Question

Legal Principle: Justice should not only be done, but also be seen to be done.

Facts:
L, an honest lawyer, had 200 shares in Company X.
Later, L was elevated to the High Court as a Judge and had to deal with Company matters.
A dispute between Company X and its creditors came before L for decision.
Which among the following proposition is true?

• A. L, as an honest person, will definitely judge the matter on the merits only. So, the principle cannot apply.
• B. A judge cannot excuse himself from taking up a case posted before him by the Court Registry.
• C. L should refrain from hearing the matter as he holds shares of the Company X.
• D. Since L has only 200 shares, he has no substantial interest in the company and hence can decide the matter.

Hint:

In judicial ethics, even the perception of bias is unacceptable. Judges must recuse themselves from cases where any potential conflict of interest exists, however small.

Answer 1

The Correct Option is C

Step 1: Understanding the Legal Principle
The principle states that justice must be delivered impartially and must also appear impartial to the public. Any potential bias — even if only perceived — can undermine public trust in the judicial process.
Step 2: Applying the Facts
Here, L is a shareholder in Company X. This creates a direct conflict of interest in any dispute involving Company X because L could benefit financially from the decision. Even if L is completely honest, the mere fact that he holds shares can raise doubts about his impartiality.
Step 3: Evaluating the Options
- Option 1: Incorrect — Integrity alone is not enough; perception of bias must also be avoided.
- Option 2: Incorrect — Judges can recuse themselves to avoid conflicts of interest.
- Option 3: Correct — L should refrain from hearing the case due to shareholding, to maintain both actual and perceived impartiality.
- Option 4: Incorrect — Even a small holding can be enough to create a perceived conflict of interest.
Step 4: Conclusion
The correct approach is for L to recuse himself, ensuring that justice is not only done but also seen to be done.
\[ \boxed{\text{L should not hear the case involving Company X due to conflict of interest.}} \]