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Supreme Court of India

SAMARTH SHIKSHA SAMITI & ANR.versusBIR BAHADUR SINGH RATHOUR & ORS.

Citation
2009 INSC 96
Decided
3 February 2009
Disposal
Appeal(s) allowed

Holding

The respondent is an employee of Samarth Shiksha Samiti, and his service continues to be governed by the Samiti’s own rules, not by the Delhi School Education Act, 1973 and its Rules.

Summary

The respondent, Bir Bahadur Singh Rathour, was appointed as a Lower Division Clerk by Samarth Shiksha Samiti, a society registered under the Societies Registration Act, and posted in one of its schools. He was later promoted to Upper Division Clerk, transferred to the Samiti’s central office, and subsequently suspended. He challenged the transfer and suspension, contending that his service was governed by the Delhi School Education Act, 1973 and its Rules. The Delhi High Court’s Division Bench held that, for practical purposes, he was an employee of the school and that the Act applied. On appeal, the Supreme Court examined three questions: (i) whether he was an employee of the Samiti or the school, (ii) whether his service was governed by the Act and Rules or by the Samiti’s own rules, and (iii) whether his transfer altered his conditions of service. The Court found that his appointment, salary, promotion and transfer were all effected by the Samiti, and the conditions of service in the Samiti’s office memorandum made clear that he was an employee of the Samiti. The Court held that only the Samiti’s rules governed his service, despite the adoption of certain provisions of the Delhi School Education Rules. Consequently, the High Court’s decision was set aside, the writ petition dismissed, and the appeal allowed.

Issues considered

  • Whether the respondent was an employee of Samarth Shiksha Samiti or of the school where he was posted.
  • Whether the respondent's conditions of service were governed by the Delhi School Education Act, 1973 and its Rules, or by the rules of the Samiti.
  • Whether the transfer of the respondent from the school to the Samiti’s office altered his conditions of service.

Legislation cited

Subjects

service lawconditions of serviceemployee statusprivate schoolDelhi School Education Actdisciplinary actionsuspensiontransferSocieties Registration Act

Judgment

                               [2009] 1 S.C.R. 735


                       SAMARTH SHIKSHA SAMIT! & ANR.                    A
                                                                  •
                                        v.
                    BIR BAHAOUR SINGH RATHOUR & ORS.
                         (Civil Appeal No. 598 of 2009)
                               FEBRUARY 3. 2009
                                                                        B
                 [ALTAMAS KABIR AND CYRLAC JOSEPH, JJ.]

      -+
                Service Law:

                 Conditions of service - An LDC employed by a Society c
            (Samiti) and posted in one of its schools - Promoted as UDC
            by the Samiti - Salary paid by Samiti - Employee placed
1           under suspension by Samiti - Suspension challenged,
•           pleading that services of employee were governed by Delhi
            School Education Act, 1973 and Rules framed thereunder- D
      ~·

.,          Held: Services of the employee were governed and would
"'          continue to be governed by rules of the Samiti and not by
            Delhi School Education Act/Rules though provisions of the
            Rules may have been adopted by Samiti for its employees -
            Delhi School Education Act, 1973 - Delhi Education Rules,
                                                                        E
            1973.

                 Respondent no.1 was appointed as a Lower Division
            Clerk by Samarth Shiksha Samiti, appellant no.1, and
      Ji.   posted in one of its schools, namely, appellant no.2 Later,
            he was promoted as Upper Division Clerk. On 16.7.2005 F
 ,,         he was transferred from the School to the office of the
            Samiti. On 21.9.2005, owing to an incident, an order of
            suspension was issued against him by appellant no.1.
            During the pendency of the disciplinary proceedings
            against respondent no.1, he filed a writ petition before the G
            High Court challenging his transfer order dated 16.7.2005,
            the suspension order dated 21.9.2005, the charge.- Sheet
            dated 29.9.2005 and the letter dated 26.10.2005 initiating.
            departmental inquiry against him. The writ petition was
                                        735                              H
                                                                          l•w•



    736         SUPREME COURT REPORTS          [2009] 1 S.C.R.


A dismissed by the single Judge. But the appeal of
  respondent no.1 was allowed by the Division Bench of
  the High Court holding that his services were governed
  by the Delhi School Education Act, 1973 and the Rules
  framed thereunder and not by the rules and regulations
                                                                          r-
B of the appellant Samiti.
                                                                          t'~~


