PGTRB: ECONOMICS CASE JUDGEMENT - W.P.No.34564/2014

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED :  04.07.2014

CORAM

THE HONOURABLE MR.JUSTICE S.NAGAMUTHU

W.P.No.34564 of 2014 and

M.P.Nos.1 & 2 of 2014

M.Ganapathy     ... Petitioner

vs.

1.The Chairman,

Teachers Recruitment Board,

College Road,    

Nungambakkam,

Chennai-600 006.

2.The Member Secretary,

Teachers Recruitment Board,

College Road,

Nungambakkam,

Chennai 6.

3.The Controller of Examination,

Teachers Recruitment Board,

College Road,

Nungambakkam,

Chennai 600 006.   ... Respondents

Writ Petition filed under Article 226 of the Constitution of India praying for the issuance of a writ of  mandamus directing the respondents to issue appointment order to the petitioner for the post of PG Assistant (Economics) by awarding 8 more marks for the remarkable questions in Tamil Nadu Teacher Eligibility Test for the post of PG Assistants examination 2013.

For Petitioner  : Mr.V.Kasinatha Bharathi

For Respondents  : Mr.D.Krishna Kumar,

   Special Government Pleader

O R D E R

This writ petition has been listed before me as a specially ordered case on the orders of the Hon'ble Acting Chief Justice dated 25.06.2014.

2.The Teachers Recruitment Board, Government of Tamil Nadu, conducted examination for direct recruitment to the post of Post Graduate Assistant (Economics) for the year 2012-2013.  The petitioner participated in the said examination.  His Roll Number is 13 PG 31100103.  The question papers were in four series.  The questions were of objective type.  The petitioner was supplied with 'B' series question paper for Economics subject.  He has secured 90 marks.  According to the petitioner, for question Nos.6,38, 64, 134, 144 & 148 though, he had answered rightly, he has not been awarded each one mark to the said questions.

3.I have heard the learned counsel for the petitioner and the  learned Special Government Pleader appearing for the respondents and I have also perused the records carefully.

4.The petitioner challenges the question No.134 in Economics subject 'B' Series. Question No.134 reads as follows:-

134.The purchasing power of money over domestic goods and services is known as

A) External Money

B) Fiat Money

C) Internal Money

D) Near Money.

5. The Experts would state that the Fiat Money is the one which is issued on the orders of the Government. So far as India is concerned, one rupee currency note, one rupee coin and other coins with the value of less than one rupee are all issued by the Government, whereas, the currency notes or coins of value more than one rupee are issued by the Reserve Bank of India. They are called as Internal Money . The coins or currency notes issued by the Government are known as Fiat Money . 

6.Here, the question is regarding the purchasing power of money over domestic goods. There can be no doubt that using the Internal Money, one can purchase domestic goods in the domestic market. Similarly, one can purchase domestic goods by using the Fiat Money also. For example, if the value of a particular domestic goods is Rs.100/-, one can purchase the same by giving a 100 rupee currency note issued by the Reserve Bank of India which is Internal Money.  Similarly, he can give 100 one rupee coins issued by the Government to purchase the very same domestic goods. Here, the money is Fiat Money. Therefore, in my considered opinion, option B (Fiat Money) is also a right answer. The Experts who are present in Court after having gone through the Books would also agree that option B (Fiat Money) is also a right answer. In such view of the matter, I direct the Teachers Recruitment Board to revalue the said question and award mark for both option B (Fiat Money) as well as for option C (Internal Money).

7.The petitioner nextly challenges the question No.148 in Economics subject 'B' Series. Question No.148 reads as follows:-

148.Expand GST

A) General Sales Tax

B) Goods and service Tax

C) Goods and Sales Tax

D) General System of Tax.

8.According to the Teachers Recruitment Board, option B (Goods and Service Tax) is the right answer. But, according to the petitioner, option A (General Sales Tax) is the right answer. 

9. The experts would rely on a book titled  'Indian Economy' authored by Mr.Misra and Mr.Puri wherein, it is stated that the Goods and Service Tax has got the abbreviation of GST. 

10.The learned counsel for the petitioner would submit that in Tamil Nadu, the Tamil Nadu General Sales Tax has got the abbreviation of TNGST and therefore in the same way, option A abbreviation for General Sales Tax is GST.

11.I have considered the said submissions. Admittedly, there is no act as of now as General Sales Tax Act so as to say that the expansion of GST is General Sales Tax. Therefore, the said claim made by the petitioner is liable to be rejected.

12.The petitioner nextly challenges the question No.144 in Economics subject 'B' Series. Question No.144 reads as follows:-

144.Real Balance Effect was propounded  by:

A) A.C.Pigou

B) Milton Friedman

C) J.M.Keynes

D) Don Patinkin

1.

13.According to the Teachers Recruitment Board, option D (Don Patinkin) is the right answer. But, according to the petitioner, option A (A.C.Pigou) is the right answer. 

