Holding

The Supreme Court's judgment in Venkatagiri is a law declared under Article 141, making the 1971 amendment to the Andhra Pradesh Estates (Abolition) Act constitutionally valid and rendering the High Court's mandamus erroneous and set aside.

Summary

The State of Andhra Pradesh, as Director of Settlements, appealed against a Division Bench of the Andhra Pradesh High Court that had issued a mandamus directing the State to make interim compensation payments to estate holders under the Andhra Pradesh Estates (Abolition and Conversion into Ryotwari) Act, 1948. The High Court had relied on its earlier decision in Venkatagiri's case, which held the 1971 amendment to the Act ultra vires Article 31(2) and therefore required interim payments. The Supreme Court had subsequently reversed that decision, holding the amendment constitutionally valid and that interim payments were payable only until the Director’s original determination under Section 39(1). The appeal raised whether the Supreme Court’s judgment constitutes a law declared under Article 141, whether the respondents acquired an indefeasible right from the High Court order, and whether a mandamus could be issued after the Supreme Court’s reversal. The Court held that the Supreme Court’s decision is a law declared under Article 141, binding on all courts, that no enforceable right accrued to the respondents, and that the High Court’s mandamus was erroneous and set aside. The appeal was allowed, confirming the constitutional validity of the amendment and extinguishing the earlier mandamus.

Issues considered

Whether the Supreme Court's decision in State of Andhra Pradesh v. Venkatagiri is a law declared under Article 141 and binding on all courts.
Whether the respondents acquired an indefeasible right to interim compensation from the High Court's order despite the Supreme Court's reversal.
Whether the High Court could validly issue a mandamus after the Supreme Court held the amendment Act constitutionally valid.
Whether the ratio in Mis. Shenoy & Co. v. Commercial Tax Officer requires reconsideration in the present context.

Subjects

Article 141Article 226mandamusinterim compensationconstitutional validitylaw declaredbinding precedentres judicataper incuriamEstates Abolition Act

Judgment

DIRECTOR OF SETTLEMENTS A.P. AND ORS. A
v.
M.R. APPARAO AND ANR.

MARCH 20, 2002

[G.B. PATTANAIK, S.N. PHUKAN AND S.N. VARIAVA, JJ.] B

Andhra Pradesh Estates (Abolition and Conversion into Ryotwari) Act,
1948: Sections 39, 41, 44, 50 and 54 and Amended Act 3 of 1971.

Estates-Abolition of-Payment of Compensation-Interim payment C
payable to the estate holder-Restricted by-Ordinance-Subsequent
amendment in the Act-Validity of-On challenge High Court held, amendment
to the extent it extinguished the vested right of the estate holder to receive
interim compensation till the promulgation of Ordinance was ultravires of
Article 31(2) of the Constitution-Validity of-Held, Amendments made to the D
Act are constitutionally valid.

Article 141

Scope and ambit of-Law declared-Principle underlying a decision-
When it is not based on. concession alone but based on an independent E
application of mind, Decision based on concession whether law declared--
Held, it shall be binding on all Courts/parties within the territory of India-
Extent of-To all observations of points raised and decided by the Court.

- Plea of per incurium on the ground that certain aspects were not
considered or relevant provisions were not brought to the notice ofthe Court- F
Held, such plea cannot be accepted

Law declared-Duty of the High Court to follow the decision-Refusal
to follow----Consequences-Judgment of High Court which refuses to follow
the declaration or seeks to revive a decision which had been set aside by
Supreme Court, is a nullity. G
'
Article 226--Writ Jurisdiction-Exercise of-Held, is discretionary and
must be exercised on recognised lines and subject to self-imposed restrictions.

Issuance of Mandamus-Conditions-Discussed
661
H
662 SUPREME COURT REPORTS [2002] 2 S.C.R.

A Appellant-State took over two estates under the provisions of the Estates
Abolition Act, 1948 and issued notifications on 28.5.66 indicating the
procedure determining the final compensation. Subsequently, Ordinance 6
of 197~ ras promulgated to restrict the interim payments to the estate holder
till its/fin'al determination by the. concerned authority. The ordinance was
B replaced by Act 3 of 1971, amending Sections 41, 44, 50 and·54 of the Act,
with retrospective effect. Under the amended provision, the expression "as
finally determined under Section 39" was substituted by the expression
"determined by the Director under Section 39". Raja of Venkatagiri challenged
the said Ordinance as well as amended Act by filing a Writ Petition. High
Court declared the amended provisions of the Act as ultra vires of Article 31(2)
C to the extent it extinguished the vested right of the estate holders to receive
interim compensation till the commencement of the amended Act.

Respondents and others filed Writ Petitions for payment of interim
·compensation. Single Judge disposed qfthe Writ Petitions by ordering interim
.payments in accordance with the law laid down in Venkatagiri's case. State
D Government preferred an appeal which was dismissed by the High Court but
State did not approach this Court. However, the Order for payment of interim
compensation was not complied with. Aggrieved, respondents filed a Writ
Petition for issuing a Writ of Mandamus for implementation of the order of
payment of interim compensation. High Court issued order for compliance
E of the said order within a stipulated time period.
:.
In the meanwhile, Judgment in Venkatagiri's case has been challenged
before this Court. The Court reversed the Order passed by the High Court
thus holding the amendments to the Act constitutionally valid.

Respondents filed a Writ Petition for interim payment for
F implementation of the earlier order passed by the High Court in their favour.
Single Judge dismissed it on the ground that in view of the Judgment in
Venkatagiri 's case having been set aside by this Court, the earlier decision by
the High Court in favour of the respondents would not constitute an
enforceable right and as such a Writ of mandamus cannot be issued.
G Respondents challenged the Judgment by filing a Writ Appeal, which was
allowed. Hence the present appeal by the State Government.

Appellant State relied upon the decision of this Court in Mis. Shenoy &
Co. and Ors. v. Commercial Tax Officer, Bangalore and Ors., and respondents
relied upon the decision in Authorised Officer (Land Reforrris) v. MM
....
H Krishnamurthy Chetty, [1998] 9 sec 138. These two decisions run counter to
DIRECTOR OF SETTLEMENTS, A.P. v. M.R. APPARAO 663
each other and therefore in order to resolve the conflict the appeal was A
referred to the present Bench of three Judges.

It was contended for the appellant that the law declared by this Court
in the appeal in the case of State of Andhra Pradesh and Ors. v. Venkatagiri
and Ors. is the law of the land and binding not only on parties in that appeal
but also those in whose favour a mamdamus has been issued, in view of Article B
141 of the Constitution; that High Court committed error in issuing a
mandamus contrary to the law declared by this Court; that the law declared
by the High Court in Venkatagiri 's case having been reversed by this Court
and holding the amended Act to be constitutionally valid the mandamus issued
C
-
by the High Court on the ground of finding of Judgment in favour of
respondents become ineffective and unenforceable; and that issuing of
mandamus would go against the provisions of Articles 141 of the Constitution.

It was contended for the respondents that in the Judgment in
Venkatagiri's case, the Supreme Court neither examined the different
contentions nor adjudicated upon the same, as such and as it cannot be held D
to be a law under Article 141 of the Constitution; and that the observation of
this Court in Venkatagiri 's case are per incurium in as such as the Judgment
of the High Court in Writ Petition was not under appeal before this Court

-
and the Court did not advert to the reasons given by the High Court; that
this Court did not consider the relevant provisions of the Act wherein the
expression 'final determination' had been used by the legislature in contrast E
to the word "determination" used in Section 39(1). The term 'determination'
and 'final determination' connotes two distinct meanings and hence applicable
to two different situations; and that the right accrued to the respondents in
terms of the earlier judgments are not affected by the other Judgment of this
Court in Venkatagiri's case as this Court reversed the Judgment of the High F
Court on the basis of concession given by the party, and as such the High
Court was fully justified in issuing the impugned order.

