375
BIHAR EASTERN GAi"\IGETIC FISHERMEN
CO-OPERATIVE SOCIETY LIMn:ED
_v._
SlPAID SINGH &.OTHERS
_September_ 1, 1977
[P. K. GOSWAMI, JASWANT SINGH AND P. S. KAILASAM, JJ.]
_Ch·il Procedure_ _Code_ _(Act_ _V_ _of_ 1908), _Order_ _XLI_ _Rules_ 4 _and_ _33-Right_
_to_ _obtain reversal_ _of_ _lvhole decree. H·here_ _it_ _proceeds_ _un_ _ground con1mon_ _to_
_all. applies t:\·en_ _at_ _appellare_ stage~
_Conjfituriou_ _of_ _India_ 1950, _Article_ 299, _Set1/en1ent_ _of_ _the_ _Jalkar inco1nplete,_
_not_ _nzade_ _and_ _executed_ _in_ _the_ _n1anner_ _prescribed_ _by_ _Article_ 299 _of_ _the_ Consti~
_tion. whether ralid._
_Transfer_ _of_ _Properry·_ _Act_ _(Act_ _IV)_ 1882, _sections_ 54 _and_ _101. General_
_Clauses,_ _Act,_ _s._ _3(26)-Regisiration_ _Act_ 1908, _section_ _17(1)(d)-Contract_ _of_
_Sale/_ Lea~e _o/_ _fisl1ing rights_ _tu_ _be_ _\'a/id, being a "profit a_ _prendn/',_ _nunt_ _be_ _by_
mean~ _of_ _a registered i'}strument._
_Constitution_ _of_ _India,_ _Ariicle_ _226-fVhen_ _can_ _1nandCi1fius. issue._
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_EJtoppel-Pronzissory_ e.5toppel~There _cannot_ _be__ _any_ _estoppel against_ _the_
_Gorern111ent._ - D
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I
The fisher:Y' rights in the Gangapath Islampur Jalkar v.:hich settled with
the appellant for the year 1974 to 1975 (i.e. 1-7-1974 to 30-6-1975) at the.
Jam.ma of Rs. 1,50,000/- was, however, made in favour of one Sipahi Singh
(Respondent No. 1) for the period commencing from-July--1, 1975 to June
30, 1976, as a result of the public auction at which respondent No. 1 offered
the highest bid of Rs. 1,65,000/-. On a· representation made by respondent
No. l, on 1-2-1976, for a remission in the amount at which the settlement
had be~n made in his favour, on the ground that he had suffered a heavy E
los3 during the year 1975-76, as a result of the unlawful activities of the
members of the appellant society, or in the alternative for granting him the
cont:nuance of fishery rights for, the years 1976-77 and 1977-78 at Rs. 1,65,000/-,
the· Government made the deposit by respondent No. l of one·.year's settlement fee at Rs. 1,6S,OOO/- a _sine qua_ _non_ to the- issue of the order of settlement. in his favour. Respondent No. 1 made this deposit on 3-5-1976 and
inforrr.ed the Government. Ho\vever, taking a . favourable view of the representations made by the appellant society on Febn1ary 18, 1976 and :h.Iarch
9, 1976 to its Revenue 1Iinister and the Chief 1-Iinister respectively, the F
Government of Bihar changed its mind and settled the fishery rights \VitR.
the appellant, vide its letter No. IO/S.-4032176-1976, dated June 29, 1976,
on condition of the deposit by the latter of Rs. 1,65,000/- plus the earlier
arrears of Rs. 58,868/-, in three equal instalments; the first instalment to be
deposited before takirig the settlement and within a week from that date. It
\\-'as also made clear that in case the appellant failed to make the deposit
aforesaid the settlement be issued by highest bid. On June 30, 1976. when
re~;oond~nt No. 1 went to obtain the "dakhil parwana", he was informed of G
this subsequent decision of the - State Governn1ent. Respondent - No. 1
challenged the said orders by filing a writ - petition under Art 226 of the
Constitution. Though the High Court of Bihar found that there "'as no
binding or enforceable contract between respondent No. 1 and the State Government, it allowed the "'rit petition relying on the doctrine of promissory
estoppel.
