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Petition Filed Under Article 32, Constitution of GEORGOPOL, WRIT PETITION NO. - /2020
Petition Filed Under Article 32, Constitution of GEORGOPOL, WRIT PETITION NO. - /2020
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ST
1 LAWSCHOLE VIRTUAL MOOT COURT COMPETITION
BEFORE SUBMISSION TO
THE HON’BLE JUDGES OF
BEFORE SUBMISSION TO
THE HON’BLE SUPREME COURT OF GEORGOPOL
THE HON’BLE JUDGES OF
THE HON’BLE SUPREME COURT OF GEORGOPOL
TABLE OF CONTENTS
STATEMENT OF JURISDICTION......................................................................................4
STATEMENT OF FACTS......................................................................................................5
SUMMARY OF ARGUMENTS.............................................................................................9
ARGUMENTS ADVANCED................................................................................................11
INDEX OF AUTHORITIES
CASES
1. Bangalore Silk Throwing Factory v Its Workmen, (1957) ILLJ (L.A.T. Bombay).
435
2. Punjab National Bank Ltd v. Their Workmen, (1952) (II) LL.J. 648 at p. 655.
3. Swadesh Industries Ltd v Their Workmen, (1960) AIR SC 1250
4. Sri Kanyakaparameswari Groundnut Oil Mils contractor's company v their
workmen, (1955) I LLJ (566 I.T.) 561
5. Dabir (Et. S.K. Burman) Pvt. Ltd., v Their Workmen, (1961) II FLR (I.T.) Calcutta.
10
6. Caltex (India) Ltd. v. Certain workmen, (1954)(II) LL.J.516 (520)
7. Dharam Singh Rajput v. Bank of India Bombay, (1979) Lab. IC 1079 (DB)(Punj).
8. Workers of Textool Co. Ltd. v. Textool Co. Ltd., 10 I.J.R. 460
9. West Bengal Flour Mills Mazdoor Congress v. Hooghly Flour Mills Co. Ltd., 10
F.J.R. 240(L.A.T).
10. Ramakrishna Iron Foundry, Howrah v. their workers, (1954)(II) LLJ 372 at p.374
11. Union Factories in Bihar v. Their Workmen, 13 FJR 150
12. Andhra Pradesh State Road Transport Corporation, Employees Union v. Andhra
Pradesh State Transport Corporation, Hyderabad, 1970 L.I.C. 1225
13. Management of the Fertilizer Corporation of India Ltd. v. The Workmen, AIR 1970
SC 867
14. Ficus Pax Private Ltd. & Ors. Vs. Union of India & Ors, [Writ Petition (C) Diary
No. 10983 of 2020]
15. Crompton Greaves vs. the Workmen, (1978) 3 SCC 155
16. Bank of India vs. T.S. Kelawala, (1990) II LLJ 39
17. Syndicate Bank v. K. Umesh Nayak, AIR 1995 SC 319
18. Nimar Textiles Ltd. vs L.K. Pandey, Dy. Labour Commissioner & anr., (1997)
IIILLJ 224 MP
19. Poe vs Ullman, (1961) 367 US 497 (543)
20. Sanchit Bansal vs Joint Admission Board, AIR 2012 SC 214
21. Gj Fernandez v. State of Mysore & Ors, [AIR 1967 SC 1753]
22. Polytech Trade Foundation V. Union of India & Ors, C.M. No. 10546/2020 in W.P.(C) 3029/2020
STATEMENT OF JURISDICTION
1. The right to move the Supreme Court by appropriate proceedings for the enforcement of
the rights conferred by this Part is guaranteed
2. The Supreme Court shall have power to issue directions or orders or writs, including writs
in the nature of habeas corpus, mandamus, prohibition, quo warranto and certiorari,
whichever may be appropriate, for the enforcement of any of the rights conferred by this Part.
The respondents on behalf of Princeton Private Limited are appearing before the Hon’ble
supreme court of Georgopol in response to the writ petition filed by the petitioners.
STATEMENT OF FACTS
SUMMARY OF ARUGUEMENTS
ISSUE I:
WHETHER THE STRIKES AGITATED BY EMPLOYEES OF PPL ILLEGAL AND
UNJUSTIFIED WITH RESPECT TO THE INDUSTRIAL DISPUTES ACT, 1947
AND HENCE, IN VIOLATION OF LAWS OF GEORGOPOL?