Allowing the appea~ the Court
, HELD : 1.1. Article 141 of the Constitution unequivocally indicates that
' the law declared by the Supreme Court shall be binding on all Courts within G
the territory oflndia. The statements of the Court on matters other than law
like facts may have no binding force. But what-is binding is the ratio of the
decision and not any finding of facts. To determine whether a decision has
'declared law' it cannot be said so when a point is disposed of on concession
and what is binding is the principle underlying a decision. A Judgment of the H
664 SUPREME COURT REPORTS [2002] 2 S.C.R.

A Court has to be read in the context of questions which arose for consideration
in the case in which the judgment was delivered. An obiter may not have a
binding effect as a precedent, but it cannot be denied that it is of considerable
weight The law which will be binding under Article 141 would, therefore,
extend to all observations of points raised and decided by the Court in a given
B case. The decision in a judgment of the Supreme Court cannot be assailed on
the ground that certain aspects were not considered or the relevant provisions
were not brought to the notice of the Court (673-G-H; 674-A-B-C]

Ballabhdas Mathurdas Lakhani and Ors. v. Municipal Committee,
Malkapur, AIR (1970) SC 1002, relied on.
c 1.2. When Supreme Court decides a principle it would be the duty of
High Courts or subordinate courts to follow the decision. A judgment of the
High Court which refuses to follow the decision and directions of the Supreme
-
Court or seeks to revive a decisions of the High Court which had been set
aside by the Supreme Court is a nullity. (674-D]
D
Narinder Singh v. Surjit Singh, (1984] 2 SCC 402 and Smt. Kausalya Devi
Bogra and Ors. v. Land Acquisition Officer, Aurangabad and Anr., [1984) 2 SCC
324, relied on.

E
1.3. The conclusion of the Supreme Court in Venkatagiri's case that the
amendments in the Andhra Pradesh Estates (Abolition and Conversion into
Ryotwari) Act were constitutionally valid and the view expressed by the
Andhra Pradesh High Court is erroneous, is a conscious decision of the Court
-
itself on application of mind to the provisions of the Act It is no doubt true
that the counsel for the respondent had indicated that the respondent will
have no objection to the judgments and orders of the High Court under
F appeal, being set aside. But that by itself would not tantamount to hold that
the judgment is a judgment on concession. Venkatagiri's case, it cannot be
dubbed as a conclusion without application of mind, particularly when the
very constitutionality of the Amendment Act was the core question before
the Court [678-D-E-F]
G Pandit MS.M Sharma v. Shri Sri Krishna Sinha and Ors., [1959) Suppl. /

1 SCR 806; Supdt. and Legal Rememberancer, State of West Bengal v.
Corporation of Calcutta, [1967) 2 SCR 170; Krishena Kumar and Anr. etc. etc.
v. Union ofIndia and Ors., (1990) 3 SCR 352; State ofU.P. andAnr. v~ Synthetics
and Chemicals Ltd. and Anr., [1991) 4 SCC 139; Arnit Das v. State of Bihar,
H · [2000] 5 SCC 488; A-One Granites v. State of U.P. and Ors., (2001) 2 SCC 537;
DIRECTOR OF SETTLEMENTS, A.P. v. M.R. APPARAO 665

Ku/want Kaur and Ors. v. Furdial Singh Mann (dead) by Lrs., [2001) 4 SCC A
-
~

262; Lakshmi Shanker Srivastava v. State (Delhi Administration), [1979) l SCC
229; Raval and Co. v. KC. Ramachandran and Ors. and Municipal Corporation
of Delhi v. Gurnam Kaur, [1989) l SCC 101, held inapplicable.

1.4. The decision of this Court in Vendatagiri's case must be held to be
a 'law declared' within the ambit of Article 141 of the Constitution and the B
constitutional validity of the Amendment Act 1971 is not open to be re-
agitated. [679-AJ
... 2.1. When the law declared invalid by the High Court is held
constitutionally valid, effective and binding by the Supreme Court, then the c
- mandamus forbearing the authorities from enforcing its provisions would
become ineffective and the authorities cannot be compelled to perform a
negative duty. The declaration of the law is binding on everyone and it would,
.therefore, be futile to contend that the mandamus would still survive in favour
of those parties against whom appeals were not filed. The ratio in Mis. Shenoy
and Company case fully applies to the case in hand, particularly, when the D
Court is examining the question whether while issuing a mandamus, the earlier
Judgment notwithstanding having been held to be invalid, can still be held to
r be operative. [681-D-E-FJ

2.2. Notwithstanding the enunciation of the principle of res judicata E
and its applicability to the litigation between the parties at different stages,
it is difficult to sustain the argument that an indefeasible right has accrued
to the respondents on the basis of the Judgment in their favour which has
not been challenged and that right could be enforced by issuance of a fresh
mandamus. [682-C-DJ
F
2.3. When the Court is examining the question of any right having
emanated from a Judgment of the High Court and tlie said Judgment squarely
having emanated, on following an earlier Judgment of the said Court, without
any further reasoning advanced and no question of facts involved but purely

-· '
a question of constitutionality of an Act, the moment the earlier Judgment of
the High Court if reversed by the Supreme Court, it becomes the law of the
land, binding on all parties. In the instant case, the Judgment of the Andhra
G

Pradesh High Court in Venkatagiri 's case, holding the amendment Act to be

. -· constitutionally invalid, on being reversed by the Supreme Court on a
conclusion that the said amendment is constitutionally valid, the said dictum
would be valid throughout the country and for all pe..Sons, including the H
666 SUPREME COURT REPORTS [2002] 2 S.C.R.

A respondents, even though the Judgment in their favour had not been assailed.
(681-G-H; 682-A-B]

2.4. To have uniformity of the law and to have universal application of
the law laid down by this Court in Venkatagiri's case, it would be reasonable
to hold that the so-called direction in favour of the respondents became futile
B inasmuch as the direction was on the basis that the amendment Act is
constitutionally invalid, the moment this Court holds the Act to be
constitutionally valid, the indefeasible right on the respondents could not be
said to have accrued on account of the earlier Judgment in their favour
notwithstanding the reversal of the Judgment of the High Court in
C Venkatagiri's case. [6~2-E-F]

3.1. The powers of the High Courts under Article 226 though are
discretionary and no limits can be placed upon their discretion, it must be
exercised along recognised lines and subject to certain self-imposed limitations.
The expression 'for any other purpose' in Article 226; makes the jurisdiction
D of the High Courts more extensive but yet the Court must exercise the same
with certain restraints and within some parameters. One of the conditions
for· exercising power under Article 226 for issuance of a mandamus is that
the Court must come to the conclusion that the aggrieved person has a legal
right, which entities him to any of the rights and that such right has been
E infringed. [682-G-H; 683-A-B] ·

3.2. A mandamus is ·available against any public authority including
administrative and local bodies, and could be issued to any person who is
under a duty imposed by statute or by common law to do a particular act. In
order to obtain a writ or order in the nature of mandamus, the applicant has
F to satisfy that he has a legal right to the performance of legal duty by the
party against whom the mandamus is sought and such right must be subsisting
on the date of the petiti01[. (683-D)