AIIov.rjng the nppeal by special leave, the Court,
HEID : ( 1) It is no doubt true \hat the year 197 6· 77 has run out and H
the State has not~preferred any appeal against the adverse decision of the High
Court but ~?nee it has been impleaded as a respondent to the present appeal
and in Clctivtly supporting the appellant Y.-ho was indispu!ab1y in po~session and __ _
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(2) The pro\ision5' of Article 299 of the Constitution which are
mandatory in chara.cte1 require that a contract made in the exercise
of the executive power of the Union or of a State must satist'y
there conditions namely, (i) it must be expressly made by the President
or by the Governor of the State as the case may be; (ii) it must
be executed on behalf of the President or the Governor as the case may be;
and (iii) its execution must be by such person and in such manner as the
President or Governor may direct or otherwise. Failure to comply with these
conditions nullifies the contract and renders it void and unenforceable.
[380 H, 381 A, D-EJ
In the instant case, the settlement of the Jalkar with respondent No. 1
was not made and executed in the manner prescribed by Article 299 of the
Constitution. Accordingly, it could not be said to be valid and binding on
State. Respondent No. 1 could not base his claim thereon.
_The_ _State_ _of_ _Bilwr_ v. _M /s. Karam Chand Thapar_ & _Brothers_ _Ud._ [1962]
1 S.C.R. 827; _Seth Bikhraj Jaipuria_ v. _Union_ _of_ _lridia_ [1962] 2 S.C.R .. 880;
_State_ _of_ _West Bengal_ v. _Mis._ _B. K. Monda/_ & _Sons_ [1962] Supp. 1 S.C.R. 876
and _Mulamchand_ v. _State_ _of_ _Madhya Pradesh_ [1968] 3 S.C.R. 214 applied.
(3) The right to catch and carry away the fish being a 'profit _a prendre'_
and as such an immovable property within the meaning of the Transfer of
Property Act read in the light of s. 3 (26) of Genera? Clauses Act, its grant
has to be by means of a registered instrument if it is a tangible immovable
property exceeding in value of R-.. 100/- under s. 54 of the Transfer of Property Act and if it is intangible whatever its value. The transaction of sale
of the right to catch and carry away the fish if not effected by means of a
registered instrument would pass no title or interest. User of the term 'lease~
would not make any difference because a lease of fishery which is immoveable property, as defined in s. 2(6) of the Registration Act, if it i~ for any
term excee"ing one year or reserves a yearly rent has also to be registered as
required by s. 17(l)(d) of the Registration Act 1908 and section 104 of the
Transfer of Property Act.
In the instant case the transfer of the 'profit _a prendre'_ in favour of respondent No. 1 was admittedly for two years reserving a yearly rent and was
not evidenced by a registen"d instlument. He had therefore no right, title or
interest which could be enforced by him. [381 E-H, 382 Bl
_Ananda Behera_ & _A nr._ v. _The State_ _of_ _Orissa_ & _Anr._ [1955] 2 SCR 919
followed.
( 4) There cannot be any estoppcl against the Government in exercise of
its sovereign legislative and executive functions.
The instant case is not one where respondent No. 1 could invoke the dcctrine of promissory estoppel particularly in view of the fact that he neither
deposited Rs. 3,713/- required for execution of the lease agreement nor v. [1] as
any _parwana_ issued to him. [382 F, G]
_Excise Con1missioner, U.P .._ _Allahabad etc. etc._ v. _Ram_ _Kumar etc. etc._
A.J.R. 1976 S.C. 2237, applied.
