Locus standi – Explained with Case Law

By | February 11, 2017
(Last Updated On: February 11, 2017)

Locus standi

Meaning of Locus standi

The right or capacity to bring an action or to appear in a court.  The right to have one’s case heard.

Case Laws on Locus standi

 

 

1. Karnataka High Court’s decision in the case of Devyani International Ltd. v. Union of India [2011] 32 STT 404

In this case the challenge to service tax was made by the tenant (the lessee) and not by the service provider, i.e., landlord. He challenged imposition of service tax on renting. The Court dismissed the writ petition saying that the petitioner had no locus standi to file the petition. According to the Court, in so far as the question of imposition of service tax on renting is concerned, at the first instance, the tenant is not a service provider. Secondly, the payment of service tax, even if it is held to be valid on renting, there is privity of contract between the landlord and the tenant. In the circumstances, the petitioner, being only a tenant in occupation of the premises, which was let out by the landlord, subject to the conditions in the contract, whether the landlord collects the rent and pays to the revenue or the landlord pays out of the rent amount without passing the liability on to the tenant, is a different aspect. Since the petitioner was not a service provider, he had no locus standi to challenge the imposition of service tax on renting. As the tenant does not fall within the definition of service provider, the petition was not maintainable.

2. In respect of Final Order No. 1182/2001 (SZB-Chennai) dated 20-7-2001 In Appeal No. E/Misc/68/01 [2002 (142) E.L.T. 66 (Tri. – Chennai)]

Sri Chandra Tobacco Ltd.

v.

CCE, New Delhi

Issue : (1) Locus standi – Whether a person who was appointed Director subsequent to filing of appeal is having locus standi to file the appeal on behalf of the company?

(2) Whether the question of locus standi can be raised at a subsequent occasion i.e., after restoration of the appeal filed by the same person.

Held : (1) Locus standi – The person filing an appeal on behalf of a company must be having a restoration passed by the Board of Directors under Company Act, 1956 appointing him as Director to contest the case on behalf of the company. In the absence of such restoration appeal cannot be entertained [para 10].

(2) The question of locus standi of the person can be raised even after admission/restoration of appeal.

 

 

 

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