3.3. The duty that may be enjoined by mandamus may be one imposed
by the Constitution, a statute, common law or by rules or orders having the
G force of law. When the aforesaid principles are applied to the present case,
the right of the respondents, depending upon the conclusion that the
amendment Act is constitutionally invalid and, the right to get interim
payment will continue till the final decision of the Board of Revenue is not
sustained ·when this Court itself has upheld the constitutional validity of the
H amendment Act in Venkatagiri's case. (683-E-F)
DIRECTOR OF SETTLEMENTS, A.P. v. M.R, APPARAO [PATTANAIK, J.] 667

3.4. The impugned mandamus issued by the Division Bench of the A
Andhra Pradesh High Court in the teeth of the declaration made by this Court
as to the constitutionally of the amendment Act would be an exercise of power
and jurisdiction when the respondents did not have the subsisting legally
enforceable right under the very Act itself. In the aforesaid circumstances,
High Court committed an error in issuing the mandamus in question for B
enforcement of the right which never subsisted on the date the Court issued
the mandamus, in view of the decision of this court in Venkatagiri's case.
[683-G-H; 684-A]

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2517 of
1999.
c
From the Judgment and Order dated 4, 11.98 of the Andhra Pradesh
High Court in W.A. No. 511 of 1993.

Guntur Prabhakar and Ms. T. Anamika for the Appellants.
D
P,P. Rao, C.K. Sucharita and Ashok Kumar Pandey for the Respondents.

The Judgment of the Court was delivered by

PATTANAIK, J. This appeal by the State of Andhra Pradesh is directed
against the impugned Judgment of the Division Ben~h of the Andhra Pradesh E
High Court dated 4.11.93 in Writ Appeal No. 511 of 1993. The Division
Bench of the Andhra Pradesh High Court has come to the conclusion that the
rights accrued in favour of the respondents to receive interim payments under
~ Section 39 of the Andhra Pradesh Estates (Abolition and Conversion into
Ryotwari) Act, 1948, which has already become final, the earlier Judgments
of the High Court, not being assailed, the decision of the Supreme Court in F
the Venkatagiri's case, would not take away that right and, therefore, the
respondents would be entitled to receive interim payments in accordance
with the judgments in their favour.

A brief facts are that the two estates called Vuyyur and Meduru, were G
notified under the provisions of the Estates Abolition Act, 1948 and the State
Government took over the two estates. The compensation due for the estates
was notified on 20.6.1961. The State Government realising its mistake in
notifying the two estates together, issued two separate notifications under the
Estates Abolition Act, on I.I 0.1963 and compensation for the two estates
were determined separately, one on 21.11.64 for Meduru and another on H
668 SUPREME COURT REPORTS [2002) 2 S.C.R.

A 5.4.1966 for Vuyyur. The State Government issued an administrative -._
instruction in G.O.Ms. No. 645 dated 28.5.66, indicating the procedure for
determining the final compensation. Section 39 of the Act indicates the manner
in which the compensation is to be determined. The scheme of the aforesaid
provision is that the Director shall determine the compensation under sub-
B section (I) of Section 39 and a person aggrieved could put-forth his grievances
to the Director, in the matter of proposed determination of the basic annual
sum and also the total compensation payable. The Director is required to
determine the compensation payable under sub-section (I) of Section 39,
after giving the applicant an opportunity of making his representation, either
in writing or orally. The order passed under sub-section (I) of Section 39 on
C being communicated to the concerned land-holder as well as to any other
applicant, the person aggrieved within three months could approach the Board
of Revenue by filing an appeal, as provided under sub-section (5) of Section
39. Sub-section (6) of Section 39 confers suo motu powers on the Board,
who in its discretion at any time call for and examine the record of any order
passed by the Director. The Board of Revenue is thus entitled to modify or
D cancel the order passed by the Director under sub-section (1). Sub-section (2)
of Section 50, casts an obligation. on the Government to make interim payments
every fasli year to the principal landholder and to other persons referred to
in Section 44, sub-section (i) for the period, after the notification issued for
vesting the estate and before the compensation is determined under Section
E 39 and deposited under Section 41. On 6.11.1970, Ordinance 6 of 1970 was
promulgated to restrict the interim payments payable to the estate-holder till
the determination by the Director of Settlement. The aforesaid Ordinance was
replaced by Act 3 of 1971 on 16.1.1971, amending Sections 41, 44, 50 and
54 of the Estates Abolition Act, with retrospective effect. It may be stated
that Section 41, prior to its amendment by Act 3/1971 read thus:
F
"41(1). The Government shall deposit in the office of the Tribunal,
the compensation in respect of each estate as finally determined under
Section 39, in such form and manner, and at such time or times and
in one or more instalments, as may be prescribed by rules made
under Section 40."
G
Under the amended provision, the expression "as finally determined under
Section 39" was substituted by the expression "determined by the Director
under Section 39". A writ petition was filed in the Andhra Pradesh High
Court by Raja of Venkatagiri, questioning the validity of the ordinance as
well as the amendment Act and by Judgment _dated 22.9.1971, the High
H Court declared that Act 3/1971 to the extent it extinguished the vested right

+---
(
DIRECTOR OF SETTLEMENTS, A.P. v. M.R. APPARAO [PATTANAIK, J.] 669
_,.
of the estate holders to receive interim compensation till the date of A
• commencement of the Act was ultra vires of Article 31 (2) and not protected
by Article 3 IA or 318. It further held that interim payments were payable
upto the date of the ordinance but not thereafter. Thus the amended Act was
held to be valid prospectively. The present respondents along with several
others filed writ petitions before the Andhra Pradesh High Court, seeking
interim payments, which were registered as Writ Petition Nos. 3293 and 3294 B
of 1975. A learned Single Judge of the High Court disposed of the two writ
petitions by Judgment dated 17.6.1977 and following the earlier Judgment in
Venkatagiri's case, issued a writ of mandamus to make interim payments to
the respondents herein in accordance with law laid down in Venkatagiri's
case. Against this direction of the learned Single Judge, the State Government c
·filed an application for leave to appeal under Article 133(a) and (b) of the
Constitution, but the same on being dismissed, the State Government did not
approach the Supreme Court and allowed the matter to rest therein.
Notwithstanding the finality attached to the order of the learned Single Judge
in favour of the respondents, the same not being complied with, a fresh writ
petition was filed, which was registered as Writ Petition No. 730 of 1978, D
praying therein that the earlier order be commanded to be implemented by
a writ of mandamus. That application was disposed of on 28.3 .1978 and the
Court issued the direction to implement the e.arlier order dated 7 .6.1977
within one month from the date of the order. The Judgment of the Andhra
Pradesh High Court in Venkatagiri's case had been assailed in. the Supreme E
Court in Civil Appeal Nos. 398 and 1385 of 1972. Those two appeals were
disposed of by order dated 6.2.1986. In this Court the counsel appearing for
the respondents, who were the original writ petitioners before the High Court
....... consented to the Judgments and orders of the High Court under appeal being
set aside, leaving it open to the land-holders and others to get the compensation
and interim payments in accordance with the amended provisions of the F
Andhra Pradesh (Andhra Area) Estates (Abolition and Conversion into
Ryotwari) Act, 1948. The Court also itself expressed its opinion and held that
the amendments made to the Act are constitutionally valid and the view
expressed in the writ petition No. 496 of 1965 is erroneous. The Court,
therefore, set aside the judgments and orders passed by the Andhra Pradesh G
'
High Court, leaving the question of computation of interim payments payable
to the respondents therein open, to be decided by the authorities concerned
in accordance with law and the orders passed by the Director. The Court
hastened to add that the interim payments payable under the Act ends with
the date of the original determination made by the Director under Section
39(1) thereof before the filing of the appeal, if any, and of the deposit of the H
670 SUPREME COURT REPORTS [2002] 2 S.C.R.