It is humbly submitted before the Hon’ble Supreme Court of Georgopol that the strikes
agitated by the petitioners are illegal and unjustified under the purview of Section 22(1) of
the Industrial Disputes Act, 1947. The strike was not notified to the respondents under this
particular section. Furthermore, the service contract between the employers and the
employees of PPL, was also breached by the employees. The respondents’ motto primarily
has been the welfare and satisfaction of the employees, and the management of the
respondents had assured the employees that it would reach a decision in the coming months,
which would include significant benefits for the employees. However, the move resorted to
by the employees is unreasonable, frivolous and unjustified. Thus, the respondents, had
resorted to non-payment of wages under Section 18(2)(b) of the Code on Wages, 2019 for the
duration of the strike.
ISSUE II:
WHETHER THE ORDER ISSUED BY THE GOVERNMENT UNDER THE
DISASTER MANAGEMENT ACT, 2005 ULTRA VIRES OF THE ACT?
On account of the Coronavirus Pandemic, the government had released certain advisories and
directions invoking the Epidemic Diseases Act, 1897 and the Disaster Management Act,
2005. As mentioned in the facts, the Ministry of Labour and Employment had issued
advisories for both public and private sectors, urging them to not terminate the employment
of employees, particularly casual or contractual employees and further not to reduce their
wages, contravention of which many attract certain legal ramifications under Section 7 of the
ISSUE III :
The counsels on behalf of the respondents would like to submit that the orders and directions
issued by the government calling upon the private employers not to deduct the salaries of
their employees and further advising them not to terminate their employment during the
lockdown period are not mandatory in nature as these orders and directions are blatantly
irrational, unreasonable and do not have any statutory backing. The government has shown
an extreme level of ambiguousness while passing these directions, at the same time.
ISSUE IV :
The treatment of the employees as the separate class by bringing the concept of reasonable
classification is against the intention as well as the purpose of law that favours the concept of
reasonable classification. We have already witnessed the fact that employers are
discriminated against the employees even though the situations are such that both have
suffered equally. In addition to that, the irrational and unreasonable acts of the government
ARGUMENTS ADVANCED
The counsel humbly contends before the hon’ble Supreme Court of Georgopol on behalf of
the respondents (PPL) that the strikes agitated by the petitioners (employees) are illegal and
unjustified with respect to the Industrial Disputes Act, 1947 because of the contentions
hereinafter referred.
The strikes are illegal as it violates Section 22(1) of the Industrial Disputes Act, 1947
(hereinafter referred as ‘ID Act’). The Section 22(1) of the ID Act, prohibits illegal strikes
and provided that:
22. (1) No person employed in a public utility service shall go on strike in breach of contract-
(a) without giving to the employer notice of strike, as hereinafter provided, within six weeks
before striking; or
(c) before the expiry of the date of strike specified in any such notice as aforesaid; or
(d) during the pendency of any conciliation proceedings before a conciliation officer and
seven days after the conclusion of such proceedings.
The petitioners did not serve any kind of notification to the respondents, whatsoever as
required by the abovementioned section. The respondents are a part of public utility services,
Furthermore, according to the facts of the case, there has been breach of service agreement 3
under Section 22(1) by the petitioners. The strikes along with being illegal has also been
unjustified. The reasons for the same has been listed below:
The petitioners demanded a hike in their salaries, in April. The employees were well
aware of the fact that the company is incurring huge losses due to novel coronavirus
pandemic and has reached breakage of the manufacturing and distribution channel. The
company has still adhered to providing the present salaries of the employees following
the advisories and directions issued by the government. The condition of the company is
nowhere ‘usual’ like the past financial years and hence, it is extremely difficult to provide
hike in salaries. Moreover, the wages of the employees, completely adhere to the laws
( regarding minimum wages)4 provided under the Code on Wages, 2019 and is nowhere
in contravention with either the laws of Georgopol or the advisories provided by the
Ministry i.e. there has been no unreasonable deduction of wages 5 on the account of the
losses caused due to the pandemic followed by the lockdown. Further, there is no such
law in the Code of wages, 2019 or any other law pertaining to payment of wages which
mandates increment of salaries of the employees.
