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2019 DIGILAW 1021 (RAJ)

Rajasthan High Court Advocates Association v. State of Rajasthan

2019-04-04

DINESH MEHTA, SANGEET LODHA

body2019
JUDGMENT Sangeet Lodha, J. - In the instant writ petition, after due consideration of the rival submissions, following directions were issued to the respondents by this Court vide order dated 31.10.18: "(i) The Registrar General, Rajasthan High Court shall ensure that all the commercial disputes pending in various courts of the State of Rajasthan including the Commercial Court No. 1, Jaipur, in respect whereof the jurisdiction stands vested in the various Commercial Courts constituted by the State Government vide notification dated 8.8.18, are transferred to the respective Commercial Courts expeditiously, in any case, within a period of two weeks. (ii) The District Collector/State Government in consultation with the District Judge concerned and the High Court, shall make the suitable building available for the establishment of the Commercial Court constituted as aforesaid, till the appropriate separate complex for each Commercial Court is developed as per the National Parameters for the design, if any, formulated for setting up and operationalizing of Model Commercial Court. (iii) The High Court shall send the proposal for making the funds available for infrastructure facilities for working of Commercial Courts in the buildings temporarily allotted, within a period of four weeks to the State Government, which in its turn shall sanction the funds within a period of two weeks thereafter. (iv) The places where the appropriate land is not available for establishment of the Commercial Courts within the existing Metropolitan Courts/District Courts Complexes, the concerned District Collector shall earmark and allot the land for establishment of the Commercial Court after consultation with the District Judge concerned and the High Court expeditiously, in any case, within a period of six weeks. (v) The Registrar General, Rajasthan High Court is directed to ensure that the design and the map for construction of the separate Complexes with requisite infrastructure facilities for each Commercial Court constituted by the State Government as aforesaid, is prepared and the proposals for budgetary allocations for each Commercial Court are sent to the State Government expeditiously, in any case, within a period of two months. (vi) The State Government is directed to ensure that the work of the construction of the building of the OTS is completed with utmost expedition. (vi) The State Government is directed to ensure that the work of the construction of the building of the OTS is completed with utmost expedition. We direct that the Model Code of Conduct made operative on account of ensuing elections shall not come in the way of the Department concerned to float the tenders for completion of the work of the building of OTS. As soon as the construction work of the OTS building is completed, the OTS shall vacate the space occupied by it in the building of the Rural Treasury. The Department of Registration operating on the first floor shall be shifted to the ground floor and the first floor of the said building shall be made available for establishment of the Commercial Court as suggested by the learned AAG appearing on behalf of the State. Till the building of the Rural Treasury occupied by the OTS and Department of Registration is made available for establishment of the Commercial Court at Jodhpur, the District Collector, Jodhpur shall identify and make available some other building for establishment of the Commercial Court at Jodhpur in Collectorate Complex within a period of two weeks. (vii) After transfer of the matters, the High Court shall place the details of commercial disputes pending in the various courts on record by way of an additional affidavit. The matter with regard to requirement of constitution of the more Commercial Courts at the district level shall be considered thereafter." 2. On 20.12.18, on an application preferred on behalf of the State, the direction No. 6 in order dated 31.10.18 reproduced above was modified in terms that for establishment of Commercial Court at Jodhpur, the area marked as Part "A" in red colour in the map annexed with the application ad measuring 4158 sq. ft. shall be made available for establishment of Commercial Court on or before 28.2.19. 3. The status report regarding the compliance of directions issued by this Court as aforesaid is filed on behalf of respondent No. 2-the Rajasthan High Court. 4. Regarding the compliance of the direction No. 1, the High Court has furnished the details of the number of the cases already transferred to the newly constituted Commercial Courts. 5. Regarding directions Nos. 3. The status report regarding the compliance of directions issued by this Court as aforesaid is filed on behalf of respondent No. 2-the Rajasthan High Court. 4. Regarding the compliance of the direction No. 1, the High Court has furnished the details of the number of the cases already transferred to the newly constituted Commercial Courts. 