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‘Legislature can take away basis of judgment’
Holding that the power of the legislature to take away the basis of judgment by making amendment is well settled, the Madras High Court dismissed a plea seeking to declare Section 142(2) of the Negotiable Instruments Amendment Act, 2015, which deals with court jurisdictions in cheque bounce cases as ultra vires of Article 14 (equality before the law) of the Constitution.
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Chennai
A division bench comprising Chief Justice AP Sahi and Justice Subramonium Prasad, said “It is trite law that the Legislature can take away the basis of the judgment of a judicial pronouncement by either passing a Validating Act or passing amendments to the parent Act. In view of the above, there is no infirmity in the amendment.”
“Even otherwise, the Parliament is competent to bring out the amendment under the Negotiable Instruments Act. The said amendment cannot be said to be ultra vires in view of the provisions of the Act or Part III of the Constitution of India. The amendment cannot also be called to be manifestly arbitrary in the absence of any materials on record,” the bench said.
Refex Energy Limited at Avaniyapuram in Madurai through its managing director had challenged amendment to Article 142(2) of the Negotiable Instruments Act, primarily on the ground that the amendment goes completely contrary to the Supreme Court judgement in Dashrath Rupsingh Rathod Vs State of Maharashtra, which summed up the law relating to the place of suing.
He contended that the amendment amounts to setting at naught a judgement of the Supreme Court which is not permissible in law.
But, the bench on holding that in order to resolve the concerns regards the said judgement, the President of India promulgated the ordinance, which thereafter became an Act, said by virtue of the said amendment, the entire basis of the judgement of the Dashrath Rupsingh Rathod has been removed.
“It is well settled right from the decision in Shri Prithvi Cotton Mills Ltd vs Broach Borough Municipality and others that Legislation can take away the basis of a judgment,” the bench said.
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