IB)No.466/7/HDB/2019] (Appeal
mentions number as 446. But see Impugned Order)


IN THE MATTER OF:          Before NCLT                 Before NCLAT

State Bank of India                                    Appellant
Stressed Asset
Management Branch,
Secunderabad
Door No.6-2-915,
5th Floor,
Rear Block,
HMWSSB Compound,
Khairthabad,
Hyderabad - 500 004


      Vs.


Athena Energy                                          Respondent
Ventures Private Limited
Front Side, Third Floor,
Part of Property
No.E-561, 561A,
G.R. Plaza, Palam,
Sector 7, Dwarka,
New Delhi - 110075



For Appellant:        Mr. V.M. Kannan, Mr. Sambit Panja and Mr.
                      Sanjay Kapur, Advocates

For Respondent:       Mr. Ramesh Babu Paluta, Advocate
                                      2



                               JUDGEMENT

(24th November, 2020) A.I.S. Cheema, J. :

1. This Appeal has been filed under Section 61(1) of the Insolvency and Bankruptcy Code, 2016 (IBC - in short) against Impugned Order dated 4th March, 2020 passed by the Adjudicating Authority (National Company Law Tribunal, Hyderabad Bench) in CP(IB)No. 466/7/HDB/2019. (Appeal and Parties have referred the Number as 446 but Impugned Order (Page 18) mentions number as 466. We will thus refer the number as 466). The Appellant - State Bank of India filed the Application against Respondent - Athena Energy Ventures Private Limited - Corporate Debtor who was Corporate Guarantor for "Athena Chattisgarh Power Ltd." (The Principal Borrower hereafter referred as "Borrower"). The application was filed as Borrower committed default in repayment of the financial assistance provided to the Borrower. Athena Chattisgarh (Borrower) is joint Venture Company promoted by the Respondent - Corporate Debtor. The Borrower availed financial assistance from the Appellant Bank and other banks, in consortium and had executed necessary documents in favour of the Appellant and other consortium banks. When the need of the Borrower increased, the Respondent which is a joint venture and promoter of Borrower came forward and executed corporate guarantee and documents in favour of the Appellant and other consortium of banks. The Respondent was under
obligation to see that amounts availed under the finance from the Company Appeal (AT) (Ins) No.633 of 2020 Appellant were repaid by the Borrower. The Appellant had sanctioned Rs.
3069, 68, 00, 000/- and had actually disbursed Rs. 2769, 19, 05, 767/-
to the Borrower. The Borrower committed default and Appellant filed Application under Section 7 of IBC against the Borrower before the Adjudicating Authority. The said Application was numbered as CP(IB)No.616/07/HDB/2018. The same was admitted by Adjudicating Authority by Order dated 15th May, 2019.

2. Appellant claims that the Appellant also filed present Application under Section 7 of IBC having number CP(IB)No.466/07/HDB/2019 to seek initiation of CIRP against Respondent - Corporate Guarantor. The Application was filed before the Adjudicating Authority at Hyderabad in view of provisions of Section 60(2) of IBC although registered office of Respondent is at New Delhi.

3. It appears that the Respondent opposed the Application filed claiming that the Application was arising out of very same transaction and very same common Loan Agreement dated 30th March, 2011 as amended by first Amendment Agreement dated 31st March, 2015 followed by second Amendment Agreement dated 1st September, 2016 and thus the Application filed by the Appellant against Respondent was duplicating the claim which was not permissible. The Respondent relied on the Judgement of this Appellate Tribunal in the case of "Vishnu Kumar Agarwal vs. Piramal Enterprise Ltd." - CA (AT) (Ins.) No. 346 & Company Appeal (AT) (Ins) No.633 of 2020 347 of 2018 dated 8th January, 2019 where it is held that once the petition under Section 7 of IBC is filed against Principal Debtor/Co- Guarantor and CIRP has been initiated, the Financial Creditor cannot file another Application on the very same set of claim.

4. The Adjudicating Authority heard the parties and referred to observations of this Tribunal in the matter of "Piramal". Keeping Judgement in the matter of Piramal in view, the Adjudicating Authority raised question that when Application under Section 7 had been admitted against the Principal Borrower whether the present Application by the same Financial Creditor could be admitted against Corporate Guarantor on same set of claims and default. The Adjudicating Authority relied on Para - 32 of the Judgement in the matter of Piramal and reproduced the same as under:-

"In para 32of their Judgement (supra) the Hon'ble NCLAT observed as under:-
"There is no bar in the 'I&B Code' for filing simultaneously two applications under Section 7 against the 'Principal Borrower' as well as the 'Corporate Guarantor(s)' or against both the 'Guarantors'. However, once for same set of claim application under Section 7 filed by the 'Financial Creditor' is admitted against one of the 'Corporate Debtor' ('Principal Borrower' or 'Corporate Guarantor(s)'), second application by the same 'Financial Creditor' for same set of claim and default cannot be admitted against the other 'Corporate Debtor' (the 'Corporate Guarantor(s)' or the 'Principal Borrower'). Further, though there is a provision to file joint application under Section 7 by the 'Financial Creditors', no application can be filed by the Company Appeal (AT) (Ins) No.633 of 2020 'Financial Creditor' against two or more 'Corporate Debtors' on the ground of joint liability ('Principal Borrower' and one 'Corporate Guarantor', or 'Principal Borrower' or two 'Corporate Guarantors' or one 'Corporate Guarantor' and other 'Corporate Guarantor'), till it is shown that the 'Corporate Debtors' combinedly are joint venture company."

Relying on the above paragraph, the Adjudicating Authority discussed and concluded that the Principal Borrower and Respondent could not be called joint venture Company as they were independent Companies having independent Memorandum of Association. Then, relying on the above paragraph in the matter of Piramal, the Adjudicating Authority declined to admit the Application as it was on same set of facts, claim and default for which CIRP was already initiated and was in progress in CP(IB) No.616/7/HDB/2018 and where according to the Adjudicating Authority, the claim of Applicant had already been admitted. Thus, the Application of the Appellant against the Respondent came to be rejected.

5. The present Appeal is against such Judgement.

6. We have heard Counsel for both sides. Counsel for Appellant referred to the Guarantee Agreement and their contents and the fact that Respondent stood Guarantor for the Principal Borrower. He referred to the dues outstanding as on 31st August, 2018.

Company Appeal (AT) (Ins) No.633 of 2020

7. Counsel for Respondent has not disputed the execution of the documents between the parties and the fact that Athena Chattisgarh Power Ltd. is the Principal Borrower and the quantum of amounts outstanding or that they are in default. The filing of the two Applications is also not in dispute as well as the fact that the CIRP has already been initiated against the Principal Borrower.

8. The learned Counsel for Appellant argued that under Section 128 of the Indian Contract Act, 1872, liability of the Principal Borrower and the Guarantor is co-extensive and the Creditor is entitled to proceed against either or both and no sequence is required to be followed. Referring to Section 5(8)(a), (h) and (i) of IBC, it is argued that IBC treats the Principal Borrower and Guarantor similarly. Reliance is placed on Section 60(2) of IBC to submit that simultaneous Application could be filed against the Borrower as well as Guarantor and that the same could also be maintained. The learned Counsel argued that Judgement in the matter of "Piramal" was relating to not Principal Borrower and Guarantor but filing of two separate proceedings against two Guarantors. Thus, according to him, the Judgement did not apply. It is argued that amended Section 60(2) of IBC was not noticed in Judgement of Piramal. It is also argued that Insolvency Law Committee Report of February, 2020 discussed the issue and had observed that proceedings could be maintained against the Borrower as well as Guarantor and Creditor could file claims in both CIRP proceedings. The learned Counsel also relied on Company Appeal (AT) (Ins) No.633 of 2020 the Judgment in the matter of "State Bank of India versus V. Ramakrishnan & Anr." (2018) 17 SCC 394 to submit that the Creditor has remedy with regard to his debt against both the Principal Debtor as well as the surety. It is argued by the learned Counsel for Appellant and he has filed copies of Orders passed by Hon'ble Supreme Court in Appeals pending against Judgement in the matter of Piramal and other Judgements of this Tribunal which have followed Judgement of Piramal. It is submitted that the Hon'ble Supreme Court has in the matter of Piramal in the Interim Order directed maintaining of status quo and in other matters, stayed the Judgements of this Tribunal.

9. Learned Counsel for Appellant relied on the observations of the Insolvency Law Committee ((ILC - in short) in its Report of February, 2020 and argued on the lines of observations of the ILC. It is argued that in IBC, the IRP/RP only collates claims. What haircut is taken by the Creditors in the matter of Resolution Plan is what the Appellant would be able to recover in the Resolution Plan or liquidation against the Corporate Debtor. It is argued, that can then be adjusted in the other proceeding. The claims can be reduced and adjusted proportionately in the two CIRP proceedings depending on the liability under the Deeds of Guarantee.