5. Regarding directions Nos. 2 & 4, which relate to making suitable building available for establishment of Commercial Courts constituted till appropriate separate complex for each Commercial Court is developed as per National Parameter for Design, if any, formulated for setting up and operationalizing of Model Commercial Court and earmarking and allotment of the land for establishment of the Commercial Courts after consultation with the District Judge concerned and the High Court, the position is summarized as follows: "1. Ajmer - Running in the Court of JM, Ajmer (Stop-Gap arrangement) and in the month of March, 2019, is likely to be shifted in rented building. As per communication received Commercial Court will be constructed in Court Complex, Ajmer. 2. Jaipur Commercial Court No. 1 is currently running in the old Van-Bhawan with the Commercial Court Nos. 02, 03 & 04 sharing the said premises and the State Government has been requested to allot entire Van-Bhawan for running Commercial Courts and RSLSA. However, no response to the aforesaid request has been received from the State Government so far. 3. Jodhpur - Running the court of Appellate Rent Tribunal of Jodhpur (Stop-Gap arrangement). OTS building has not yet been handed-over. 4. Kota Running in rented premises. Land allotment is under process. 5. Udaipur Running in the Court Premises. (Stop-Gap arrangement). As per communication received Commercial Court will be constructed in New Court Complex, Udaipur." 6. Regarding the sanction of the funds for infrastructure facility to make the Commercial Court functional, it is submitted on behalf of the High Court that the demand of Rs. 168.11 lacs for IT equipments, demand of Rs. 45.33 lacs for renovation work and minor construction in old Van-Bhawan Jaipur for Commercial Court Nos. 2, 3 & 4 and demand of Rs. 41.49 lacs for renovation work of OTS building for Commercial Court at Jodhpur are still pending with the State Government. 7. 168.11 lacs for IT equipments, demand of Rs. 45.33 lacs for renovation work and minor construction in old Van-Bhawan Jaipur for Commercial Court Nos. 2, 3 & 4 and demand of Rs. 41.49 lacs for renovation work of OTS building for Commercial Court at Jodhpur are still pending with the State Government. 7. Regarding direction No. 5, it is submitted that the Design and Map of construction of building for Commercial Courts after approval by State Court Management System Committee (SCMSC) and State Court Development and Plan Committee (SCDPC) of Rajasthan High Court has already been forwarded to the Principal Secretary, Law and Legal Affairs Department, Jaipur, with the request to take necessary steps for allotment of land and sanction of budget. 8. Regarding the revision of the cadre strength, it is submitted that while including the post of the Presiding Officers of Commercial Courts in the Schedule-I of Rajasthan Judicial Service Rules, 2010, in the form of the draft notification for amendment in the Schedule-I, has already been forwarded to the Principal Secretary Cum Legal Remembrancer, Law and Legal Affairs Department, Government of Rajasthan. 9. On behalf of the State Government an additional affidavit has been filed on 14.3.19 to explain the position regarding the compliance of the directions issued by this Court vide order dated 31.10.18 as modified vide order dated 20.12.18, wherein it is admitted that the State Government has already received the proposals for additional sanction of Rs. 45.33 lacs and Rs. 41.49 lacs for infrastructure facilities and repair works for Commercial Court Nos. 2, 3 & 4 at Van Bhawan, Jaipur and Commercial Court at Jodhpur in OTS building respectively. That apart, the receipt of the proposal for sanction of Rs. 168.11 lacs for IT works in 7 new Commercial Courts is also not disputed. However, it is submitted that for the financial year 2018-19, the budget of Rs. 795.24 lacs was sanctioned for maintenance, repair and infrastructure of court buildings, out of which Rs. 273.11 lacs has already been spent and Rs. 526.89 lacs still remains with the High Court, for which, it may consider re-appropriation of the funds from other heads of the expenditure towards the infrastructure/repairing works for Commercial Court. In the alternative, it is submitted that in principle approval has already been given for sanction of Rs. 86.82 lacs towards infrastructure of Commercial Courts and Rs. 526.89 lacs still remains with the High Court, for which, it may consider re-appropriation of the funds from other heads of the expenditure towards the infrastructure/repairing works for Commercial Court. In the alternative, it is submitted that in principle approval has already been given for sanction of Rs. 86.82 lacs towards infrastructure of Commercial Courts and Rs. 168.11 lacs for IT work and furniture work and therefore, the High Court may submit proposal for additional sanction of the proposed amount for the Commercial Courts for the financial year 2019-20. 10. In respect of the direction issued by this Court for making the requisite space available in Treasury/OTS building, it is submitted that the construction of new OTS building is already completed and the part of the building for establishment of the Commercial Court shall be made available by 15.4.19. 