376 SUPREME COURT REP.ORTS (l9?8J 1 S.C.R.
enjoyment of the Jalkar at the commencement of the proceedings under Article
226 of the Constitution and lost the same as a result of the judgment and ###### -1.
order of the High Court and the appellant could not effectively pursue the
application for the lease for the year 1977-78 and the reversal of the judg·
ment and order of the High Court which proceeds on grounds common to the
appellant and the respondents 2 to 4 can be made in favour of respondent
No. 1 to meet the ends of justice under Order XU Rules 4 and 33 of the Code
of Civil Procedure and the State Government might have been prevented from,
settling the Jalkar in favour of the appellant because of the mandatory injunc·
tion granted by the High Court. The appellant, is vitally interested in the
matter and is entitled to maintain and continue to prosecute the appeal and
to show that the writ of _niandan1us_ issued by the High Court is unsustainable
in law. [380 E-G]
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:BIHAR FISHERMEN SOCIETY _v._ SIPAH! SINGH _(laswant Singh,_ J.) 377
_Union of India_ _&_ _Ors. v._ _Mis._ _Afghan_ _Agencies Ltd._ [1968] 2 S.C.R. 366, A
distinguished.
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(5) The chief function of a writ is to compel the perforn1ance of public
duties prescribed by statute and to keep subordinate tribunals and officers exercising public function within the Jimit of their jurisrliction. In order that
_1na11dan1us_ may issue to compel the parties to do somethin,g, it must be shown
that there is a statute which imposes a legal duty and the aggrieved party has
a legal right under the statute to enforce its performance.
In the instant case respondent No. 1 was not entitled to apply for grant
of a writ of _n1andan1us_ under Article 226 of the· Constitution and the High
<Court was not competent to issue the same when it has not been shown that
there is any statute or rule having the force of la¥.' which casts a duty on the
respondents 2 to 4 which they fail to perform. [383 C-F]
_Lekhra;_ _Satra111das,_ _Lafi'ani_ v. _Dy._ _Custodian-cu1n-Managing_ _Officer_ & _Ors._
fl966] l S.C.R. 120; _Dr. Rai_ _Si1•endra_ _Bahadur_ v. Tiu~ _Govf'rninK Body_ _of_
_the !Valanda College_ [1962] Supp. 2 S.C.R. 144 and _Dr._ _U111akant_ _Saran_ v, C
_.State_ _of_ _Bihar_ _&_ _Ors._ A.I.R. 1973 S.C. 964, referred to.
(6) It is within the competence of the Government to give preference to
a Fishermen Co-operative Society and to settle the J alkar according to the
.revised policy and procedure forn1ulate<l by it in exercise of its absolute
authority and incorporated in its circular dated April 18, 1974. Respondent
No. 1 is entitled to refund on the basis of s. 70 of the Contract Act, proportionate grant of the Jarnma deposited by him for the year 1977-78 for the
period commencing from May I, I977 to 30th August I977. [384 A-G] D
CIVIL APPELLATE JURISDICTION Civil Appeal No. 1478 of
1~76.
Appeal by Special Leave from the Judgm.'.'nt and Order dated
20-8-76 of the Patna High Court in Civil Writ Jurisdiction Case No
1463/76.
_D._ _V. Patel, Miss_ _B._ _Ram_ _Rakhianl_ and S. _K._ _Gambhir_ for the
Appellant.
_Lal Narain Sinha_ and _Yogeshwar Prasad, Rani Arora_ and _Merra_
_Bail,_ for Respondent No. I.
_D._ _Goburdhan_ for Reaspondent Nos. 2 and. 3 and 4.
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The Judgment of the Court was delivered by F
JASWANT SINGH, J.-This appeal by special leave is directed
against the judgment and order dated August 20, 1976, of the High
Court of Judicature at Patna in Civil Writ Judicial Case No. 1463 of
1976 (filed by respondent No. 1) restraining the appellant and respondents 2 to 4 herein from acting on the basis of letter No. I O-S
4032176-1976 R dated June 29, 1976 addressed by the Department G
of Revenue. and Land Reforms, Government of Bihar, to the Deputy
Commissioner, _Santhal Pargana, Dumka (which formed Annexure-4
to the aforesaid writ petition) and directing respondent No. 2 to
execute the lease of the fishery rights in question in favour of respondent No. 1 and to put him in possession thereof, if not already
<lone.
