Supreme Court Dismisses Review Petitions in Rafale Procurement Case, Corrects Factual Error in Judgment. The Court held that the review petitions did not disclose any error apparent on the face of the record and that the scope of judicial review under Article 32 in procurement matters is limited to examining the decision-making process, pricing, and offsets.

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Case Note & Summary

The Supreme Court of India delivered a judgment on a review petition and miscellaneous applications arising from its earlier judgment dated 14.12.2018 concerning the procurement of 36 Rafale fighter jets. The Union of India filed an application seeking correction of two sentences in paragraph 25 of the judgment, claiming that the Court had misinterpreted a confidential note regarding the sharing of pricing details with the Comptroller and Auditor General (CAG) and the examination by the Public Accounts Committee (PAC). The Court accepted the application, noting that the confusion arose from the note referring partly to what had been done and partly to what was proposed. The Court replaced the erroneous sentences with the correct version from the note. The review petitions, including those filed by Yashwant Sinha and others, were dismissed as they failed to disclose any error apparent on the face of the record. The Court reiterated that review is not an appeal in disguise and that the scope of judicial review under Article 32 in matters of procurement is limited. The Court had earlier examined three aspects: decision-making process, pricing, and offsets, and found no grounds to interfere. The petitioners' prayer for registration of an FIR and investigation by the CBI was deemed covered by the earlier decision. The Court also noted that the application under Section 340 of the CrPC was partly addressed by the correction order. The judgment upheld the earlier decision and dismissed all pending applications.

Headnote

A) Review Jurisdiction - Error Apparent on Face of Record - Review petitions under Article 137 of the Constitution of India - The Court reiterated that review is not an appeal in disguise and is maintainable only if there is an error apparent on the face of the record. The petitioners failed to demonstrate any such error, and the review petitions were dismissed. (Paras 11, 24)

B) Judicial Review - Procurement Contracts - Scope of Article 32 - The Court held that the extent of permissible judicial review in matters of contract and procurement varies with the subject matter. In the context of a writ petition under Article 32, the Court limited its enquiry to the decision-making process, pricing, and offsets, and declined to conduct a roving and fishing inquiry. (Paras 12-13)

C) Correction of Judgment - Factual Error - The Court allowed the Union of India's application for correction of a factual error in paragraph 25 of the judgment regarding the status of the CAG report and PAC examination, replacing the earlier sentences with the correct version from the confidential note. (Paras 2-7)

D) Criminal Proceedings - Section 340 CrPC - The application under Section 340 of the Code of Criminal Procedure, 1973 for initiating criminal proceedings was partly dealt with in the correction order and did not warrant further discussion. (Para 11)

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Issue of Consideration

Whether the review petitions disclose an error apparent on the face of the record warranting review of the judgment dated 14.12.2018 in the Rafale fighter jet procurement matter.

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Final Decision

The Supreme Court allowed the Union of India's application for correction of the judgment, replacing the erroneous sentences in paragraph 25 with the correct version. The Court dismissed all review petitions and miscellaneous applications, including the application under Section 340 CrPC, finding no error apparent on the face of the record.

Law Points

  • Review jurisdiction
  • Error apparent on face of record
  • Judicial review of procurement contracts
  • Scope of Article 32
  • Decision making process
  • Pricing of defence contracts
  • Offsets
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Case Details

2019 LawText (SC) (11) 1

Review Petition (Crl.) No.46 of 2019 in Writ Petition (Crl.) No.298 of 2018

2019-11-14

Sanjay Kishan Kaul

Yashwant Sinha & Ors.

Central Bureau of Investigation Through its Director & Anr.

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Nature of Litigation

Review petitions and miscellaneous applications arising from a judgment on the procurement of 36 Rafale fighter jets.

Remedy Sought

Correction of alleged factual error in the judgment; review of the judgment; initiation of criminal proceedings under Section 340 CrPC; and other miscellaneous reliefs.

Filing Reason

The Union of India sought correction of two sentences in paragraph 25 of the judgment dated 14.12.2018, claiming misinterpretation of a confidential note. The review petitioners sought review of the judgment on grounds of error apparent on the face of the record.

Previous Decisions

The Supreme Court delivered a judgment on 14.12.2018 in Writ Petition (Crl.) No.298 of 2018 and connected matters, upholding the procurement process for 36 Rafale fighter jets.

Issues

Whether the Union of India's application for correction of the judgment should be allowed. Whether the review petitions disclose an error apparent on the face of the record warranting review. Whether criminal proceedings under Section 340 CrPC should be initiated.

Submissions/Arguments

The Union of India submitted that the Court misinterpreted a confidential note regarding the sharing of pricing details with the CAG and examination by the PAC, leading to a factual error in paragraph 25. The review petitioners argued that the Court failed to deal with the prayer for registration of an FIR and investigation by the CBI, and that the judgment was based on patently false documents. The petitioners also contended that the Court misconstrued the corporate structure of Reliance Industries and that certain aspects of the decision-making process were not properly considered.

Ratio Decidendi

Review is not an appeal in disguise and is maintainable only if there is an error apparent on the face of the record. The scope of judicial review under Article 32 in matters of procurement is limited to examining the decision-making process, pricing, and offsets, and the Court will not conduct a roving and fishing inquiry. The Court may correct factual errors in its judgment upon application.

Judgment Excerpts

The Court had asked vide order dated 31.10.2018 to be apprised of the details/cost as also any advantage, which may have accrued on that account, in the procurement of the 36 Rafale fighter jets. We are, thus, inclined to accept the prayer and the sentence in para 25... should be replaced by what we have set out hereinafter. We cannot lose sight of the fact that unless there is an error apparent on the face of the record, these review applications are not required to be entertained. It is not the function of this Court to determine the prices nor for that matter can such aspects be dealt with on mere suspicion of persons who decide to approach the Court.

Procedural History

The Supreme Court delivered a judgment on 14.12.2018 in Writ Petition (Crl.) No.298 of 2018 and connected matters. Subsequently, the Union of India filed an application for correction of the judgment, and review petitions were filed by Yashwant Sinha and others. The Court heard all matters together and delivered this judgment on 14.11.2019.

Acts & Sections

  • Constitution of India: Article 32, Article 137
  • Code of Criminal Procedure, 1973: Section 340
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