Month: May 2026

Arbitration and Conciliation Act, 1996 — Section 11(6) — Privity of Contract — Collaborator invoked arbitration clause — High Court rejected petition claiming no privity of contract — Supreme Court granted leave and held Collaborator as veritable party with joint and several liability.

2026 INSC 458 SUPREME COURT OF INDIA DIVISION BENCH ELECON ENGINEERING COMPANY LIMITED Vs. BHARTIYA RAIL BIJLEE COMPANY LIMITED AND ANOTHER ( Before : Sanjay Kumar and K. Vinod Chandran,…

Penal Code, 1860 (IPC) — Section 498A — Cruelty by husband or relatives of husband — For the conviction under Section 498A, the prosecution must prove beyond reasonable doubt that the accused caused mental or physical cruelty to the woman. In this case, the evidence presented by the prosecution regarding dowry demands and cruelty was found to be contradictory and uncorroborated by independent witnesses. Therefore, the conviction of the appellant under Section 498A IPC was set aside.

SUPREME COURT OF INDIA DIVISION BENCH NARENDRA SINGH Vs. THE STATE OF MADHYA PRADESH ( Before : Aravind Kumar and N.V. Anjaria, JJ. ) Criminal Appeal No. 302 of 2014…

Civil Procedure Code, 1908 (CPC) — Section 89 — Compromise Decree — Interpretation of — Memorandum of Settlement (MOS) forming basis of decree — Clause (xiii) specifying conditional obligations for exchange of immovable properties or payment of guideline value upon failure to transfer — Held, obligation to pay monetary compensation triggered by failure to transfer agreed ‘B Schedule’ land, not discretionary option.

2026 INSC 434 SUPREME COURT OF INDIA DIVISION BENCH NANDI INFRASTRUCTURE CORRIDOR ENTERPRISES LTD. AND ANOTHER Vs. B. GURAPPA NAIDU AND OTHERS ( Before : Aravind Kumar and N.V. Anjaria,…

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Motor Vehicles Act, 1988 — Sections 166, 168 — Compensation — Assessment of annual income of deceased/claimant on the basis of Income Tax Returns — Whether the ITR of the previous year alone, or the average of the previous two/three years, is to be taken — Held, no hard and fast formula governs computation of annual income; ITRs, being statutory documents, are an important reference point, but a bifurcation must be made between salaried and self-employed individuals — (i) For salaried individuals, the ITR of the previous year alone ordinarily suffices, since the financial impact of a promotion or salary revision is best reflected in that year’s return; where the deceased had not completed a year in a promoted position, or had not filed a return for that period, the Court may rely on the promotion letter and other corroborative financial statements; (ii) For self-employed persons/those running their own business, the average of the ITRs for up to the previous three years is to be taken as the reference point, having regard to the inherent income fluctuation in such professions — In assessing self-employed income, the surrounding circumstances to be additionally considered include: (a) the nature of the business (including geography and category); (b) its growth pattern and the impact of the death on the business; (c) its potential/future growth, including capital-intensive businesses profitable only at scale; (d) the possibility of negative income in initial years not reflecting the true financial standing; and (e) any other relevant factor — The date of filing of an ITR is also relevant, since income may be inflated after the death/injury; such returns call for closer scrutiny against surrounding financial statements, though they are not to be excluded outright merely for being filed post-death, if adequately supported.