         In the appeal filed by the Samiti, the questions for
    considerations before the Court were: (i) whether             +
    respondent no.1 was the employee of appellant no.1
    Samiti, or the appellant no.2 School: (ii) whether services
c   of respondent no.1 could be said to be governed by the                •
    Delhi School Euducation Act, 1973 and the Rules framed
    thereunder: and (iii) whether the conditions of service of
    respondent no.1 stood altered on his being transferred
    from appellant no.2 School to office of appellant no.1.
D                                                                 '+- .   ,_
          Allowing the appeal, the Court

      HELD: 1.1 Respondent No.1 is an employee of the
  Samiti whose services were placed at the disposal of the
  School, where he was functioning as a Lower Division
E
  Clerk and thereafter as Upper Division Clerk. There is no
  dispute that his appointment was made and salary was
  paid by the Samiti. There is also no dispute that he was
  promoted to the post of Upper Division Clerk by the             }..
  Samiti and not by the School. [Para 19] [743-G-H]
F
      1.2. Though respondent No.1 was appointed by the                    .....
  Samiti as an L.D.C. in the School in question following
  the procedure laid down in r.96 of the Delhi School
  Education Rules, 1973, his appointment was made by the
G Samiti on the conditions set out in the Office
  Memorandum which leave no room for doubt that he was
  an employee of the Samiti and not of the School.
  Condition No.4 in the Office Memorandum, which allows
  the Samiti to transfer the respondent from one school to
H
            SAMARTH SHIKSHA SAMITI & ANR. v. BIR BAHADUR           737
                      SINGH RATHOUR & ORS.

          another run by the Samiti or fo the Samiti itself, read with   A
          Condition No.3, indicates that the service of respondent
          No.1 was under the Samiti and under its control. [Para 21]
          [7 45-B-C-E-F]

                2.1. Condition No.11 of the Office Memorandum only       B
           indicates that during the period of service of respondent
           No.1 he would have to obey all the rules as mentioned
·~·
           in Chapter 9 of the Delhi School Education Rules.
          Chapter 9 relates to the Code of conduct for teachers and
           other employees and was adopted by the Samiti to
           govern the code of conduct of its employees as well.
                                                                         c
           Except for indicating that respondent No.1 would have
          to obey the rules in question, Condition No.11 does not
           provide that the Delhi School Eduction Act/Rules would
_.,.
_          directly govern his services, Furthermore, condition
                                                                         D
           No.15 gives the Samiti the right to remove respondent
          No.1 from service according to law. Respondent No.1
          continued to be governed by the rules of the Samiti
          whether his services were placed at the disposal of the
          school or retained by the Samiti in its central office. The
          judgment and order of the Division Bench of the High           E
          Court is set aside. [Para 23, 24 and 26] [746-C-E; G-H;
          747-B]
    ;..        CIVIL APPELLATE JURISDICTION: Civil Appeal No. 598
          of 2009.
                                                                         F
              From the Judgment and Order dated 11.9.2007 of the High
          Court of Delhi at New Delhi in LP.A. No. 52 of 2007.
              Puneet Taneja and Balraj Dewan for the Appellants.
               B.Dutta, A.S.G., Indra Sawhney, Gargi Khanna, Anil        G
          Katiyar, D.S. Mahra, Sarvesh Bisaria and Anil Nag for the
    ~
          Respondents.
              The Judgment of the Court was delivered by

              AL TAMAS KABIR, J. 1. Leave granted.                       H
    738          SUPREME COURT REPORTS                [2009] 1 S.C.R.


A      2. The Appellant No.1, Samarth Shiksha Samiti, is a                ~

  Society registered under the Societies Registration Act, 1860
  and was established with the object of catering to the                        ~'

  educational needs of society. In fulfillment of its object, the
  Appellant-Society established and began running several
B recognized schools all over Delhi in the name of Bal Mandirs.
  One such school is Mahashya Chunni Lal Saraswati Bal Mandir
  situated at Hari Nagar, Delhi, the Appellant No.2 herein.               ~