The first and foremost requirement of a justified strike is that it should be launched only
for economic demands of workmen like basic pay, dearness allowance, bonus, provident
fund, gratuity, leave and holidays which is the primary object of the trade union/
association. The economic demands should be prima facie reasonable 6. The demands of
workers cannot be frivolous7.
1
2(n)(vi), Industrial Disputes Act, 1947
2
Bangalore Silk Throwing Factory v Its Workmen, (1957) ILLJ (L.A.T. Bombay). 435
3
Punjab National Bank Ltd v. Their Workmen, (1952) (II) LL.J. 648 at p. 655.
4
Chapter II, Code on Wages, 2019
5
Section 18, Code on Wages, 2019
6
Swadesh Industries Ltd v Their Workmen, (1960) AIR SC 1250
7
Sri Kanyakaparameswari Groundnut Oil Mils contractor's company v their workmen, (1955) I LLJ (566 I.T.)
561
However, in the present case the management of the respondents have respectfully valued
the unreasonable (earlier proved) demands of the employees and was in the process of
reviewing these demands. The employees had been assured time and again regarding the
decisions that were going to be taken for their welfare. However, the petitioners, did not
resort to the process of conciliation or arbitration under Chapter III of the Industrial
Dispute Act, 194710 rather chose to avail the most drastic step available, i.e. going on a
strike- affecting the productivity, goodwill and the well-earned reputation of the
respondents. The respondents contend that the petitioners did follow the fair means of
collective bargaining as they agitated a strike without exhausting all the other rights
available to them.
Considering the above facts and circumstances, the counsel for respondents humbly
contend that the strike was unjustified on the basis of the fact that the employees did not
secure genuine interest to secure improvement on the matters of basic industrial interest
to labour, but rather to achieve ulterior motives11.
In the case of West Bengal Flour Mills Mazdoor Congress v. Hooghly Flour Mills Co.
Ltd.12, the Labour Appellate Tribunal held that, where a strike was agitated by the
workmen in spite of the conciliatory attitude of the management and without trying all
other available means of settlement of the dispute according to law, the strike would be
unjustified and the workmen would not be entitled to claim wages for the strike period.
8
(1961) II FLR (I.T.) Calcutta. 10
9
(1954)(II) LL.J.516 (520)
10
Dharam Singh Rajput v. Bank of India Bombay (1979) Lab.IC 1079 (DB)(Punj).: “Right to strike, is to be
exercised after fulfilling certain conditions regarding service of notice and also after exhausting intermediate
and salutary remedy of conciliation proceeding.”
11
Workers of Textool Co. Ltd. v. Textool Co. Ltd. 10 I.J.R. 460.
12
10 F.J.R. 240(L.A.T).
In the present case, all these conditions are observed. The aforesaid case also holds that,
in the event of the strike lacking bona fide, the employer has the right to take action
against the workmen who joined the strike. The strike is not a bona fide when:
a. it is resorted to under the pretence of backing a current demand but with the real
object of compelling the employer to reopen a demand which has already been
adjudicated upon or
b. when it is resorted to frivolously or frequently with a view to ruin the factory or
where it is resorted to extraneous considerations.
The petitioners had hence agitated the strikes on pretence of (b), as the employees were
aware of the respondents’ conditions and the fact that it was abiding by all the guidelines
and advisories provided by the government.
In the case of Union Factories in Bihar v. Their Workmen14, it has been held that wherein
the workmen resort to strike as a result of hot-waded decisions without giving their
grievances redressed by conciliation proceedings it was held that the strike was
unjustified.
In the case of Andhra Pradesh State Road Transport Corporation, Employees Union v.
Andhra Pradesh State Transport Corporation, Hyderabad15, it was held that justifiability
of strike depends upon several factors such as,
(i) Were the demands of the workmen genuine or were reasonable or inspired by an
oblique motive
(ii) Were the demands fair and reasonable
(iii) Did the workers try a less drastic method before going on a strike etc.
13
(1954)(II) LLJ 372 at p.374
14
13 FJR 150
15
1970 L.I.C. 1225
In Management of the Fertilizer Corporation of India Ltd. v. The Workmen 16, the
Supreme Court held that, in spite of the fact that the management was prepared to pay
bonus17, had announced a production bonus scheme and had made some proposals in the
course of conciliation with the workmen, yet the workmen were not prepared to put off
the strike even by one day and decided to go on strike. Similar situation was observed in
the present case, wherein the petitioners were negligent about the assurances made and
the steps taken by the respondents.