14.The petitioner relies on a book titled as Macro Economic Theory 10th Edition, authored by Mr.T.N.Hajela. It has been prescribed by some of the Universities wherein in page No.344, it is stated as follows:-

.......... It may be noted that concept of Real Balance Effect was first introduced by A.C.Pigou  against the attack of J.M.Keynes and later on, Don Patinkin used to integrate the motive and real sectors.

15.Thus, according to the  petitioner, the concept was propounded by  A.C.Pigou, therefore, option A  A.C.Pigou is the right answer. But the Experts would rely on a Book titled as Monetary Economics written by M.L.Jhingan wherein, it is stated as follows:-

In those way, Patinkin's also introduced the Real Balance Effect in the general equiliburium analysis.

16.The Experts would further explain to the Court that the name of Real Balance Effect was coined only by Don Patinkin and therefore option D alone is the right answer. After having gone through the book relied on by the petitioner, they also agree that the concept namely  Pigou effect was founded by Pigou but there was no such name as Real Balance Effect for the said effect coined by Pigou. It was later on named as only by Don Patinkin as Real Balance Effect. Thus, it is crystal clear that both A.C.Pigou's effect and the Don Patinkin's Real Balance Effect relate to, more or less, the same concept. Though it was initially, propounded by A.C.Pigou, later on it was named as Real Balance Effect by  Don Patinkin. Therefore, in my considered opinion, going by the books referred to above and the opinion offered by the Experts, the one who had read the book relied on by the petitioner and who has opted option A need not be penalised for having read the books wherein, it is stated that the said effect was propounded by A.C.Pigou. Similarly, those who have opted option D also need not be penalised for having read the books relied on by the Experts wherein, it is stated that the said effect was named by Don Patinkin as Real Balance Effect. Therefore, in my view, mark may be awarded for both option A as well as option D . Accordingly, TRB is directed to revalue the answer sheets of all the candidates and award mark for option A or option D .

17.The petitioner nextly challenges the question No.6 in Economics subject 'B' Series. Question No.6 reads as follows:-

6.Under Perfect Competition:

A) P>m 

B) P-m

            -------  = 0

               P 

C) P<m

D) P<0

18. According to the Teachers Recruitment Board, option B  

    P-m

_____ = 0

      P  

is the right answer. But, according to the petitioner, no answer is the right answer. 

19.The Experts would rely on the Book titled as Principles of Economics  Authored by Mr.M.L.Jhingan wherein, under Chapter 13, the concept of Perfect competition has been dealt with.  It is stated therein that in perfect competition, LMC=MR=AR=LAC.

LMC = Longrun Marginal Cost

MR  = Marginal Revenue 

AR   = Average Revenue

LAC = Longrun Average Cost

20.If we look into the question, certainly, option A C & D cannot be held correct. Because in option A - 'P' (price) is more than 'M' i.e., Marginal Revenue which cannot be correct in perfect competition. Similarly, option C - 'P' price is less than M (Market Revenue), it is also not correct in a perfect competition. Option D is less than 0 which also is not  correct in perfect competition. 

21.Now the question is whether option B is right answer as claimed by the Teachers Recruitment Board. Here, the petitioner would admit that if the formula is like P-MR\P  =0. then the question will be right. But since, it is P-M\P = 0, option B is also wrong, the petitioner contends. 

22.But, the experts would say that the alphabet 'M' refers to Marginal Revenue. Marginal Revenue, in economics, is known as either as MR or M. Here, they have used the alphabet 'M' to denote Marginal Revenue in perfect competition. As per the above formula, in perfect competition, price is equal to marginal revenue. Therefore P-M/P=0 is correct. For illustration, let us assume P=100, then, in perfect competition, MR must be 100. 

Now, P-M             100-100        0

                _____ is     ______    =    ___    = 0.

  P            100           100 

Thus, in a perfect competition, P-M     

___    = 0.

 P

Thus, the key answer set by the Teachers Recruitment Board is correct. Therefore, the said challenge made by the petitioner is to be rejected.

23.In the result, the writ petition is allowed in part with a direction to the Teachers Recruitment Board to revalue the answer sheets of all the candidates in respect of Economics subject and award marks to the candidates who have opted either option A  (A.C.Pigou)  or option D (Don Patinkin) as the right answer in respect of Question No.144 and also award marks to the candidates who have opted either option B (Fiat Money) or option C (Internal Money) in respect of Question No.134. No costs. Interim order already granted shall stand vacated. Consequently, connected miscellaneous petitions are closed. 

04.07.2014

Index : Yes

Note:- Issue copy on 15.07.2014.

jbm

To

1.Teachers Recruitment Board,

Rep. By its Chairman,

College Road,  

Chennai-600 006.

2.The Director of School Education,

College Road,

Chennai 600 006.

S.NAGAMUTHU,J.

jbm

W.P.No. 34564  of 2014

04.07.2014