CHANGE IN LAST DATE OF REGISTRATION FOR SCHOLARSHIP FOR HIGHER EDUCATION - 2012

THE LAST DATE FOR REGISTRATION FOR THE SCHOLARSHIP TEST - 2012 HAS BEEN EXTENDED TILL 10 TH JULY'2012
AND THE TEST WILL BE CONDUCTED ON 14TH & 15TH OF JULY'2012

COMPANY SECRETARY NEED OF ERA

New Batches for CA/CS/CMA Students

“Perfection is not achieved completely by anyone in this world but if you keep chasing perfection somewhere on the way you may catch excellence....."

INSTITUTE FOR CORPORATE ACHIEVERS (ICA) announces new morning/evening batches starting from 15^th & 20^th  July 2012 for-


1. CA- CPT & IPCC
2. CS- Foundation, Executive & Professional
3. CMA- Foundation, Inter & Final


at INDIRA NAGAR AND HAZRATGANJ CENTRE.

Learn from the best in the industry…

ü Best Faculty Members

ü Easy to understand & Exam oriented study material

ü Regular Doubt clearing session

ü Timely completion of syllabus

ü Routine tests for revision

ü Regular counseling sessions

Address

· 3^RD Floor Chitrahar building, Naval Kishore Road, Hazratganj, Lucknow

·       C-401, Indira Nagar, Lucknow.

 For registration & other details contact at-

9554279814

9415010364

0522-4011081

Or write to us at –

bhagatmk@yahoo.co.in

ica_queries@yahoo.com

Limited seats available… Registration on first come & first serve basis.. Hurry, get enrolled now!!

Join ICA & feel the magic of everlasting success!!

ADMIT CARD FOR SCHOLARSHIP FOR HIGHER EDUCATION-2012

REGISTRATION FORM FOR SCHOLARSHIP FOR HIGHER EDUCATION-2012

SCHOLARSHIP FOR HIGHER EDUCATION -2012

SCHOLARSHIP FOR HIGHER EDUCATION -2012

CONDUCTED BY

INSTITUTE FOR CORPORATE ACHIEVERS

IN COLLABORATION WITH

DEVANSH FOUNDATION

 ABOUT ICA

ICA is a professionally managed organization aimed at providing guidance, assistance and Direction to the youth of India.

ICA wishes to Strengthen nourish and assist the budding professionals for a bright and enterprising feature and to meet the global challenges.

About The Scholarship Test-2012

The Scholarship Test Conducted by ICA in collaboration with Devansh Foundation it is an analytical concept based test that will assist the Budding Professionals to overcome Financial Constraints in the attainment of their Goal. This Test will bring together the best brains and aid us in providind them the right direction and guidance for a promising future.

The test is measures how effectively a student has understood the commercial concepts & capable in implementing them.

Objective Of The Test

·         To provide financial assistance to the Students of CA/CS/CMA.

·         To identify and the Students pursuing courses who are unable to attain their goal due to various constraints.

·         To help students by professional guidance and Counseling for determining and following the right Career path.

Eligibility

Students registered with ICSI/ICAI/ICMAI

Date Of Test

^{14TH &}15^th   July (Student could appear on any day)

Venue Of Test

ICA,3^rd Floor,Chitrahar Building,Nawal kishore Road ,Hazratganj ,Lucknow-226001

Timing Of Test

11:30 am to 12:15 pm

Test Pattern

No. of questions – 50

Total Marks – 50

Time – 45 Minutes

S.No.	Level of Test	Syllabus	Test Structure
1.	For students appearing in CPT/CS Foundation/CMA Foundation	12th level	25 Marks-Accounting 15 Marks-Economics 10 Marks-Commerce & General Awareness
2.	For students appearing in IPCC/CS Executive/CMA Inter	CPT/CS Foundation/CMA Foundation	25 Marks-Financial Accounting 15 Marks-B.Law 10 Marks-Stats & General Awareness
3.	For students appearing in CA Final/CS Professsional/CMA Final	IPCC/CS Executive/CMA Inter	25 Marks-Advance Accounting and Tax 15 Marks-B.Law and Company Law 10 Marks- General Awareness

Medium of Examination : English

Awards & Scholarships

1) For students appearing in CPT/CS Foundation/CMA Foundation

i)One Ist Prize worth Rs.5000

ii)Two 2nd Prizes  worth Rs.3000 each

iii)Four 3rd Prizes  worth Rs.2000 each

2) For students appearing in IPCC/CS Executive/CMA Inter

i)One Ist Prize worth Rs.5000

ii)Two 2nd Prizes worth Rs.3000 each

iii)Four 3rd Prizes worth Rs.2000  each

3) For students appearing in CA Final/CS Professional/CMA Final

i)One Ist Prize worth Rs.6000

ii)Two 2nd Prizes worth Rs.4000 each

iii)Four 3rd Prizes worth Rs.2000  each

4) 100 consolation Prizes worth Rs.500 each

Registration Forms and Result

Forms are available at

•         ICA,3^rd Floor, Chitrahar Building, Nawal kishore Road ,Hazratganj ,Lucknow-226001, C-401
• CONTACT DETAILS:- 0522-4011081, 09554279814, 8957962970, 9935778867
•          www.devanshfoundation.org
•          instituteforcorporateachievers.blogspot.in
•     C-401, Devansh Foundation, Indra Nagar Lucknow

Submit duly filled forms latest by 1^st july’12 along with 2 photographs and fees of Rs.50 at ICA,3^rd Floor, Chitrahar Building, Nawal kishore Road ,Hazratganj ,Lucknow-226001

Result will be declared on or before 19^th July ’12 at

• ·          ICA notice board
• ·         www.devanshfoundation.org
• ·         instituteforcorporateachievers.blogspot.in

Rules and Regulations

1. Examination centre, timing and date will not be changed in any circumstances

2. Calculators, notes, books, mobiles are not allowed in test.

3. Students already enrolled with ICA are not eligible to participate in the test.

4. ICA reserves the right to withdraw the scheme any time or make any amendments thereof.

5. Students are required to compulsorily carry their admit cards in the test.
6. The Scholarship amount would be utilized for the development of  the student.

