L.R. Shivaramagowda v. T.M. Chandrashekar, (SC) BS87142
SUPREME COURT OF INDIA

Before:- Dr. A.S. Anand, C.J.I., B.N. Kirpal and M. Srinivasan, JJ.

Civil Appeals Nos. 4272 with 4379 of 1991. D/d. 1.12.1998.

L.R. Shivaramagowda, etc. - Appellants

Versus

T.M. Chandrashekar etc. - Respondents

For the Appellant in C.A. No. 4379/91 :- K.N. Bhat, Sr. Advocate, P.R. Ramasesh, Advocate.

For the Appellant in C.A. No. 4272/91 :- S.S. Javeli, Sr. Advocate, D.N. Nanjunda Reddy and Vineet Kumar, Advocates.

For the Respondent in C.A. No. 4379/91 :- S.S. Javeli, Sr. Advocate and D.N. Nanjunda Reddy, Advocate.

A. Representation of the People Act, 1951, Sections 100(1)(d)(iv) and 123(6) - Election challenged on the ground that returned candidate had spent amount for election in excess of prescribed limit - Election petitioner did not aver specifically that result of election has been materially affected due to said corrupt practice - Setting aside of election by the High Court held to be not proper.

[Paras 10, 17 and 29]

B. Representation of the People Act, 1951, Sections 123(6), 77(1), 77(2) and 100(1)(b) - Election - Corrupt practice - Non maintaining of true and correct accounts of expenditure incurred or authorised, does not fall within the mischief of Section 123(6).

[Para 20]

C. Representation of the People Act, 1951, Section 10A - Scope of powers of Election Commission as to disqualification of candidate for failure to lodge account of election expenses within time - It also provides for situation arising from failure to maintain true and correct accounts - It is for the Election Commission to decide and to declare the candidate to be disqualified on that ground.

[Paras 24 and 29]

Cases Referred :-

Shri Balwan Singh v. Shri Lakshmi Narain, 1960(3) SCR 91.

Samant N. Balakrishna v. George Fernandez, (1969) 3 SCC 238.

Virendra Kumar Saklecha v. Jagjiwan, (1972) 1 SCC 826.

State of Bombay v. Parshottam Jog Naik, AIR 1952 Supreme Court 317.

Padmabati Dasi v. Rasik Lal Dhar, (1910) ILR 37 Cal 259.

Barium Chemicals Ltd. v. Company Law Board, AIR 1967 Supreme Court 295.

A.K.K. Nambiar v. Union of India, AIR 1970 Supreme Court 652.

Udhav Singh v. Madhav Rao Scindia, (1977) 1 SCC 511.

F.A. Sapa v. Singora, (1991) 3 SCC 375.

Gajanan Krishnaji Bapat v. Dattaji Raghobaji Meghe, (1995) 5 SCC 347.

Dalchand Jain v. Narayan Shankar Trivedi, (1969) 3 SCC 685.

Om Prabha Jain v. Charan Das, 1975 Supp. S.C.R. 107.

JUDGMENT

M. Srinivasan, J. - These two appeals have been filed under Section 116A of the Representation of The People Act, 1951 (hereinafter referred to as the 'Act') against the judgment and order of the High Court of Karnataka at Bangalore dated the 27th day of September, 1991 in Election Petition No. 15 of 1990. The appellant in Civil Appeal No. 4272 of 1991 is the first respondent in the other appeal and the appellant in Civil Appeal No. 4379 of 1991 is the first respondent in the former appeal. The parties will be referred to in this judgment in accordance with their ranking in Civil Appeal No. 4272 of 1991.