11. Regarding direction No. 2 for making suitable building available for establishment of Commercial Courts in Jaipur, Jodhpur, Udaipur, Ajmer and Kota, precisely the submissions made on behalf of the State read as under: "A. Jodhpur - Currently, the Commercial Court is being run in the D.J. Court Complex. Further, as has been submitted above in paragraph 3, post shifting of the OTS to its new building, Part A on first floor of the Rural (Treasury) building shall be made available for the running of Commercial Court. B. Jaipur - Currently, the Commercial Court No. 2, 3 and 4 are running in the old Van Bhanwan, Jaipur where Commercial Court No. 1 has already been running from before. Further, proceedings are underway for allotment of the entire building of old Van Bhawan towards Rajasthan State Legal Services Authority and Commercial Courts. C. Kota - Currently, the Commercial Court, Kota is running on leased building at 2-B, Civil Lines, Nayapura, Kota on a temporary basis. Further, the Joint Secretary (Admin) has through its letter dated 28.01.2019 directed the District Collector, Kota to undertake proceedings for allotment of land for the Commercial Court. D. Ajmer - Currently, the Commercial Court, Ajmer is being run at the court of Civil Judge and Judicial Magistrate on a temporary basis, on account of her being on maternity leave. Further, the Joint Secretary (Admin) has through its letter dated 28.01.2019 directed the District Collector, Kota to undertake proceedings for allotment of land for the Commercial Court. D. Ajmer - Currently, the Commercial Court, Ajmer is being run at the court of Civil Judge and Judicial Magistrate on a temporary basis, on account of her being on maternity leave. Further, through his letter dated 02.01.2019, the District Collector has informed that MoU has been signed with the District and Sessions Judge, Ajmer for allotment of 15.85 bigha and 8115.26 square yard of land in the Sanyogita Nagar of Ajmer Development Authority. Presently, construction of Court Complex is underway on the aforementioned area and in the said building many Courts will be operational including Commercial Court. E. Udaipur - Currently, the District and Sessions Judge has made space available on a temporary basis within the Court Complex for running of the Commercial Court. Further, in Udaipur construction of new Court Complex is underway, and budget proposal has been sent to the Rajasthan High Court, Jodhpur for construction of a new floor wherein the Commercial Court shall be run." 12. Mr. M.R. Singhvi, Senior Advocate, appearing for the petitioner contended that as per mandate of provisions of Section 19, the State Government is under an obligation to provide necessary infrastructure to facilitate the working of Commercial Courts or a Commercial Division of a High Court and thus, the exercise of the High Court making recommendations for financial sanction and approval of the plan as proposed by the High Court, is absolutely unnecessary. According to the learned counsel all initiatives for providing necessary infrastructure for working of the Commercial Court including requisite staff is required to be taken by the State Government and thus, the apparently, the State is delaying the process on the pretext of the High Court making the recommendations and thereafter, the State Government approving the same. Learned counsel submitted that as per the mandate of provisions of sub-section (3) of Section 3 of the Act, the Commercial Courts is required to be presided over by the Judge or Judges having experience in dealing with the commercial dispute from amongst the cadre of Higher Judicial Service in the State, to be appointed by the State Government with the concurrence of the Chief Justice of the High Court. However, presently, the said courts are being presided over by the existing officers of the DJ Cadre of the State and thus, on account of non availability of requisite number of Judicial Officers, the work of other courts is adversely affected. Learned counsel submitted that the State Government has created the posts of the Presiding Officer and other staff members vide order dated 8.8.18 only upto 28.2.19 and thus, the appropriate directions deserve to be issued to sanction the permanent posts and to initiate the selection process for the recruitment to the said posts. 13. Dr. Sachin Acharya, learned counsel appearing for the High Court while reiterating the stand taken in the status report filed, submitted that the contention of the State that High Court has not utilised the funds of Rs. 795.24 lakhs sanctioned for maintenance, repair, infrastructure work etc. and Rs. 526.89 lakhs remains unutilised is absolutely incorrect. Learned counsel submitted that as a matter of fact, the High Court has already issued sanction for the work as per the funds made available and number of bills forwarded by the Public Work Department for release of the fund are pending consideration before the Department of Finance. Learned counsel submitted that no funds sanctioned for the financial year 2018-19 are available with the High Court for re appropriation and the sanction is required to be issued by the State Government for the requisite funds for infrastructure facilities as also construction of new buildings of Commercial Courts. Learned counsel submitted that for establishment of the Commercial Courts and RALSA, the proposal for handing over of the old building of Forest Department to the High Court is still pending consideration of the State Government. Learned counsel submitted that in Ajmer and