The facts and circumstances giving rise to this appeal are : The H
appellant which is a co-operative society commenced taking settlement
of Gangapath Islampur Jalkar, bearing Tauzi No. 614 (hereinafter
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3 78 SUPREME COURT REPORTS [l 978J 1 S.C.R ..
referred to as the 'Jalkar') immediately after its establishment and
registration in 1950 (A. D.) The fishery rights in the Jalkar which
were settled with the appellant for the year 1974-75 as theretofore
was to run from July 1, 1974, to the end of June, 1975 at the Jamma
of Rs. 1,50,0001-. At the end of the said year, it was discovered that
the appellant had defaulted in payment of the Jamma to the extent of
Rs. 66,869/-. The settlement of fishery rights in the Jalkar for the
period commencing from July 1, 1975 to June 30, 1976 was made
in favour of respondent No. 1 by respondent No. 2 through its
Revenue Department as a result of the public auction at which the
former offered the highest bid of Rs. 1,65,000/-. In February,
1976, respondent No. 1 made a repre~ntation to the Revenue
Department of the Government of Bihar praying for a remission of
Rs. 75,000/- in the amount at which the settlement had been made
in his favour on the. ground that he had suffered a heavy loss during
the aforesaid period of settlement as a result of the unlawful activities of the members of the appellant society. In the alternative, he·
prayed that in case the State Government was not in a position to
grant the remission, the settlement of fishery rights of the Jalkar be
continued with him for a further period of three years at the same
amount in order to enable him to recoup the aforesaid loss suffered
by him. After some inquiry and consideration of the matter, the
Revenue Department of the Government of Bihar ordered that the
settlement of the Jalkar should continue with respondent _No._ 1 for
the years 1976-77 and 1977-78 at Rs. 1,65,000/- per year. The
Government, however, made the deposit of the settlement fee of
Rs. 1,65,000/- by respondent No. 1 a _sine_ _qua_ _non_ to the issue of
the order of settlement. An intimation of this order was given by
the Government to its Deputy Commissioner, Santhal Pargana, Dwnka,
vide its, latter No. 10-S-4032176R dated April 30, 1976, forming
Annexure-1 to the writ petition. A copy of this communication was
also sent to respondent No. _1_ with the direction that he should deposit
Rs. 1,65,000/- before the issue of the settlement order for the
aforesaid two years. In compliance with this order, respondent No ..
_1_ deposited a sum of Rs. 1,65,000/- on May 3, 1976, vide challan
No. 18(Bank) dated May 3, 1976 and by his letter of the even date,
he requested the Sub-Divisional Officer, Sahibganj, to issue the Patta
of settlement of the Jalkar for the years 1976-77 and 1977-78 in his
favour. Respondent No. 1 also communicated the fact of the deposit
by him of Rs. 1,65,000/- to the Secretary to the Government of
Bihar, Revenue Department, by telegram dated May 5, 1976. How**ever. taking a favourable** **V!iew** **of** **the representations made** **by** **the**
appellant on February 18, 1976 and March 9, 1976 to its Revenue
Minister and the Chief Minister respectively, the Government of
Bihar changed its mind and informed the Deputy Commissioner of
Santhal Paragana, Dumka vide its letter No. 10/S-4032/76-1976-R
dated June 29, 1976 that it had "taken the decision that settlem,,nt of
the aforesaid Jalkar with the Society (i.e. the appellant) be. done for
the year 1976-77 on the additional conditions (besides those laid down
by the prescribed rules and conditions) that it would make the de~
posit of all earlier arrears of Rs. 58,868/- along with the amount of
settlement of Rs. 1,65,000/- for this year (i.e 1976-77) in three
equal instalments, the first instalment to be deposited before taking
#
'
Bl!IAR FISHERMEN SOCIETY _v._ SIPAII! SINGH _(Jaswant Singh,_ _J.)3_ 79
the settlement" and within a week from that date. It was made clear
in the concluding part of the communication that in case the ap
pellant failed to make the deposit as aforesaid, 'the settlement be
issued by highest bid.' On JuneJ 30, 1976, when respondent No.
