Corporate Archives - Supreme Court of India Judgements

December 21, 2024 5:59 pm

Bank Loan — Auction — Solatium — Co-operative Bank, granted a business loan of Rs. 25,00,000 to respondents 1, 2, 5, and 6 — Upon default, the bank initiated recovery proceedings before the Assistant Registrar of Co-operative Societies, who awarded Rs. 21,92,942 with interest to the bank — The borrowers’ property was auctioned, with the appellant offering the highest bid of Rs. 81,20,000 — A sale confirmation certificate was issued, but the 1st and 2nd respondents challenged the auction in the Karnataka High Court — The court set aside the auction, noting that the borrowers had deposited Rs. 25,61,400 within three months of the writ petition and ordered the bank to refund the auction amount along with 5% additional compensation to the appellant — The appellant argued that the 5% solatium was inadequate and sought interest for being deprived of the auction amount since July 2019 — The court found merit in the appellant’s claim, ruling that the 4th respondent bank, which initiated the auction, must pay the appellant interest at 6% per annum on the Rs. 81,20,000 from 21st July 2019 until the refund — The court modified the earlier judgments, setting aside the 5% compensation and directing the bank to pay interest.

Oct 21, 2024 sclaw

2024 INSC 793 SUPREME COURT OF INDIA DIVISION BENCH SALIL R. UCHIL — Appellant Vs. VISHU KUMAR AND OTHERS — Respondent ( Before : Abhay S. Oka and Ujjal Bhuyan,…

Corporate

Drugs (Price Control) Order, 1995 — Paragraph 13 — Recovery of overcharged amount of drugs — Demand made by the National Pharmaceutical Pricing Authority (NPPA) to recover an overcharged amount for a Cloxacillin-based drug formulation called Roscilox — The Court found that the appellant’s admission of purchasing the drug directly from the manufacturer made it liable under Paragraph 13 of the Drugs (Price Control) Order, 1995 (DPCO) — The Court also rejected the appellant’s claim that it was only a ‘dealer’ and not a ‘distributor’ under the DPCO, as the definitions of these terms under the DPCO are not mutually exclusive — The Court further noted that the objective of the DPCO is to control the prices of medicinal drug formulations and ensure they are made available to the common man, and thus, the provision should not be subjected to a restricted or hidebound interpretation — Appeal Dismissed.

Jul 20, 2024 sclaw

2024 INSC 521 SUPREME COURT OF INDIA DIVISION BENCH M/S. SUN PHARMACEUTICAL INDUSTRIES LTD. — Appellant Vs. UNION OF INDIA AND OTHERS — Respondent ( Before : Sanjay Kumar and…

Corporate

Drugs (Price Control) Order, 1995 — Paragraph 13 — Recovery of overcharged amount of drugs — Demand made by the National Pharmaceutical Pricing Authority (NPPA) to recover an overcharged amount for a Cloxacillin-based drug formulation called Roscilox — The Court found that the appellant’s admission of purchasing the drug directly from the manufacturer made it liable under Paragraph 13 of the Drugs (Price Control) Order, 1995 (DPCO) — The Court also rejected the appellant’s claim that it was only a ‘dealer’ and not a ‘distributor’ under the DPCO, as the definitions of these terms under the DPCO are not mutually exclusive — The Court further noted that the objective of the DPCO is to control the prices of medicinal drug formulations and ensure they are made available to the common man, and thus, the provision should not be subjected to a restricted or hidebound interpretation — Appeal Dismissed.

Jul 16, 2024 sclaw

2024 INSC 521 SUPREME COURT OF INDIA DIVISION BENCH M/S. SUN PHARMACEUTICAL INDUSTRIES LTD. — Appellant Vs. UNION OF INDIA AND OTHERS — Respondent ( Before : Sanjay Kumar and…

Corporate Mining

Bird and Company Limited (Acquisition and Transfer of Undertaking and Other Properties) Act, 1980 – Sections 3 and 7 – Renewal of mining leases granted to Bird and Company Limited, which were later vested in Bharat Process & Mechanical Engineers Limited (BPMEL) after nationalization. BPMEL, in liquidation, and its subsidiary OMDC are central to the case – The dispute revolves around the renewal of three expired mining leases: Kolha-Roida, Thakurani, and Dalki – TGP Equity Management Private Limited, an assignee of UCO Bank’s claims against BPMEL, seeks renewal or transfer of these leases – The Government of Odisha and the Union of India argue against renewal, citing BPMEL’s non-operation and financial constraints – The Supreme Court dismissed TGP’s appeals and upheld the State of Odisha’s order, rejecting the renewal of the Kolha-Roida lease – The Thakurani and Dalki leases are also rejected, citing the impracticality of renewing leases for a defunct company and the lack of a viable mining operation plan – The dispute should be resolved, with dues settled under the Companies Act, 1956.