A amount so determined. On 3. 7.1986, the State of Andhra Pradesh in the •'-
Department of Revenue (J) issued a memorandum, Memo No. 609/J-2/81-27, 4'
~

stating therein that the land-holders of Vuyyur and Meduru estates cannot
contend that the decision of the Supreme Court in Venkatagiri's case, does
not bind them merely because appeals were not filed against the judgment in
their favour and the law declared by the Supreme Court is binding on the
B land-holders whether they were parties to the Judgment or not. The authorities
concerned were directed to act in accordance with the judgment of the Supreme
Court in Venkatagiri's case. The respondents herein filed a writ petition,
which was registered as Writ Petition No. 1673 7 of 1990, claiming interim
payments from 1. 7.64 to 31.11.1970 and to implement the earlier order in
c their favour passed by the High Court. The learned Single Judge by Judgment
dated 30th of January, 1993, dismissed the writ petition on the ground that
the very basis namely the judgment in Venkatagiri's case, having been set
aside by the Supreme Court, the earlier decision in favour of the respondents
would not constitute an enforceable right and as such a writ of mandamus
cannot be issued. The respondents however assailed the aforesaid judgment
D of the learned Single Judge in writ appeal No. 511 of 1993 and the said writ
appeal having been allowed, the present appeal has been preferred by the
'(
State Government by grant of special leave.

When this appeal had been listed before a Bench of two learned Judges
E of this Court on 7.2.2002, the Court felt that the decision of this Court in the
case of Mis Shenoy and Co. and Ors. v. Commercial Tax Officer Circle I/,
Bangalore and Ors., on which the counsel for the Stace relied upon and the
decision of this Court in the case of Authorised Officer (Land Reforms) v.
MM Krishnamurthy Chetty, [1998] 9 SCC 138, on which Mr. Rao for the ;:..--
respondents relied upon, perhaps run counter to each other and as such to
F resolve the said conflict, the appeal should be decided by a Bench of three
learned Judges, and that is how the appeal has been placed before us.

Mr. Guntur Prabhakar, the learned counsel appearing for the State,
contended that the law declared by the. Supreme Court in the appeal in the
case of State of Andhra Pradesh and Ors. v. Venkatagiri and Ors. is the law
G .;
of the land and binding on all persons throughout the country in view of
Article 141 of the Constitution. By the said Judgment, this Court having held
that the amendment of 1971 Act is valid and it having further held that the
period during which the interim payment are payable under the Act ends with
the date of original determination made by the Director under Section 39(1)
H of the Act, the Division Bench of the High Court committed serious error in
DIRECTOROFSETILEMENTS, A.P. v. M.R. APPARAO [PATIANAIK,J.j 671

issuing a mandamus contrary to the aforesaid declaration of law on the basis A

-
_, of finality attached to the Judgment in favour of the respondents. According
to Mr. Prabhakar, the very Judgment in favour of the respondents having
emanated, because of the Judgment of Andhra Pradesh High Court in
Venkatagiri's case and the judgment of Venkatagiri, having been set aside,
the respondents cannot make any claim on the basis of the earlier judgment
in their favour. High Court, therefore, was in error in issuing the impugned B
directions in the Judgment under challenge. Relying upon the Judgment of
this Court in Mis Shenoy and Co. v. Commercial Tax Officer, Circle If,
Bangalore, [1985] 2 SCC 512, Mr. Prabhakar contends that the effect of the
...... Judgment of this Court in C.A. No. 1743 of 1973 is that the said Judgment
would be a biilding law, not only for the parties in that appeal but also those,c
who had approached the High Court under Article 226 and in whose favour,
a mandamus had been issued, following the Judgment in Venkatagiri's case.
The law declared by the High Court in Venkatagiri' s case, having been set
aside and the amendment Act having been held to be constitutionally valid
and effective, the mandamus that had been issued in favour of the respondents,
must be held to have been rendered ineffective and unenforceable and, D
therefore, the High Court could not have issued the impugned directions.
According to Mr. Prabhakar, the three Judge Bench Judgment of this Court
in Shenoy's case referred to supra, apply with full force to the case in h;md
and in this view of the matter, the impugned judgment must be held to be
unsustainable in law. Mr. Prabhakar also relied upon the Judgment of this E
Court in UP. Pollution Control Board and Ors. v. Kanoria Industrial Ltd
and Anr., [2001] 2 sec 549, and urged that t~·apply the law laid down by
this Court in Venkatagiri's case only to the parties to the said appeal, would
tantamount to ignore the binding nature of a judgment of this Court under
Article 141 of the Constitution. According to him, such an interpretation
would make the mandate of Article 141 illusory and the High Court, therefore, F
committed serious error in not examining the effect of Article 141 of the
Constitution in its true perspective. Mr. Prabhakar also relied upon the
Constitution Bench decision of this Court in E.S.P. Rajaram and Ors. v.
Union of India and Ors., [2001] 2 SCC 186, and contended that the very
approach adopted by this Court in the aforesaid case to have a uniformity of
G
law in respect of all concern leads to the only conclusion that the High Court
' was not justified in issuing a mandamus on the ground of finality to the
earlier Judgment in favour of the respondents, as that would go against the
provisions of Article 141 of the Constitution.

Mr. P.P. Rao, the learned senior counsel, appearing for the respondents H
672 SUPREME COURT REPORTS [2002] 2 S.C . R.

A on the other hand contended that the judgment of this Court in C.A. Nos. 398
and 13 85 of 1972 (State ofAndhra Pradesh and Ors. v. Venkatagiri) proceeded
on the basis of a concession of the counsel appearing for said Venkatagiri.
Neither the Court examined the different contentions or adjudicated upon the
same and as such, it cannot be held to be a law declared within the ambit of
B Article 141 of the Constitution. According to Mr. Rao, the so called observation
of this Court in Venkatgiri 's case in its judgment dated 6th February, 1986,
in the appeals preferred by the State of Andhra Pradesh are per incurium
inasmuch as the judgment of the High Court in Writ Petition No. 496 of 1965
was not under appeal before this Court and the Court did not advert to the
reasons given by the High Court. Further the Bench of this Court did not
C consider the relevant provisions of the Act wherein the expression 'final
determination' had been used by the legislature in contrast to the word
'determina!ion' used in Section 39(1). Even the Bench did not consider the
earlier decision of this Court in S.R. Y. Sivaram Prasad Bahadur. v.
Commissioner oflncome Tax, (1971] 3 SCC 726 wherein it was held that the
interim payment is different from the compensation payable. Mr. Rao contends
D that the expression 'determination' and 'final detennination' connotes two
distinct meaning and cannot be one and the same. According to Mr. Rao
when the two expression of different import are used in a statute they convey
different meaning applicable to different situations. With reference to the
judgment of this Court in Mis. Shenoy and Co. v. Commercial Tax Officer,
E Circle II, Bangalore, (1985] 2 SCC 512, on which decision the learned counsel
for the State heavily relied upon, Mr. Rao contends that the aforesaid decision
requires re-consideration inasmuch as it has not taken into account the binding
precedents on the principle of res judicata in the realm of public law. Accord!ng
to Mr. Rao, the decision of this Court in the case of Authorised Officer (Land
Reforms) v. MM Krishnamurthy Chetty, (1998] 9 SCC 138·represents the
F correct position and the order of the Court which may not be strictly legal if
has become final, the same not being challenged before a superior Court, it
would have the binding effect as between the parties. In this view of the
matter the mandamus issued in favour of the respondents in Writ Petition
Nos. 3293 and 3294 of 1975 directing the State to make interim payments
G cannot be disobeyed or nullified merely because the judgment of the High
Court in Venkatgiri's case was reversed by the Supreme Court, and more
particularly, because the reversal of the judgment in the Supreme Court was
on the basis of the concession of the counsel appearing for Venkatgiri.
According to Mr. Rao, the rights accrued to the respondents in terms of the
earlier judgment are not affected by the order and judgment of the Supreme
H Court dated 6.2.1986 in Venkatgiri 's case and as such, the Division Bench of