1 went to obtain the 'dakhil parwana', he is stated to have been
informed of this subsequent decision of the State Government. Averring that he had been put to a consid~rable financial loss as a result
of the aforesaid subsequent order of the Government settlmg the fishery
rights in Jalkar in favour of the appe!lant, respondent No. I filed a
petition under Article 226 of the Constitution in the High Court of
Judicature at Patna on July 2, 1976 praying that the aforesaid order
settling the fishery rights of the Jalkar with the appellant be quashed
by a writ of _certiorari_ and the State Government be directed by a
writ of _mandamus_ to execute the lease in his favour for the years
1976-77 and 1977-78 and not to disturb his possession over the fishery
right in question during the currency of the term of the lease. The
respondent also prayed for such other orders, as the Court might
think fit and proper.
The writ petition was contested by the appellant as also by respondents Nos. 2 to 4 herein. In the counter affidavit jointly filed by
them in opposition to the petition, respondents Nos. 2 to 4 averred
_imcr a/ia_ that there was no completed contract and hence no formal
agreement was executed between the State, and respondent No. I
and no 'parwana' was issued in favour of the latter; that the State
had full right and authority to revoke its decision before execution of
- the agreement and that in view of the well established principles, 'the
settlement of the Jalkar had to be given to the appellant if it was
willing to take the lease'. The respondents also denied their liability
for the expenses alleged to have been incurred by respondent No.
1 in connection with the preparation for the lease ordered in his favour
by the Government vide the aforesaid Annexure-1 to the writ petition.
They, however, admitted that the appellant indulged in unlawful activities for four days in 1975-76 which had caused a meagre loss to
respondent No. 1. In the counter affidavit filed by it. the appeJlant
while denying that it was a defaulter, averred that its petition for
remission was pending before the Remission Committe•e appointed
by the State; that the Assistant Registrar and the Registrar of the Co
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operative Societies had recommended the settlement of fishery rights
of the Jalkar in its favour and on representations made by it to the
Revenue Minister and the Chief Minister, the G0\1Crnment of Bihar
had, in conformity with mandatory orders and instructions, issued
an order of settlement in its favour on June 28, 1976; that pursuant
to that order, it made the necessary deposit by 10.35 A.M. on July
1. 1976 and that respondent No. 1 had no right to challenge the settlement of the fishery rights of the Jalkar in its favour.
The. High Court while holding that there was no binding or
enforceable contract between respondent No. 1 and the State Government allowed the writ petition relying on the doctrine of· promissory
estoppel. Aggrieved by this judgment and order, the appellant has.
as already stated, come up in appeal to this Court.
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380 SUPREME COURT REPORTS [1978) 1 S.C.R.
Appearing on behal•( of the appellant, Mr. Patel has urged the
following points :1. That since there was no completed, binding and enforceable contract between the State of Bihar and respondent No. l as contemplated by Article 299 of the
Constitution, the aforesaid writ petition filed by
respondent No. I was not maintainable.
~ That to a case like the present one, the doctrine of
promissory estoppel had no application and the High
Court has erred in relying upon the same.
3. That in any case, since there was no breach of any
statutory duty in the present case, a writ of _mandamus_
could not have been issued by the High Court.
Mr. Lalnaryan Sinha has, on the other hand, submitted' that in
the facts and circumstances of the case, the High Court was justified
in applying the principle 9f promissory estoppel and there is no
warrant for interfering with the judgment and order passed by the
- High Court.