10. Against this, the learned Counsel for Respondent has relied on Reply (Diary No.22427) and it is argued that the soul of the IBC is resolution of the Corporate Debtor and to keep the Corporate Debtor a Company Appeal (AT) (Ins) No.633 of 2020 going concern to maximise value. The proceedings are not adverse in nature. It is accepted that under Section 128 of Contract Act, 1872, liability of the surety is co-extensive with the Principal Debtor and the Creditor may proceed against Principal Debtor, or the surety or both, in no particular sequence in recovery proceedings. However, it is claimed that this principle is not applicable in insolvency proceedings against the Principal Debtor and surety or against more than one surety, for same set of claims as claims against surety have to be reduced to the extent of claims lodged against the Principal Debtor. It is argued that for same amount, there cannot be two CIRP proceedings, one against Borrower and the other against the surety. The Counsel relied on Judgement in the matter of "Piramal". The learned Counsel referred to Halsburys Laws of England 4th Edition Para - 159 at Page - 87 where it is observed that it was necessary for the Creditor before proceeding against surety to request the Principal Debtor to pay or sue him although solvent, unless this was expressly stipulated. Reference is made to "The Law of Insolvency" by Ian F Fletcher where it is mentioned that where Creditor has already initiated action against Principal Debtor, the liability of surety is reduced to the amount for which Creditor's debt has been admitted. Based on this, it is argued that the amount claimed against the Borrower and the Respondent being same, the Application against Respondent could not be maintained. It is argued that the Appeal deserves to be dismissed.

Company Appeal (AT) (Ins) No.633 of 2020

11. Having heard Counsel for both sides and having gone through the record, it appears appropriate for us to first refer to Judgement in the matter of Piramal.

11.1. The two Appeals Company Appeal (AT) (Ins) No. 346 of 2018 and Company Appeal (AT) (Ins) 347 of 2018 were filed by shareholder against different Orders of Adjudicating Authority by which Orders CIRP was initiated against the two Corporate Guarantors. In that matter, the Principal Borrower was one "All India Society for Advance Education and Research" which was not a Company. Financial Creditor was "M/s. Piramal Enterprises Ltd." which granted amount of Rs.38 Crores to the Borrower which amount was guaranteed by two Corporate Guarantors - Sunrise Naturopath and Resorts Pvt. Ltd. (Corporate Guarantor No.1) and Sun System Institute of Information Technology Pvt. Ltd. (Corporate Guarantor No.2). It appears that two separate Applications under Section 7 of IBC were filed against both the Guarantors and the Application against Guarantor No.2 was admitted on 24th May, 2018 and against Guarantor No.1 on 31st May, 2018. In both the proceedings, same amount was claimed and the debt amount and amount of default and date of default were same.

11.2. Thus, the issues raised in Para - 15 of the Judgement were:-

"15. The questions arise for consideration in these appeals are:
Company Appeal (AT) (Ins) No.633 of 2020 i. Whether the 'Corporate Insolvency Resolution Process' can be initiated against a 'Corporate Guarantor', if the 'Principal Borrower' is not a 'Corporate Debtor' or 'Corporate Person'? and;
ii. Whether the 'Corporate Insolvency Resolution Process' can be initiated against two 'Corporate Guarantors' simultaneously for the same set of debt and default?"
11.3. The first issue was answered against the Appellant. We are concerned with the second issue. This Tribunal while dealing with the above second issue referred to Judgement in the matter of "Innoventive Industries Ltd. vs. ICICI Bank" (2018 1 SCC 407) where scheme of the Code was discussed by the Hon'ble Supreme Court. This Court has then taken note of the definition of Financial Creditor and financial debt and in para - 29 of the Judgement, raised question whether for same very claim and for same very default, the Application under Section 7 against the other Corporate Debtor (Guarantor No.1) can be "initiated". It was then reasoned in para - 30 that moment the Application against Guarantor No.2 was admitted the Guarantor No.1 could say that debt in question was not due as it was not payable in law, having shown the same debt payable by Guarantor No.2 which had already been initiated against Corporate Guarantor No.2. It was observed in para - 31 that admittedly (?) for same set of debt claim cannot be filed by same Financial Creditor in two separate CIRPs and so two applications can not Company Appeal (AT) (Ins) No.633 of 2020 be admitted simultaneously. With such observation, finding is recorded in para - 32 which paragraph we have reproduced above. The result was that, in Piramal, although Financial Creditor took pains to secure same amount by ensuring that two Corporate Guarantors are there (which is not prohibited by law) the Corporate Guarantor No. 1 simply walked away only because, CIRP had already been initiated against Corporate Guarantor No. 2. Thus Guarantor No. 1 escaped payment (which has not been found to be the object of IBC - See Para 25 of Judgment in the matter of V. Ramakrishna (Supra.)).
12. Considering the issues which were before this Tribunal when matter of Piramal was decided, it is clear that the Issue No.2 was relating to question whether CIRP can be initiated against two Corporate Guarantors simultaneously for same set of debt and default. The issue was not whether Application can be filed against the Principal Borrower as well as the Corporate Guarantor. The observations made in para - 32 of the Judgement that second application for same set of claim and default can not be admitted against the Corporate Guarantor or Principal Borrower was not an issue in the matter of Piramal.
13. Apart from this, the observations in the Judgement in the matter of Piramal do not appear to have noticed Sub-Sections 2 and 3 of Section 60 of IBC. It would be appropriate to reproduce Section 60(1) to (3) which reads as under:-
Company Appeal (AT) (Ins) No.633 of 2020 "60. Adjudicating Authority for corporate persons.--
(1) The Adjudicating Authority, in relation to insolvency resolution and liquidation for corporate persons including corporate debtors and personal guarantors thereof shall be the National Company Law Tribunal having territorial jurisdiction over the place where the registered office of the corporate person is located.
(2) Without prejudice to sub-section (1) and notwithstanding anything to the contrary contained in this Code, where a corporate insolvency resolution process or liquidation proceeding of a corporate debtor is pending before a National Company Law Tribunal, an application relating to the insolvency resolution or [liquidation or bankruptcy of a corporate guarantor or personal guarantor of such corporate debtor] shall be filed before such National Company Law Tribunal.
(3) An insolvency resolution process or [liquidation or bankruptcy proceeding of a corporate guarantor or personal guarantor, as the case may be, of the corporate debtor] pending in any Court or tribunal shall stand transferred to the Adjudicating Authority dealing with insolvency resolution process or liquidation proceeding of such corporate debtor."

In Sub-Section 2, the earlier words were "bankruptcy of a personal guarantor of such corporate debtor". These words were later on substituted by the words "liquidation or bankruptcy of a corporate guarantor or personal guarantor as the case may be, of such Corporate Debtor". These words were substituted by the Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 Act 26 of 2018. This amendment was published in Government Gazette on 17th August, 2018 and this amendment was inserted with retrospective effect from 6th June, 2018.

Company Appeal (AT) (Ins) No.633 of 2020 We have referred to these details as Hon'ble Supreme Court of India in Judgement in the matter of "State Bank of India versus V. Ramakrishnan & Anr." (which was pronounced on 14th August, 2018 three days before the above Notification) ((2018) 17 SCC 394) discussed Section 60(2) and (3) as they stood before this amendment was enforced. We will refer to the above Judgement in the matter of "Ramakrishnan" later. At present, we have referred to the above provision which had come on the statute book when Act 26 of 2018 was enforced and the Judgement in the matter of Piramal which was passed on 8th January, 2019 did not notice the above amendment. If the above provisions of Section 60(2) and (3) are kept in view, it can be said that IBC has no aversion to simultaneously proceeding against the Corporate Debtor and Corporate Guarantor. If two Applications can be filed, for the same amount against Principal Borrower and Guarantor keeping in view the above provisions, the Applications can also be maintained. It is for such reason that Sub-Section (3) of Section 60 provides that if insolvency resolution process or liquidation or bankruptcy proceedings of a Corporate Guarantor or Personal Guarantor as the case may be of the Corporate Debtor is pending in any Court or Tribunal, it shall stand transferred to the Adjudicating Authority dealing with insolvency resolution process or liquidation proceeding of such Corporate Debtor. Apparently and for obvious reasons, the law requires that both the proceedings should be before same Adjudicating Authority.

Company Appeal (AT) (Ins) No.633 of 2020

14. It would be appropriate now to refer to the observations made by the Insolvency Law Committee in its Report of February, 2020. Relevant part of the Report has been filed by the Appellant as Annexure - C (Diary No.23383). Para 7 of the Report is as follows:-

Company Appeal (AT) (Ins) No.633 of 2020 Company Appeal (AT) (Ins) No.633 of 2020 Company Appeal (AT) (Ins) No.633 of 2020 Company Appeal (AT) (Ins) No.633 of 2020

15. The learned Counsel for the Appellant is relying on the above observations of the ILC to argue that the Creditor cannot be restrained from initiating CIRP against both the Principal Borrower as well as the surety and also maintaining the same. The learned Counsel submitted that when remedy is available against both, Application can be maintained against both and only at the stage of disbursement, adjustment may have to be made.

16. We find substance in the arguments being made by the learned Counsel for Appellant which are in tune with the Report of ILC. The ILC in para - 7.5 rightly referred to subsequent Judgement of "Edelweiss Asset Reconstruction Company Ltd. v. Sachet Infrastructure Ltd. and Ors." dated 20th September, 2019 which permitted simultaneously initiation of CIRPs against Principal Borrower and its Corporate Guarantors. In that matter Judgment in the matter of Pirmal was relied on but the larger Bench mooted the idea of group Corporate Insolvency Resolution Process in para - 34 of the Judgement. The ILC thus rightly observed that provisions are there in the form of Section 60(2) and (3) and no amendment or legal changes were required at the moment. We are also of the view that simultaneously remedy is central to a contract of guarantee and where Principal Borrower and surety are undergoing CIRP, the Creditor should be able to file claims in CIRP of both of them. The IBC does not prevent this. We are unable to agree with the arguments of Learned Counsel for Respondent that when for same debt Company Appeal (AT) (Ins) No.633 of 2020 claim is made in CIRP against Borrower, in the CIRP against Guarantor the amount must be said to be not due or not payable in law. Under the Contract of Guarantee, it is only when the Creditor would receive amount, the question of no more due or adjustment would arise. It would be a matter of adjustment when the Creditor receives debt due from the Borrower/Guarantor in the respective CIRP that the same should be taken note of and adjusted in the other CIRP. This can be conveniently done, more so when IRP/RP in both the CIRP is same. Insolvency and Bankruptcy Board of India may have to lay down regulations to guide IRP/RPs in this regard.