Jun 10, 2024 sclaw

(2024) INSC 440 SUPREME COURT OF INDIA DIVISION BENCH CHIEF SECRETARY GOVERNMENT OF ODISHA — Appellant Vs. BHARAT PROCESS AND MECHANICAL ENGINEERS LIMITED (IN LIQUIDATION) AND OTHERS — Respondent (…

Corporate

Employees’ State Insurance Act, 1948 – Sections 75(1)(g) and 90- The Supreme Court ruled that Nagar Nigam’s workshop was a ‘factory’ under the Act of 1948, and that it was engaged in a manufacturing process with over 20 workers – The Corporation argued that the workshop was a ‘factory’ and should pay contributions under the Act – Nagar Nigam argued that their workshop was not a ‘factory’ and their employees were not engaged in a manufacturing process – The Supreme Court allowed the appeal, quashed the High Court’s order, and clarified that Nagar Nigam could seek exemption under Section 90 of the Act of 1948 – The Court relied on precedents and statutory provisions of the Act of 1948 to determine that the workshop was a ‘factory’ and subject to the Act’s provisions – The Supreme Court concluded that the High Court erred in its judgment and Nagar Nigam should have approached the Insurance Court instead of invoking writ jurisdiction.

Jun 4, 2024 sclaw

(2024) INSC 441 SUPREME COURT OF INDIA DIVISION BENCH THE EMPLOYEES STATE INSURANCE CORPORATION LTD. — Appellant Vs. NAGAR NIGAM ALLAHABAD AND ANOTHER — Respondent ( Before : J.B. Pardiwala…

Corporate

Maharashtra Stamp Act, 1958 – Sections Section 47(c)(1) and 47(c)(5) and 48 – Bombay Stamp Rules, 1939 – Rules 21 and 22A – Refund of stamp duty paid for an un-executed conveyance deed – The High Court upheld the respondents’ decision, but the Supreme Court allowed the appeal and set aside the impugned order and orders of the respondents – The court held that the case of the appellant was fit for refund of the stamp duty paid, as the appellant was a bonafide purchaser who had paid the stamp duty in good faith but was a victim of fraud played by the vendor – The court also referred to the judgment in Committee-GFIL v. Libra Buildtech Private Limited & Ors., which stated that when the State deals with a citizen, it should not rely on technicalities, and the expiry of the period of limitation prescribed under any law may bar the remedy but not the right.

Jun 3, 2024 sclaw

(2024) INSC 443 SUPREME COURT OF INDIA DIVISION BENCH BANO SAIYED PARWAZ — Appellant Vs. CHIEF CONTROLLING REVENUE AUTHORITY AND INSPECTOR GENERAL OF REGISTRATION AND CONTROLLER OF STAMPS AND OTHERS…

Corporate

Societies Registration Act, 1860 – Section 15 – Defaulting Member – Notice for meeting of election – A clear reading and interpretation of the proviso to Section 15 of the Societies Registration Act, 1860 would disentitle such defaulting members from being given any notice even if their membership was not terminated or ceased – However, the effect of the proviso to Section 15 of the Registration Act which admittedly is applicable to the Society, the Objectors have to be treated as suspended members and therefore, would not be entitled to any notice as they had no right to vote or to be counted as members.

May 27, 2024 sclaw

SUPREME COURT OF INDIA DIVISION BENCH ADV BABASAHEB WASADE AND OTHERS — Appellant Vs. MANOHAR GANGADHAR MUDDESHWAR AND OTHERS — Respondent ( Before : Vikram Nath and Ahsanuddin Amanullah, JJ.…

Companies Act Corporate

The primary issue is whether the amalgamation of companies and the resulting transfer of leasehold rights amount to a transfer under the lease deed, requiring payment of unearned increase value to Delhi Development Authority (DDA) – The Court reasoned that the amalgamation did result in a transfer as per the lease deed’s clauses and that the appellant is liable to pay the unearned increase – The appeal was dismissed, confirming DDA’s demand for unearned increase value, and the respondent-DDA was allowed to withdraw the deposited amount with interest.