[
DIRECTOR OF SETTLEMENTS, A.P. v. M.R. APPARAO [PATTANAIK, J.] 673

the High Court was fully justified in issuing the impugned order and direction. A
r
Jn view of the rival submissions following questions arise for our
consideration:

(a) Can the decision of this Court dated 6th February, 1986, upholding
the constitutional validity of the Amendment Act of 1971 reversing B
the judgment of Andhra Pradesh High Court in C.A. Nos. 39$
and 1385 of 1972 (State of Andhra Pradesh v. Venkatagiri and
batch), and further indicating that the period during which interim
payments are payable under the Act ends with the date of the
original determination made by the Director under Section 39(1)
of the Act, be held to be a law declared by the Supreme Court c
under Article 141 of the Constitution, or it can be said to be per
incurium, as contended by Mr. Rao, learned counsel appearing
for the respondents?

(b) The judgment of the Andhra Pradesh High Court in favour of the
respondents passed in Writ Petition Nos. 3293 and 3294 of 1975
D
not being challenged by way of appeal to the Supreme Court
even though it merely followed the earlier decision of the High
Court in Venkatgiri's case, whether has conferred an indefeasible
right on the respondents notwithstanding the reversal of the
judgment of the High Court in Venkatgiri's case by the Supreme E
Court?

(c) Whether the High Court would be justified in issuing a mandamus
in the changed circumstances, namely, Supreme Court reversing
the judgment of the High Court in Venkatgiri's case inasmuch as
for issuance of a mandamus one of the condition precedent, which F
is required to be established is that the right subsisted on the date
of the petition?

(d) Whether the judgment of this Court in Shenoy's case - 1985 (2)
Supreme Court Cases 512 requires any re-consideration?
G
So far as the first question is concerned, Article 141 of the Constitution
unequivocally indicates that the law declared by the Supreme Court shall be
binding on all Courts within the territory of India. The aforesaid Article
empowers the Supreme Court to declare the law. It is, therefore, an essential
function of the Court to interpret a legislation. The statements of the Court
on matters other than law like facts may have no binding force as the facts H
674 SUPREME COURT REPORTS [2002] 2 S.C.R.

A of two cases may not be similar. But what is binding is the ratio of the
decision and not any finding of facts. It is the principle found out upon a
reading of a judgment as a whole, in the light of the ·questions before the
Court that forms the ratio and not any particular word or sentence. To
determine whether a decision has 'declared law' it cannot be said to be a law
B when a point is disposed of on concession and what is binding is the principle
underlying a decision. A judgment of the Court has to be read in the con.text
of questions which arose for consideration in the case in which the judgment
was delivered. An 'obiter dictum' as distinguished from a ratio decid~ndi" is
an observation by Court on a legal question suggested in a case befor~ i! but
not arising in such manner as to require a decision. Such an obiter may not
C ·have a binding precedent as the observation was unnecessary for the decision
pronounced, but even though an obiter may not have a bind effect as a
precedent, but it cannot be denied that it is of considerable weight. The law
which will be binding under Article 141 would, therefore, extend to all
observations of points raised and decided by the Court in a given case. So
far as constitutional matters are concerned, it is a practice of the Court not
D to make any pronouncement on points not directly raised for its decision. The
decision in a judgment of the Supreme Court cannot be assailed on the
ground that certain aspects were not considered or the relevant provisions
were not brought to the notice of the Court (see AIR_(l970) SC 1002 and
AIR (1973) SC 794). When Supreme Court decides a principle it would be
E the duty of the High Court or a subordinate Court to follow the decision of
the Supreme Court.- A judgment of the High Court which refuses to follow
the decision and directions of the Supreme Court or seeks to ~evive a decision
of the High Court which had been set aside by the Supreme Court is a nullity.
(See [1984)] 2 SCC 402 and [1984] 2 SCC 324). We have to answer the first
question bearing in mind the aforesaid guiding principles. We may refer to
F some of the decisions cited by Mr. Rao in elaborating his arguments contending
that the judgment of this Court dated 6th February, 1986 cannot be held to
be a law declared by the Court within the ambit of Article 141 of the
Constitution. Mr. Rao relied upon the judgment of this Court in the case of
Pandit MS.M Sharma v. Shri Sri Krishna Sinha and Ors., (1959) Suppl. 1
G Supreme Court Reports 806, wherein the power and privilege of the State
Legislature and the fundamental right of freedom of speech and expression
including the freedom of the press was the subject matter of consideration.
In the aforesaid judgment it has been observed by the Court that the decision ·
in Gunupati Keshavram Reddy v. Najisul Hasan, AIR (1954) SC 636, relied
upon by the counsel for the petitioner which entirely proceeded on a concession
H of the counsel cannot be regarded as a considered opinion on the subject.
DIRECTOR OF SETTLEMENTS, A.P. v. M.R. APP ARAO [PA TTANAJK, J.] 675

•;There is no dispute with the aforesaid proposition of law. The next decision A
relied upon by Mr. Rao is the case of Supdt. and Legal Remembrancer, State
of West Bengal v. Corporation of Calcutta, (1967) 2 S"!Jreme Court Reports
170. The observation of Subba Rao, J. in the aforesaid case, in relation to the
decision of the Privy Council in the case of Province of Bombay v. Municipal
Corporation of the City of Bombay (73 Indian Appeals 271) which had been
pressed into service by the learned Advocate General of State of West Bengal, B
has been pressed into service by Mr. Rao. After quoting a passage from the
judgment of the Privy Council this Court held "the decision made on
concession made by the parties even though the principle consisted was
accepted by the Privy Council without discussion cannot be given the same
value as one given upon a careful consideration of the pros and cons of the C
question raised. The aforesaid observation indicates the care and caution
taken by the Court in the matter and therefore, merely because the pros and
cons of the question raised had not been discussed the judgment of this Court
cannot be held to be not a law declared, as contended by Mr. Rao.

The next decision relied upon by Mr. Rao is the case of Krishena D
KumarandAnr. etc. etc. v. UnionoflndiaandOrs., [1990] 3 Supreme Court
Reports 352. In the aforesaid case the Constitution Bench was considering
the ratio decidendi in Nakara's case 1983 (2) SCR 165, when the question
before the Court was whether the States' obligation is the same towards the
Pension retirees as well as the Provident Fund retirees and ultimately the E
Court came to the conclusion that the Pension Scheme and Provident Fund
Scheme are structurally different and, as such, the observation of the Court
in Nakara· may be a moral obligation of the State but cannot be construed a
ratio decidendi for being enforceable and applicable in all cases. It is in this
context, it was observed in Krishena Kumar that the enunciation of the reason
or principle upon which a question before a Court has been decided is alone F
binding as a precedent, and the ratio decidendi is the underlying principle,
namely, the general reasons or the general grounds upon which the decision
is based on the test or abstract the specific pecularities of the particular case
which gives rise to the decision. Having examined Nakara's case it was
stated in Krishena Kumar that it was never required to be decided that all the G
retirees formed a class and no further classification was permissible. At the
same time it was never held in Nakaras · case that both the Pension retirees
and Provident Fund retirees formed a homogeneous class and that any further
classification among them could be violative of Article 14. We fail to
- understand as to how the aforesaid observations made in Krishena Kumar
can have any application to the case in hand where directly the issue was H
676 SUPREME COURT REPORTS [2002] 2 S.C.R.