7. ICA reserves the right to increase or decrease the number of scholarships; Decision of ICA will be final. 

Mere change of ownership of business doesn't transform stock-in-trade into a capital asset

In the instant case, the properties, which were hitherto being held

 as stock-in-trade by the HUF, were allotted to the assessee on its 

partition. The HUF was in the business of real estate which was 

continued by assessee after the partition and hence these 

properties remained stock-in-trade even after partition.

The tribunal held that the properties were stock-in-trade of real 

estate business when HUF owned it and remained stock-in-trade 

when assessee became its owner on partition. In these 

circumstances, there was no conversion of capital assets to stock-

in-trade either by the assessee or the joint family. Therefore, the 

provision of section 45(2) of the Act is not applicable in the instant 

case. As Sec 49(1) doesn't apply to stock-in-trade, cost of 

acquisition of these properties to assessee is taken at FMV and 

not the cost to their pervious owner-HUF - C. RAMAIAH REDDY v. 

DCIT [2012] 21 taxmann.com 516 (Bangalore - Trib.)

Reverse Charge under Service Tax

 

Reverse Charge under Service Tax

Government of India, Ministry of Finance vide Notification No. 15/2012 dated 17.03.2012,  had added other services under Reverse Charge mechanism wherein service receiver shall be liable to pay the service tax.

 

Vide Notification No. 19/2012 dated 5.6.2012, 1^st July 2012 has been appointed as the date on which it shall come into force

 

The scope of services covered by the reverse charges mechanism has been enhanced by the Finance Act, 2012 read with Notification No. 15/2012- ST. Many services which were hitherto not covered by reverse charge shall now come within its purview:-

a) Services already covered under reverse charge:

S.No.	Description of a service	Percentage of service tax payable by the person providing service	Percentage of service tax payable by the person receiving the service
1	in respect of services provided or agreed to be provided by an insurance agent to any person carrying on insurance business	Nil	100%
2	in respect of services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road	Nil	100%
3	in respect of services provided or agreed to be provided by way of sponsorship	Nil	100%

b) Services earlier covered under reverse charge but now exempted from applicability of service tax: Services by a mutual fund agent or distributor to mutual fund or Asset Management Company for distribution or marketing of mutual fund.

c) Services covered under Reverse Charge for the first time vide Notification No. 15/2012-

S.No.	Description of a service	Percentage of service tax payable by the person providing service	Percentage of service tax payable by the person receiving the service
1.	in respect of services provided or agreed to be provided by an arbitral tribunal	Nil	100%
2.	in respect of services provided or agreed to be provided by individual advocate	Nil	100%
3.	in respect of services provided or agreed to be provided by way of support service by Government or local authority	Nil	100%
4.	(a) in respect of services provided or agreed to be provided by way of renting or hiring any motor vehicle designed to carry passenger on abated value. (b) in respect of services provided or agreed to be provided by way of renting or hiring any motor vehicle designed to carry passenger on non abated value.	Nil 60%	100 % 40%
5.	in respect of services provided or agreed to be provided by way of supply of manpower for any purpose	25%	75 %
6.	in respect of services provided or agreed to be provided by way of works contract	50%	50%
7.	In respect of any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory	Nil	100

WHETHET LIASION OFFICE IN INDIA CAN BE CONSIDERED AS PE (Permanent Establishment ) for Income-Tax Purpose?

WHETHET LIASION OFFICE IN INDIA CAN BE CONSIDERED AS PE (Permanent Establishment ) for Income-Tax Purpose?

 

IT/ILT : LIAISON OFFICEOF FOREIGN COMPANY IN INDIA IS NOT A PE IN INDIAIN VIEW OF ARTICLE 5(6)(E) OF INDO-JAPAN DTAA

Facts

• Assessee-company a tax resident of Japan dealing in steels and steel products.

• Assessee-company had opened a LO in India with the approval of the Reserve Bank of Indiain terms of section 6(6) of the Foreign Exchange Management Act ('FEMA' in short).

• The LO was closed down in the year 2008. The assessee was required to pay fringe benefit tax because of which return was filed in which income was shown at nil.

• The Assessing Officer passed a draft order on 23-12-2010 holding that the LO is a PE, carrying on core business activities. A draft order was passed computing the income of about Rs.35.58 crores. The DRP not only upheld the finding of the Assessing Officer but also enhanced the income. The AO passed final order on 18-10-2011.

• Article5(6)(e) of Indo-Japan DTAA excludes from permanent establishment, the office which carry on activities of "the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any of the activity of a preparatory or auxiliary character". Assessee-company claimed that its LO was covered by article 5(6)(e) and hence not a PE in India while the case of the Revenue was that this office was carrying on the key function of price negotiation leading to formation of contract.

Held

• As per Regulation 2(e)of FEM(Establishment in India of Branch or Office or other Place of Business)Regulations, 2000,'liaison office' means a place of business to act a channelor communication between the principal place of business or HO and entity in India but which does not undertake any commercial, trading, industrial activity, directly or indirectly and maintains itself from remittances received from the abroad through normal banking channels. 
Schedule-II of the said Regulations provides that the permitted activities of LO are: 

(i) representingthe parent company/group companies in India, 

(ii)promoting export/importfrom/to India, 

(iii) promoting technical/financial collaborations betweenparent/group companies and Indian companies, 

(iv) acting as communicationchannel between parent and Indian companies.

• The AO had not brought on record information that the activity was beyond the limit prescribed by the RBI vide the said Regulations.

• The Revenue's contention that India office was engaged in price negotiation was not correct as quotations were made on the basis of instructions from the Head Office.

• Therefore, the presumption can validly be raised in this case that India office does not constitute a PE as no violation was noticed by the RBI. This presumption was not rebutted by the AO by bringing any positive material to show that any substantive businessactivity was carried on by the assessee in India.

• In the result,assessee's appeal allowed.

Scholarship test – 2012

UPDATES:

1.  The Income Tax Department has started looking at new areas in revenue mobilizationto substantially augment revenue collections in 2012-2013. As part of this plan, the Income Tax Department is set to closely scrutinize (TDS) on foreign remittances.

2.  w.e.f. 1st July 2012, if the TDS has been deducted by the Importer u/s 195 while importing software or TDS has been deducted by the first purchaser from software manufacturer, then there no need to deduct TDS on resale of those software by purchasers/customers.

3. The Finance Ministry will shortly issue the much awaited notification granting oil companies exemption from withholding tax on payments to Iran for oil imports in rupees.