We shall deal seriatim with the aforesaid three contentions raised
on behalf on the appellant But before attempting to do• that, we
would like to dispose of the preliminary objection raised on behalf
of respondent No. 1 to the effect that as the period for which the
impugned order dated June 29, 1976 settling the Jalkar with the
appellant was issued has expired and the State has not chosen to
prefer any appeal against the aforesaid judgment and order of the
High Court the appellant has no manner of right or _locus standi_ to
chal'lenge the continuance of settlement with respondent No. 1 for
the year 1977-78 and to continue to prosecute the present appeal. It
is no doubt true that the year 1976-77 has run out and _the_ State
has not preferred any appeal against the adverse decision of the High
Court but since it has been impleaded as a respondent to the present
appeal and is actively supporting the appellant who was indisputably
in possession and enjoyment of the Jalkar at the commencement of
the proceedings under Article 226 of the Constitution and Jost the
same as a result of the judgment and order of the High Court and the
appellant could not effectively pursue the application for the lease
for the year 1977-78 and the reversal of the judgment and order of
the High Court which proceeds on grounds common to the appellant
and respondents 2 to 4 can be made in favour of respondent No. 2
to meet the ends of justice und_er Order 41 Rules 4 and 33 of the Code
of Civil Procedure and the State Government might have been prevented Jrom settling the Jalkar in favour of the appellant because of
the mandatory injunction granted by the High Court, the appellant
is, in our judgment, vitally interested in the matter and is entitled to
maintain and continue to prosecute the appeal and to show that the
writ of _mandamus_ issued by the High Court is unsustainable in law.
We accordingly overrule the preliminary objection and proceed to
consider the aforesaid contentions raised on behalf of the appellant.
H _Re_ : _Contention No._ 1 :-It is now well settled that the provisions
of Article 299 of the Constitution which are mandatory in character
require that a contract made in the exercise of the executive power of
BIHAR FISHERMEN SOCIETY _v._ SIPAH! SINGH _(laswant Singh,_ _**l.)**_ **381**
the Union or of a State must satisfy three conditions viz. (i) it must **A**
be expressed to be made by the President or by the Governor of
the State, as the case may be; (ii) it must be executed on behalf of
the President or the Governor, as the case may be and (iii) its execution must be by such person and in such manner as the President or
Governor may direct or authorise. Failure to comply with these
conditions nullifies the contract and renders it void and unenforceable.
(See decisions of this Court in _The State_ _of_ _Bihar_ '1. _Mis_ _Karam_ **B**
_Chand Thapar_ & _Brothers_ _Ltd.(')_ _Seth Bikhraj laipuria_ v. _Union_ _of_
_India(2) and State_ _of West Bengal_ v. _M/s._ _B._ _K._ _Monda!_ & _Sons._ (')
_I_ .
It will also be useful to refer to the Judgment of this Court in
_Mulamclumd_ v. _State_ _of_ _Madhya Pradesh(_ _[4 ]_ _)_ where while reiterating
the principles laid down in the aforesaid decisions, it was observed :
"There is no question of estoppel or ratification in a
case where there is contravention of the provisions of
Article 299 (1) of the Constitution. The reason is that the
provisions of section 175(3) of the Government of India Act
and the corresponding provisions of Art. 299 (1) of the
Constitution have not been enacted for the sake of mere
form but they have been enacted for safeguarding the Government against unauthorised contracts. The provisions
are embodied ins. 175(3) of the Government of India Act
and Art. 299 ( 1) of the Constitution on the ground of public
policy-on the ground of protection of gene;ral public .....
and these formalities cannot be waived or dispensed with."
In the instant case, it is obvious that the settlement of the Jalkarwith respondent No. 1 was not made and executed in the manner
prescribed by Article 299 of the Constitution. Accordingly, it
could not Ile said to be valid and binding on the State of Bihar and
respondent No. 1 could not base his claim thereon.