17. The Hon'ble Supreme Court in the matter of V. Ramakrishnan dealt with Section 60(2) and (3) of IBC in Paragraphs - 24 and 25 of the Judgement, Hon'ble Supreme Court observed as under:-

"24. The scheme of Sections 60(2) and (3) is thus clear - the moment there is a proceeding against the corporate debtor pending under the 2016 Code, any bankruptcy proceeding against the individual personal guarantor will, if already initiated before the proceeding against the corporate debtor, be transferred to the National Company Law Tribunal or, if initiated after such proceedings had been commenced against the corporate debtor, be filed only in the National Company Law Tribunal. However, the Tribunal is to decide such proceedings only in accordance with the Presidency-Towns Insolvency Act, 1909 or the Provincial Insolvency Act, 1920, as the case may be. It is clear that sub-section (4), which states that the Tribunal shall be vested with all the powers of the Debt Recovery Tribunal, as contemplated under Part III of this Code, for the purposes of sub-section (2), would not take effect, as Company Appeal (AT) (Ins) No.633 of 2020 the Debt Recovery Tribunal has not yet been empowered to hear bankruptcy proceedings against individuals under Section 179 of the Code, as the said Section has not yet been brought into force. Also, we have seen that Section 249, dealing with the consequential amendment of the Recovery of Debts Act to empower Debt Recovery Tribunals to try such proceedings, has also not been brought into force. It is thus clear that Section 2(e), which was brought into force on 23.11.2017 would, when it refers to the application of the Code to a personal guarantor of a corporate debtor, apply only for the limited purpose contained in Section 60(2) and (3), as stated hereinabove. This is what is meant by strengthening the Corporate Insolvency Resolution Process in the Statement of Objects of the Amendment Act, 2018.
25. Section 31 of the Act was also strongly relied upon by the Respondents. This Section only states that once a Resolution Plan, as approved by the Committee of Creditors, takes effect, it shall be binding on the corporate debtor as well as the guarantor. This is for the reason that otherwise, under Section 133 of the Indian Contract Act, 1872, any change made to the debt owed by the corporate debtor, without the surety's consent, would relieve the guarantor from payment. Section 31(1), in fact, makes it clear that the guarantor cannot escape payment as the Resolution Plan, which has been approved, may well include provisions as to payments to be made by such guarantor. This is perhaps the reason that Annexure VI(e) to Form 6 contained in the Rules and Regulation 36(2) referred to above, require information as to personal guarantees that have been given in relation to the debts of the corporate debtor. Far from supporting the stand of the respondents, it is clear that in point of fact, Section 31 is one more factor in favour of a personal guarantor having to pay for debts due without any moratorium applying to save him."

18. We have already mentioned that when Hon'ble Supreme Court was dealing with Section 60(2), it was in the context of bankruptcy of Company Appeal (AT) (Ins) No.633 of 2020 Personal Guarantor and the Act 26 of 2018 was yet not published. The above para - 24 of the Judgement in the matter of Ramakrishnan can be conveniently read keeping in view the substituted provisions as per Act 26 of 2018. In place of Personal Guarantor, one can read "Corporate Guarantor" and with suitable changes, scheme of Section 60(2) and (3) can be appreciated from that angle also. The issue involved in the matter of "Ramakrishnan" was whether Section 14 of IBC will provide for a moratorium for the limited period mentioned in the Code, on admission of an insolvency petition would the same apply to Personal Guarantor of a Corporate Debtor. The issue was answered in negative by the Hon'ble Supreme Court. The Hon'ble Supreme Court in such context made observations as above in Paragraphs - 24 and 25 of the Judgement.

19. It is clear that in the matter of guarantee, CIRP can proceed against Principal Borrower as well as Guarantor. The law as laid down by the Hon'ble High Courts for the respective jurisdictions, and law as laid down by the Hon'ble Supreme Court for the whole country is binding. In the matter of Piramal, the Bench of this Appellate Tribunal "interpreted" the law. Ordinarily, we would respect and adopt the interpretation but for the reasons discussed above, we are unable to interpret the law in the manner it was interpreted in the matter of Piramal. For such reasons, we are unable to uphold the Judgement as passed by the Adjudicating Authority.

Company Appeal (AT) (Ins) No.633 of 2020

20. It is not shown that the application was otherwise incomplete. We thus, proceed to pass the following Order:-

ORDER The Appeal is allowed. Impugned Order passed by the Adjudicating Authority dated 4th March, 2020 is quashed and set aside. CP(IB)No. 466/7/HDB/2019 filed by the Appellant before Adjudicating Authority is restored to the file of the Adjudicating Authority. The Adjudicating Authority is directed to admit the Application CP(IB)No.466/7/HDB/2019 and pass further necessary Orders as per provisions of IBC. The Adjudicating Authority is requested to appoint the same IRP/RP as has been appointed in CP(IB)616/7/HDB/2018 in the CIRP proceeding against M/s. Athena Chattisgarh Power Ltd. (Principal Borrower). The IRP/RP will act in accordance with law keeping observations in this Judgment in view.
No Orders as to costs.
                                                           [Justice A.I.S. Cheema]
                                                                Member (Judicial)


                                                                        [V.P. Singh]
      rs                                                        Member (Technical)


                                           Company Appeal (AT) (Ins) No.633 of 2020
 

Shri Dilip K. Basu vs State Of West Bengal & Ors on 24 July, 2015

 

Shri Dilip K. Basu vs State Of West Bengal & Ors on 24 July, 2015

Equivalent citations: AIR 2015 SUPREME COURT 2887

Author: T.S. Thakur

Bench: R. BanumathiT.S. Thakur

                                                              REPORTABLE
                        IN THE SUPREME COURT OF INDIA
                       CRIMINAL ORIGINAL JURISDICTION
                          CRL.M.P. NO.16086 OF 1997
                                     IN
                          CRL.M.P. NO.4201 OF 1997


Dilip K. Basu                                     …Petitioner

Versus
State of West Bengal & Ors.                  …Respondents

                                    WITH

 CRL.M.P. NO.4201 OF 1997, 4105 OF 1999, 2600 OF 2000, 2601 OF 2000, 480 OF
  2001, 3965, 10385 OF 2002, 12704 OF 2001, 19694 OF 2010  IN CRL.M.P. NO.
  4201 OF 1997, CRL.M.P. NO. 13566 OF 2011 IN CRL.M.P. NO. 16086 OF 1997 IN
  CRL.M.P. NO. 4201 OF 1997, CRL.M.P. NO. 15490 OF 2014 & 15492 OF 2014 IN
                     WRIT PETITION (CRL.)NO. 539 OF 1986



                               J U D G M E N T

T.S. THAKUR, J.

1. In D.K. Basu etc. v. State of West Bengal etc.[1] [D.K. Basu (1)] this Court lamented the growing incidence of torture and deaths in police custody. This Court noted that although violation of one or the other of the human rights has been the subject matter of several Conventions and Declarations and although commitments have been made to eliminate the scourge of custodial torture yet gruesome incidents of such torture continue unabated. The court described ‘custodial torture’ as a naked violation of human dignity and degradation that destroys self esteem of the victim and does not even spare his personality. Custodial torture observed the Court is a calculated assault on human dignity and whenever human dignity is wounded, civilisation takes a step backwards. The Court relied upon the Report of the Royal Commission on Criminal Procedure and the Third Report of the National Police Commission in India to hold that despite recommendations for banishing torture from investigative system, growing incidence of torture and deaths in police custody come back to haunt. Relying upon the decisions of this Court in Joginder Kumar v. State of U.P. and Ors.[2]; Smt. Nilabati Behera alias Lalita Behera v. State of Orissa and Ors.[3]; State of M.P. v. Shyamsunder Trivedi and Ors.[4]; and the 113th report of the Law Commission of India recommending insertion of Section 114-B in the Indian Evidence Act, this Court held that while the freedom of an individual must yield to the security of the State, the right to interrogate the detenus, culprits or arrestees in the interest of the nation must take precedence over an individual’s right to personal liberty. Having said that the action of the State, observed this Court, must be just and fair. Using any form of torture for extracting any kind of information would neither be right nor just or fair, hence, impermissible, and offensive to Article 21 of the Constitution. A crime suspect, declared the court, may be interrogated and subjected to sustained and scientific interrogation in the manner determined by the provisions of law, but, no such suspect can be tortured or subjected to third degree methods or eliminated with a view to eliciting information, extracting a confession or deriving knowledge about his accomplices, weapons etc. His constitutional right cannot be abridged except in the manner permitted by law, though in the very nature of things there would be a qualitative difference in the method of interrogation of such a person as compared to an ordinary criminal. State terrorism declared this Court is no answer to combat terrorism. It may only provide legitimacy to terrorism, which is bad for the State and the community and above all for the rule of law. Having said that, the Court issued the following directions and guidelines in all cases of arrest and/or detention:

“35. We therefore, consider it appropriate to issue the following requirements to be followed in all cases of arrest or detention till legal provisions are made in that behalf as preventive measures:
(1) The police personnel carrying out the arrest and handling the interrogation of the arrestee should bear accurate, visible and clear identification and name togs with their designations. The particulars of all such police personnel who handle interrogation of the arrestee must be recorded in a register.
(2) That the police officer carrying out the arrest of the arrestee shall prepare a memo of arrest at the time of arrest a such memo shall be attested by atleast one witness who may be either a member of the family of the arrestee or a respectable person of the locality from where the arrest is made. It shall also be counter signed by the arrestee and shall contain the time and date of arrest.
(3) A person who has been arrested or detained and is being held in custody in a police station or interrogation centre or other lock-up, shall be entitled to have one friend or relative or other person known to him or having interest in his welfare being informed, as soon as practicable, that he has been arrested and is being detained at the particular place, unless the attesting witness of the memo of arrest is himself such a friend or a relative of the arrestee.
(4) The time, place of arrest and venue of custody of an arrestee must be notified by the police where the next friend or relative of the arrestee lives outside the district or town through the legal Aid Organisation in the District and the police station of the area concerned telegraphically within a period of 8 to 12 hours after the arrest.
(5) The person arrested must be made aware of this right to have someone informed of his arrest or detention as soon he is put under arrest or is detained.
(6) An entry must be made in the diary at the place of detention regarding the arrest of the person which shall also disclose the name of he next friend of the person who has been informed of the arrest and the names and particulars of the police officials in whose custody the arrestee is.
(7) The arrestee should, where he so requests, be also examined at the time of his arrest and major and minor injuries, if any present on his/her body, must be recorded at that time. The "Inspection Memo" must be signed both by the arrestee and the police officer effecting the arrest and its copy provided to the arrestee.
(8) The arrestee should be subjected to medical examination by trained doctor every 48 hours during his detention in custody by a doctor on the panel of approved doctors appointed by Director, Health Services of the concerned Stare or Union Territory. Director, Health Services should prepare such a penal for all Tehsils and Districts as well.
(9) Copies of all the documents including the memo of arrestreferred to above, should be sent to the illaqa Magistrate for his record.
(10) The arrestee may be permitted to meet his lawyer during interrogation, though not throughout the interrogation.
(11) A police control room should be provided at all district and state headquarters, where information regarding the arrest and the place of custody of the arrestee shall be communicated by the officer causing the arrest, within 12 hours of effecting the arrest and at the police control room it should be displayed on a conspicuous notice board.”

2. This Court also examined whether compensation could be awarded and declared that pecuniary compensation was permissible in appropriate cases by way of redressal upon proof of infringement of fundamental rights of a citizen by the public servants and that the State was vicariously liable for their acts. The Court further held that compensation was payable on the principle of strict liability to which the defence of sovereign immunity was not available and that the citizen must receive compensation from the State as he/she has a right to be indemnified by the government.

3. D.K. Basu(1) was followed by seven subsequent orders reported in Dilip K. Basu v. State of W.B. and Ors.[5]; Dilip K. Basu v. State of W.B. and Ors.[6]; Dilip Kumar Basu v. State of W.B. and Ors.[7]; Dilip K. Basu and Ors. v. State of W.B. and Ors.[8]; Dilip K. Basu and Ors. v. State of W.B. and Ors.[9]; Dilip K. Basu and Ors. v. State of W.B. and Ors.[10]; and Dilip K. Basu v. State of W.B. and Ors.[11]. All these orders were aimed at enforcing the implementation of the directions issued in D.K. Basu(1). It is not, in our view, necessary to refer to each one of the said orders for observations made therein and directions issued by this Court simply show that this Court has pursued the matter touching enforcement of the directions with considerable perseverance.

4. What falls for consideration before us at present are the prayers made in Crl.M.P. No.15492 of 2014 filed by Dr. Abhishek Manu Singhvi, Senior Advocate, who was appointed Amicus Curiae in this case. The Amicus has, in the said application, sought further directions from this Court in terms of Paras 10(A) to 10(O) of the said Crl. M.P. When the application initially came-up for hearing before this Court on 5th August, 2014, we gave a final opportunity to the respondents-States to respond to the prayers made in the same. We, at the same time, requested Dr. Singhvi to identify areas that need attention and make specific recommendations for consideration of this Court based on the responses filed by the States/Union Territories to the application filed by him. Dr. Singhvi has accordingly filed a summary of recommendations, which, according to him, deserve to be examined and accepted while concluding these proceedings which have remained pending in this Court for the past 30 years or so. We, therefore, propose to deal with the recommendations so summarised by the Amicus Curiae, having regard to the responses of the States filed and also the need for giving quietus to the issues that have engaged the attention of this Court for such a long time.

5. The Amicus has, in paras 10(A) to 10(B) of the application, sought suitable directions from this Court of setting-up of State Human Rights Commissions in the States of Delhi, Arunachal Pradesh, Mizoram, Meghalaya, Tripura and Nagaland, where such Commissions have not been set-up even after two decades have passed since the enactment of the Protection of Human Rights Act, 1993. The application points out that Delhi has reported the second highest number of human rights violation cases reported to National Human Rights Commission (NHRC). It refers to the NHRC Curtain Raiser published on its 20th Foundation Day, according to which out of a total number of 94,985 fresh cases registered in the NHRC the largest number of cases (46,187) came from the State of Uttar Pradesh followed by Delhi, which reported 7,988 cases and Haryana, which reported 6,921 cases. Despite a large number of complaints alleging violation of human rights from the Delhi region, the Delhi Government has not set-up a State Human Rights Commission so far. The application further points out that Mizoram, Meghalaya, Tripura and Nagaland are all disturbed States with problems of insurgency, foreign immigration, tribal warfare and ethnic violence apart from custodial violence and deaths, which according to the Amicus, are rampant in each one of these States making it necessary to have a proper authority to look into such violations and grant redress wherever necessary.

6. Despite an opportunity granted for the purpose, the States that have failed to set-up Human Rights Commissions have not come forward to offer any justification for their omission to do so. All that was argued by some of the counsel appearing for the defaulting States is that the establishment of a Commission is not mandatory in terms of Section 21 of the Protection of Human Rights Act, 1993. It was urged that the use of words ‘A State Government may constitute a body to be known as the……………(Name of the State) Human Rights Commission’ clearly suggests that the State Government may or may not choose to constitute such a body. In the absence of any mandatory requirement under the Act constitution of a State Human Rights Commission cannot, it was urged, be ordered by this Court in the present proceedings.

7. There is, in our opinion, no merit in the contention urged on behalf of the defaulting States. We say so for reasons more than one, but, before we advert to the same we wish to point out that Protection of Human Rights Act, 1993 symbolises the culmination of a long drawn struggle and crusade for protection of human rights in this country as much as elsewhere is the world. The United Nations (UN) General Assembly in December, 1948 adopted the Universal Declaration of Human Rights which was a significant step towards formulating and recognizing such rights. It was, then, followed by an International Bill of Rights which was binding on the covenanting parties. Since the Universal Declaration of Human Rights was not legally binding and since United Nations had no machinery for its enforcement, the deficiency was removed by the UN General Assembly by adopting in December, 1965 two covenants for the observance of human rights viz. (i) the Covenant on Civil and Political Rights; and (ii) the Covenant on Economic, Social and Cultural Rights. The first covenant formulated legally enforceable rights of the individual while second required the States to implement them by legislation. These covenants came into force in December, 1976 after the requisite number of member States ratified them. Many of the States ratified the Covenants subsequently at the end of 1981. These Covenants thus become legally binding on the ratifying States and since India is a party to the said Covenants, the President of India promulgated the Protection of Human Rights Ordinance, 1993 on 28th September, 1993 to provide for the constitution of a National Human Rights Commission, State Human Rights Commissions in the States and Human Rights Courts for better protection of human rights and for matters connected therewith. The ordinance was shortly thereafter replaced by the Protection of Human Rights Act, 1993.