4. For LLP filing done upto 10-06-2012 view public document and get certified copy on its transfer to MCA21 portal.  Helpllpsupport-mca@nic.in and 011-66336666.   

5. W.e.f. 05-06-2012 bank can't charge foreclosure charges/pre-payment penalties on Home Loans on Floating Interest Rate basis Reserve Bank of India Circular dated 05-06-2012.

6. 31-07-2012is the last date to renew your Driving License issued before 1999 as DL in smart card complete with biometric information mandatory now in Delhi.       

UPDATE

 Residential Status included in DIN 1 form w.e.f 11-06-2012 Companies Director Identification Number (Second Amendment) Rules, 2012 of 05-06-2012.

RECENT JUDGMENT

When an order is made by a court it is his obligation to obey the order without any condition

Court

HIGH COURT OF DELHI

Brief

It is the plain and unqualified obligation of every person against, or in respect of whom an order is made by a court of competent jurisdiction to obey it unless and until that order is discharged. The uncompromising nature of this obligation is shown by the fact that it extends even to cases where the person affected by an order believes it to be irregular or even void. Lord Cottenham, L.C., said in Chuck v. Cremer12 (at p. 342): ‗A party, who knows of an order, whether null or valid, regular or irregular, cannot be permitted to disobey it.... It would be most dangerous to hold that the suitors, or their solicitors, could themselves judge whether an order was null or valid — whether it was regular or irregular. That they should come to the court and not take upon themselves to determine such a question. That the course of a party knowing of an order, which was null or irregular, and who might be affected by it, was plain. He should apply to the court that it might be discharged. As long as it existed it must not be disobeyed.‘ Such being the nature of this obligation, two consequences will, in general follow from its breach. The first is that anyone who disobeys an order of the court (and I am not now considering disobedience of orders relating merely to matters of procedure) is in contempt and may be punished by committal or attachment or otherwise. The second is that no application to the court by such a person will be entertained until he has purged himself of his contempt

Citation

INDIAN PILOTS‘ GUILD ..... Appellant Versus AIR INDIA LTD ..... Respondent

Judgement

 

* IN THE HIGH COURT OF DELHI AT New Delhi

 

Judgment reserved on: 16.05.2012

% Judgment delivered on: 17.05.2012

 

+ FAO(OS) 206/2012

 

INDIAN PILOTS‘ GUILD ..... Appellant

 

Versus

 

AIR INDIA LTD ..... Respondent

 

Advocates who appeared in this case:

 

For the Appellant: Mr. Dushyant Dave, Sr. Adv. with

Ms. Faranaaz Karbhari, Ms. Nandini G., Mr. Darpan Wadhwa, Ms. Aditi Bhatt, Ms. Abhiruchi M. & Mr. Kartik Bhatnagar, Advocartes.

 

For the Respondents: Mr. Lalit Bhasin, Ms. Neena Bhasin, Mr. Sanjay Gupta, Mr. Mudit Sharma, Ms. Shriya Dabas, Ms. Shweta Shukla & Ms. Bhavna D., Advocates.

 

CORAM:

 

HON'BLE MR. JUSTICE SANJAY KISHAN KAUL

HON'BLE MR. JUSTICE RAJIV SHAKDHER

 

SANJAY KISHAN KAUL, J

 

FAO(OS) No. 206/2012 & CM Nos. 8974/2012 (stay) & 8976/2012 (for suit record)

 

1. This Appeal brings to fore the competing rights of parties in a lis, which has its genesis in the merger of two national air carriers, i.e., Air India and Indian Air Lines. In this, internecine and passionate battle of rights there are several dramatis personae. The appellant, which is a trade union representing evidently 600 pilots of erstwhile AirIndia is one such party, the respondent   which is the management is the other party. But there is an important party to this lis which, often goes unrepresented, which is, the passenger. The respondent, that is, the management, in this litigation, seeks to represent this powerless, but important player, i.e., the passenger. One may or may not be able to decipher the motive of the respondent for doing so, but surely, as is well known, of which we can take judicial notice, that the respondent would find it difficult to survive if the passenger were to give up on it. This is apart, from the fact that, a national carrier is required to fulfill certain social obligations by connecting remote parts of the country, which may not be, economically gainful for private players presently operating in the aviation industry.

 

1.1 There is also another element of large public funds being infused to keep the respondent organization afloat. A private organization would have wound up given the financial constraints of the respondent but it is the infusion of public funds by the Government of India (GOI) which has kept the respondent afloat. In such difficult times all stake holders have to make sacrifices and the endeavour should be to rescue the organization from the financial difficulty, it finds itself in. On the other hand the members of the appellant appear to have taken the movement as an opportunity to raise issues about their alleged rights pending consideration before the competent court to bring the functioning of the respondent to a stand-still. The action of the appellant thus, is undoubtedly contrary to public weal.

 

2. With this preface articulated, what presently ails the appellant is this: The appellant is aggrieved by the ex-parte order dated 09.05.2012, passed by a learned Single Judge of this Court, whereby the appellant (original defendant no.1) has been restrained from continuing with:

 

"illegal strike and/or reporting sick and/or staging demonstrations, dharnas, gheraos etc. inside and outside the premises of the plaintiff - company located at the Airports, Terminals, Head Offices and all other offices of the plaintiff - company including the residence of the officers of the plaintiff - company. The defendant no. 1, its members and all others acting on its behalf are further restrained from obstructing ingress and egress from the Head Office, the Regional Offices or any other offices/ branches and counters of the plaintiff-company, wherever these are...."

 

3. The aforementioned order has been passed broadly in the context of the following facts. These facts are gleaned by us from the record, which is, the plaint and the documents filed alongwith, as also, the averments made in the appeal.

 

3.1 It appears that in 2005, the erstwhile Air India had placed orders for 50 Boeing aircrafts of which, 23 were Boeing 777 and 27 were Boeing 787. Similarly, it appears that the erstwhile Indian Airlines placed an order for 43 Airbus aircrafts. It is the stand of the appellant before us, that the 43 Airbus aircraft have been delivered and are being operated only by pilots who were earlier employed by the erstwhile Indian Airlines. On parity, the appellant claims exclusive rights to train on and fly Boeing aircrafts, to the exclusion of the pilots employed by the erstwhile Indian Airlines.

