Existence Of Alternate Remedy Does Not Bar Exercise Of Writ Jurisdiction If Order Is Challenged For Want Of Jurisdiction

Case: Magadh Sugar & Energy Ltd. vs. State of Bihar

Coram: Justices DY Chandrachud, Vikram Nath and BV Nagarathna

Case no.: CA 5728 of 2021

Court Observation: “While a High Court would normally not exercise its writ jurisdiction under Article 226 of the Constitution if an effective and efficacious alternate remedy is available, the existence of an alternate remedy does not by itself bar the High Court from exercising its jurisdiction in certain contingencies.”

• the writ petition has been filed for the enforcement of a fundamental right protected by Part III of the Constitution;
• there has been a violation of the principles of natural justice;
• the order or proceedings are wholly without jurisdiction; or
• the vires of a legislation is challenged

“Thus, the plea strikes at the exercise of jurisdiction by the Government. In view of the law discussed above on the rule of alternate remedy”

The issues raised by the appellant are questions of law which require, upon a comprehensive reading of the Bihar Electricity Act, a determination of whether tax can be levied on the supply of electricity by a power generator (which also manufactures supplying electricity to a distributor; and whether the first respondent has the legislative competence to levy duty on the sale of electricity to an intermediary distributor in view of the decision of this Court in State of AP (supra). The question of whether the appellant is liable to file returns under Sections 6B(1) and 5A of the Act is directly related to the issue of whether the sale of electricity by the appellant to BSEB falls under the charging provisions of Section 3(1). The questions raised by the appellant can be adjudicated without delving into any factual dispute. Thus, the present matter is amenable to the writ jurisdiction of the High Court.

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