2. The appellant was the successful candidate in the election held in November, 1989 to 101 Nagamangala Assembly Constituency in the State of Karnataka having polled 48654 votes as against 17165 votes polled by the first respondent. The appellant contested the election as an independent candidate while the first respondent represented the Congress-I party. The election was challenged by the first respondent on grounds of corrupt practices by the appellant falling within the scope of Section 123 of the Act. In short, the following were the allegations made by the first respondent in the Election Petition:

3. The petition was contested by the appellant who denied all the allegations contained therein. The High Court framed as many as eight issues for consideration and after trial decided the first six in favour of the appellant. While answering Issue No. 7 in the affirmative the High Court held that the appellant had not maintained true and correct account of expenditure incurred or authorised by him which amounted to corrupt practice. On issue No. 8, the High Court observed that the expenditure incurred by the appellant was not proved to have crossed the prescribed limit but the appellant was guilty of suppression of true accounts. On the aforesaid findings the High Court declared that the election of the appellant was void and set it aside. However, the High Court found that the prayer of the first respondent that he be declared elected could not be granted in view of the number of votes polled by him being considerably low and that the voters must have a free choice to elect their representative to achieve which, fresh election for the constituency became imperative.

4. Aggrieved by the said judgment and order of the High Court the appellant has preferred the appeal C.A. No. 4272 of 1991. The first respondent has preferred Civil Appeal No. 4379 of 1991 challenging all the findings rendered against him by the High Court. The appeals were heard together.

5. Mr. Javeli, Senior Advocate for the appellant put forward two contentions. One, the High Court is in error in rendering a finding that the election is void under Section 100(1)(d)(iv) read with Section 123(6) of the Act, inasmuch as it has overlooked the absence of material facts in the election petition which disabled the first respondent from adducing any evidence in that regard. Two, the High Court has overlooked that the non-maintenance of true and correct accounts would not by itself be sufficient to nullify the election. On the other hand, Mr. Bhat, Senior Advocate for the first respondent contended that there is no defect in the pleading and in any event it is not open to the appellant to raise a plea in this Court as regards the alleged defect in the pleading. It was argued that failure to maintain true and correct accounts would also fall within the scope of Section 100(1)(d)(iv). He had also challenged the other findings rendered by the High Court as against the first respondent.

6. At first, we will consider the contentions urged by the appellant's counsel. The relevant pleading is found in paragraph 39 of the election petition which reads as follows:-

In the affidavit filed by the first respondent along with the election petition, the following averments are found in paragraph (f):-

Paragraph (g) reads :-

In the written statement filed by the appellant paragraphs 41 and 43 reads as follows:-

7. As stated already the High Court has found against the appellant issue No. 7 and part of issue No. 8. Those two issues pertained to the averments in the aforesaid paragraphs in the pleadings and they read as follows:-

8. More than half of the judgment under appeal is devoted to these two issues. The discussion starts with paragraph 43 and ends with paragraph 75 which is the last paragraph of the judgment. It is necessary to extract the following portions in the judgment:-

9. From the above passage it is clear that the High Court has found against the contention of the first respondent that the appellant had spent for his election more than the prescribed limit for a candidate for Assembly Constituency. However, the High Court has taken the view that the accounts of election expenses filed by the appellant before the District Election Officer were not correct or true and consequently the appellant had not complied with the provisions of Section 77(1) and (2) of the Act with the result, he fell within the scope of Section 100(1)(d)(iv) of the Act. It has to be mentioned here that while discussing issue Nos. 7 and 8, the High Court has forgotten its own findings rendered on issues 4, 5 and 6. While under the earlier issues, the High Court has not accepted the case of respondent No. 1 that the pamphlets mentioned therein were printed by or at the instance of the appellant, the Court has erroneously assumed for the purpose of issues 7 and 8 that the said pamphlets were printed by the appellant.

10. That apart, it is rightly pointed out by the appellant's counsel that in order to declare an election to be void under Section 100(1)(d)(iv), it is absolutely necessary for the election petitioner to plead that the result of the election insofar as it concerned the returned candidate had been materially affected by the alleged non-compliance with the provisions of the Act or of the Rules. We have already extracted paragraph 39 of the Election Petition which is the only relevant paragraph. One will search in vain for an averment in that paragraph that the appellant had spent for the election an amount exceeding the prescribed limit or that the result of the election was materially affected by the failure of the appellant to give true and correct accounts of expenditure. In the absence of either averment it was not open to the appellant to adduce evidence to that effect. It cannot be denied that the two matters referred to above are material facts which ought to find a place in an election petition if the election is sought to be set aside on the basis of such facts.

