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M/s. Advanta India Ltd. v. B.N. Shivanna

Civil Appeal · 2018 INSC 183Decided 21 Feb 2018
Civil Appeal No. 11113 of 2016
Justice A.K. Sikri · Justice Ashok Bhushan

Background

The respondent, an advocate who had earlier worked as the appellant seed company's legal counsel, was alleged to have fabricated a story about fictitious criminal cases and warrants against the company's executives, inducing the company to pay large sums for hundreds of fabricated criminal petitions that never actually needed filing. The Karnataka State Bar Council's Disciplinary Committee found him guilty of professional misconduct and debarred him for life, but on statutory appeal the Bar Council of India (BCI) reduced this to an 18-month debarment with a fine. The advocate then filed a review petition before the BCI itself, which unusually allowed the review and set aside its own earlier order, directing fresh consideration, and it was this review order that the company challenged before the Supreme Court.

Decision Breakdown

The Supreme Court held that the BCI's Disciplinary Committee had shown "undue indulgence" to the respondent by reviewing and overturning its own earlier finding on the very same material and arguments that had already been considered, effectively letting the wrongdoer benefit from his own misconduct, invoking the legal maxim that no one can take advantage of his own wrong. The Court noted serious aggravating facts, including that the respondent had been convicted by a trial court and separately held guilty of contempt and sentenced to imprisonment by the Karnataka High Court for producing a fabricated court order, though it declined to comment further since related proceedings were still pending elsewhere. The Court set aside the BCI's review order, reviving the BCI's original 2011 order (18-month debarment and fine), while clarifying that this reduced punishment would itself remain subject to the outcome of a separate, still-pending appeal by the company contesting the leniency of that punishment.

Lesson Learnt

A disciplinary body cannot use its review power to re-examine the same facts and arguments it has already decided simply to give a wrongdoer a second chance, doing so lets the wrongdoer profit from manipulation of the process, which the law does not permit.

Official source (sci.gov.in)View Judgment (PDF)

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