PROFESSIONAL ETHICS

U.P. Sales Tax Service

V/S
Taxation Bar Association
1996 AIR 98, 1995 SCC (5) 716
Background of the case
Bench - Ramaswamy, K. and Hansaria B.L. (J)

Date of
01/09/1995
Judgment -

Petitioner - U.P. SALES TAX SERVICE ASSOCIATION

Respondent - TAXATION BAR ASSOCIATION, AGRA & ORS.

Advocates for
Dipankar Gupta And Uma Nath Singh
Appellant -

Advocates for
S.K. Bagga, D. V. Sahgal, S. Bagga, Seeraj Bagga and Tanuj Bagga
Respondent -
Facts of the case -

In September 1993, the Taxation lawyers of Agra went on a strike demanding transfer of deputy
commissioner, sales Tax, Agra on charge of corruption.

The strike failed. The lawyers then filed a writ petition in the Allahabad High Court on the same issue.

The high court passed as interim order restraining the official from discharging his functions as deputy
commissioner under S. G. of U.P. Sales Tax Act and directing the Government to transfer the cases
pending before him to some other court.
 Timeline
Various important dates.
2nd Sep 1993
Ramesh Chander Gupta, an advocate and
President of the Taxation Bar Association in
Agra, along with others, accused
respondent No.3, Satti Din (the appellate
authority), of demanding illegal gratification
and creating dissatisfaction among
advocates and litigants.
2nd Sep 1993
Allegations and counter-allegations led to
violence between members of the
appellant-Association, government office
staff, and advocates.
4th-6th September 1993
An emergency meeting was held among associations in
Agra and Firozabad, leading to a resolution to boycott
courts and observe a strike. Advocates approached the
Governor and Advocate General, seeking action against
respondent No.3.
 Timeline
Various important dates.
6th Sep 1993
A joint meeting of all associations passed a
resolution demanding an investigation into
corruption allegations against respondent
No.3 and his transfer.
14th Oct 1993 1994
The Allahabad High Court issued an interim The matter was further considered by the Supreme
order restraining respondent No.3 from Court to determine the legality of the High Court's orders
functioning as Deputy Commissioner and the role of advocates in strikes and boycotts.
(Appeals) Sales Tax, Agra. The court
directed the Commissioner, Sales Tax U.P.,
to transfer pending cases to another court.
Issues
Prohibition

The crucial question is whether the High Court could issue a writ or
direction prohibiting a statutory authority, from discharging the quasi-
judicial functions; direction to the State Government to withdraw all powers
and transferring the pending casesto any other authority?

Strike

Whether advocates would be justified to go on strike as a

pressure group in that behalf?
Judgement
Aspects
Jurisdiction of the High
Court
The primary issue revolves around
whether the High Court had the
jurisdiction and authority to issue the
orders restraining the appellate authority
from exercising his statutory functions and
transferring the cases to another
jurisdiction. This raises questions about
the scope of the High Court's power under
Article 226 of the Constitution.
Legality of Orders
The legality of the orders issued by the
High Court comes into question. Were the
orders restraining the appellate authority
and directing the state government to
withdraw powers and transfer cases
consistent with the law? This involves an
analysis of the relevant legal provisions
and precedents.
Advocates' Right to Strike
The case also raises the issue of whether
advocates have the right to go on strike
as a pressure group to address their
grievances. The legality and
appropriateness of using strikes as a
means to influence the functioning of the
judiciary come into play.
Back to Agenda
Aspects

Legality of Orders Having given our anxious and careful

consideration, we are of the considered view that
The legality of the orders issued by the the High Court does not have the aforesaid power.
High Court comes into question. Were the Exercise of such power generates its rippling
orders restraining the appellate authority
and directing the state government to
effect on the subordinate judiciary and statuary
withdraw powers and transfer cases functionaries.
consistent with the law? This involves an
analysis of the relevant legal provisions
and precedents.

Back to Agenda
Aspects

Advocates' Right to Strike On slightest pretext by the aggrieved parties or

displeased members of the bar, by their concerted
The case also raises the issue of whether action they would browbeat the judicial officers or
advocates have the right to go on strike authorities, who would always be deterred from
as a pressure group to address their discharging their duties according to law without
grievances. The legality and
appropriateness of using strikes as a
fear or favour or ill- will.
means to influence the functioning of the

judiciary come into play. Common cause v. Union of India

Back to Agenda
Aspects

Jurisdiction of the High

"Though this court was considering the scope and
Court
nature of the jurisdiction of the High Court under
The primary issue revolves around
whether the High Court had the
Article 226 there is no doubt now as regards the
jurisdiction and authority to issue the scope of the jurisdiction of the High Courts.
orders restraining the appellate authority however wide its power be, the question is
from exercising his statutory functions and whether a writ or order of prohibition could be
transferring the cases to another
issued prohibiting a statutory authority from
jurisdiction. This raises questions about
the scope of the High Court's power under discharging its statutory functions or transferring
Article 226 of the Constitution. those functions to another jurisdiction."

Back to Agenda
 Ratio of the case -

The ratio of this case states that the

High Court has no power, therefore,
to prohibit the statutory authority
from discharging its statutory
functions or transferring those
function to another jurisdiction.