A whether the Amendment Act is constitutionally valid or not and the Andhra
Pradesh High Court was of the opinion that the said Act is ultra virus and had --.....
struck down the amenqment and against that decision State had come up in ,,
appeal. When this Court ultimately held the Amendment Act to be
constitutionally valid which was the subject matter directly in issue, it is
difficult for us to hold that it was not law declared. The next case relied upon
B is the case of State of UP. and Anr. v. Synthetics and Chemicals Ltd and
Anr., (1991) 4 Supreme Court Cases, 139 Hon'ble Justice Sahai in his
concurring judgment held that a decision which is not expressed and is not .-
founded on reasons, nor it proceeded on consideration of issue, cannot be
)....
deemed to be a law declared to have binding effect as is contemplated by
c Article 141. The learned Judge further observed that any declaration or
conclusion arrived at without application of mind or proceeded without any
reason cannot be deemed to be declaration of Jaw or authority of a general
nature binding as a precedent. We are afraid, that the aforesaid observations
cannot be held to be applicable to the case in hand when before the Court the
constitutionality of the Act was directly under consideration and,
D notwithstanding the concession of the counsel appearing for the party, the
Court independently on examining the amendments in question held the same
to be constitutionally valid, and further it went on to hold the period for £r

which interim payment would be payable.
"'
E A recent decision of this Court in Arnit Das v. State of Bihar, (2000)
5 Supreme Court Cases, 488, was also pressed into service by Mr. Rao. In
r
the aforesaid case this Court had observed that a decision not expressed and
accompanied by reasons and not proceeded on a conscious consideration of
issue cannot be deemed to be a law declared to have a binding effect as
contemplated under Article 141 of the Constitution. Applying the test to the
F case in hand is it possible for us to hold that the question of constitutionality
of the Amendment Act of 1970 was not an issue before this Court in Civil
--·
Appeal No. 398 of 1972 or that the conclusion of the Court was not of a
conscious consideration and the answer· would be in the negative. In our
considered opinion, therefore, the aforesaid decision is of no assistance to
support Mr. Rao's contention.
G ..,,
Mr. Rao then placed reliance on yet another decision of this Court in ~

the case of A-One Granites v. State of UP. and Ors., (2001) 2·Supreme
Court Cases 537, to which one of us (Pattanaik, J.) was a party. In that -,
particular case the applicability of Rule 72 of the U.P. Minor Minerals
.....
H (Concession) Rules, 1963 was one of the bone of the contention before this
DIRECTOR OF SETTLEMENTS, A.P. v. M.R. APPARAO [PATTANAIK, J.] 677

Court, and when the earlier decision of the Court in Prem Nath Sharma v. A
State of UP., (1997) 4 Supreme Court Cases 552, was pressed into service,
it was found out that in Prem Nath Sharma's case the applicability of Rule
72 had never been canvassed and the only question that had been canvassed
was the violation of the said Rules. It is in this context, it was held by this
Court in Granite's case "as the question regarding applicability of Rule 72 of B
the Rules having not been even referred to, much less considered by Supreme
Court in the earlier appeals, it cannot be said that the point is concluded by
the same and no longer res integra". This dictum will have no application to
the case in hand on the question whether the judgment of this Court in Civil
Appeal No. 398 of 1972 can be held to be a law declared under Article 14 l.
c
Yet another decision of this Court relied upon by Mr. Rao is Ku/want
Kaur and Ors. v. Gurdial Singh Mann (dead) by lrs., (2001) 4 Supreme
Court Cases 262. In that case what was observed by this Court is that when
the Court proceeds on the basis of a concession then the decision cannot have
a binding precedent in as much as it cannot be held to be a law declared
under Article 14!. As we have already stated, the question therefore requires D
an answer is whether the judgment of this Court in Civil Appeal No. 398 of
1972 is based only upon a concession of the counsel for the parties or is a
r conclusion of the Court on an independent application of mind as the
constitutionality of the Amendment Act of l 971 which was the only issue in
the appeal. E

Mr. Rao relied upon the judgment of this Court in Lakshmi Shanker
Srivastava v. State (Delhi Administration), (1979) l Supreme Court Cases
229, which was an appeal against conviction under Section 5(2) of the
Prevention of Corruption Act, 1947 read with Section 161. In that particular
case the attention of the Court had been drawn to an earlier decision in the F
case of R.J. Singh Ahluwalia v. State of Delhi, (1970) 3 Supreme Court Cases
451, on the question of validity of sanction, and the Court observed that the
judgment proceeds on concession and not on any analysis or examination of
the relevant provisions, and as such will be of no help. In our considered
opinion, the aforesaid decision is of no assistance to the point in issue. Mr. G
Rao also relied upon the observations of this Court in Raval and Co. v. K.C.
' Ramachandran and Ors., (1974) 2 Supreme Court Reports 629. In this case,
on behalf of the appellant reliance had been upon two earlier decisions (1963)
(3) SCR 312, and 1967(1) SCR 475). Both the cases were dealing with the
eviction. The Court, however, observed that the general observations in those
two decisions upon which reliance was placed to contend that they apply to H
678 SUPREME COURT REPORTS (2002] 2 S.C.R.

A cases for fixation of rent also will not apply. It was held that the general
observations therein should be confined to the facts of those cases and any
general observation cannot apply in interpreting provisions of the Act unless
the Court had applied its mind to analyse its decision to that particular Act.
-- -
While there is no dispute with the aforesaid proposition, but in our view the
same will be of no assistance in deciding the quest~on for consideration
B inasmuch as the decision as to the constitutionality of the Amendment Act of
1971 is neither a general observation nor can it be held to be an observation
without application of mind. The only other case which may be noticed in
this connection, is the case of Municipal Corporation of Delhi v. Gurnam
Kaur, (1989) 1 Supreme Court Cases 101. In the aforesaid case the Court ~

c examined the provisions of Article 141, elaborated the meaning of the
expression 'obiter dicta, per incuriam and sub silentio decisions and ultimately
held that the orders made with the consent of the parties and with the
reservation that the same should not be treated as precedent, cannot have a
binding effect as law declared. We are unable to persuade ourselves with the
contention of Mr. Rao that a judgment of this Court in Civil Appeal No. 398
D of 1972 is merely a judgment on concession and not a decision on merits.
Consequently, this decision also will be of no application.