 

3.2 It is the stand of the appellant that in 2007, just prior to the merger of Air India with Indian Airlines a wage agreement was entered into between the pilots of the Air India and the then management of Air India which envisaged the induction of twelve (12) Boeing 787 aircrafts and on its completion, the pilots who would command the said aircrafts would get enlisted as per the seniority list related to Boeing 747-400 Boeing 777/A310.

 

3.3 Admittedly, the merger was sanctioned, under a scheme of amalgamation, by the Ministry of Corporate Affairs vide order dated 28.02.2007. Upon merger a new company by the name of National Aviation Company of India Ltd. (hereinafter referred to as the NACIL), came into existence while, the erstwhile transferor companies, i.e., Air Indiaand Indian Airlines dissolved without being wound up. The business of Air India and Indian Airlines was consolidated into NACIL. However, the name of NACIL was changed to Air India Ltd. (which is the respondent in the present proceedings) w.e.f. 24.11.2010.

 

3.4 It is averred by the appellant that in 2008 when, delivery of Boeing 777 was to be made the respondent attempted to send pilots from erstwhile Indian Airlines for training, on the said aircrafts. This led the appellant to file a writ petition bearing no. 1615/2008 in the High Court of Bombay. According to the appellant, in the writ petition, restraint orders were sought against the respondent against unilateral and arbitrary alteration of service conditions as contained in the wage agreement. Apparently, a prayer was also made against pilots of erstwhile Indian Airlines being trained on Boeing 777 aircrafts. It is also averred by the appellant that on 26.02.2009, a deed of recognition was signed between the appellant and the respondent whereby broadly, it was agreed that if the aforementioned writ petition was withdrawn, the issue raised in the writ petition could be discussed and mutually settled, and that, training on Boeing 777 aircraft would involve only the pilots employed by erstwhile Air India.

 

3.5 Evidently, the said writ petition was withdrawn on 25.02.2010, as claimed by the appellant, after taking the deed of recognition on record. The matter apparently did not end here, as according to the appellant it received information about the respondent engaging the representatives of the Indian Commercial Pilots Association (hereinafter referred to as ICPA) (which as we understand represents the pilots of erstwhile Indian Airlines) with a view to convey to them, that the crew required for flying Boeing 787 aircraft would be drawn in equal measure from both airlines. This fact was evidently communicated by the appellant to the respondent on 16.11.2010.

 

3.6 There is an averment also to the effect that a meeting was held on 23.03.2011, between the representatives of the appellant and the respondent wherein assurances were given that the pilots from the erstwhile Indian Airlines would be engaged on Boeing 777 and 787 only after exhausting the resources available from amongst those who were employed with the then Air India. This aspect evidently is, recorded according to the appellants, in the minutes of the meeting 13.04.2011.

 

3.7 Undeniably, a notification was issued on 11.05.2011, constituting a committee headed by Justice Dharmadhikari (as he then was) to examine the aforesaid issues including the aspects of integration of cadres and determination of inter se seniority.

 

3.8 The respondent it appears was concerned with effective cross-utilization of valuable human and material resources available in the two airlines and hence, apparently took a policy decision that in so far as Boeing 787 aircrafts were concerned, pilots would be sent for training from the two airlines in the ratio of 1:1. In this regard a meeting was held apparently amongst the representatives of the appellant, the ICPA and the respondent on 08.10.2011. It is the stand of the respondent, in paragraph 7 of the plaint that, an agreement was arrived between the parties referred to above, to the effect that at least eight (8) sets of pilots would be sourced from the two airlines for being trained on Boeing 787 aircraft. We observe that the appellant has averred, similarly, in paragraph 7(xiv) of the appeal, though with a caveat. The averment of the appellant is while they had agreed to consider a simultaneous movement of  pilots from the two airlines, it was only in respect of the first Boeing 787 aircraft and that too subject to certain conditions. The offer, according to the appellant, was conditional. The respondent on the other hand has pleaded that the appellant after agreeing had resiled from the agreement arrived at the meeting dated 08.10.2011, by issuing a letter dated 18.10.2011.

 

3.9 The appellant being of the view that drawing of pilots from the two streams would be contrary to the earlier agreement and assurances and would possibly render the proceedings before the Committee headed by Justice Dharmadhikari, a mere formality, instituted a writ petition in the Bombay High Court, on 29.10.2011. The writ petition was numbered as: WP(L) No. 2399/2011; wherein a challenge was laid to the action of the respondent of reserving one-half of its training slots, on new Boeing 787 aircrafts, for pilots earlier engaged with Indian Airlines. In the aforementioned writ petition the Bombay High Court granted an interim order dated 13.03.2012. The upshot of the said interim order is that, the Bombay High Court restrained the GOI from changing the position then obtaining, to the disadvantage of the appellant till such time a final decision was taken by the GOI qua the Justice Dharmadhikari Report.

 

4. The ICPA, being aggrieved, by the order dated 13.03.2012, passed by the Bombay High Court, preferred a special leave petition bearing no. 13046/2012. The Supreme Court on 23.04.2012, while issuing notice in the said special leave petition passed the following order:

 

"Issue notice. Operation of the impugned order shall remain stayed pending further orders of this court. We make it clear that the training imparted to the members of the petitioner- association shall remain subject to the final outcome of the writ petition and shall not prejudice the rights and contentions of the writ petitioners before the High Court in any manner. The High Court is requested to expedite the hearing of the main petition and dispose the same off as far as possible within six months."

 

4.1 Evidently, on 13.04.2012, ICPA became ambitious and filed an IA bearing no. 2/2012 in the pending special leave petitions preferred by them seeking broadly that; pilots from erstwhile Air India should not be sent on training on Boeing 787 aircraft until the ratio of 1:1 is achieved. The said application was disposed of by the Supreme Court on 02.05.2012, on an assurance of the respondent that, equal number of pilots would be deputed from both airlines w.e.f. 08.05.2012. Accordingly, the said IA was disposed of by the Supreme Court.

 

4.2 On the very same day apparently representations were sent by the appellant to the Minister of Civil Aviation, Chairman and Managing Director of the respondent and the Secretary to the Govt. of India, M/o Civil Aviation. It is averred that the ICPA also filed a writ petition in this court, in which, the appellant has been impleaded and permitted to make submissions.

