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M/S M.R.F. LTD. ETC. versus MANOHAR PARRIKAR AND ORS.

Citation: [2010] 5 S.C.R. 1081 · Decided: 03-05-2010 · Supreme Court of India · Bench: R.V. RAVEENDRAN · Disposal: Dismissed

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Judgment (excerpt)

1 
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• [2010J '5 S.C.R. 1081 
M/S M.R.F. LTD: ETC. 
v. 
MANOHAR PARRIKAR AND ORS. 
(Civi!Appeal No. 4220 of 2002 etc.) 
MAY 3, 2010 
[R.V. RAVEENDRAN AND H.L. DATTU, JJ.] · 
Rules of Business of the Government of Goa: 
A 
B 
rr. 3, 6, 7 and 9 - Decision taken by Minister of Power c 
allowing rebate in electricity tariff- Matter notreferred to Chief 
Minister or the· Council of Ministers - Nor wa_s_ the concurrence 
of Finance Department taken - HELD: Such a decision 
cannot be said. to be the deCision 'of the Government -
Notifications giving effect to such· decisions without complying D 
with the Rules of Business framed under Article 166(3) of the 
Constitution,· are non-est and void ab initio .:.. High Court has 
rightly held the Rules of Business as mandatory - In the 
instant case, there is sufficient doubt with regard to the conduct 
of the Minister of Power in issuing the_ notifications -
E 
therefore, suspicion of irregularity renders- the doctrine of 
indoor management inapplicable - Constitution of India, 1950 
- Articles 154 and 166 - Doctrine of indoor Management -
Public Interest Litigation. 
Code of Civil Procedure, 1908: · 
F 
s.11, 0.2, r.2 - Res judicata - Withdrawal of electri_city 
tariff rebate granted as per Notifications challenged in writ· 
petitions - Upheld by High Court - But writ petitioners held 
entitled to the rebate for the periods indicated in the judgment G 
- SLPs dismissed- Subsequent writ petition irrpublic interest 
filed challenging validity and legality of the Notifications -
HELD: In the earlier litigation, issue of validity or legality of 
the Notifications was never raised, nor the writ petitioner in the 
1081 
H 
1082 
SUPREME COURT REPORTS 
[2010] 5 S.C.R. 
A subsequent writ petition was a party thereto - Merely because 
the State Government did not agitate legality or validity of the 
notifications in earlier round of litigation, it cannot be deemed 
to have accepted legality for the .Notifications, or waived its 
objection thereto - Therefore, the principles of res judicata 
B and the doctrine of estoppel have no application - Since the 
issue that was decided by High· Court in earlier round of 
litigation and the issue raised and considered in subsequent 
public interest 1Yrit petition are entirely different, doctrine of 
merger has also no bearing _.: Estoppe/ - Rules of Business · 
c of Government ot Goa 7 Doctrine of merger. . 
( 
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··.· .. 
·· 
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.. 
• .. · 
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The Government of Goa issued notification dated 
30.9.1991 granting: rebate· of 25% iri •electricity· tariff in 
respect of power. supply to the low tensiOn and high 
tension industrial ·consurners. The said notification was 
D late'r rescinded ·by another Notification. dated• 31.3.1995. 
l
Howey~r, on 15.5.19~6. an~t.her notification was issued 
amending .the not1f1cat1on dated 30.9.1991 and 
substituting the words• "high tension or low tensfori 
power supply", by words' "high tension/extra high tension 
E or low tensiOn p·ower supply". A further notification dated 
'.j1.8.1996 was issued ·rest§ring the facility of 25% .reb.ate 
w.e.f.1.8.1996. By an order dated 31.3.1998 issued by the 
Chief Electrical Engineer,' the benefits of rebate granted 
under Notification dated 1r8.1996 were withdrawn, This 
F led to a spate of litigation by the industrial units before 
the High Court. During the pendency of the writ petitions, 
the State Cabinet passed a resolution and,' accordingly, 
by issuing the notificatiori"dated 24;7.1998 the State 
· Government Withdrew the benefit of 25% rebate. The High 
G · Coui1,1tiy·its'order dated 21.1.1999, disposed of the writ 
petitions holding the circular/order dated 31.3.1998 as 
invalid and the notification dated 24.7.1998 as legal, valid 
·~md operative. However, the High Court held that all the 
petitioners were entitled to 25% rebate in power tariff for 
H the periods as indicated in the judgment. The appeals 
M.R.F. LTD. ETC. v. MANOHAR PARRIKAR AND 
1083 
ORS. 
challenging the judgment of the High Court were 
A 
dismissed by the Supreme Court by its order dated 
13.2.2001. Respondent No. 1 (in CA No. 4220 of 2002) 
challenged the correctness of the notifications dated 
15.5.1996 and 1.8.1996 by filing a writ petition under 
public interest and sought to declare the two notifications 
B 
as null and void. It was stated that as the said 
notifications were issued only at the instance of the 
Minister of Power, the same could not be terme·d as 
decisions of th

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