Bearing in mind the host of decisions cited by Mr. Rao and on -'(
examining the judgment of this Court dated 6.2.1986 in Civil Appeal No.-398
of 1972 we have no doubt in our mind that the conclusion of the Court that
E
the amendments are constitutionally valid and the view expressed by the
Andhra Pradesh High Court is erroneous is a conscious decision of the Court
.....
,,.,

itself on application of mind to the provisions of the Act. It is no doubt true
that the counsel for the respondent Venkatgiri had indicated that the respondent
will have no objection to the judgments and orders of the High Court under
F appeal, being set aside. But that by itself would not tantamount to hold that
the judgment is a judgment on concession. Even after recording the stand of
the counsel appearing for Venkatgiri when the Court observed "we are also
of the view that the two amendments referred to above, are const\tutionally
valid", the same is unequivocal determination of the constitutional validity of
the Amended Act, it cannot be dubbed as a conclusion on concession, nor
G can it· be held to be a conclusion without application of mind, particularly

..
when the very constitutionality of the Amendment Act was the core question .,
before the Court. It is also apparent frorri the further direction when the Court
holds 'we further make it clear that the period during which interim payments-._
are payable under the above said Act ends with the date of the original
H determination by the Director under Section 39(1) thereof. This conclusion
·.
DIRECTOR OF SETTLEMENTS, A.P. v. M.R. APPARAO [PATT ANAIK, J.] 679

is possible only after application of mind to the provisions of Section 39 as A
well as other provisions and the Amendment that was brought into the statute
book. In the ·aforesaid premises, our answer to the first question is that the
decision of this Court dated 6.2.1986 must be held to be a 'law declared'
within the ambit of Article 141 of the Constitution and the constitutional
validity of the Amendment Act 1971 is not open to be re-agitated and that B
the judgment of Andhra Pradesh High Court holding the Amendment Act to
be constitutionally invalid had been set aside by this Court.

So far as the second question is concerned, it is no doubt true that the
Judgment of the Andhra Pradesh High Court in favour of the respondents,
not having been challenged, has reached finality. The High Court in the C
aforesaid two cases, following the reasoning and conclusion of the earlier
decision in Venkatagiri's case in Writ Petition No. 4709/70 dated 22.9. 71
issued a writ of mandamus to make payments to the petitioners in accordance
with law laid down in Writ Petition No. 4709 of 1970 dated 22.9.71.
Notwithstanding the aforesaid direction in favour of the respondents in writ
petition Nos. 3293 and 3294 of 1975, interim payments not having been D
made, the respondents approached the High Court again, by filing a fresh
writ petition, which was registered as writ petition No. 730 of 1978. The
High Court disposed of the matter on 28.3.78, directing the State to implement
the earlier order dated 7.6.77 within a month from the date of the said order.
Yet, no interim payments had been made and in the meantime, Supreme E
Court reversed the Judgment of the Andhra Pradesh High Court in
Venkatagiri's case in C.A. Nos. 398 and 1385 of 1972 by Judgment dated
6.2.1986. While reversing the Judgment of the Andhra Pradesh High Court
in Venkatagiri's case, independent of the concession made by the counsel for
the said Venkatagiri, the Court also held that the amended provision is
constitutionally valid and further directed that interim payments would be F
payable only till the date of the original determination made by the Director
under Section 39(1) of the Act and on the deposit of the amount by the State,
so determined. The original mandamus in favour of the respondents having
.. been based upon the sole ground of the decision of the Andhra Pradesh High
Court in Venkatagiri's case and that decision of Venkatagiri, having been G
reversed by the Supreme Court, the question of right of the respondents
emanating from the Judgment in their favour, requires to be decided. Mr. P.P.
Rao, in this connection argued with vehemence that the mandamus in favour
of the respondents, could not have been ipso facto nullified on account of
reversal ofthe decision of the High Court in Venkatagiri's case and, therefore,
the same would be enforceable even now, and in fact the Division Bench of H
680 SUPREME COURT REPORTS [2002] 2 S.C.R.

A the High Court has allowed such relief. Mr. Rao relies upon the decision of -...
this Court in the case of Satyadhyan Ghosal and Ors. v. Smt. Deorajin Debi
and Anr., [ 1960] 3 SCR 590, wherein, the Court was considering the principle
of res judicata. The Court in that case came to the conclusion that the principle
of res judicata applies as between the past litigation and future litigation and
when a matter, whether on a question of fact or on a question of law has been
B decided between two parties in one suit or proceeding and the decision is
final, either because no appeal was taken to a higher court or because the
appeal was dismissed, neither party will be allowed in a future suit or
~
proceeding between the same parties to canvass the matter again. It was
further held that the principle of res judicata applies as between two stages
,_,
c in the same litigation. Mr. Rao also relied upon the decision of this Court in
the case of State of West Bengal v. Hemani Kumar Bhattacharjee and Ors.,
[1963] Supp 2 SCR 542, where-under the question for consideration was
whether the earlier decision of the High Court regarding the unconstitutionality
of Section 4(1) of the West Bengal Criminal Law Amendment Act, would be
binding between the parties and the correctness could not be collaterally or
D incidentally challenged ? The Court held that it would not be permissible for
./
the State Government to challenge the correctness of the earlier Judgment
~
either collaterally or incidentally, no appeal having been taken from the
earlier decision. Mr. Rao further relied upon the decision of this Court in the
case of B.N. Nagarajan and Ors. v. State of Mysore and Ors., [1966] 3 SCR
E 682, whereunder while allowing the appeals filed by the State as well as .....
private persons and setting aside the Judgment of the High Court, the Court
also observed that those who have not prosecuted their appeals, they would
also have the benefit of the Judgment and this the Supreme Court could do
in exercise of its power under Article 142 of the Constitution. We really fail
to understand as to how the aforesaid decision is of any application. According
F to Mr. Rao, since in Venkatagiri's case there has been no such observation
notwithstanding the reversing the Judgment of the High Court, those of the
persons against whom, the State did not come up in appeal, their rights are
concluded by the earlier judgment of the High Court and that must be allowed
to operate. It is however difficult for us to accept this contention in the facts . ·-
G of the present case, particularly in the context of the issuance of mandamus ~

by the Court. Mr. Rao also strongly relied upon the Judgment of this Court
in the case of Authorised Officer (Land Reforms) v. MM Krishnamurthy
Chetty, [ 1998] 9 SCC 138. In this case, this Court held that the order of the
High Court, directing the Authorised Officer to examine the dispute in the
light of the Judgment of the High Court in the case of Naganatha Ayyar v.
H Authorised Officer, became final although the very Judgment on which the
DIRECTOR OF SETTLEMENTS, A.P. v. M.R.APPARAO [PATTANAIK,J.] 681

-"" grievance had to be examined itself was reversed later by the Supreme Court A
and, therefore, the orders which may not be strictly legal, having become
final and binding between the parties, if they are not challenged before the
superior courts, the same has to be followed. The aforesaid Judgment of a
two Judge Bench of this Court, undoubtedly supports Mr. Rao's contention
but it had not taken into consideration a three Judge Bench decision in Mis
Shenoy and Co. v. Commercial Tax Officer, Circle II, Bangalore and Ors., B
[1985] 2 SCC 512, wherein under identical circumstances, this Court had

... held that when large number of writ petitions were filed challenging the Act
and all those writ petitions were grouped together, heard together, and were
disposed of by the High Court by a common Judgment and the dispute in the
c
cause between the State and each of the petitioner had no personal or individua·I
element in it, and on the other hand, challenge was to the constitutional
validity of 1979 Act, when the Supreme Court held that the Act is
constitutionally valid, it would be difficult to contend that the law laid down
in the Judgment would bind only Hansa Corporation, who has approached
the Supreme Court and not the other petitioners against whom the State of
Karnataka had not filed any appeal. According to the aforesaid Judgment to D
do s0 ,1 would be to ignore the binding nature of a Judgment of this Court
r under Article 14 I of the Constitu.tion. The Court further held that if the law
which was declared invalid by the High Court is held constitutionally valid,
effective and binding by the Supreme Court, then the mandamus forbearing
.. the authorities from enforcing its provisions would become ineffective and E
the authorities cannot be compelled to perform a negative duty. The declarion
of the law is binding on everyone and it would, therefore be futile to con end
that the mandamus would still survive in favour of those parties against
whom appeals were not filed. In our considered opinion, the ratio in the
aforesaid case fully applies to the case in hand, particularly, when the Court
is examining the question whether while issuing a mandamus, the earlier F
Judgment notwithstanding having been held to be invalid, can still be held to
be operative. Mr. Rao also relied upon the Judgment of this Court in Ram Bai
v. Commissioner of Income Tax, [1999] 3 SCC 30, which was a case arising
from an assessment made under the Income-tax Act . Having examined the
' aforesaid decision at length, we do not find anything stated therein which
G
' will be of any .assistance to the respondents in the present case. Mr. Rao, no
doubt submitted with force that in Shenoy 's case, the Court never focused its
attention as to the finality of the earlier Judgment and the principle of res
judicata and accordingly, the said decision require a consideration by a larger
Bench. But we are not persuaded to accept this submission inasmuch as when
the Court is examining the question of any right having emanated from a H
682 SUPREME COURT REPORTS [2002] 2 S.C.R.