 

5. What evidently has brought about consternation, in so far as the respondent is concerned, is the continued confrontationist attitude of the members of the appellant. The members of the appellant, according to the respondent, have resorted to illegal concerted actions, which include failure to report for duty. Consequently, the flights which were scheduled for destinations such as, New York, Chicago, Toronto on 4th, 5th and 6th May, 2012 had to be rescheduled, which resulted in delay in excess of 14 hours. The device of sickness adopted by the members of the appellant forced the respondent to send the doctors at the residence of the pilots, which revealed in some cases that the pilots were not sick, and in the others, the concerned pilots refused to co-operate with the doctors. It is averred by the respondent that the continued illegal strike of the members of the appellant had resulted in disrupting the flight schedules, causing not only inconvenience to thousands of passengers but also a huge financial loss. It appears that prior to the institution of the suit, the respondent on account of the impugned actions of the members of the appellant, had to cancel nearly 24 flights.

 

6. As averred by the respondent, the strike called by the appellant, is in violation of Sections 22 and 24 of the Industrial Disputes Act, 1947 (hereinafter referred to as the ID Act). The reason for labeling the strike "illegal" by the respondent is the lack of statutory notice before proceeding on strike.

 

7. We may also note that the conciliation proceedings had also been set in motion, which required the parties to re-convene on 09.05.2012 at 2.30 p.m. The premise of such conciliation was that the members of the appellant would withdraw the agitation and restore normalcy qua operations, and the respondent, on the other hand, would continue with bilateral discussion with the appellant, to resolve the stalemate.

 

8. It appears, given the logjam, the respondent moved this court by way of the instant suit for permanent injunction and declaration, on 09.05.2012. It is in the suit that, the impugned order has been passed by the learned Single Judge.

 

9. To complete the narrative, we may also record that on 10.05.2012 the respondent filed a contempt petition in the Supreme Court, being : C.P. (Crl.) No. 3/2012 in the pending Special Leave Petition No. 13046/2012. The contempt petition came up for hearing before the Supreme Court on 11.05.2012, when the Court was pleased to post the contempt petition alongwith the Special Leave Petition after summer vacation.  

 

10. In the background of the aforesaid Mr Dushyant Dave, Sr. Adv. alongwith with Mr Darpan Wadhwa, instructed by Ms. Faranaaz Karbhari, Advocate advanced arguments on behalf of the appellant, while Mr Lalit Bhasin, advocate alongwith Ms. Neena Bhasin appeared for the respondent/caveator. 10.1 Mr Dave broadly submitted as follows:

 

(i) The impugned order of the learned Single Judge was without jurisdiction, in as much as the subject matter of the dispute could be entertained and tried only by the labour court. In this regard, Mr Dave, drew out attention to Section 7 read with item no. 5 of the second schedule of the ID Act. It was his contention that the issue pertained to the ―illegality‖ or ―otherwise‖ of a strike called by the appellant and hence such a dispute could only be entertained and tried by the labour court. In support of his contention the learned Senior counsel relied upon the following judgments of the Supreme Court: Rohtas Industries Ltd. & Anr. vs Rohtas Industries Staff Union & Ors. (1976) 2 SCC 82, Premier Automobile Ltd. vs K.s. Wadke (1976) 1 SCC 496 and Syndicate Bank & Anr. vs K. Umesh Nayak (1994) 5 SCC 572.

 

(ii) It was contended that the impugned order was passed in gross violation of the principles of natural justice, in as much as, the learned Single Judge ought to have put the appellant to notice before passing an adverse order. Dilating upon this submission, Mr Dave contended as follows: Firstly, the court ought not to have passed impugned order in such case. Secondly, the single Judge ought to have known the law on the issue, i.e., that the jurisdiction qua industrial disputes lay only with the labour court under the ID Act. Thirdly, if the learned Single Judge was so disposed as to pass an ex-parte order, it should have recorded reasons for doing so and in any event could not have given a date beyond thirty (30) days, since it is incumbent on the court to decide an interlocutory  application under Order 39 Rule 1& 2 of the Code of Civil Procedure, 1908 (in short Code) within the said time frame. In this regard reliance was placed on the provisions of Order 39 Rule 3A. In support of this submission, Mr Dave placed reliance on the judgment of the Supreme Court in the case of A. Venkatasubbiah Naidu vs S. Chellappan & Ors. (2000) 7 SCC 695. (iii) Lastly, it was argued that the appellant need not have approached the single Judge by way of an application under Order 39 Rule 4 of the Code for vacation and/or for modifying the impugned order, and that, it could straight away file an appeal before the Division Bench. In support of this submission once again reliance was placed on the judgment in A. Venkatasubbiah (supra) and a Division bench of this court in Shri Jayesh Kanaiya Lal Shukla vs RFCL Ltd. 2010 (43) PTC 357. 10.2 Mr Dave thus, in nutshell submitted that, the impugned order being completely without jurisdiction required interference by the appellate court.

 

11. On the other hand, Mr Bhasin contended that the action of the members of the appellant was completely illegal and in contravention of Section 22 and 24 of the ID Act. It was further contended that admittedly no notice, which is a statutory requirement, under Section 22 of the ID Act was served prior to the appellant calling for a strike. It was Mr Bhasin's submission that the concerted action of the members of the respondent of reporting sick for duty was nothing but a strike, and being without notice, was completely illegal. On the aspect of jurisdiction, it was Mr Bhasin's contention that, the issue raised in the suit was not a pure industrial dispute but, had its basis in general and common law, giving it the right to approach a civil court against continued illegal actions which, affected the passengers and the interest of the respondent. It was Mr Bhasin's contention that the labour court had no powers to issue final and interim orders of the nature sought for by the respondent in the suit and hence, the jurisdiction of the civil court could not be said to be ousted, as was contended by the appellant. It was Mr Bhasin's contention that, from time to time this court, even on earlier occasions, has protected the interest of the passengers by passing interim directions of like nature as are found contained in the impugned order.

 

12. Having heard the learned counsels for the parties and perused the record, in our view, the following essential facts have emerged:

 

(i) On 08.10.2011, at a meeting held amongst the representatives of the appellant, the respondent and the ICPA some sort of agreement was arrived at (entire details of which may emerge at trial) where the appellant had communicated that it was willing to consider simultaneous movement of pilots from both trade unions subject to certain conditions.

 

(ii) This understanding, however, was given a go-by by the appellant by shooting of a representation to the respondent on 18.10.2011.

