Khoday Distilleries Ltd. Vs Sri Mahadeshwara Sahakara Sakkare Karkhane Ltd. (Supreme Court of India)
Hon’ble Supreme Court (SC) in the case of Khoday Distilleries Ltd. The SC has explained the judicial effect of the dismissal of a Special Leave Petition, filed under Article 136 of the Indian Constitution.
Facts of the case:
– Mahadeshwara Sahakara Sakkare Karkhane Ltd. (MSSKL) had recoverable dues of around INR 1,00,76,630/- crores, along with interest from Khoday Distilleries Ltd. (KDL). The brief chronology of the events is outlined as under:
The Hon’ble Supreme Court (SC) framed the question of law as under:
Whether review petition is maintainable before the High Court seeking review of a judgement against which the special leave petition has already been dismissed by the Supreme Court?
Key observations and the decision of the SC:
– The SC, after carefully considering the conflicting views which had been expressed by two-Judge Benches in various earlier judgments, referred the matter to a larger bench consisting of 3 judges.
– The 3 judge bench of the SC, while considering the substantial question of law, referred to it, deliberated on two previous three Judge Bench decisions.
- In the case of Abbai Maligai Partnership Firm v. K. Santhakumaran [1998] 7 SCC 386, it was held by the SC that, the review petition cannot be entertained by the HC once the judgment and decree passed by the HC is affirmed by the SC with the dismissal of the SLP. MSSKL took support of this decision.
- The second judgment was in the case of Kunhayammed v. State of Kerala 2000 taxmann.com 2237/113 Taxman 470 which laid down various ways in which SLPs can be disposed of. It also laid down the principles, in which cases a review by the HC would be permissible and where such a review should not be entertained. Further it also expounded on the doctrine of merger and res judicata, etc.
– The SC took note of both the above judgments and observed that the decision in Abbai Maligai (supra) was decided on its peculiar facts, with no discussion on any principle of law. It further observed that the decision in the case of Kunhayammed (supra) elaborately explained and is based on well accepted propositions of the applicable law.
– The SC held that the decision in the case of Kunhayammed (supra) lays down the correct law and there is no need to refer the cases to a larger Bench as requested by KDL.
– The SC affirmed the findings of the judgement of Kunhayammed (supra) and summarised as under:
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