The Hindu : SC waives damages imposed on Sheila Kaul

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Wednesday, Feb 20, 2002

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SC waives damages imposed on Sheila Kaul

By Our Legal Correspondent

NEW DELHI FEB. 19. The Supreme Court today quashed its earlier order imposing exemplary damages of Rs. 60 lakhs on the former Urban Development Minister, Sheila Kaul, for misuse of her office in the discretionary allotment of shops and stalls.

The court, however, directed that criminal prosecution on the basis of the CBI investigation launched against her pursuant to court directions would continue.

A three-Judge Bench comprising G.B. Pattanaik, R.P. Sethi and B.P. Singh passed the order while disposing of a review petition filed by Mrs. Kaul.

The Bench also referred to a Constitution Bench for fresh consideration the apex court's ruling in an earlier case filed by the former Petroleum Minister, Satish Sharma, quashing exemplary damages of Rs. 50 lakhs imposed on him as also the criminal prosecution launched against him pursuant to an earlier court direction.

The Bench observed, ``we, prima facie, do not agree with several conclusions on law, but since the earlier judgment has been rendered by a three-judge bench (in Satish Sharma's case), we cannot go into the question except referring the matter to the Constitution Bench''.

It further observed, ``but, having regard to the peculiar facts and circumstances of Mrs. Kaul, who is stated to be old and ailing and the gross hardship of the case, we think it appropriate to quash the damages part of the impugned judgment which was awarded against her''.

The Bench, while quashing the damages imposed on Mrs. Kaul, observed ``that the direction to launch criminal prosecution on the basis of the CBI investigation is not being altered in any manner and if any criminal proceeding has already been instituted, that must take its own course on the materials produced''.

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