 

(iii) The aforementioned was followed by the appellant by instituting a writ petition in the Bombay High Court being WP(C) No. 2399/2011, wherein the Bombay High Court granted an ad interim order on 13.03.2012. By virtue of this order, the Bombay High Court directed that the GOI would not change the position, as obtaining then, to the disadvantage of the appellant.

 

(iv) The said order was, however, stayed by the Supreme Court on 23.04.2012. This order was passed in the Special Leave Petition filed by the rival group, i.e., ICPA. In this order the Supreme Court while staying the operation of the Bombay High Court order observed that the training imparted to the members of the ICPA, shall be subject to the final outcome of the writ petition, and that, it shall not prejudice the rights and contentions of the writ \petitioners (i.e., the appellant herein). The Bombay High Court was also requested, by the very same order, to expedite the hearing of the writ petition and dispose of the same as far as possible within six months.

 

(v) By a subsequent order dated 02.05.2012, the Supreme Court in an interlocutory application moved by ICPA, observed, while disposing of the same, that the members from the two airlines would be deputed in equal number for training on Boeing aircrafts.

 

(vi) The said Special Leave Petition is pending disposal before the Supreme Court.

 

(vii) It also emerged that a contempt petition was moved in the aforementioned Special Leave Petition, which came up for hearing on 11.05.2012, when it was directed that the same be posted alongwith the Special Leave Petition after summer vacation.

 

(viii) Lastly, Justice Dharmadhikari Committee has submitted its report which is pending action before the GOI, Ministry of Civil Aviation.

 

13. Therefore, the issue with regard to whether or not pilots have to be sourced both from erstwhile airlines, i.e., Air India and Indian Airlines, for training, in the interregnum, while the writ petition is pending adjudication before the Bombay High Court, is pending adjudication before the Supreme Court. There is, therefore, in our view no justification whatsoever on behalf of the appellant to rock the boat, so to say, and resort to a concerted action which has resulted in disruption of the operations of the respondent – the impact of which, is undoubtedly, felt by the unsuspecting passenger. We must note here, however, that while Mr Dave in the opening had advanced lengthy arguments (for nearly two hours), on the basis that the action resorted to by the members of the appellant was a strike, strangely in the rejoinder, Mr Wadhwa, who also appeared for the appellant, took the stand that the action resorted to by the members of the appellant was not a strike within the meaning of the ID Act. On being asked by the court to amplify his submission, Mr Wadhwa submitted that the members of the appellant had reported sick and hence their actions did not come within the ambit and the meaning of the term "strike". Since this argument destroyed the very edifice of an elaborate argument made in the opening, by Mr Dave, senior counsel that the legality of a strike cannot be adjudicated in the civil suit, we specifically put it to Mr Wadhwa, learned counsel arguing in rejoinder, whether he was sure as regards this aspect. Learned counsel took the instructions and categorically stated that the stand of the appellant is that they have not gone on strike. However, Mr Wadhwa contended that though the plea of the appellant is that they are not on strike, the plea of lack of jurisdiction qua the subject is based on a demurer. However, on perusal of the appeal we find that no such case has been set out by the appellant nor was the case presented in the opening arguments in this manner, as otherwise there was no need to spend almost two hours in the opening arguments. Furthermore, on the learned counsel being asked pointedly, as to whether the members of the appellant were willing to get examined by medical practitioners, the response was evasive to say the least. The moot question then arises can the appellant be said to be really aggrieved by the impugned order.

 

14. This brings us to the question as to whether the impugned order was without jurisdiction. Having perused the averments made in the plaint, and having regard to the fact that the Single Judge did not have before her the say of the appellant, it is quite obvious that the respondent's action is based on general and common law, though a part of its root may be embedded in the provisions of the ID Act. Prima facie, it appears to us that a civil court would be an alternative forum for agitating the rights which the respondent seeks to pursue in the suit, before the learned Single Judge. We do not wish to say any more as the interlocutory application filed by the respondent has yet not been disposed of by the learned Single Judge. We may only note the principle enunciated by the Supreme Court in the case of The Premier Automobiles ltd. (supra) to guide the learned Single Judge in determination of this like issue. These being: ―

 

(i) if the dispute is not an industrial dispute, nor does it relate to enforcement of any other right under the Act the remedy lies only in the civil court.

 

(ii) If the dispute is an industrial dispute arising out of a right or liability under the general or common law and not under the Act, the jurisdiction of the civil court is alternative, leaving it to the election of the suitor concerned to choose his remedy for the relief which is competent to be granted in a particular remedy.

 

(iii) If the industrial dispute relates to the enforcement of a right or an obligation created under the Act, then the only remedy available to the suitor is to get an adjudication under the Act.

 

(iv) If the right, which is sought to be enforced is a right created under the Act such as Chapter VA then the remedy for its enforcement is either Section 33C or the raising of an industrial dispute, as the case may be.‖

 

14.1 These principles are reiterated in the other judgments cited by the appellant.

 

14.2 It is not as if it is a clear case, as was strenuously contended by Mr Dave, of lack of subject matter jurisdiction of the civil court. As a matter of fact, Mr Wadhwa did contend that the reliefs sought in the suit and the interlocutory application, which seek prevention of disruption of operations of the respondent, and injunction on impeding ingress and egress to various offices of the respondent, were maintainable. In other words, reliefs (a), (c) to (e) were maintainable. His objection was to the relief sought for in prayer clause (b) of the plaint. As to whether interim relief of the nature sought in the suit can be granted is also an issue which the learned Single Judge will have to address.

 

15. Apart from the contentions raised by Mr Dave with regard to subject matter of the jurisdiction, he also alluded to the fact that this court did not have even the territorial jurisdiction to entertain the suit. In this regard he adverted to the memo of parties set out in the plaint to demonstrate that the address of the appellant in the plaint was that of Mumbai. In our view, this submission is untenable as, a perusal of the averments in the plaint, in particular, paragraph 28 of the plaint, would show that the respondent has pivoted its claim to territorial jurisdiction of this court in entertaining the suit, on the ground that the strikes and agitations have been held by the members of the appellant even at Delhi. In the circumstances, it cannot be said that no part of cause of action arose in Delhi.

 

16. As regards the contention of Mr Dave that the learned Single Judge had acted beyond the mandate of law in passing the ad interim ex-parte order, in our view, such a contention is completely untenable and misconceived. The averments made in the plaint and the facts adverted to, by us, hereinabove, leave us in no doubt that the urgency of the issue and the larger public interest required the learned Single Judge to grant an ad interim ex-parte order. The contention of Mr Dave that, the returnable date of notice in the application, could not extend the period of 30 days, is in our view, again erroneous, as the 30 days period would fall within the vacation period of this court.