        3. On 9th May, 1992, the Society (hereinafter referred to
c as  'the Samiti') appointed the Respondent No.1, Shri Bir
  Bahadur Singh Rathour, as a Lower Division Clerk and posted
  him in the Appellant No.2 School. From the appointment letter
  issued to the Respondent No.2 by way of an Office
  Memorandum dated 9th May, 1992, it will be apparent that he
  was appointed by the Samiti and was an employee of the
D Samiti. Condition No.4 of the terms and conditions of his               +
  appointment also indicates that during his service period, the
  respondent could be transferred to the Samiti or to any of the
  Bal Mandirs managed by the Samiti. Condition No.6 provides
  that during his period of service, the Respondent No.1 would
E have to abide by the discipline of the Samiti. Condition No.8
  enjoins the Respondent No.1, while reposing trust in the aims
  and objects of the Samiti, to participate in all activities organized
  by the Samiti with devotion. Condition No.11 prescribes that
                                                                          ),.
  the Respondent No.1 would have to obey all the rules as
F mentioned in Chapter-9 of the Delhi School Education Rules,
  1973. However, what is of consequence is Condition No.15
  which provides as follows :-

          "15. In case he failed to comply with the aforesaid
               conditions and the rules as mentioned in 123 of
G
               Delhi Education Act the Samiti will have full right to
               remove him from service according to the law."             'f-


      4. As will be evident from the aforesaid conditions, the
  Respondent No.1 was an employee, not of the School, but of
H the Samiti, though he was posted in the School as a Lower
                   SAMARTH SHIKSHA SAMIT! & ANR. v. BIR BAHADUR               739
                     SINGH RATHOUR & ORS. [AL TAMAS KABIR, J.)

       ..,..._   Division Clerk.                                                     A

                      5. On 9th August, 1999, the Respondent No.1 was
                 promoted as Upper Division Clerk and was posted at the same
                 School at Hari Nagar. Such promotion being ad-hoc in nature,
                 the same was regularized on 18th September, 2000 with effect
                                                                                     B
                 from 1st August, 2000.

                      6. It appears that in September, 2003, interviews were held
       ··+-·     for the post of Superintendent Grade II and a list of selected
•:t.             candidates was drawn up by the Selection Committee and out
                 of the said selected candidates, only the name of one Shri Arun     c
                 Kumar was recommended for the said post. According to the
                 Respondent No.1, he too submitted a representation for
                 promotion to the said post and, although, his case was
                 recommended by the Manager of the School to the General
                 Secretary of the Appellant No.1-Samiti, not only was he not         D
       __....
                 granted such promotion, but by an order dated 16th July, 2005,
                 he was transferred from the School to the office of the Appellant
                 No.1-Samiti. Subsequently, on 9th September, 2005, in an
                 incident involving the Respondent No.1 and one Shri Shiv Nath
                 Pandey, an order of suspension was issued against the               E
                 Respondent No.1 by the Appellant No.1 on 21st September,
                 2005. While the disciplinary inquiry was pending, the
                 Respondent No.1 filed a wri petition challenging the transfer
                 order dated 16th July, 2005; the suspension order dated 21st
                 September, 2005; the charge-sheet dated 29th September,
                                                                                     F
                 2005 and the letter dated 26th October, 2005, initiating the
                 departmental enquiry against him.

                     7. The writ petition filed by the Respondent No.1 was
                 dismissed by the learned Single Judge of the High Court on
                 3rd November, 2006. On an appeal preferred by the                   G
                 Respondent No.1, notice was issued to the appellants in the
          ~      month of January, 2007. In the appeal, it was contended on
                 behalf of Respondent No.1 that his services were governed not
 --(             by the rules and regulations of the Samiti but by the Delhi
                 School Education Act, 1973, and the Rules framed thereunder.        H
    740            SUPREME COURT REPORTS              [2009] 1 S.C.R.


A       8. Accepting the submissions made on behalf of the
  Respondent No.1, the Division Bench of the High Court
                                                                          _.....
  reversed the judgment of the learned Single Judge dismissing
  the writ petition and held that since the said respondent was
  working in the School as a Lower Division Clerk on permanent
B appointment     with effect from 1st April, 1992 and was given
  promotion in the said School, which was also regularized, for
  all practical intents and purposes he must be considered as
  an employee in the school and, therefore, the provisions of the         ...
  Delhi School Education Act and the Rules framed thereunder
c would    apply to his services. The Division Bench also directed
  that if the Samiti and the School wished to take any disciplinary
                                                                                   ..
  action against the Respondent No.1, they would have to follow
  the procedure laid down in the aforesaid Act and the Rules.