Udaipur, till the construction of the existing court complex is completed wherein the provision for Commercial Courts is also proposed, the Commercial Courts have to be established in a rented premises and therefore, additional fund will be required for infrastructure facilities to make the Courts functional in the rented premises. Learned counsel urged that the fund is also required for infrastructure facility to make the Commercial Court functional at Kota in the rented premises till the new building for Commercial Court is constructed after allotment of the land for the purpose. Learned counsel urged that the fund is also required for infrastructure facility to make the Commercial Court functional at Kota in the rented premises till the new building for Commercial Court is constructed after allotment of the land for the purpose. Learned counsel submitted that the State Government has not created various posts for Commercial Court as proposed by the High Court and the sanction is issued only upto 28.2.19. It is submitted that a proposal for revision of cadre strength of DJ Cadre under the Rajasthan Judicial Service Rules, 2010 (for short "Rules of 2010") is already forwarded to the State Government by way of Draft Notification proposing to amend the Rules of 2010 appropriately, however, the same is still pending consideration of the State Government. 14. The Additional Advocate General Mr. Sandeep Shah submitted that the requisite sanction for budget allocation for infrastructure facilities including IT work in Commercial Courts as per proposal of the High Court shall be issued by 15.4.19. It is submitted that the proposal for handing over the entire building of Van Bhawan for establishment of RALSA and Commercial Courts shall be considered positively and the appropriate decision shall be taken latest by 30.4.19. Learned AAG submitted that in view of the creation of new Commercial Courts, the cadre strength in the DJ cadre under the Rules of 2010 has to be revised and the appropriate decision in this regard shall be taken by the State Government expeditiously. Learned AAG submitted that for establishment of the Commercial Court at Jodhpur in the Treasury (Rural) Building, presently occupied by OTS, the space as proposed, shall also be made available latest by 15.4.19. Learned AAG submitted that the proposal of the High Court for sanctioning of the staff for Commercial Court shall be reconsidered by the State Government and the appropriate sanction in this regard shall also be issued expeditiously. Learned AAG submitted that the proposal for establishment of the Commercial Court at Ajmer and Udaipur in the court complex under construction is acceptable to the State Government in principle and after due consideration, the appropriate financial sanction for the work shall be issued. Learned AAG submitted that the funds for infrastructure facilities in the Commercial Courts to be established at the different places on temporary basis shall be issued expeditiously. Learned AAG submitted that the funds for infrastructure facilities in the Commercial Courts to be established at the different places on temporary basis shall be issued expeditiously. The proposal for allotment of the land for establishment of Commercial Court at Kota shall also be finalised with utmost expedition. 15. We have considered the submissions of the learned counsels for the parties and perused the material on record. 16. As discussed by this Court in order dated 31.10.18, to achieve the laudable object behind the Act to provide for establishment of the Commercial Court for speedy and efficacious resolution of the commercial disputes and to create positive image about the independent and responsive Indian legal system, the State Government is under an obligation to provide separate complexes for Model Commercial Courts together with the requisite infrastructure. Indubitably, the Commercial Court shall be a Court subordinate to the High Court, by virtue of Article 235 of the Constitution of India, its control vests in the High Court and therefore, in the decision making process regarding the construction of the buildings and the requisite infrastructure, the consultation with the High Court is quintessential. Even otherwise, as per the procedure adopted, the matters with regard to establishment of the Courts including the construction of the buildings and requisite infrastructure are dealt with by the State Government with the active consultation of the High Court. Thus, nothing turns on the question that the matters regarding the construction of the Model Building of the Commercial Courts and the requisite infrastructure are being dealt with by the State Government keeping in view the recommendations made by the High Court in this regard. 