11. This Court has repeatedly stressed the importance of pleadings in an election petition and pointed out the difference between "Material facts" and "Material particulars". While the failure to plead material facts if fatal to the election petition and no amendment of the pleading could be allowed to introduce such material facts after the time limit prescribed for filing the election petition, the absence of material particulars can be cured at a later stage by an appropriate amendment. In Shri Balwan Singh v. Shri Lakshmi Narain, 1960 (3) SCR 91, the Constitution Bench held that an election petition was not liable to be dismissed in limine merely because full particulars of corrupt practice alleged were not set out. On the facts of the case, the Court found that the alleged corrupt practice of hiring a vehicle for the conveyance of the voters to the polling station was sufficiently set out in the pleading. The Court pointed out that the corrupt practice being hiring or procuring of the vehicle for the conveyance of the electors, if full particulars of conveying by a vehicle of electors to or from any polling stations were given, Section 83 was duly complied with, even if the particulars of the contract of hiring, as distinguished from the fact of hiring were not given.

12. In Samant N. Balakrishna v. George Fernandez, (1969) 3 SCC 238, the Court said that if the material facts of the corrupt practice are stated, more or better particulars of the charge may be given later, but where the material facts themselves are missing, it is impossible to think that the charge has been made and later amplified and that would tentamount to making of a fresh petition.

12A. In Virendra Kumar Saklecha v. Jagjiwan, (1972) 1 SCC 826, this Court stressed the importance of disclosure of sources of information in the affidavit filed along with the election petition. The relevant passage reads thus:-

13. In Udhav Singh v. Madhav Rao Scindia, (1977) 1 SCC 511, a Division Bench of this Court explained the distinction between material facts and material particulars as follows:

The Bench held that if a petition suffers from lack of material facts it is liable to be summarily rejected for want of cause of action and if the deficiency is only of material particulars, the Court has a discretion to allow the petitioner to supply the required particulars even after the expiry of limitation.

14. In F.A. Sapa v. Singora, (1991) 3 SCC 375, the Court considered the relevant Sections and the Rules at length and reiterated the difference between material facts and material particulars. The Court said:

With regard to the affidavit to be filed along with the election petition in the prescribed Form 25, the Court observed that the defect in such affidavit could be cured unless it formed the integral part of the petition in which case the defect concerning material facts will have to be dealt with subject to limitation under Section 81 of the Act.

15. In Gajanan Krishnaji Bapat v. Dattaji Raghobaji Meghe, (1995) 5 SCC 347, a Division Bench of which one of us (Anand, J. as he then was) was a member dealt with this aspect of the matter in extenso and held that allegations of corrupt practice must be properly alleged and both material facts and particulars should be provided in the petition itself so as to disclose the complete cause of action. The relevant passage in the judgment reads thus:-

As regards amendment of pleadings in an election petition, the Bench held that there is a complete prohibition against any amendment being allowed which may have the effect of introducing either material facts not already pleaded or of introducing particulars of a corrupt practice not previously alleged in the petition. The Court pointed out that in that case the High Court ought not to have allowed evidence to be led by the election petitioner which was beyond the pleadings of the parties for amount of evidence can cure a defect in the pleadings but it was all the more improper for the trial Court to have allowed the pleadings to be amended so as to be brought in conformity with the evidence already led in the case.

16. If the above well-settled principles are applied in this case there is no doubt whatever that the election petition suffers from a very serious effect of failure to set out material facts of the alleged corrupt practice. The defect invalidates the election petition in that regard and the petitioner ought not to have been permitted to adduce any evidence with reference to the same.

16A. We have already extracted paragraphs (f) and (g) of the affidavit filed along with the election petition. It does not disclose the source of information. Nor does it set out which part of the election petition was personally known to the petitioner and which part came to be known by him on information. Significantly, paragraphs (a) to (e) of the affidavit state that the averments therein are true to his information. Paragraph (f) is silent on this aspect of the matter. Paragraph (g) refers all the 42 paragraphs in the petition. The affidavit is not in conformity with the prescribed form No. 25. Thus there is a failure to comply with Rule 94-A of the Conduct of Election Rules. It is a very serious defect which has been overlooked by the High Court.