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That apart, there is an additional reason for holding that the settlement of Jalkar with respondent No. 1 was not valid and enforceable. Thi: right to catch and carry away the fish being a _'profit a_
_prendre'_ i.e. a profit or benefit arising out of the land, it has **F**
to be regarded as immovable property within the meaning of the
Transfer of Property Act, read in the light of s. 3 (26) of the
General Clauses Act. If a _'profit a prendre'_ is tangible immovable
- property, its sale has to be by means of a registered instrument
in case its value exceeds Rs. 100/- because of sei:tion 54 of the
Transfer of Property Act. If it is intangible, its sale is required to
be effected by a registered instrnment whatever its value. Therefore, **G**
in either of the wo situations, the grant of tl1e _'profit a prendre'_ has
to be by means of a registered instrument. Accordingly, . the
transaction of sale of the right to catch and carry away the fish if not
effected by means of a registered instrument, would pass no ~tie or
interns!. (See _Ananda Behera_ & _Anr._ v. _The State_ _of_ _Orzssa_ &
(I) [1962J 1 s.c.R. 827. **H**
(2) [196212 S.C.R. 880.
(3) [19621 Supp, I s.C.R. 876.
(4) [1968] l S.C.R. 214.
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382 SUPREME COURT REPORTS [J 978] J S.C.R.
_Anr._ (') Even if the settlement of Jalkar with respondent No. 1 is
regarded as lease as described by him in Annexure-2 to the writ petition, it would not make any difference because a lease of fishery which
is immovable property as defined by >ection 2(6) of the Registra
tion Act if it is for any term exceeding one year or reserves a yearly
rent has also to be registered as required by section 1 7 (I) ( d) of
the Indian Registration Act, 1908 and •ection 107 of the Transfer
of Property Act. As in the instant ca•e, the transfer of the _'profit a_
_prendre'_ in favour of respandent No. 1 wa~ admittedly for two years
reserving a yearly rent and was not evidenced by a registered instrument, he had no right, title or interest which could be enforced by
him. Manifestly therefore, the writ petition was misconceived and
ought to have been dismissed.
_Re_ : _Contentlon_ _No._ 2 : It is also not a case where respandent
No. I could invoke the doctrine of promissory estoppel particularly
in view of the fact that he neither deposited Rs. 3,713/- (Rupees
three thousand, seven hundred and thirteen only) required for execution of the lease agreement nor was any 'Parwana' issued to him
ll.nd the High Court rejected his plea that after the receipt of the
Goven;ment order, he invested large amounts of money in purchasing
boats etc. and had to enter into contracts with large number of
employees whose se.rvices were needed for the Jalkar. It would be
appropriate to refer to the following observations of the High Court
in this respect :
"The statement referred to above is such too vague and
gen~ral. No details or particulars have been given, nor
any document annexed to the original writ application, or
the rejoinder aforesaid in suppart of these averments. I,
therefore, do not accept the correctness of the statements.
However, it was very unlikely that the petitioner \vho had
already a subsisting lease would not be having enough or
sufficient materials and it was after the communication regarding lease for the period 1976 to 1978 that the petitioner
started purchasing boats etc. The vague and general statements that have been made in paragraph 17 of the original
writ application do not appear to me to 'be acceptable."
The doctrine of promissory estoppel could also not be pressed
into service in the present case, as it is well settled that there cannot be any estoppel against the Government in exercise of its sovereign
**legislative** **and** **executive functions.** **(See** _**Excise**_ _**Co1nmissio11er,**_
_U.P.,_ _Allahabad_ _etc. etc._ v. _Ram Kumar etc._ _etc.(')_
The decision of this Court in _Union of India_ & _Drs._ v. _Mis lndo-_
_Afghan Agencies Ltd._ ( [3 ] ) on which 5trong reliance is placed by
counsel for respondent No. 1 is clearly distinguishable. In that case,
unlike the present one, the respondents were not seeking to enforce
any contrac.tual right. They were merely seeking to enforce compli
(I) ~~[195512S.~~ C.R. 919.
(2) A.LR. 1976 S.C. 2237.