 

17. In any event, as we understand the ratio of the Supreme Court Judgment in the case of A. Venkatasubbiah(supra), it appears that it is not as if – on the court issuing a notice, in an interlocutory application, after granting an ex-parte orders, beyond a period of 30 days would by itself make the order illegal (see  paragraph 17 at page 700). The court is required under Rule 3A of Order 39, to make an ―endeavour‖ to dispose of the interlocutory application within a period of 30 days, where injunction is granted without notice to the opposite party. The endeavour, in our view, can only be made with the assistance of the opposite party. This is more so given the hard reality of paucity of judges and the inability of the court to accommodate all matters, of equal urgency, given their large numbers at any given point in time. The desire to hear and dispose of matter of moment and urgency is not lost on the court. But then desire by itself, would not, help the cause unless the court has requisite resources available at its command. It is not as if the lawyers are always willing to confine their arguments to a specific time frame. Elaborate arguments are addressed even in ex-parte hearing and during hearing of applications for interim relief, in contested matters. A classic example of this is, the present appeal itself where arguments were advanced for more than two hours!

 

18. It is in this context that, we had at one stage suggested to Mr Dave to approach learned Single Judge byway of an application under Order 39 Rule 4 of the Code. We ought not to be given to understand that, in no circumstances a litigant can approach the appellate court by way of an appeal, prior to exhausting the remedy available under Order 39 Rule 4 of the Code. The facts and circumstances in each case have to be weighed by the appellate court before, interceding in such like matters. One of the premise on which the appeal has been predicated is the purported urgency in the matter and the long gap between the date of the impugned order and the returnable date given by the learned Single Judge as per the perception of the appellant. The urgency does not appear to exist at all if one was to consider the arguments made in rejoinder as it is the case of the appellant that they are not on strike.   

 

19. In the given case, as noticed above, there is an additional fact, which has weighed with us in not interfering with the order of the single judge. This fact is, the action which the GOI is to take, on the report submitted by the Committee of Justice Dharmadhikari. We have no doubt that given the circumstances obtaining in the matter the respondent and GOI would act post haste to resolve the dead lock in the matter.

 

20. In the end we would like to say that we had asked Mr Dave, senior counsel for the appellant, to examine the controversy on a larger canvas as the public interest element was involved. Reasonable suggestions were made by learned counsel for the respondent that the members of the appellant are the employees of the respondent and that they should join their duties while conciliation proceedings can go on. We put this proposal to learned senior counsel for the appellant specifically as the appellant is in breach of the injunction order under appeal. Learned counsel, however, was not inclined to accept such a course of action and insisted that the appellant wanted a legal finding on the issues raised in the appeal. Thus, our endeavour to find a middle path was not successful.

 

21. Before we conclude we must also advert to another aspect which we had put to Mr Dave during the course of his submissions in court. This aspect pertains to the continued defiance of the members of the appellant in not reporting for work even after the passing of the impugned order by the learned Single Judge. We had specifically put to Mr Dave, as to whether, pending the institution of the appeal the members of the appellant had rejoined work. Mr Dave, quite candidly, informed us that, the members of the appellant had not done so. In our view, no litigant can avail of any discretionary remedy from the court by willfully and flagrantly disobeying the orders of the Court. In this behalf Mr Dave had suggested since the order was without jurisdiction the members of the appellant could choose to ignore it. This submission is stated to be rejected. A litigant who is aggrieved by an order of the court should approach the same court or a superior court immediately to either ask for suspension or stay of the operation of the order which, according to him, is unsustainable in law. A litigant cannot allow the order to operate and not comply with the order. It is trite law that even orders which are without jurisdiction cannot be ignored by those towards whom the order is directed. It is also settled law that interim order passed, pending adjudication, on the issue of jurisdiction have to be complied with. Failure to comply with such orders, can trigger contempt proceedings against the violator who, can be visited with the necessary consequences if, found guilty of violating orders of the court. The following observations of the Supreme Court in Tayabbhai M. Bagasarwalla & Anr. vs Hind Rubber Industries Pvt. Ltd. & Ors. (1997) 3 SCC 443 makes this abundantly clear where a similar argument was made:―

 

15. The next thing to be noticed is that certain interim orders were asked for and were granted by the Civil Courtduring this period. Would it be right to say that violation of and disobedience to the said orders of injunction is not punishable because it has been found later that the Civil Court had no jurisdiction to entertain the suit. Mr Sorabjee suggests that saying so would be subversive of the Rule of Law and would seriously erode the majesty and dignity of the courts. It would mean, suggests the learned counsel, that it would be open to the defendants-respondents to decide for themselves whether the order was with or without jurisdiction and act upon that belief. This can never be, says the learned counsel. He further suggests that if any party thinks that an order made by the Civil Court is without jurisdiction or is contrary to law, the appropriate course open to him is to approach that court with that plea and ask for vacating the order. But it is not open to him to flout the said order assuming that the order is without jurisdiction. It is this principle which has been recognised and incorporated in Section 9-A of Civil Procedure Code (inserted by Maharashtra Amendment Act No. 65 of 1977), says Mr Sorabjee.

 

Section 9-A reads as follows: ―9-A.

 

Where at the hearing of an application relating to interim relief in suit, objection to jurisdiction is taken, such issue to be decided by the Court as a preliminary issue.—

 

(1) Notwithstanding anything contained in this Code or any other law for the time being in force, if, at the hearing of any application for granting or setting aside an order granting any interim relief, whether by way of stay injunction, appointment of a receiver or otherwise, made in any suit, an objection to the jurisdiction of the Court to entertain such suit is taken by any of the parties to the suit, the Court shall proceed to determine at the hearing of such application the issue as to the jurisdiction as a preliminary issue before granting or setting aside the order granting the interim relief. Any such application shall be heard and disposed of by the Court as expeditiously as possible and shall not in any case be adjourned to the hearing of suit.

