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Friday, May 10

SC observation on whether the Court can grant reliefs merely placing reliance on the CAG’s report.


Arun Kumar Agrawal vs. Union of India & Others, Writ Petition (Civil) No. 69 of 2012, Decided on May 9, 2013


The Petitioner relied his case on CAG report. The Hon’ble Supreme Court in the above case observed as under:


“The question that is germane for consideration in this case is whether this Court can grant reliefs merely placing reliance on the CAG’s report. The CAG’s report is always subject to parliamentary debates and it is possible that PAC can accept the ministry’s objection to the CAG report or reject the report of the CAG. The CAG, indisputably is an independent constitutional functionary, however, it is for the Parliament to decide whether after receiving the report i.e. PAC to make its comments on the CAG’s report”. [Para 55]

We may, however, point out that since the report is from a constitutional functionary, it commands respect and cannot be brushed aside as such, but it is equally important to examine the comments what respective ministries have to offer on the CAG’s report. The ministry can always point out, if there is any mistake in the CAG’s report or the CAG has inappropriately appreciated the various issues. For instance, we cannot as such accept the CAG report in the instance case”. [Para 56]

On the facts of the case the Court held:


Article 2.6 of PSC permits extension of the exploration period for three years from the end of the seven year period prescribed in Article 2.2. The period extended in pursuance to Article 2.6 expired on 14.5.2005. The CAG, it is seen, has assumed that any exploration carried out beyond the period was beyond the provision of PSC. Article 2.6 specifically contemplates extension of the exploration phase pursuant to the terms of the PSC. The last part of Article 2.6 to Article 2.9, however, permits further extension of the exploration period for a period of 30 months, therefore, it is factually and legally incorrect to suggest that any exploration carried out beyond 14.5.2005 was beyond the provision of PSC. CAG views on that aspect cannot be accepted”. [Para 57]

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