Apr 7, 2024 sclaw

SUPREME COURT OF INDIA DIVISION BENCH M/S. JAIPRAKASH INDUSTRIES LTD. (PRESENTLY KNOWN AS M/S. JAIPRAKASH ASSOCIATES LTD.) — Appellant Vs. DELHI DEVELOPMENT AUTHORITY — Respondent ( Before : Abhay S.…

Corporate

Railways Act, 1989 – Section 106 – Notice of claim for compensation and refund of overcharge.- The court examines the distinction between ‘overcharge’ and ‘illegal charge,’ the requirement of notice under Section 106, and the applicability of past cases like Birla Cement Works and West Coast Paper Mills – The court analyzes the scope of Section 106, the reasons for revising freight charges, and whether the revision was due to a new methodology or an error in the existing notified freight charges – Held,, that the chargeable distance of 444 km was illegal

Mar 25, 2024 sclaw

SUPREME COURT OF INDIA DIVISION BENCH UNION OF INDIA — Appellant Vs. M/S INDIAN OIL CORPORATION LTD. — Respondent ( Before : J.B. Pardiwala and Sandeep Mehta, JJ. ) Civil…

Corporate

Words and Phrases – “Rurban” – The term “Rurban” is a blend of the words “rural” and “urban.” – It refers to areas that exhibit characteristics of both rural and urban environments – These regions often combine elements of agriculture, small-scale industry, and limited urban infrastructure – The concept of “Rurban” aims to bridge the gap between rural and urban development, fostering sustainable growth and improving the quality of life for residents.

Mar 25, 2024 sclaw

SUPREME COURT OF INDIA DIVISION BENCH TAPAS KUMAR DAS — Appellant Vs. HINDUSTAN PETROLEUM CORPORATION LIMITED AND OTHERS — Respondent ( Before : Dipankar Datta and Sanjay Kumar, JJ. )…

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Constitution Service

Classification of Military casualties and the eligibility for Liberalised Family Pension — Battle Casualty —Illness Caused by Extreme Climatic Conditions as Battle Casualty — The Court establishes that a soldier’s death due to illness resulting from extreme climatic conditions while on duty near a sensitive border area (such as the Line of Control) can be categorized as a ‘Battle Casualty’ — This expands the interpretation of what constitutes a battle casualty under military regulations. – Liberalised Family Pension (LFP) — Application of Category E (f) — The judgment clarifies that deaths occurring in war-like situations, including those near international borders or lines of control due to environmental stresses, fall under clause (f) of category E of the relevant military order — This broadens the scope of eligibility for LFP under such circumstances.

Dec 8, 2024 sclaw

Constitution

Temple Bye Laws — Oachira Parabrahma Temple — Ancient structure without a building or deity, governed by Bye-laws with three-tier elected committees — Appellants, elected Secretary and President, challenged two High Court orders (2020 and 2023) that removed their committee and appointed an unelected one under an Administrative Head, citing violations of the temple’s Bye-laws and customs —Legality of appointing an unelected committee and removing the elected one contrary to the temple’s Bye-laws — Petitioner argues that the High Court overstepped its jurisdiction and violated the temple’s governance structure by appointing an unelected committee and removing the elected one without proper legal basis — The High Court’s actions were necessary for the efficient administration of the temple until a scheme could be framed and new elections held — The Supreme Court modified the High Court orders, appointing a new retired Judge as Administrative Head to conduct fair elections within four months, while directing all parties to cooperate — The Court emphasized the need to preserve temple properties and governance as per established customs and laws — The Supreme Court struck down the High Court’s order appointing an unelected committee, appointed a new Administrative Head to conduct elections, and directed all parties to cooperate, emphasizing the importance of adhering to the temple’s established governance structure and Bye-laws.

Dec 8, 2024 sclaw

Acquittal

Evidence Act, 1872 — Section 27 — Penal Code, 1860 (IPC) — Sections 384, 364, 302 and 201 — Murder — Circumstantial Evidence — The Supreme Court acquitted the appellant of murder charges as the prosecution failed to prove the crucial link of the accused’s disclosure leading to the discovery of skeletal remains under Section 27 and the DNA evidence was also found to be inconclusive due to lack of proper collection of samples. – Proof of Disclosure Statements under Section 27 — Voluntariness and Uninfluenced Nature — The Court reiterates that the information provided by an accused under Section 27 must be voluntary and uninfluenced by threat, duress, or coercion.

Dec 8, 2024 sclaw

Acquittal

Arms Act, 1959 — Sections 25, 54 and 59 — Buttondar knife — Specific Intent Required — The court clarifies that mere possession of a knife covered by a notification like the DAD Notification is not sufficient to constitute an offense under the Arms Act — There must be specific intent to use it for the prohibited purposes such as “manufacture, sale, or possession for sale or test.” – The prosecution must clearly allege and prove the intent of the accused to use the weapon for the specified prohibited purposes — Absence of such allegation in the charge-sheet renders the proceedings defective.

Dec 8, 2024 sclaw

Category: Corporate

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