Hence, the counsel on behalf of the responds contends that the strikes were illegal under
Industrial Disputes Act, 1947 and hence, unjustified.
II. Whether the order issued by the Government under the DMA ultra vires of the
Act?
It is humbly contended before the Hon’ble Supreme Court of Georgopol, on behalf of the
respondents (PPL) that the orders and advisories issued by the Government under the
Disaster Management Act, 2005 are ultra vires of the Disaster Management Act, 2005
because of the contentions hereinafter referred.
1. In the matter of Ficus Pax Private Ltd. & Ors. Vs. Union of India & Ors18 , it is expressly
stated that the orders of the government under the DMA is ultra vires of the Disaster
Management Act, 2005 and is also violative of Article 1419 and 1920.
1. The Order compels employers to retain migrant and regular workers. It requires them
to pay full wages especially when there was no business during lockdown. Thus, the
Order can force an otherwise stable and solvent industrial establishment into
insolvency and lose control of business.
2. The government cannot invoke Section 10(2)(l) of DMA, to impose financial
obligations such as payment of wages on employers. The ultimate onus to compensate
workers is that of government and it cannot shift the burden on employers.
16
AIR 1970 SC 867
17
As per the Payment of Bonus Act, 1965
18
[Writ Petition (C) Diary No. 10983 of 2020]
19
Equality before law
20
Protection of certain rights regarding freedom of speech to practise any profession, or to carry on any
occupation, trade or business
The hon’ble court in this order hence provided interim measures and took in consideration the
problems faced by the employers. The Court took note of the fact that
21
Article 39, Directive Principles of State Policy
22
Article 300A of Constitution of India, states that no person shall be deprived of his property save by authority
of law
Hence, the counsel seeks a similar approach by the Hon’ble court in this case.
2. Further, regarding the order of legal ramifications with regards to non-payment and
deduction of wages, the employer has the compete right to deduct the wages of the
employees who resorted to illegal strike, hence an unauthorised absenteeism under
Section 18(2)(b) under the Code on Wages, 2019 ( Section 7(2)(b) of Payment of wages
Act, 1936). Denial of wages is a consequence of an illegal strike.
In the case of Crompton Greaves vs. the Workmen23, it was stated by the hon’ble court
that, “It is well settled that in order to entitle the workmen to wages for the period of
strike, the strike should be legal as well as justified. A strike is legal if it does not violate
any provision of the statutes”. As we have established earlier, the strike is completely
illegal and violates the laws of Georgopol.
Further, in the case of, Bank of India vs. T.S. Kelawala24, it was held that where the
contract, Standing Orders or the service rules/regulations are silent on the subject, the
management has the power to deduct wages for absence from duty when the absence is a
concerted action on the part of the employees and the absence is not disputed.” It further
held that, “whether the strike is legal or illegal, the workers are liable to lose wages for
the period of strike. The liability to lose wages does not either make the strike illegal as a
weapon or deprive the workers of it. When workers resort to it, they do so knowing fully
well, its consequences”. Therefore, the Hon'ble Court in the aforesaid judgment while
reserving the right of the workman to go on strike was of the view that workers are not
entitled to wages during the strike period irrespective of the fact that the strike is legal or
illegal. Hence, it is completely proved that the employees who were involved in the strike
will observe a deduction in their wages.
23
(1978) 3 SCC 155
24
(1990) II LLJ 39
3. The next contention deals with the fact that the employers have the right to ‘lay-off’
employees during certain eventualities like a natural calamity in accordance to section
2(kkk), Industrial Disputes Act, 1947. The government has earlier declared Covid-19 as a
‘notified disaster’. Though the respondents here, did not resort to any such procedure as
to retrenchment or laying-off of any employee, the order on part of the government is in
complete contravention of the Industrial Dispute Act, 1947.
The term ‘lay-off’ has been defined as the failure, refusal or inability of an employer on
account of the shortage of coal, power or raw materials or the accumulation of stocks or
the breakdown of machinery or natural calamity or for any other unconnected reason to
give employment to a workman whose name is borne on the muster rolls of his industrial
establishment and who has not been retrenched.
a. There must be failure, refusal or inability on the part of the employer to give
employment to a workman.
b. The failure, refusal or inability should be on account of shortage of coal, power or raw
materials or accumulation of stocks or breakdown of machinery, or natural calamity,
or any other connected reason.
c. The workman’s name should be on the muster rolls of the industrial establishment.
d. The workman should not have been retrenched.