 

(2) Notwithstanding anything contained in sub-section (1), at the hearing of any such application, the Court may grant such interim relief as it may consider necessary, pending determination by it of the preliminary issue as to the jurisdiction.‖

 

16. According to this section, if an objection is raised to the jurisdiction of the court at the hearing of an application for grant of, or for vacating, interim relief, the court should determine that issue in the first instance as a preliminary issue before granting or setting aside the relief already granted. An application raising objection to the jurisdiction to the court is directed to be heard with all expedition. Sub-rule (2), however, says that the command in sub-rule (1) does not preclude the court from granting such interim relief as it may consider necessary pending the decision on the question of jurisdiction. In our opinion, the provision merely states the obvious. It makes explicit what is implicit in law. Just because an objection to the jurisdiction is raised, the court does not become helpless forthwith — nor does it become incompetent to grant the interim relief. It can. At the same time, it should also decide the objection to jurisdiction at the earliest possible moment. This is the general principle and this is what Section 9-A reiterates. Take this very case. The plaintiff asked for temporary injunction. An ad interim injunction was granted. Then the defendants came forward objecting to the grant of injunction and also raising an objection to the jurisdiction of the court. The court overruled the objection as to jurisdiction and made the interim injunction absolute. The defendants filed an appeal against the decision on the question of jurisdiction. While that appeal was pending, several other interim orders were passed both by the Civil Court as well as by the High Court. Ultimately, no doubt, the High Court has found that the Civil Court had no jurisdiction to entertain the suit but all this took about six years. Can it be said that orders passed by the Civil Court and the High Court during this period of six years were all non est and that it is open to the defendants to flout them merrily, without fear of any consequence. Admittedly, this could not be done until the High Court's decision on the question of jurisdiction. The question is whether the said decision of the High Court means that no person can be punished for flouting or disobeying the interim/interlocutory orders while they were in force, i.e., for violations and disobedience committed prior to the decision of the High Court on the question of jurisdiction. Holding that by virtue of the said decision of the High Court (on the question of jurisdiction), no one can be punished thereafter for disobedience or violation of the interim orders committed prior to the said decision of the High Court, would indeed be subversive of the Rule of Law and would seriously erode the dignity and the authority of the courts. We must repeat that this is not even a case where a suit was filed in the wrong court knowingly or only with a view to snatch an interim order. As pointed out hereinabove, the suit was filed in the Civil Court bona fide. We are of the opinion that in such a case the defendants cannot escape the consequences of their disobedience and violation of the interim injunction committed by them prior to the High Court's decision on the question of jurisdiction.  

 

17. In Shiv Chander Kapoor v. Amar Bose2, J.S. Verma, J. speaking for a three-Judge Bench observed thus, with reference to the statement of law at pp. 351-53 of Wade's Administrative Law (6th Edn.): (SCC p. 247, para 23) ‗[V]oid‘ is meaningless in an absolute sense; and ‗unless the necessary proceedings are taken at law to establish the cause of invalidity and to get it quashed or otherwise upset, it will remain as effective for its ostensible purpose as the most impeccable of orders‘. In the words of Lord Diplock, ‗the order would be presumed to be valid unless the presumption was rebutted in competent legal proceedings by a party entitled to sue‘

 

23. In Hadkinson v. Hadkinson11 the Court of Appeal held: ―It is the plain and unqualified obligation of every person against, or in respect of whom an order is made by a court of competent jurisdiction to obey it unless and until that order is discharged. The uncompromising nature of this obligation is shown by the fact that it extends even to cases where the person affected by an order believes it to be irregular or even void. Lord Cottenham, L.C., said in Chuck v.Cremer12 (at p. 342): ‗A party, who knows of an order, whether null or valid, regular or irregular, cannot be permitted to disobey it.... It would be most dangerous to hold that the suitors, or their solicitors, could themselves judge whether an order was null or valid — whether it was regular or irregular. That they should come to the court and not take upon themselves to determine such a question. That the course of a party knowing of an order, which was null or irregular, and who might be affected by it, was plain. He should apply to the court that it might be discharged. As long as it existed it must not be disobeyed.‘ Such being the nature of this obligation, two consequences will, in general follow from its breach. The first is that anyone who disobeys an order of the court (and I am not now considering disobedience of orders relating merely to matters of procedure) is in contempt and may be punished by committal or attachment or otherwise. The second is that no application to the court by such a person will be entertained until he has purged himself of his contempt.‖

 

32. Insofar as Defendant 2 (Shri K.S. Jhunjhunwala) is concerned, the order of the Civil Court holding him guilty of contempt and sentencing him to one month's imprisonment is affirmed.‖ (emphasis is ours)

 

21.1 The observations of the court also make it clear that just because an objection as to the jurisdiction of the court is raised (assuming the appellant were before the learned Single Judge had raised such an objection) the court is not helpless or incompetent to grant interim relief pending determination of the objection to its jurisdiction.

 

22. We may also note that in this case, Mr Dave had sought to contend that the respondent had moved an application for contempt before the learned Single Judge, which was withdrawn. Mr Bhasin in rebuttal explained that the said application was withdrawn keeping in mind the fact that such overt action on the part of the respondent, should not result in vitiating the atmosphere that the respondent was seeking to create, to arrive at an amicable settlement with the members of the appellant, to break the ensuing dead lock.

 

22.1 It would be trite to say that ultimately the issue of disobedience of the order by a litigant is an aspect which is largely between the violator of the order and the court. A party to the litigation may be an initiator of such proceedings but that would not necessarily deprive the court of the power to take cognizance of such violation by a litigant. In this case, we have no doubt that the members of the appellant are and continue to be in violation of the order of the learned Single Judge. Since we are not entertaining the appeal and the order of the learned Single Judge stands, the members of the appellant would be well advised to comply with the orders of the learned Single Judge, failing which it would be open to the learned single Judge pending decision on the interlocutory application to proceed under the Contempt of Courts Act, 1971, the provisions of Order 39 rule 2A of the Code and the attendant powers which the court has under the Constitution of India, as a court of record, against the members of the appellant.

 

23. In the aforesaid circumstances, we are not inclined to entertain the appeal. The appeal is, accordingly, dismissed. The appellant, however, is at liberty to approach learned Single Judge to vacate, modify or vary the impugned order. Needless to say any observations made by us hereinabove, are recorded, only for the purposes disposal of the present appeal. The observations made by us will not impact either the disposal of the pending interlocutory application or the trial of the suit.

 

24. It is ordered accordingly.

 

SANJAY KISHAN KAUL, J.

RAJIV SHAKDHER, J.