      9. This appeal has been filed by the Samiti and the School
D against the said decision of the High Court in the Letters Patent
                                                                          i- .
  Appeal filed by the Respondent No.1 herein.

       10. From the facts as disclosed herein above, it would be
  more or less clear that primarily three questions arise for
E decision in this appeal, namely,
          (i)     Is the Respondent No.1 an employee of the Samiti
                  or of the School?

          (ii)    If the Respondent No.1 is found to be an employee
F                 of the Samiti, could it be said that the Respondent's
                  service would be governed by the Delhi School
                  Education Act, 1973 and the Rules framed
                  thereunder or under the rules of the Samiti?

          (iii)   If it is held that the provisions of the Delhi School
G
                  Education Act and the Rules framed thereunder
                  would govern the services of the Respondent No.1,
                                                                          'f.
                  would such a condition of service stand altered on
                  the Respondent No.1 being transferred to the office
                  of the Samiti?
H
  SAMARTH SHIKSHA SAMIT! & ANR. v. BIR BAHADUR               741
    SINGH RATHOUR & ORS. [AL TAMAS KABIR, J.]

      11. Referring to the Office Order dated 16th July, 2005,      A
whereby the Respondent No.1 was appointed, Mr. Puneet
Taneja, learned Advocate appearing for the Appellant-Samiti,
emphasized the fact that the Respondent No.1 had been
appointed by the Samiti and was, therefore, an employee of
the Samiti and not of the School. He pointed out the different      B
conditions in the said Office Order, which indicated that the
service of the Respondent No.1 was transferable between the
different schools managed and run by the Samiti and also to
the Samiti itself, as was done in the instant case. He also
referred to the various other documents, including the              c
Experience Certificate and the Office Order dated 9th August,
1999, whereby the Respondent No.1 had been promoted to the
post of Upper Division Clerk by the Samiti and his subsequent
confirmation therein and the fact that his salary was being paid
by the Samiti.                                                      D

     12. Mr. Taneja denied the claim of the Respondent No.1
that inspite of being an employee of the Samiti and being
governed by the rules and regulations of the Samiti, his services
were governed by the provisions of the Delhi School Education
Act, 1973 and the Rules framed thereunder. Mr. Taneja made          E
special reference to the letter dated 3rd October, 2005
addressed by the Respondent No.1 to the General Secretary
of the Samiti acknowledging the fad that his services were
under the control and disposal of the Samiti.
                                                                    F
     13. Mr. Sarvesh Bisaria, learned Advocate appearing for
the Respondent No.1, reiterated the stand taken on behalf of
the said respondent before the High Court that even though the
said respondent had been appointed by the Samiti, once his
services were placed at the disposal of the School in question,     G
his services came to be governed by the provisions of the Delhi
School Education Act and the Rules framed thereundeL Mr.
Bisaria referred to and relied on Condition No.11 of the
Appointment Order, which provides that during the period of his
service with the Samiti, the Respondent No.1 would have to          H
    742           SUPREME COURT REPORTS               [2009] 1 S.C.R.


A obey all the rules as mentioned in Chapter 9 of the Delhi School
  Education Rules, 1973. He also referred to Condition No.15
  extracted hereinabove, which stipulates that in case the
  Respondent No.1 failed to comply with the various conditions
  and the rules as mentioned in Rule 123 of the Delhi School
B Education Rules, the Samiti would have full right to remove him
  from service according to the law.

         14. Mr. Bisaria urged that not having taken recourse to the
  provisions of the Delhi School Education Rules, the Samiti had
  erroneously issued the order of transfer dated 16th July, 2005,
C whereby the Respondent No.1 had been transferred from the
  school to the office of the Samiti. Mr. Bisaria submitted that the
  order of suspension passed by the Samiti on 21st September,
  2005 and the subsequent order dated 29th September, 2005,
  initiating disciplinary proceedings against the Respondent No.1,
D were liable to be set aside.