In the case of Nimar Textiles Ltd. vs L.K. Pandey, Dy. Labour Commissioner & anr. 26, it
was held that, “There is no matter of doubt that if an employer wants to effect lay-off for
the circumstances enumerated in Section 2(kkk), an employer has to seek permission
under Section 25(M) of such authority as may be specified by the appropriate
Government unless such lay-off is due to shortage of power or natural calamity.
Furthermore, the restriction imposed under Sub-section (2) of Section 25(M) cannot be
said to be arbitrary, unreasonable or far in excess of the need for which such restriction
25
AIR 1995 SC 319
26
(1997) IIILLJ 224 MP
ISSUE III
The counsels on behalf of the respondents would like to submit that the orders and directions
issued by the government calling upon the private employers not to deduct the salaries of
their employees and further advising them not to terminate their employment during the
lockdown period are not mandatory in nature as these orders and directions are blatantly
irrational, unreasonable and do not have any statutory backing. The government has shown
an extreme level of ambiguousness while passing these directions, at the same time. Stating
the process that the government has retorted to, the Ministry of Labour and Employment
issued an advisory on March 20, 2020 appealing to all the employer’s associations not to
terminate the employment of their employees or cut the wages of its workers in view of the
lockdown.in addition to that, all the public as well as private establishments were urged to
extend their cooperation by not terminating the employment of their employees, particularly
the casual or the contractual workers and not to reduce their wages too. Furthermore, the
Ministry of Home Affairs, ordered the establishments to pay the wages fully and any
deduction or non-compliance with the said order would have consequences in the form of
legal ramifications. These orders were under the aegis of the Disaster Management Act, 2005.
The orders and directions issued by the government against the private employers are prima
facie unreasonable and arbitrary. And the retort to both of the above-mentioned aspects
attracts the vice of violation of the constitutional provisions. The government has issued
27
Poe vs Ullman, (1961) 367 US 497 (543)
28
Sanchit Bansal vs Joint Admission Board, AIR 2012 SC 214
As the counsels on behalf of the respondents have already proven that the orders issued
under DMA are ultra vires the DMA as the act does not provide for any power to decide upon
the payment of wages of the employees, the orders and the directions, therefore get
abandoned by the statute itself rendering such orders and directions “non- statutory”. For the
purpose of proving the same, we shall be dealing with the same in the below-mentioned
fashion.
When the government comes up with a certain guideline or direction or an order, the question
as to its nature is always an ancillary aspect attached to it. Whether such guidelines are
enforceable by the judiciary, whether they can be subjected to certain deviations by the
competent authority. In other words, whether such directions or the orders by the government
are statutory or merely advisory in nature i.e. discretion could be incorporated as an answer to
such executive restrictions. As far as the compliance with such orders and guidelines are
concerned, seeking enforcement of the same as a matter of right will not be acceptable as
long as such guidelines or directions or orders do not have a statutory backing under the
constitution or the same are in violation with the provisions of the constitution. As long as
this violation or the absence of existence in the provision of the constitution continues, such
compliance is totally in favour of the deviations, if at all required by the competing
authorities, as any such direction would not fall under the category of legislations mandated
by law. The Hon’ble Supreme Court of India, in a case, gave its judgement on the question as
to whether a certain instruction under the Mysore Public Work Department Code has a
statutory binding or not. The court held that in order to have a statutory binding on any
guideline/direction, its important to acknowledge if such directions or guidelines have been
issued by the executive authority under the conferment of any statute over the government or
by any provision contained under the constitution. In this particular case, the instructions
contained in the department code hasn’t been issued under the conferment of any statute and
nor has it been flown through the provisions of the constitution. Hence, the court held that,
any such instruction, a) cannot be enforced by the judicial intervention and b) since it has
become non-statutory, these are merely instructions that could be followed or abstained from
following. Taking into account the same, the court also held that, because of the above-