8. In the Statement of Objects and Reasons of the Protection of Human Rights Act, 1993 it, is inter alia, mentioned that India is a party to the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights adopted by the General Assembly of the United Nations on 16th December, 1966. It is further stated that the human rights embodied in the said Covenants are substantially protected by the Constitution and that there is a growing concern about the changing social realities and the emerging trends in the nature of crime and violence. The Statement of Objects and Reasons also refers to the wide ranging discussions that were held at various fora such as the Chief Ministers’ Conference on Human Rights, seminars organized in various parts of the country and the meetings with leaders of various political parties, which culminated in the presentation of Protection of Human Rights Bill, 1993 that came to be passed by both the Houses of Parliament and received the assent of the President on 8th January, 1994 taking retrospective effect from 28th September, 1993. The significance of the human rights and the need for their protection and enforcement is thus beyond the pale of any debate. The movement for the protection of such rights is not confined only to India alone. It is a global phenomenon. It is, in this backdrop that the provisions of Section 21 of the Act need to be examined. It is true that a plain reading of the provisions may give the impression that the setting-up of a State Human Rights Commission rests in the discretion of the State Government. But a closer and more careful analysis of the provisions contained in the Act dispel that impression. Section 21 of the Act, which deals with the setting-up of State Human Rights Commission, is in the following terms:

“21. Constitution of State Human Rights Commission.— (1) A State Government may constitute a body to be known as the ............................. (Name of the State) Human Rights Commission to exercise the powers conferred upon, and to perform the functions assigned to a State Commission under this Chapter.
(2) The State Commission shall, with effect from such date as the State Government may by notification specify, consist of—
(a) a Chairperson who has been a Chief Justice of a High Court;
(b) one Member who is, or has been, a Judge of a High Court or District Judge in the State with a minimum of seven years experience as District Judge;
(c) one Member to be appointed from among persons having knowledge of or practical experience in matters relating to human rights. (3) There shall be a Secretary who shall be the Chief Executive Officer of the State Commission and shall exercise such powers and discharge such functions of the State Commission as it may delegate to him. (4) The headquarters of the State Commission shall be at such place as the State Government may, by notification, specify.
(5) A State Commission may inquire into violation of human rights only in respect of matters relatable to any of the entries enumerated in List II and List III in the Seventh Schedule to the Constitution: Provided that if any such matter is already being inquired into by the Commission or any other Commission duly constituted under any law for the time being in force, the State Commission shall not inquire into the said matter:
Provided further that in relation to the Jammu and Kashmir Human Rights Commission, this sub-section shall have effect as if for the words and figures “List II and List III in the Seventh Schedule to the Constitution”, the words and figures “List III in the Seventh Schedule to the Constitution as applicable to the State of Jammu and Kashmir and in respect of matters in relation to which the Legislature of that State has power to make laws” had been substituted.
(6) Two or more State Governments may, with the consent of a Chairperson or Member of a State Commission, appoint such Chairperson or, as the case may be, such Member of another State Commission simultaneously if such Chairperson or Member consents to such appointment: Provided that every appointment made under this sub-section shall be made offer obtaining the recommendations of the committee referred to in sub-section (1) of section 22 in respect of the state for which a common chairman or member, or both, the case may be, is to be appointed.”

9. A plain reading of the above would show that the Parliament has used the word ‘may’ in sub-Section (1) while providing for the setting-up of a State Human Rights Commission. In contrast the Parliament has used the word ‘shall’ in sub-Section (3) while providing for constitution of a National Commission. The argument on behalf of the defaulting States, therefore, was that the use of two different expressions which dealing with the subject of analogous nature is a clear indication that while a National Human Rights Commission is mandatory a State Commission is not. That argument is no doubt attractive, but does not stand close scrutiny. The use of word ‘may’ is not by itself determinative of the true nature of the power or the obligation conferred or created under a provision. The legal position on the subject is fairly well settled by a long line of decisions of this Court. The stated position is that the use of word ‘may’ does not always mean that the authority upon which the power is vested may or may not exercise that power. Whether or not the word ‘may’ should be construed as mandatory and equivalent to the word ‘shall’ would depend upon the object and the purpose of the enactment under which the said power is conferred as also related provisions made in the enactment. The word ‘may’ has been often read as ‘shall’ or ‘must’ when there is something in the nature of the thing to be done which must compel such a reading. In other words, the conferment of the power upon the authority may having regard to the context in which such power has been conferred and the purpose of its conferment as also the circumstances in which it is meant to be exercised carry with such power an obligation which compels its exercise. The locus classicus on the subject is found in Julius v. Bishop of Oxford[12] where Justice Cairns, L.C. observed:

“…The words ‘it shall be lawful’ are not equivocal. They are plain and unambiguous. They are words merely making that legal and possible which there would otherwise be no right or authority to do. They confer a faculty or power, and they do not of themselves do more than confer a faculty or power. But there may be something in the nature of the thing empowered to be done, something in the object for which it is to be done, something in the conditions under which it is to be done, something in the title of the person or persons for whose benefit the power is to be exercised, which may couple the power with a duty, and make it the duty of the person in whom the power is reposed, to exercise that power when called upon to do so. …” Lord Blackburn in the same case observed:
“I do not think the words “it shall be lawful” are in themselves ambiguous at all. They are apt words to express that a power is given; and as, prima facie, the donee of a power may either exercise it or leave it unused, it is not inaccurate to say that, prima facie, they are equivalent to saying that the donee may do it; but if the object for which the power is conferred is for the purpose of enforcing a right, there may be a duty cast on the donee of the power, to exercise it for the benefit of those who have that right, when required on their behalf….”

10. A long line of decisions of this Court starting with Sardar Govind Rao and Ors. v. State of Madhya Pradesh[13] have followed the above line of reasoning and authoritatively held that the use of the word ‘may’ or ‘shall’ by themselves do not necessarily suggest that one is directory and the other mandatory, but, the context in which the said expressions have been used as also the scheme and the purpose underlying the legislation will determine whether the legislative intent really was to simply confer the power or such conferment was accompanied by the duty to exercise the same. In The Official Liquidator v. Dharti Dhan Pvt. Ltd.[14] this Court summed up the legal position thus :

“In fact it is quite accurate to say that the word "may" by itself, acquires the meaning' of "must" or "shall" sometimes. This word however, always signifies a conferment of power. That power may, having regard to the context in which it occurs, and the requirements contemplated for its exercise, have annexed to it an obligation which compels its exercise in a certain way on facts and circumstances from which the obligation to exercise it in that way arises. In other words, it is the context which can attach the obligation to the power compel- ling its exercise in a certain way. The context, both legal and factual, may impart to the power that obligatoriness. Thus, the question to be determined in such cases always is, whether the power conferred by the use of the word "may" has, annexed to it, an obligation that, on the fulfilment of certain legally prescribed conditions, to be shown by evidence, a particular kind of order must be made. If the statute leaves no room for discretion the power has to be exercised in the manner indicated by the other legal provisions which provide the legal context. Even then the facts must establish that the legal conditions are fulfilled: A power is exercised even when the Court rejects an application to exercise it in the particular way in which the applicant desires it to be exercised. Where the power is wide enough to cover both an acceptance and a refusal of an application for its exercise, depending upon facts, it is directory or discretionary. It is not the conferment of a power which the word "may" indicates that annexes any obligation to its exercise but the legal and factual context of it.”

11. So also, this Court in ND Jayal and Anr. v. Union of India and Ors.[15] interpreted the provisions of the Environmental Protection Act, 1986 to mean that the power conferred under the Act was not a power simpliciter, but, was power coupled with duty. Unless the Act was so interpreted sustainable development and protection of life under Article 21 was not possible observed the Court. In Manushkhlal Vithaldas Chauhan v. State of Gujarat[16] this Court held that the scheme of the statute is determinative of the nature of duty or power conferred upon the authority while determining whether such power is obligatory, mandatory or directory and that even if that duty is not set out clearly and specifically in the stature, it may be implied as correlative to a right. Numerous other pronouncements of this Court have similarly addressed and answered the issue. It is unnecessary to refer to all those decisions for we remain content with reference to the decision of this Court in Bachahan Devi and Anr. v. Nagar Nigam, Gorakhpur and Anr.[17] in which the position was succinctly summarized as under:

“18. It is well settled that the use of word `may' in a statutory provision would not by itself show that the provision is directory in nature. In some cases, the legislature may use the word `may' as a matter of pure conventional courtesy and yet intend a mandatory force. In order, therefore, to interpret the legal import of the word `may', the court has to consider various factors, namely, the object and the scheme of the Act, the context and the background against which the words have been used, the purpose and the advantages sought to be achieved by the use of this word, and the like. It is equally well-settled that where the word `may' involves a discretion coupled with an obligation or where it confers a positive benefit to a general class of subjects in a utility Act, or where the court advances a remedy and suppresses the mischief, or where giving the words directory significance would defeat the very object of the Act, the word `may' should be interpreted to convey a mandatory force. As a general rule, the word `may' is permissive and operative to confer discretion and especially so, where it is used in juxtaposition to the word 'shall', which ordinarily is imperative as it imposes a duty. Cases however, are not wanting where the words `may' `shall', and `must' are used interchangeably. In order to find out whether these words are being used in a directory or in a mandatory sense, the intent of the legislature should be looked into along with the pertinent circumstances. The distinction of mandatory compliance or directory effect of the language depends upon the language couched in the statute under consideration and its object, purpose and effect. The distinction reflected in the use of the word `shall' or `may' depends on conferment of power. Depending upon the context, 'may' does not always mean may. 'May' is a must for enabling compliance of provision but there are cases in which, for various reasons, as soon as a person who is within the statute is entrusted with the power, it becomes his duty to exercise that power. Where the language of statute creates a duty, the special remedy is prescribed for non-performance of the duty.
20. If it appears to be the settled intention of the legislature to convey the sense of compulsion, as where an obligation is created, the use of the word 'may' will not prevent the court from giving it the effect of Compulsion or obligation. Where the statute was passed purely in public interest and that rights of private citizens have been considerably modified and curtailed in the interests of the general development of an area or in the interests or removal of slums and unsanitary areas. Though the power is conferred upon the statutory body by the use of the word 'may' that power must be construed as a statutory duty. Conversely, the use of the term 'shall' may indicate the use in optional or permissive sense.

Although in general sense 'may' is enabling or discretional and `shall' is obligatory, the connotation is not inelastic and inviolate." Where to interpret the word `may' as directory would render the very object of the Act as nugatory, the word 'may' must mean 'shall'.