       15. Mr. B. Dutta, learned Additional Solicitor General
  appearing for the Director of Education, Government of NCT
  of Delhi, supported the stand taken on behalf of the Respondent
E No.1 to the effect that the Samiti could not have proceeded
  against the Respondent No.1 under its own rules while initiating
  disciplinary proceedings, but should have taken recourse to the
  provisions of the Delhi School Education Act and the Rules
  framed thereunder. In this regard, the learned Additional
F Solicitor General referred to Rule 50 of the 1973 Rules and in
  particular, Clauses (i) and (vi) thereof which read as follows :-

                "50. Conditions for recognition.-No private school
          shall be recognized, or continue to be recognized, by the
          appropriate authority unless the school fulfils the following
G         conditions, namely:-

                 (i) the school is run by a society registered under the
          Societies Registration Act, 1860 (21 of 1860), or a public
          trust constituted under any law for the time being in force
H         and is managed in accordance with a scheme of
         SAMARTH SHIKSHA SAMITI & ANR. v. BIR BAHADUR               743
           SINGH RATHOUR & ORS. [Al TAMAS KABIR, J.]

            management made under these rules;                             A
-...
                   (ii) ·········
                   (iii) .........

                   (iv) .........                                          B

                   (v) ·········
 .-~
                   (vi) the managing committee

            observes the provisions of the Act and the rules made          c
            thereunder;"

             16. The learned Additional Solicitor General submitted that
       not having followed the said procedure, the Samiti had acted
       illegally in proceeding against the Respondent No.1 under the
       rules and regulations of the Samiti on the ground that having       D
-+-
       appointed him the Samiti had control over his services.

            17. The learned Additional Solicitor General submitted that
       having regard to the above, no interference was called for with
       the decision of the High Court in L.P.A.No.52/2007.                 E

            18. It is in the context of the aforesaid submissions made
       on behalf of the respective parties that we will have to consider
       the questions set out hereinbefore in paragraph 8.
 ~
            19. Regarding the first question, as to whether the            F
       Respondent No.1 is an employee of the Samiti or of the School,
       there can be no doubt that the Respondent No.1 is an
       employee of the Samiti whose services were placed at the
       disposal of the School, where he was functioning as a Lower
       Division Clerk and thereafter as Upper Division Clerk. There        G
       is no dispute that his appointment was made by the Samiti and
 .lr   that his salary is also paid by the Samiti. There is also no
 '
       dispute that he was promoted to the post of Upper Division
       Clerk by the Samiti and not by the School.
                                                                           H
    744          SUPREME COURT REPORTS             [2009] 1 S.C.R.


A        20. At this juncture, it may be fruitful to consider the
  procedure adopted for appointment of the Respondent No.1 to
  the post of Lower Division Clerk in the School. The Office
  Memorandum dated 9th May, 1992 by which the Respondent
  No.1 was appointed, indicates at the outset that pursuant to a
B decision taken by the Selection Committee, the respondent
  was appointed as Lower Division Clerk on Government pay
  scale and admissible usual allowances payable to Bal Mandirs,
  on a regular basis in the School in question. The said
  appointment was to take place with effect from 1st April, 1992,
C but he would remain posted in the central office of the Samiti
  till further orders of the Samiti. In other words, though the
  Respondent No.1 was appointed by the Samiti as a L.D.C. in
  the School in question with effect from 1st April, 1992, he was
  to remain posted in the central office of the Samiti till further
  orders were passed by the Samiti. Since a reference has been
0 made to the Selection Committee in the Office Memorandum,
  it will be necessary to consider the effect of Rule 96 vis- ·a-vis
  the Respondent No.1's appointment by the Samiti.

        21. Rule 96 of the 1973 Rules falls under Chapter VIII of
E the said Rules, which deals with recruitment and terms and
  conditions of service of employees of the private schools other
  that unaided minority schools. Rule 96(2) provides that
  recruitment of employees in each recognized private school
  shall be made on the recommendations of the Selection
F Committee, which, in the case of appointment of any employee
  other than the Head of the School or a teacher other than the
  Head of the School, not being an employee belonging to Group
  · D', was to consist of :

          (i) the Chairman of the managing committee or a member
G         of the managing committee, to be nominated by the
          Chairman;

          (ii) head of the school;