The supreme court in pertinence to the directions being issued has been observed to take a
slew of directions towards the ministries of central government. The advisories and the orders
cannot coerce the employers into payment of the full wages of its employees just to reduce
the burden on them. In a similar case where the petitioner was an association registered with
the registrar of the society under the societies registration act, 1860, comprised of
traders/workers and dealers who were into the business to importing plastic/PVC materials
via sea route from different countries and used to supply the same to the
manufactures/companies of packaged food, medicines and medical equipment. The petitioner
claims that such raw materials were intermediary to the manufacturing of PPE kits, sanitizers,
medicines and other materials needed for the survival against covid 19. However, the deals
from the party of manufacturers weren’t allowing them to lift the materials from the ports as
they wanted the petitioner to pay the penal charges for late receiving of such materials. The
petitioner submitted that such was not possible due to lock down. In the case as well,
advisories from the ministries were taken into account, the court held that Perusal of the said
advisories reveals that these are not mandatory or directory. Vide these advisories shipping
lines and Custodians of ICDs are advised to adopt a sympathetic and humanitarian
approach while levying the container detention charges/ground rent charges on import cargo
for the lockdown period. Thus, it is very clear from the above circulars that these are in the
form of advisories and are not directory in nature and do not mandate respondents not to
charge ground rent, penal charges/demurrage etc.30
In certain other cases too, the humanitarian and sympathetic approach has been taken into
account and the advisories and orders have been given the status of being Directive in nature
and hence not having a binding effect.31
ISSUE IV
29
Gj Fernandez v. State of Mysore & Ors, [AIR 1967 SC 1753]
30
Polytech Trade Foundation V. Union of India & Ors, C.M. No. 10546/2020 in W.P.(C) 3029/2020
31
Golden Importers V. Union of India, 2020 SCC OnLine Ker 2790
The reasonable classification that the employees association have retorted is completely null
as the differentiation done has absolutely no reasonable justification for the same as the
principle of reasonable classification under the ambit of article 14 does not say that same rule
32
Sooraj Narayan Srivastava V. State of UP, AIR 2003 All 259
33
Cf Dasaratha Vs state of AP, AIR 1992 SC 1852
34
Srinivasa Theatre vs State of TN, AIR 1992 SC 999
35
State of Bihar vs Bihar state ‘plus two’ lecturers association, AIR 2007 SC 1948
Secondly, the differentia which is the basis of the classification and the object of the act are
two distinct things and what is necessary is that there has to be a nexus between the two of
them. That is to say that while article 14 forbids class discrimination while by conferring
privileges or imposing liabilities upon persons arbitrarily selected out of a large number of
persons similarly situated in relation to the privileges sought to be conferred or the liabilities
proposed to be imposed, it does not forbid classification for the purpose of legislation,
provided such classification is not arbitrary in the sense above-mentioned. Which is exactly
the case here. As while doing the classification a reason has to be conferred upon in
pertinence to the Intelligible differentia and that should not be arbitrary in nature38.
Furthermore, in a case, it was pointed out that to claim protection of Article 14, it must be
shown that persons differently treated are similarly situated and discrimination is made with
an uneven hand39. Here too, the employers and the employees have been put under similar
situation, yet they are treated differently. The government is extremely considerate when it
comes to the employees however, stringent actions have been put over them.
Hence, there has to be a positive obligation on the part of the state, the syllogism of which
states that
36
Shri Ram Krishna Dalmia v. Shri Justice S.B. Tendolkar, AIR 1958 SC 538
37
In re The Special Courts Bill, (1979) 1 SCC 380
38
Air India v. Nargesh Meerza, (1981) 4 SCC 335
39
Katra Education Society v. State of Uttar Pradesh, AIR 1966 SC 1307
40
Excel Wear V. Union of India, AIR 1979 SC 25
41
Food corporation of India V. Bharatiya Khadya Nigam Karmachari Sangh, (2012) 2 SCC 307
42
State of Rajasthan V. Shanker Lal Parmar, AIR 2012 SC 1913
PRAYER
In the light of the issues raised, arguments advanced and the authorities
cited, may this Hon’ble Supreme Court be pleased:
TO HOLD
And/or
Pass any other order that it deems fit in the interest of justice, equity and good
conscience.
All of which is respectfully submitted.
And for this, the as in duty bound, shall humbly pray.
Sd/-
COUNSELS FOR THE RESPONDENTS