21. The ultimate rule in construing auxiliary verbs like `may' and `shall' is to discover the legislative intent; and the use of words `may' and 'shall' is not decisive of its discretion or mandates. The use of the words `may' and `shall' may help the courts in ascertaining the legislative intent without giving to either a controlling or a determinating effect. The courts have further to consider the subject matter, the purpose of the provisions, the object intended to be secured by the statute which is of prime importance, as also the actual words employed.” (emphasis supplied)

12. The above decision also dispels the impression that if the Parliament has used the words “may” and “shall” at the places in the same provision, it means that the intention was to make a distinction in as much as one was intended to be discretionary while the other mandatory. This is obvious from the following passage where this Court declared that even when the two words are used in the same provision the Court’s power to discover the true intention of the legislature remains unaffected:

“22. …..Obviously where the legislature uses two words may and shall in two different parts of the same provision prima facie it would appear that the legislature manifested its intent on to make one part directory and another mandatory. But that by itself is not decisive. The power of court to find out whether the provision is directory or mandatory remains unimpaired.”

13. When we examine the scheme of the legislation and the provisions of Section 21 (supra) in the light of the above principles, the following broad features emerge prominently:

that the Act is aimed at providing an efficacious and transparent mechanism for prevention of violation of human rights both at national level as also at the state level;
that the National Human Rights Commission is vested with the powers and functions set out in Chapter-III of comprising Sections 12 to 16 of the Protection of Human Rights Act, 1963. While in relation to State Human Rights Commissions similar provisions of Sections 9101012131415 to 18 apply mutatis mutandis subject to certain modifications referred to in clauses (a) to (d) of the said provision. This implies that he powers exercisable by the State Commissions under the said provisions are pari materia with the powers exercisable by the National Human Rights Commission.
(iii) that while Section 3 does use the word ‘shall’ in relation to the constitution of a National Human Rights Commission, the absence of a similar expression in Section and the use of the word ‘may’ as observed by this Court in Bachahan Devi (supra) case makes little difference as the scheme of the Act and the true intention underlying the legislation is to be determined by the Court depending upon whether the power was coupled with a duty to exercise the same or was conferment of power simpliciter.

14. Time now to refer to certain other provisions of the Act. In terms of Section 13(6) of the Act, the National Commission is empowered whenever considered necessary or expedient so to do, to transfer any complaint filed or pending before it to the State Commission of the State from which the complaint arises for disposal in accordance with the provisions of the Act, subject to the condition that the complaint is one respecting which the State Commission has jurisdiction to entertain the same. Upon such transfer the State Commission is competent to dispose of the matter as if complaint was initially filed before it. The power of the State Commission, it is noteworthy, is confined to matters enumerated in List-II and List-III of the Constitution in terms of Section 21 sub-Section (5) extracted earlier. Significantly, Section 12 applicable to State Commissions also provides for not only inquiries into complaints of violation of human rights or abetment thereof and negligence in the prevention of such violation, by a public servant but also matters enumerated in clauses (a) to (g). the provision enjoins upon the State Commissions the task of spreading human rights literacy among various sections of the society and promoting awareness about the safeguards available for the protection of those rights through publications in the media, seminars and other available means; and to encourage the efforts of non-governmental organizations and institutions working in the field of human rights; and to perform all such other functions as may be considered necessary for the promotion of human rights. All these functions are critical for the promotion and protection of human rights at the State level. The essence of a statutory Commission will, therefore, have the effect of negating the legislative intent that human rights need to be promoted and protected against violations. The State Governments cannot frustrate the objects underlying the legislation but pleading that the legislative measure notwithstanding they can in their discretion keep the setting-up of the Commissions at bay. Any such contention will be destructive of the scheme of the Act and the promise the law contains for the protection of the rights of the people.

15. The upshot of the above discussion that the power of the State Governments under Section 21 to set-up State Human Rights Commission in their respective areas/territories is not a power simpliciter but a power coupled with the duty to exercise such power especially when it is not the case of anyone of the defaulting States that there is no violation of human rights in their territorial limits. The fact that Delhi has itself reported the second largest number of cases involving human rights cases would belie any such claim even if it were made. So also, it is not the case of the North-Eastern States where such Commissions have not been set- up that there are no violations of Human Rights in those States. The fact that most if not all the States are affected by ethnic and other violence and extremist activities calling for curbs affecting the people living in those areas resulting, at times, in the violation of their rights cannot be disputed. Such occurrence of violence and the state of affairs prevailing in most of the States cannot support the contention that no such commissions are required in those States as there are no human rights violations of any kind whatsoever.

16. There is another angle from which the matter may be viewed. It touches the right of the affected citizens to “access justice” and the denial of such access by reason of non-setting up of the Commissions. In Imtiyaz Ahmad v. State of Uttar Pradesh and Ors.[18] this Court has declared that access to justice is a fundamental right guaranteed under Article 21 of the Constitution. This Court observed:

“25….A person's access to justice is a guaranteed fundamental right under the Constitution and particularly Article 21. Denial of this right undermines public confidence in the justice delivery system and incentivises people to look for short-cuts and other fora where they feel that justice will be done quicker. In the long run, this also weakens the justice delivery system and poses a threat to Rule of Law.
26. It may not be out of place to highlight that access to justice must not be understood in a purely quantitative dimension. Access to justice in an egalitarian democracy must be  understood to mean qualitative access to justice as well. Access to justice is, therefore, much more than improving an individual's access to courts, or guaranteeing representation. It must be defined in terms of ensuring that legal and judicial outcomes are just and equitable (See United Nations Development Programme, Access to Justice
- Practice Note (2004)].”

17. Human rights violations in the States that are far removed from the NHRC headquarters in Delhi itself makes access to justice for victims from those states an illusion. While theoretically it is possible that those affected by violation of human rights can approach the NHRC by addressing a complaint to the NHRC for redressal, it does not necessarily mean that such access to justice for redressal of human rights violation is convenient for the victims from the states unless the States have set-up their own Commissions that would look into such complaints and grant relief. We need to remember that access to justice so much depends upon the ability of the victim to pursue his or her grievance before the forum competent to grant relief. North-Eastern parts of the country are mostly inhabited by the tribals. Such regions cannot be deprived of the beneficial provisions of the Act simply because the States are small and the setting-up of commissions in those states would mean financial burden for the exchequer. Even otherwise there is no real basis for the contention that financial constrains prevent these States from setting-up their own Commissions. At any rate, the provisions of Section 21(6) clearly provide for two or more State Governments setting–up Commissions with a common Chairperson or Member. Such appointments may be possible with the consent of Chairperson or Member concerned but it is nobody’s case that any attempt had in that direction been made but the same had failed on account of the persons concerned not agreeing to take up the responsibility vis-a-vis the other State. Even the NHRC had in its Annual Report (1996-1997) suggested that if financial constraint was really one of the reasons for not setting-up of Commission in the North-Eastern Regions, the State Governments could consider setting-up such commissions by resorting to Section 21(6), which permits two States having the same Chairperson or Members thereby considerably reducing the expenses on the establishment of such Commissions.

18. Reference in this connection may be made to the recommendations of the NHRC published in its Annual Report for the year 2004-2005 where the commission observed:

“16.1 State Human Rights Commissions have been set up in 151 States viz., the States of Andhra Pradesh, Assam, Chhattisgarh, Himachal Pradesh, Jammu & Kashmir, Kerala, Madhya Pradesh, Maharashtra, Manipur, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal. The Commission would like to reiterate its view that the ‘better protection of human rights’ can be ensured if all the States set up Human Rights Commission. The Commission also emphasizes that the State Human Rights Commission which have already been set up or are proposed to be set up should be in compliance with the ‘Paris Principles’.
16.2 The Commission, on its part, has endeavoured to assist and guide the State Commissions in whatever manner possible, whenever requests for such assistance or guidance has been sought. The strengthening of the State Commissions, is an important agenda in the Commission’s activities. With this in view, the Commission has taken the initiative to have annual interactions with all the State Human Rights Commissions, where mutual discussions take place.
16.3 The first such annual meeting was held on the 30-01-2004, where the agenda included coordination and sharing of information between the SHRCs and the Commission; training, awareness building and substantive human rights issues. Taking forward the initiative, the second meeting was convened on the 13-05-2005. Apart from the various issues of concern discussed in the meeting, the meeting concluded with the adoption of the following Resolution:-
“The National Human Rights Commission and the State Human Rights Commissions present hereby unanimously resolve to urge the State Governments to:-
Setup, on priority, State Human Rights Commissions where the same do not exist.
b) Where, there are State Human Rights Commissions or, are in the process of being setup, it be ensured that they are structurally and financially independent as envisaged in and, fully confirming to, the principles relating to the status of national institutions (the “Paris Principles’) which were endorsed by the UN General Assembly Resolution 48/134 of 20-12-

1993.

The National and State Commissions also reiterate and remind the Governments, both, at the Centre and in the States, that the primary obligation towards the protection of human rights is that of the State and that the national human rights institutions are for ‘better protection of human rights’.