(3) [19681 2 S.C.R. 366.
llJHAR FISHERMEN SOCIETY _v._ SJPAHI SINGH _(Jaswant Singh,_ _J.)_ 383
.ance with the obligation which was laid upon the Textile Commissioner
by the terms of the Export Promotion Scheme providing for grant
(by way of incentives to exporters of woollen textiles and goods) of
Entitlement Certificate to import raw materials of a total amount.
equal to I _00'.l'o_ of the F.O.B. value of their exports. Their claim
was founded upon the equity which arose in their favour as a result of the representation made on. behalf of the Government in the
aforesaid Scheme, the exports of woollen goods made by them Lo
Afghanistan acting upon the representation and curtailment of the
import Entitlement by the Textile Commissioner without notice to
them.
_Re_ : _Contenion No._ 3 :-This contention is also well founded and
must prcva.il. There is abundant authority in favour of the proposision that a writ of _mandamus_ can be granted only in a case where
there is a statutory duty imposed upon the officer concerned and
t11ere is a failure on the part of that officer to discharge the statutory
obligation. The chief function of a writ is to compel performance
of public duties prescribed by statute and to keep subordinate tribunals and officers exercising public functions within the limit of
their jurisdiction. It follows, therefore, that in order that _mandamus_
may issue to compel the authorities to do 'something, it must be shown
that there is a statute which imposes a legal duty and the aggrieved
party has a legal right under the statute to enforce its performance.
(See _Lekhraj Satramdas, Lalvani_ v. _Deputy Custodia11-cum-managi11g_
_Officer_ _&_ Ors.(') _Dr._ _Rai Shivendra Bahadur_ v. _The Governing Body_
_of the Nalanda College(')_ and _Dr. Umakant Saran_ v. _State_ _of_ _Bihar_ &
_Ors.(')_ In the instant case, it has not been shown by respondent No.
1 that there is any statute or rule having the force of law which casts a
duty on respondents 2 to 4 which they failed to perform. All that is
sought to be enforced is an obligation flowing from a contract which,
as already indicated, is also not binding and enforceable, Accordingly, we are clearly of the opinion that respondent No. I was not
entitled to apply for grant of a writ of _mandamus_ under Article 226
of the Constitution and the High Court was not competent to issue the
same.
This brings us to the consideration of the last question of the
relief which can be granted to the appellant. The settlement of Jalkar
with respondent No. 1 undoubtedly did not create any legal right in
his favour but as the year 1976-77 has already run out, the appeal in
so far as that year is concerned has become infructuous but in so far
as the appeal relates to the year 1977-78, we are of the opinion that
as respondent No. 1 is not validly exploiting th0 Jalkar and the application by the appellant for settlement thereof with it is pending with the
authorities and according to the revised policy and procedure formulated by it in exercise of its absolute authority and incorporated in its
Revenue and Land Reforms Department's circular letter No. S. 8 Serial
(1) [1966] I S.C.R. 120.
(Z) [l 962] Supp. 2 S.C.R. 144 .
.(3) A.l.R. )973 S.C. 964.
A
B
c
D
E
F
G
.184 SUPREME COURT REPORTS [1978] 1' S.C.R.
A 6-0-4663R dated April 18, 1974, addressed to all the Collectors of the
State, it is within the competence of the Government to give. preference
to a Fishermen Co-operative Society and to settle the Jalkar with the
appellant for the remainder of the year 1977-78 at 90% of the highest
bid amount i.e. 10% less of .the highest auction amount but it may
not be possible for it to do so in .... face of the impediment created by
the _mandamus_ issued by the High Court, we would allow the appeal
B in so far as the current year is concerned and leave it open to the
Government to grant the fishery rights to the appellant in conformity
with the aforesaid policy· and procedure in case the latter fulfills the
conditions laid down therein. In the event of the Government settling the Jalkar with the appellant or any other Fisherman· Society in
accordance with the policy and procedure laid down in the aforesaid
circular letter, it shall, on the basis of section 70 of the Contract Act
C rdund to respondent No. 1 proportionate amount of the Jamma deposited by him for the year 1977-78 after going into the accounts which he
was bound to maintain under order passed by this Court on May 6,
1977 for the period commencing from May !, 1977 to August 30,
1977.
In the. circumstances of the case, there will be no order as to costs.
S.R. _Appeal allowed._