17. Learned counsel for the first respondent made an attempt to show that the pleading contains the relevant material facts. According to him, paragraph 39 of the election petition sets out the expenses incurred by the appellant per vehicle per day and the total number of vehicles used by him. It was also contended that the price of the newspaper Nagamangala Mitra per copy was mentioned and the total number of copies purchased for distribution to the voters was also mentioned. It was argued that those were the material facts and by themselves they proved that the appellant had incurred an expenditure exceeding the prescribed limit. We are unable to accept this contention. After setting out those figures, the averment found in the election petition is only to the effect that the said cost incurred by the appellant had not been furnished in his statement of account. The fact that in the last part of the said sentence, it was alleged that there was on contravention of Section 123 (6) of the Act, would not come to the aid of the first respondent to contend that the relevant material fact of excessive expenditure over and above the prescribed limit had been pleaded. We must also refer to the fact that for the purpose of Section 100 (1)(d)(iv), it is necessary to aver specifically that the result of the election in so far as it concerns a returned candidate has been materially affected due to the said corrupt practice. Such averment is absent in the petition.

18. We shall now proceed to the second limb of the argument of the appellant's counsel. The High Court has held that the appellant had not maintained true and correct account of expenditure incurred or authorised and the same amounted to corrupt practice. 'Corrupt practices' have been set out in Section 123 of the Act. According to the first respondent, the appellant is guilty of a corrupt practice described in sub-section (6) of Section 123. Under that sub-section, the incurring or authorising of expenditure in contravention of Section 77 of the Act is a corrupt practice. Section 77 provides that every candidate at an election shall keep a separate and correct account of all expenditure in connection with the election incurred or authorised by him or by his election agent and that the accounts shall contain such particulars as may be prescribed. Rule 86 of the Conduct of Election Rules, 1961 sets out the particulars to be contained in the account of election expenses. Sub-sections (1) and (2) of Section 77 deal only with the maintenance of account. Sub-section (3) of Section 77 provides that the total of the election expenses referred to in sub-section (1) shall not exceed such amount as may be prescribed. Rule 90 of the Conduct of Election Rules prescribes the maximum limit for any Assembly Constituency. In order to declare an election to be void, the grounds were set out in Section 100 of the Act. Sub-section (1)(b) of Section 100 relates to any corrupt practice committed by a returned candidate or his election agent or by any other person with the consent of a returned candidate or his election agent. In order to bring a matter within the scope of sub-section (1)(b), the corrupt practice has to be one defined in Section 123. What is referred to in sub-section (6) of Section 123 as corrupt practice is only the incurring or authorising of expenditure in contravention of Section 77. Sub-section (6) of Section 123 does not take into its fold, the failure to maintain true and correct accounts. The language of sub-section (6) is so clear that the corrupt practice defined therein can relate only to sub-section (3) of Section 77 i.e. the incurring or authorising of expenditure in excess of the amount prescribed. It cannot by any stretch of imagination be said that non-compliance with Section 77 (1) and (2) would also fall within the scope of Section 123 (6). Consequently, it cannot come fall under Section 100 (1)(b). The attempt here by the first respondent is to bring it within Section 100(1) (d) (iv). The essential requirement under that sub-section is that the result of the election in so far as it concerns the returned candidate has been materially affected. It is needless to point out that failure on the part of the returned candidate to maintain accounts as required by Section 77(1) and (2) will in no case affect, and much less materially, the result of the election.

19. This view has been expressed by this Court in Dalchand Jain v. Narayan Shankar Trivedi, (1969) 3 SCC 685. A Bench of three judges held that it is only sub-section (3) of Section 77 which can be invoked for a corrupt practice under Section 123 (6) and the contravention of Section 77, sub-section (1) and (2) or the failure to maintain correct accounts with the prescribed particulars does not fall under Section 123 (6). The Bench has referred to several earlier decisions of the High Court and the decision of this Court in C. A. No 1321 of 1967 dated 22-3-1968.

20. Learned counsel for the first respondent invited our attention to the judgment in Om Prabha Jain v. Charan Das, 1975 Supp. S.C.R. 107. There is nothing in that judgment to support the contention of the first respondent. It was held that the charge of a corrupt practice was of criminal nature and must be proved beyond reasonable doubt. On the facts, it was held that the allegation of corrupt practice against the returned candidate had not been proved beyond reasonable doubt.