16.4 The Commission places great importance to these interactions especially keeping in view the social, cultural and linguistic diversity that comprises our society. Institutionalizing the mechanism of these annual interactions is one way the Commission hopes to keep up the process of dialogue. It is thus, all the more important that all the states expeditiously set up human rights Commissions.” (emphasis supplied)

19. A similar recommendation was made in the Annual Report for the year 2009-2010 of NHRC. It said:

“10.1 Section 21 of the PHRA, 1993 as amended in 2006, provides for constitution of State Human Rights Commissions (SHRCs) in all the States. The existence and functioning of a Human Rights Commission in the State goes a long way in the ‘better’ protection and promotion of human rights. It is now an accepted fact that good governance and human rights go hand in hand. The SHRCs have been set-up in 18 States. The names of these States are: Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal….
10.2 The NHRC is keen that SHRCs are set-up in all the States so that each and every citizen of the country has easy recourse to better protection of ’human rights’ as well as for matters connected therewith or incidental thereto. The Commission earnestly recommends to all those States which have not yet constituted SHRCs to follow suit at the earliest in the interest of better protection and promotion of human rights. …” (emphasis supplied)

20. Yet again, the same has been reiterated in the Annual Report for the year 2010-2011 of NHRC in the following words:

“15.1 Section 21 of the Protection of Human Rights Act, 1993 as amended in 2006, stipulates constitution of State Human Rights Commissions (SHRCs) in all the States. The creation of a Human Rights Commission in all the States would definitely facilitate in `better’ protection and promotion of human rights. It is now an accepted proposition that good governance and human rights go hand in hand. During the period under report, SHRCs were set up in two States, namely, Jharkhand and Sikkim, thus taking the overall total of SHRCs in the country to 20. Eighteen States which already have an SHRC are Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal. At present, there is no Chairperson and Members in the Himachal Pradesh State Human Rights Commission except for a Secretary.
15.2 NHRC is keen that SHRCs are set up in every State of the country so that its inhabitants have easy access to better protection of human rights and justice. The Commission once again makes an earnest appeal to all those States which have not yet constituted SHRCs to take action at the earliest in the interest of better protection and promotion of human rights. In addition, the Commission is in constant touch with all the SHRCs and renders technical support to them as and when required by them.” (emphasis supplied)

21. It is a matter of regret that despite the National Human Rights Commission itself strongly and repeatedly recommending setting-up of State Commission in the States the same have not been set-up. Keeping in view the totality of the circumstances, therefore, we see no reason why the recommendation made by the Amicus for a direction to the States of Delhi, Arunachal Pradesh, Mizoram, Meghalaya, Tripura and Nagaland should not be issued to set-up State Human Rights Commission in their respective territories.

22. The other recommendation which the Amicus has noted for issue of suitable directions relates to the filling-up of vacancy of Chairperson and Members in several State Human Rights Commissions. The Amicus points out that in the States of Manipur and Himachal Pradesh SHRC is not functional since post of Chairperson and several Members remains unfilled. In the State of Jammu and Kashmir, the post of Chairperson and one Member is vacant. In the State of Jharkhand, the Chairperson is in position but the post of sole Member is vacant. So also, in the State of Karnataka two Members in the Commission are working while the post of Chairperson and one member remains vacant. Even in the State of Tamil Nadu the post of Chairperson remains vacant. The Amicus states that similar is the position in several other States also which means that although States have set up SHRC, the same are dysfunctional on account of non filling-up of the vacancies on account of administrative apathy and lethargy. It was argued by the Amicus that dysfunctional SHRCs are as good as there being no such Commissions at all thereby defeating the very purpose underlying the Act and calling for a direction from this Court to the States concerned to fill up the existing vacancies immediately and also to ensure that no vacancy in the SHRC whether against the post of Chairperson or Members remains unfilled for more than three months.

23. There is, in our opinion, considerable merit in the submission made by the Amicus that the very purpose of setting up of the State Human Rights Commission gets defeated if vacancies that occur from time to time are not promptly filled up and the Commission kept functional at all times. There is hardly any explanation much less a cogent one for the failure of the State to take immediate steps for filling-up of the vacancies wherever they have occurred. The inaction or bureaucratic indifference or even the lack of political will cannot frustrate the laudable object underlying the Parliamentary legislation. With the number of complaints regarding breach of human rights increasing everyday even in cities like Delhi which is the power centre and throbbing capital of the county, there is no question of statutory Commissions being made irrelevant or dysfunctional for any reason whatsoever. The power available to the Government to fill up the vacancies wherever they exist is, as noticed earlier, coupled with the duty to fill up such vacancies. The States ought to realise that the Human Rights Commission set up by them are not some kind of idle formality or dispensable ritual. The Commissions are meant to be watch dogs for the protection of the human rights of the citizens and effective instruments for redressal of grievances and grant of relief wherever necessary. Denial of access to the mechanism conceptualised under the Act by reason of non filling up of the vacancies directly affects the rights of the citizens and becomes non functional. It is in that spirit that we deem it fit and proper to direct that all vacancies against the post of Chairperson and Members of the State Human Rights Commission shall be filled up by the concerned State Governments as expeditiously as possible but, in any case, within a period of three months from the date of this order. We only hope and trust that we shall be spared the unpleasant task of initiating action against the defaulting State in case the needful is not done within the time allotted. We also recommend to the State Governments that since the dates on which vacancies are scheduled to occur are known well in advance, (save and except where an incumbent dies in office) the process for appointment of the incumbents against such vacancies should be initiated well in time in future so that no post remains vacant in any State Human Rights Commission for a period or unfilled for any period for more than three months from the date the vacancy arises.

24. That brings us to the third recommendation that Amicus has formulated concerning the constitution of Human Rights Court in different districts in terms of Section 30 of The Protection of Human Rights Act, 1993. Section 30 of the Act provides that the State Government shall specify with the concurrence of the Chief Justice of the High Court, for each district a Court of Session to be a Human Rights Court so that the offences arising out of violation of human rights are tried and disposed of speedily. It was submitted that while the State of Sikkim has complied with the said provision, other States are silent in that regard. It was urged that if a small State like Sikkim could comply with the requirement of specifying Sessions Courts to be Human Rights Court, there was no reason why other States cannot follow suit. There is considerable merit in that submission. Section 30 of the Act stipulates that for providing speedy trial of offences arising out of violation of human rights, the State Government, may with the concurrence of the Chief Justice of the High Court, by notification, specify for each district a Court of Session to be a Human Rights Court provided that if a Court of Session is already specified as a special Court or a special Court is already constituted for such offences under any other law for the time being in force, no such specification of a Court would be necessary.

25. There is, in our opinion, no reason why the State Governments should not seriously consider the question of specifying human rights Court to try offences arising out of violation of human rights. There is nothing on record to suggest that the Governments have at all made any attempt in this direction or taken steps to consult the Chief Justices of the respective High Courts. The least which the State Governments can and ought to do is to take up the matter with the Chief Justices of High Courts of their respective States and examine the feasibility of specifying Human Rights Court in each district within the contemplation of Section 30 of the Act. Beyond that we do not propose to say anything at this stage.

26. There are, apart from the above, few other recommendations made by the Amicus like installation of CCTV Cameras in all Police Stations and prisons in a phased manner, and appointment of non-official visitors to prisons and police stations for making random and surprise inspections. Initiation of human proceedings Under Section 302/304 IPC in each case where the enquiry establishes culpability in custodial death and framing of uniform definition of custodial death and mandatory deployment of atleast two women constables in each district are also recommended by the Amicus.

27. As regards installation of CCTV cameras in police stations and prisons, with a view to checking human rights abuse, it is heartening to note that all the States have in their affidavits supported the recommendation for installation of CCTV cameras in Police Stations and prisons. In some of the States, steps appear to have already been initiated in that direction. In the State of Bihar, CCTV cameras in all prisons and in 44 police stations in the State have already been installed. So also the State of Tamil Nadu plans to equip all police stations with CCTV cameras. State of Haryana has stated that CCTV cameras should be installed in all police stations, especially, at the entrance and in the lockups. Union Territories of Andaman & Nicobar and Puducherry has also installed CCTV cameras in most of the police stations. Some other States also appear to be taking steps to do so. Some of the States have, however, remained silent and non-committal on the issue. We do not for the present consider it necessary to issue a direction for installation of CCTV cameras in all police stations. We are of the opinion that the matter cannot be left to be considered by the State Governments concerned, having regard to the fact that several other State Governments have already taken action in that direction which we consider is commendable. All that we need say is that the State Governments may consider taking an appropriate decision in this regard, and appropriate action wherever it is considered feasible to install CCTV cameras in police stations. Some of these police stations may be located in sensitive areas prone to human rights violation. The States would, therefore, do well in identifying such police stations in the first instance and providing the necessary safeguard against such violation by installing CCTV camera in the same. The process can be completed in a phased manner depending upon the nature and the extent of violation and the experience of the past.

28. In regard to CCTV cameras in prison, we see no reason why all the States should not do so. CCTV cameras will help go a long way in preventing violation of human rights of those incarcerating in jails. It will also help the authorities in maintaining proper discipline among the inmates and taking corrective measures wherever abuses are noticed. This can be done in our opinion expeditiously and as far as possible within a period of one year from the date of this order.

29. That leaves us with the appointment of non-official visitors to prisons and police stations for making random and surprise inspection to check violation of human rights. The Amicus points out that there are provisions in the Prison Manual providing for appointment of non-official visitors to prisons in the State. These appointments are made on the recommendations of the Magistrate of the District in which the prison is situated. He urged that the provisions being salutary ought to be invoked by the Governments concerned and non-official visitors to prisons in police stations nominated including independent persons like journalist. There is, in our opinion, no real harm or danger in appointment of non-official visitors to prisons and police stations provided the visitors who are so appointed do not interfere with the ongoing investigations if any. All that we need say is that the State Governments may take appropriate action in this regard keeping in view the provisions of the Prison Manuals and the Police Acts and the Rules applicable to each State.

