A writ petition was filed to challenge the amendment to Article 142(2) of the Negotiable Instruments Act, primarily on the ground that the amendment goes completely contrary to the judgment of the Honourable Supreme Court in Dashrath Rupsingh Rathod v. State of Maharastra reported in AIR 2014 Supreme Court 3519. The contention of the learned Counsel for the petitioner is that this amendment amounts to setting at naught a judgment of the Honourable Supreme Court which is not permissible in law. The contention of the petitioner cannot be accepted. It is well settled right from the decision in Shri Prithvi Cotton Mills Ltd., etc., v. Broach Borough Municipality and others reported in AIR 1970 Supreme Court 192 that Legislation can take away the basis of a judgment.
Madras High Court has dismissed the peition. The case is titled as Refex Energy Ltd vs Union Of India dated 18.12.2019.
The High Court observed and held as under:
"By virtue of the said amendment, the entire basis of the judgment of Dashrath Rupsingh Rathod (supra) has been removed. The power of the Legislature to take away the basis of a judgment by making amendments is well settled. It is trite law that the Legislature can take away the basis of the judgment of a judicial pronouncement by either passing a Validating Act or passing amendments to the parent Act. [Refer. State of Karnataka v. Karnataka Pawn Brokers Association and others reported in (2018) 6 SCC 363; State of Karnataka v. Pro Lab and others reported in (2015) 8 SCC 557; Shri Prithvi Cotton Mills Ltd., etc., v. Broach Borough Municipality and others reported in AIR 1970 Supreme Court 192; Gujarat Ambuja Cements and another v. Union of India and another reported in (2005) 4 SCC 214; State Bank's Staff Union (Madras Circle) v. Union of India and others reported in (2005) 7 SCC 584].
In view of the above, there is no infirmity in the amendment. Even otherwise, the Parliament is competent to bring out the amendment under the Negotiable Instruments Act. The said amendment cannot be said to be ultra vires in view of the provisions of the Act or Part III of the Constitution of India. The amendment cannot also be called to be manifestly arbitrary in the absence of any materials on record.
Accordingly, this writ petition is dismissed. No costs. Consequently, connected writ miscellaneous petition is also dismissed".
Read the Order here:
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