21. The judgment in Gajanan's case referred to earlier has reiterated the view set out above. It was held that the provisions of Section 123 (6) related only to Section 77 (3) of the Act and not to violation of sub-sections (1) and (2) of Section 77.

22. It was argued by learned counsel for the first respondent that the aforesaid view would enable any successful candidate at an election to snap his fingers at the law prescribing the maximum limit of expenditure and escape from the provisions of Section 77 (3) by filing false accounts. According to him, if the aforesaid construction of Sections 77 and 123 (6) is to be adopted, there will be no sanction against a candidate who incurs an expenditure exceeding the maximum prescribed limit. Referring to Section 10(A) of the Act which enables the Election Commission to disqualify a person who had failed to lodge an account of election expenses within the time and in the manner required by or under the Act and had no good reason or justification for the failure, he contended that the said Section provides only for a situation arising out of failure to lodge an account and not a situation arising from a failure to maintain true and correct accounts. We are unable to accept this contention. In our opinion, sub-section (a) of Section 10(A) takes care of the situation inasmuch as it provides for lodging an account of election expenses in the manner required by or under the Act. Section 77(2) provides that the accounts shall contain such particulars as may be prescribed. Rule 86 of the Conduct of Election Rules provides for the particulars to be set out in the account. The said Rule prescribes that a voucher shall be obtained for every item of expenditure and for lodging all vouchers along with the account of election expenses. Rule 89 provides that the District Election Officer shall report to the Election Commission, the name of each contesting candidate, whether such candidate has lodged his account of election expenses and if so the date on which such account has been lodged and whether in his opinion such account has been lodged within the time and in the manner required by the Act and the Rules. That Rule enables the Election Commission to decide whether a contesting candidate has failed to lodge his account of election expenses within the time and in the manner required by the Act after adopting the procedure mentioned therein. If an account is found to be incorrect or untrue by the Election Commission after enquiry under Rule 89, it could be held that the candidate had failed to lodge his account within the meaning of Section 10(A) and the Election Commission may disqualify the said person. Hence, we do not find any substance in the argument of learned counsel for the first respondent.

23. We have no hesitation to hold that the findings rendered by the High Court as against the appellant on issues 7 and 8 are therefore unsustainable and deserve to be set aside.

24. Learned counsel for the first respondent took us through the records in support of his contention that the appellant was guilty of corrupt practices as alleged in the election petition. In particular, learned counsel laid emphasis on the alleged corrupt practices falling within the scope of Section 123 (3A) and Section 123 (6) of the Act. As regards the latter he argued that the evidence on record is sufficient to establish the fact that the appellant had incurred an expenditure far in excess of the maximum prescribed limit. He took us through the relevant evidence on record. He was not successful in persuading us to agree with him. We find after perusing the records that the Factual Finding rendered by the High Court that the evidence fell short of proving excessive expenditure over and above the prescribed maximum limit by the appellant is correct. There is no justification for interfering with the same.

25. The allegation regarding the corrupt practice falling within the ambit of Section 123 (3A) is the subject matter of issue No. 6. It reads as follows :-

The High Court has dealt with the matter in paragraphs 39 to 42 of the judgment. The evidence of the witnesses has been discussed fully by the High Court and the material discrepancies have been highlighted. The finding of the High Court is in the following terms:-

We do not find any reason whatever to differ from the view expressed by the High Court.

26. The arguments advanced by learned counsel for the first respondent on issues 1 to 5 were of no substance as the materials on record do not in any way support them. We are entirely in agreement with the findings rendered by the High Court on those issues in favour of the appellant.

27. In the result the judgment of the High Court in so far as they are against the appellant are set aside and consequently the judgment of the High Court is upset. The first respondent has failed to prove any of the allegations made by him against the appellant that the latter was guilty of corrupt practice. Hence the appeal C. A. No. 4272/91 is allowed and the election petition E.P. 15 of 90 on the file of the High Court of Karnataka is dismissed. C. A. No. 4379/91 is dismissed. The appellant is entitled to get his costs from the First respondent in these proceedings both in the High Court and this Court. Counsel's fee in this Court Rs. 5,000/-.

Order accordingly.