30. That leaves us with the question of initiation of criminal proceedings in cases where enquiry establishes culpability in custodial deaths and for deployment of atleast two women constables in each district. We see no reason why appropriate proceedings cannot be initiated in cases where enquiry establishes culpability of those in whose custody a victim dies or suffers any injuries or torture. The law should take its course and those responsible duly and appropriately proceeded against.

31. As regards deployment of women constables all that we need say is that the States concerned would consider the desirability of posting women constables in the police stations wherever it is found that over a period of past two years women were detained in connection with any criminal case or investigation. Needless to say that in case women constables are needed in such police stations for interrogation or detention, the State shall provide such infrastructural facilities for such constables as are required.

To sum up:

1. The States of Delhi, Himachal Pradesh, Mizoram, Arunachal Pradesh, Meghalaya, Tripura and Nagaland shall within a period of six months from today set up State Human Rights Commissions for their respective territories with or without resort to provisions of Section 21(6) of the Protection of Human Rights Act, 1993.
2. All vacancies, for the post of Chairperson or the Member of SHRC wherever they exist at present shall be filled up by the State Governments concerned within a period of three months from today.
3. Vacancies occurring against the post of Chairperson or the Members of the SHRC in future shall be filled up as expeditiously as possible but not later than three months from the date such vacancy occurs.
4. The State Governments shall take appropriate action in terms of Section 30 of the Protection of Human Rights Act, 1993, in regard to setting up/specifying Human Rights Courts.
5. The State Governments shall take steps to install CCTV cameras in all the prisons in their respective States, within a period of one year from today but not later than two years.
6. The State Governments shall also consider installation of CCTV cameras in police stations in a phased manner depending upon the incidents of human rights violation reported in such stations.
7. The State Governments shall consider appointment of non-official visitors to prisons and police stations in terms of the relevant provisions of the Act wherever they exist in the Jail Manuals or the relevant Rules and Regulations.
8. The State Governments shall launch in all cases where an enquiry establishes culpability of the persons in whose custody the victim has suffered death or injury, an appropriate prosecution for the commission of offences disclosed by such enquiry report and/or investigation in accordance with law.
9. The State Governments shall consider deployment of at least two women constables in each police station wherever such deployment is considered necessary having regard to the number of women taken for custodial interrogation or interrogation for other purposes over the past two years.

32. These petitions are, with the above directions, disposed of. Liberty is, however, reserved to the petitioner to seek revival of these proceedings should there be any cogent reason for such revival at any time in future. No costs.

………………………………….…..…J. (T.S. THAKUR) ………………………………….…..…J. (R. BANUMATHI) New Delhi;

24th July, 2015.

ITEM NO.1F-For Judgment COURT NO.2 SECTION PIL(W) S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS Crl.M.P. Nos. 16086/1997 in Crl.M.P. No. 4201/1997 with Crl.M.P. No. 4201/1997, 4105/1999, 2600/2000, 2601/2000, 480/2001, 3965, 10385/2002, 12704/2001, 19694/2010 in Crl.M.P. No. 4201/1997, Crl.M.P. No. 13566/2011 in Crl.M.P. No. 16086/1997 in Crl.M.P. No. 4201/1997, Crl.M.P. No. 15490/2014 in Writ Petition(s)(Criminal) No(s). 539/1986 SHRI DILIP K. BASU Petitioner(s) VERSUS STATE OF WEST BENGAL & ORS. Respondent(s) Date : 24/07/2015 These petitions were called on for pronouncement of JUDGMENT today.

For Petitioner(s) Ms. Suruchii Aggarwal,Adv.

For Respondent(s) Mr. Ravi Prakash Mehrotra,Adv.

Mr. Anip Sachthey,Adv.

Mr. Anil K. Jha,Adv.

Mr. B. Krishna Prasad,Adv.

Mr. G. Prakash,Adv.

Mr. Gopal Singh,Adv.

Mr. Rituraj Biswas, Adv.

Mr. Manish Kumar, Adv.

Mr. Guntur Prabhakar,Adv.

Ms. Indra Sawhney,Adv.

Mr. Naresh K. Sharma,Adv.

Dr. A.M. Singhvi, Sr. Adv.

Mr. Pranab Kumar Mullick, Adv.

Mr. Amit Bhandari, Adv.

Mrs. S. Mullick, Adv.

Mr. Sebat Kumar D., Adv.

Ms. Sushma Suri,Adv.

Mr. T. C. Sharma,Adv.

Mr. T. V. Ratnam,Adv.

Mr. Pravir Choudhary,Adv.

Mr. K. R. Sasiprabhu,Adv.

Mr. Shreekant N. Terdal,Adv.

Mr. D. S. Mahra,Adv.

Mr. Ranjan Mukherjee,Adv.

Mrs. D. Bharathi Reddy,Adv.

Mr. Khwairakpam Nobin Singh,Adv.

Ms. Asha Gopalan Nair,Adv.

Mr. Sanjay R. Hegde,Sr. Adv.

Mr. Gopal Prasad,Adv.

Mr. Javed Mahmud Rao,Adv.

Mr. Abhijit Sengupta,Adv.

Mr. Jayesh Gaurav, Adv.

Mr. Ratan Kumar Choudhuri,Adv.

Ms. Bina Madhavan,Adv.

For M/s Corporate Law Group Mr. C. D. Singh,Adv.

Ms. Sakshi Kakkar, Adv.

Mr. Jatinder Kumar Bhatia,Adv.

Mr. P. V. Yogeswaran,Adv.

Mr. P. V. Dinesh,Adv.

Mr. Shibashish Misra,Adv.

Mr. Ansar Ahmad Chaudhary,Adv.

Mr. T. Harish Kumar,Adv.

Mr. Manish Kumar Saran,Adv.

Mr. Anuvrat Sharma,Adv.

Mr. Balaji Srinivasan,Adv.

Mr. Ajay Pal,Adv.

Mr. Suryanarayana Singh, Sr. AAG Ms. Pragati Neekhra,Adv.

Mr. Gunnam Venkateswara Rao,Adv.

Ms. Ruchi Kohli,Adv.

Mr. Sunil Fernandes,Adv.

Mr. K.V. Jagdishvaran, Adv.

Ms. G. Indira,Adv.

Mr. M. Yogesh Kanna,Adv.

Mr. Jayant Patel, Adv.

Mr. Chandra Prakash,Adv.

Mr. Sapam Biswajit Meitei, Adv.

Mr. Z.H. Isaac Haiding, Adv.

Mr. Ashok Kumar Singh, Adv.

Mrs. K. Enatoli Sema, Adv.

Mr. Edward Belho, Adv.

Mr. Amit Kumar Singh, Adv.

Ms. A. Subhashini, Adv.

Hon'ble Mr. Justice T.S. Thakur pronounced the judgment of the Bench comprising His Lordship and Hon'ble Mrs. Justice R. Banumathi.

The petitions are disposed of in terms of the Signed Reportable Judgment with following directions:

1. The States of Delhi, Himachal Pradesh, Mizoram, Arunachal Pradesh, Meghalaya, Tripura and Nagaland shall within a period of six months from today set up State Human Rights Commissions for their respective territories with or without resort to provisions of Section 21(6) of the Protection of Human Rights Act, 1993.
2. All vacancies, for the post of Chairperson or the Member of SHRC wherever they exist at present shall be filled up by the State Governments concerned within a period of three months from today.
3. Vacancies occurring against the post of Chairperson or the Members of the SHRC in future shall be filled up as expeditiously as possible but not later than three months from the date such vacancy occurs.
4. The State Governments shall take appropriate action in terms of Section 30 of the Protection of Human Rights Act, 1993, in regard to setting up/specifying Human Rights Courts.
5. The State Governments shall take steps to install CCTV cameras in all the prisons in their respective States, within a period of one year from today but not later than two years.
6. The State Governments shall also consider installation of CCTV cameras in police stations in a phased manner depending upon the incidents of human rights violation reported in such stations.
7. The State Governments shall consider appointment of non-official visitors to prisons and police stations in terms of the relevant provisions of the Act wherever they exist in the Jail Manuals or the relevant Rules and Regulations.
8. The State Governments shall launch in all cases where an enquiry establishes culpability of the persons in whose custody the victim has suffered death or injury, an appropriate prosecution for the commission of offences disclosed by such enquiry report and/or investigation in accordance with law.
9. The State Governments shall consider deployment of at least two women constables in each police station wherever such deployment is considered necessary having regard to the number of women taken for custodial interrogation or interrogation for other purposes over the past two years.
            (VINOD KR.JHA)                        (VEENA KHERA)
            COURT MASTER                                COURT MASTER

(Signed Reportable judgment is placed on the file)
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[1]    (1997) 1 SCC 416
[2]    (1994) 4 SCC 260
[3]    (1993) 2 SCC 746
[4]    (1995) 4 SCC 262
[5]    (1997) 6 SCC 642
[6]    (1998) 9 SCC 437
[7]    (1998) 6 SCC 380
[8]    (2002) 10 SCC 741
[9]    (2003) 11 SCC 723
[10]   (2003) 11 SCC 725
[11]   (2003) 12 SCC 174
[12]   (1880) 5 AC 214
[13]   AIR 1965 SC 1222
[14]   (1977) 2 SCC 166
[15]   (2004) 9 SCC 362
[16]   (1997) 7 SCC 622
[17]   (2008) 12 SCC 372
[18]   (2012) 2 SCC 688