A Judgment of the High Court and the said Judgment squarely having emanated,
on following an earlier Judgment of the said Court, without any further
reasoning advanced and no question of facts involved but purely a question ·
of constitutionality of an Act, the moment the earlier Judgment of the High
Court is reversed by the Supreme Court, that becomes the law of the land,
B binding on all parties. In other words, the Judgment of the Andhra Pradesh
High Court in Venkatagiri's case, holding the amendment Act to be
constitutionally invalid, on being reversed by the Supreme Court on a
conclusion that the said amendment is constitutionally valid, the said dictum
would be valid throughout the country and for all persons, including the
respondents, even though the Judgment in their favour had not been assailed.
C It would in fact lead to an anomalous situation, ifin the case of the respondents,
the earlier conclusion that the amendment act is constitutionally invalid is
allowed to operate notwithstanding the reversal of that conclusion in
Venkatagiri's case and only in Venkatagiri's case or where the parties have
never approached the Court to hold that the same is constitutionally valid.
This being the position, notwithstanding the enunciation of the principle of
D res judicata and its applicability to the litigation between the parties at different
stages, it is difficult for us to sustain the argument of Mr. Rao that an
indefeasible right has accrued to the respondents on the basis of the Judgment
in their favour which had not been challenged and that right could be enforced
by issuance of a fresh mandamus. On the other hand, to have the uniformity
E of the law and to have universal application of the law laid down by this
Court in Venkatagiri's case, it would be reasonable to hold that the so-called
direction in favour of the respondents became futile inasmuch as the direction
was on the basis that the amendment Act is constitutionally invalid, the
moment the Supreme Court holds the Act to be constitutionally valid. We
are, therefore, of the considered opinion that no indefeasible right on the
F respondents could be said to have accrued on account of the earlier Judgment
in their favour notwithstanding the reversal of the Judgment of the High
Court in Venkatagiri's case.

Coming to the third question, which is more important from the point
G of consideration of High Court's power for issuance of mandamus, it appears
that the constitution empowers the High Court to issue writs, directions or
orders in the nature of habeas corpus, mandamus, prohibition, quo warranto
and certiorari for the enforcement of any of the rights conferred by Part III
and for any other purpose under Article 226 of the Constitution of India. It
is, therefore essentially, a power upon the High Court for issuance of high
H prerogative writs for enforcement of fundamental rights as well as non-
.I' .
DIRECTOR OF SETTLEMENTS, A.P. v. M.R. APPARAO [PATTANAIK, J.] 683
fundamental or ordinary legal rights, which may come within the expression A
'for any other purpose'. The powers of the High Courts under Article 226
though are discretionary and no limits can be placed upon their discretion, it
must be exercised along.recognised lines and subject to certain self-imposed
. limitations. The expression 'for any other purpose' in Article 226, makes the
jurisdiction of the High Courts more extensive but yet ~e Court must exercise
the saine with certain restraints and within some patameters. One of the B
' conditions for e.xercising power under Article 226 for issuance of a mandamus
~ is that .the Court must come to the conclusion that the aggrieved person has
a legal right, which entitles him to any of the rights and that such right has
been infringed. In other Words, existence of a legal right of a citizen and
performance of any ~orresponding legal duty by the State or aqy public c
authority, could be enforced by issuance ofa writ ofmandamus .. "Mandamus"
means a command. It differs from·the writs of prohibition or certiorari in its
demand for some activity on the part of the body or person to whom it is
addressed. Mandamus is a command issued to direct any P.erson, corporation,
inferior Courts or Goverrunent, requiring him or them to do some particular
thing therein specified which appertains to his or their office and is in the D
nature of a public duty. A mandamus is available against any public authority
including administrative and local bodies, and it would lie to any person who
is under a duty imposed by statute or by the common law·to do a particular •
act. In order to obtain a writ or order in the nature of mandamus, the applicant
has to satisfy that he has a legal right to the performance of a legal duty by
E
the ·party against whom the mandamus is sought and such right must be
subsisting on the date of the petition. Kalyan Singh v. State of U.P., AIR

- 1962 SC 1183. The duty that may be enjoined by mandamus may be. one
imposed by the Constitution, a statute, common law or by rules or orders
having the force of law. When the aforesaid principle is applied to the case
in hand, the so-called right of the respondents, depending upon the conclusion F
that the amendment Act is constitutionally invalid and, therefore, the right to
get' interim payment will continue till. the final decision of the Board of
Revenue cannot be sustained when the Supreme Court itself has upheld the
constitutional validity of the amendment Act in Venkatagiri's case on 4th of
• February, 1986 in Civil Appeal No. 398 and 1385of1972 and further declared
in the said appeal that interim payments are payable till determination is
G
made by the Director under Section 39(1). The High Court in exercise of
power of issuance of mandamus could not have said anything contrary to that
· - on the ground that the earlier judgment in favour of the respondents became
final, not being challenged. The impugned mandamus issued by the 'Division
Bench of the Andhra Pradesh High Court in the teeth of the declaration made H
I ...

684 SUPREME COURT REPORTS [2002] 2 S.C.R.

A by the Supreme Court as to the constitutionality of the amendment Act would "-
be an exercise of power and jurisdiction when the respondents did not have
the subsist.mg legally enforceable right under the very Act itsel[ In the
aforesaid circumstances, we have no hesitation to come to the conclusion that
the High Court committed serious error in issuing the mandamus in question
B for enforcement of the so-called right which never subsisted on the date, the
Court issued the mandamus in view of the decision of this Court in
Venkatagiri's case. In our view, therefore, the said conclusion of the High
Court must be held to be erroneous.

Coming to the last question, Mr. Rao vehemently urged that the
C Shenoy's case requires reconsideration inasmuch it had not taken into account
the various principles including the principle of res judicata. But on examining
the Judgment of this Court, more particularly, the conclusion in relation to
the provisions of Article 141 of the Constitution, and applying the same to
the facts and circumstances to the present case, we do not think that a case
has been made out for referring the Shenoy's case to a larger Bench for
D reconsideration. On the other hand, we respectfully agree with the conclusion
arrived at by the three Judge Bench of this Court in Shenoy's case. In Shenoy
the Court was considering the applicability of Article 141 of the Constitution
and its effect on cases, against which no appeals had been filed. A law of the
land would govern everybody, and the non-consideration of the principle of
E res judicata will not be a ground to reconsider the said judgment.

In the aforesaid premises, the judgment of the Division Bench of Andhra
Pradesh High _Court is set aside. and this appeal is allowed.

S.K.S. Appeal allowed.