17. It is noticed that vide order dated 31.10.18, considering the requirement of appropriate buildings with requisite infrastructure facilities for smooth functioning of the Commercial Courts already constituted, various directions were issued by this Court. We are constrained to observe that ignoring the mandate of the provisions of the Act and defying the unequivocal directions issued by this Court, the State Authorities have not cared to do the needful to facilitate the smooth functioning of the Commercial Courts. We are constrained to observe that ignoring the mandate of the provisions of the Act and defying the unequivocal directions issued by this Court, the State Authorities have not cared to do the needful to facilitate the smooth functioning of the Commercial Courts. What to say about the consideration of the proposals for construction of separate Model Complex for Commercial Courts at the different places, even the proposals for providing the buildings for functioning of the Commercial Courts temporarily till the separate complex for each Commercial Court is developed, have not been dealt with and finalized within the time frame as directed by this Court. 18. Obviously, the budgetary allocation for the financial year 2018-19 does not include the demand of funds for infrastructure facilities in the Commercial Courts created, however, instead of sanctioning the Budget during the current financial year, the State has come with the stand that the High Court has not utilized the funds sanctioned for maintenance and infrastructure facilities in the Courts and therefore, the un-utilized fund can be reappropriated for the purpose, whereas it stands clarified by the High Court that it has already issued the requisite sanction for utilization of the fund sanctioned for the financial year 2018-19. 19. The proposal earmarking and allotment of the land where the space is not available for establishment of the Commercial Court within the existing Metropolitan Courts/ District Court Complexes, after consultation with District Judge concerned and the High Court, have also not been finalized till this date. The Design and the Map for construction of the separate complexes with the requisite infrastructure facilities for each Commercial Court and the budgetary allocation therefor already forwarded by the High Court also remain pending consideration of the State Government. 20. In this view of the matter, after due consideration of the submissions made by the learned counsels on behalf of the petitioner, High Court and learned Additional Advocate General on behalf of the State, we consider it appropriate to issue further directions as follow: (1) The recommendations made by the High Court proposing revision of the cadre strength of DJ Cadre under Rajasthan Judicial Service Rules, 2010 including the creation of the posts on account of establishment of new Commercial Courts, shall be considered and finalized by the State Government within a period of four weeks. (2) The recommendation made by the High Court vide communication dated 20.7.18 regarding creation of the various posts in each Commercial Courts, shall be duly considered and requisite sanction for staffing pattern shall be issued by the State Government expeditiously, in any case, within a period of six weeks. (3) The requisite sanction allocating the budget for infrastructure facilities in Commercial Courts at Jaipur and Jodhpur as also for IT work in Commercial Courts shall be issued by the State Government by 15.4.19 as agreed upon by the learned Additional Advocate General before this Court. (4) The proposal of handing over the entire building of Van Bhawan at Jaipur for the establishment of the RALSA and Commercial Court, shall be considered positively and appropriate decision shall be taken expeditiously, in any case, by 30.4.19. (5) For the establishment of the Commercial Court at Jodhpur, the portion of the building of Treasury (Rural) as agreed upon shall be made available for developing the infrastructure facilities by 15.4.19 and after completion of the infrastructure facilities, the Commercial Court in the said building shall be made operational within a period of three months thereafter. (6) The proposal for establishment of the Commercial Court at Udaipur in the existing court complex and at Ajmer in the new court complex, shall be finalized by the State Government in consultation with the High Court within the period of two months and the financial sanction for the same shall be issued by the State Government in the next financial year i.e. 2019-20. (7) The proposal for allotment of the land for establishment of the Commercial Court at Kota shall be finalized by the District Collector, Kota in consultation with the High Court and District Judge, Kota expeditiously, in any case, within a period of two months. The proposal for construction of the building shall be finalized expeditiously and matter with regard to budgetary allocation for the same shall also be considered by the State Government positively during financial year 2019-20. The proposal for construction of the building shall be finalized expeditiously and matter with regard to budgetary allocation for the same shall also be considered by the State Government positively during financial year 2019-20. (8) The proposal for the funds required for establishment of the Commercial Court at Ajmer, Udaipur and Kota in the existing court premises or the rented building till the permanent complexes for the establishment of the Commercial Courts at the said places are constructed, shall be forwarded by the High Court to the State Government within a period of two weeks which shall be considered and finalized by the State Government within a period of four weeks thereafter. (9) The respondents shall file the compliance report before the next date of hearing. List the matter on 28.5.2019.