H         (iii) a nominee of the Director;
                 SAMARTH SHIKSHA SAMITI & ANR. v. BIR BAHADUR               745
                   SINGH RATHOUR & ORS. [AL TAMAS KABIR, J.)
                   (iv) in the case an aided school, two officers having          A
        ~
                   experience of the administration of the school, to be
 ..                nominated by the Director.
Ill
 .._
                      In the instant case, the procedure under Rule 96 (2)
                appears to have been duly followed and the appointment of the B
                Respondent No.1 was made by the Samiti on the conditions
               set out in the Office Memorandum which leave no room for
         -y
               doubt that the Respondent No.1 was an employee of the Samiti
               and not of the School, though it has been held otherwise by the
               Division Bench of the High Court. Of course, the High Court has
               couched its observations by using the expression "for all
                                                                                  c
               practical intents and purposes", but that, in our view, would not
               make him an employee of the school. Furthermore, Condition
               No.3 of the conditions of service provides in clear and
               unambiguous terms that the Respondent No.1 could be
               relieved from his services in the initial probation period pr D
       ---+    extended period of probation after one month's notice or one
               month's pay. The said condition also provides that after his
              services were made permanent, if the Samiti wanted to relieve
               him from his services, he would be given three months' prior
              notice or be given three months' salary in lieu thereof. Condition E
              No.4, which allows the Samiti to transfer the respondent from
              one Bal Mandir to another run by the Samiti or to the Samiti
              itself, read with Condition No.3, indicates that the service of the
              Respondent No.1 was under the Samiti and under its control.
              Conditions 11 and 15, on which a good deal of reliance has F
              been placed on behalf of the Respondent No.1, read as follows
 '
 ~

                         "11. During the period of service he will have to obey
                  all the rules as mentioned in Chapter-9 of Delhi Education
                  Act.
                                                                                  G
                        xxx                    xxx               xxxx
        )i'

                  15. In case he failed to comply with the aforesaid conditions
                  and the rules as mentioned 123 of Delhi Education Act,
                  the Samiti will have full right to remove him from service      H
    746          SUPREME COURT REPORTS           (2009] 1 S.C.R.


A         according to law. "
                                                                     ....
                                              (Emphasis added)

      22. This brings us to the next question as to whether
  despite being an employee of the Samiti, the Respondent
B No.1 's services would be governed by the Delhi School
  Education Act and the Rules framed thereunder or under the
  Rules of the Samiti.
                                                                      -+
        23. Condition No.11, which has been reproduced
c hereinabove, only indicates that during his period of service,
  the Respondent No.1 would have to obey all the rules as
  mentioned in Chapter 9 of the Delhi School Education Rules.
  The said provision supports the stand taken on behalf of the
  Samiti that Chapter 9 of the said Rules relating to the Code of
D conduct for teachers and other employees was adopted by the
  Samiti to govern the code of conduct of its employees as well.       1-·
  Except for indicating that the Respondent No.1 would have to
  obey the rules in question, Condition No.11 does not provide
  that the Act and Rules would directly govern the services of the
  said respondent. Furthermore, condition No.15 gives the Samiti
E
  the right to remove the Respondent No.1 from service
  according to law.

       24. In answer to the second question, it must, therefore,
  be held that the services of the Respondent No.1 would                ,I.
F continue to be governed by the rules of the Samiti and not by
  the Delhi School Education Act, 1973 and the Rules framed
  thereunder, though the provisions of the rules may have been
  adopted by the Samiti for its employees.

G       25. Consequently, in answer to the third question posed
    in paragraph 8 hereinbefore, it must be held that the
    Respondent No.1 continued to be governed by the rules of the        Ji.
    Samiti whether his services were placed at the disposal of the
    school or retained by the Samiti in its central office.
H
         SAMARTH SHIKSHA SAMITI & ANR. v. BIR BAHADUR                747
           SINGH RATHOUR & ORS. [Al TAMAS KABIR, J.]
- -,+         26. In our view, the reasoning of the Division Bench of the   A
        High Court was erroneous as it proceeded on the premise that
        for all practical intents and purposes the Respondent No.1 was
        an employee of the school and that the provisions of the Delhi
        School Education Act, 1973 would, therefore, apply to him. The
        judgment and order of the Division Bench cannot, therefore, be      B
        sustained and is set aside and the judgment of the learned
        Single Judge is restored.

              27. The appeal is, therefore, allowed and the writ petition
        filed by the Respondent No.1 is dismissed. There will, however,     C
        be no order as to costs.

        R.P.                                           Appeal allowed.



·~-


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