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State Financial Corporations Act, 1951 — Sections 29 & 30 — Auction sale of mortgaged property by Financial Corporation for recovery of dues — Judicial review of, scope — Borrowers persistently defaulting over eight years despite multiple opportunities, repayment schedules fixed by High Court, and statutory notices — Financial Corporation auctioning mortgaged property after affording repeated chances including a final 21-day matching offer, which borrowers ignored — Held, fairness required of a Financial Corporation cannot be carried to the extent of disabling it from recovering what is due to it; fairness is not a one-way street — Courts have no say in matters between the Corporation and its debtor except where there is (a) statutory violation, or (b) the Corporation has acted unfairly/unreasonably — Writ court/civil court does not sit as an appellate authority over commercial decisions of the Corporation — Absence of prior valuation report, by itself, held insufficient to vitiate auction where borrowers never objected to the basis of sale (BOS — balance outstanding as on date of possession/sale deed) and themselves sought to retain the property on the very same terms — Concurrent findings of Trial Court and High Court setting aside auction sale, reversed. Protection of Children from Sexual Offences Act, 2012 — Sections 19(1) & 21 — “Knowledge that such an offence has been committed” — Meaning and scope — Held, not confined to direct/personal knowledge of commission of offence based on person’s own senses — Includes awareness founded on receipt of credible information regarding commission of offence punishable under the Act — Where such information is received directly from the victim, capable of communicating/reporting/informing, the same is deemed credible — Restrictive construction confining “knowledge” to direct, sensory knowledge would render sub-sections (5) & (6) of S. 19 and R. 4 of POCSO Rules, 2012 non-functional, and defeat the protective purpose of the Act — Person receiving report from victim not obliged to independently verify or investigate truth of allegation before reporting — Conducting a prior “verification exercise” to ascertain correctness of the child’s complaint, and reporting only if own assessment finds signs of assault, is impermissible and defeats the very purpose of the Act, since it may result in disappearance of evidence and delay — Delhi Rent Control Act, 1958 — Section 14(1)(b) — Subletting, assignment or parting with possession — Whether involuntary transfer pursuant to statutory scheme of bank amalgamation attracts the provision — Original tenant-bank (HCB) amalgamated with another bank (PNB) pursuant to a Scheme framed by RBI and notified by the Central Government under S. 45 of the Banking Regulation Act, 1949 — Consequent thereto, HCB ceased to exist and all its rights, including tenancy rights in the demised premises, vested in PNB, which came into possession without the landlord’s written consent — Held, S. 14(1)(b) is of wide amplitude, covering subletting, assignment, and “any other mode” by which possession is parted with, and does not distinguish between voluntary and involuntary transfers — Once the twin ingredients — transfer of tenancy rights/possession, and absence of the landlord’s written consent — are satisfied, the provision is attracted irrespective of the reasons necessitating the transfer — Contention that a statutory amalgamation stands outside the mischief of the provision, rejected Evidence Act, 1872 — Section 48 — Proof of custom — Essential attributes and standard of proof — Custom must be ancient, certain, reasonable, and continuous, and proved by clear and cogent evidence of long and uniform usage, ordinarily through testimony of persons familiar with its practice — Onus lies on the party asserting the custom — A custom cannot be held established on the solitary, unsupported testimony of one witness, particularly where such testimony is confined to the facts of the case rather than a general and consistent practice — Held, on facts, while the custom of a ghardamad acquiring rights in his father-in-law’s property stood proved, the specific claim that an uncle-in-law could similarly adopt a ghardamad was not established, being unsupported by consistent evidence — Civil Procedure Code, 1908 (CPC) — Orrder 11 Rules 1(4) & 5 (as amended by Commercial Courts Act, 2015, Sch.) — Additional documents, filing of — Standard of “reasonable cause” — Held, plaintiff obliged to file all documents in its possession along with plaint; leave to file additional documents within 30 days of institution of suit permissible only on establishing reasonable cause for non-disclosure and justification for subsequent discovery — Distinction between “reasonable cause” (applicable standard under Or. XI Rr. 1(4)/(5)) and “sufficient cause” reaffirmed, following Sudhir Kumar v. Vinay Kumar G.B., (2021) 13 SCC 71 — However, even applying the lower threshold of “reasonable cause”, application for additional documents rightly rejected where documents were in appellant’s possession since inception of suit and no explanation furnished for delay of over five years — Commercial Courts Act, 2015

State Financial Corporations Act, 1951 — Sections 29 & 30 — Auction sale of mortgaged property by Financial Corporation for recovery of dues — Judicial review of, scope — Borrowers persistently defaulting over eight years despite multiple opportunities, repayment schedules fixed by High Court, and statutory notices — Financial Corporation auctioning mortgaged property after affording repeated chances including a final 21-day matching offer, which borrowers ignored — Held, fairness required of a Financial Corporation cannot be carried to the extent of disabling it from recovering what is due to it; fairness is not a one-way street — Courts have no say in matters between the Corporation and its debtor except where there is (a) statutory violation, or (b) the Corporation has acted unfairly/unreasonably — Writ court/civil court does not sit as an appellate authority over commercial decisions of the Corporation — Absence of prior valuation report, by itself, held insufficient to vitiate auction where borrowers never objected to the basis of sale (BOS — balance outstanding as on date of possession/sale deed) and themselves sought to retain the property on the very same terms — Concurrent findings of Trial Court and High Court setting aside auction sale, reversed.

Protection of Children from Sexual Offences Act, 2012 — Sections 19(1) & 21 — “Knowledge that such an offence has been committed” — Meaning and scope — Held, not confined to direct/personal knowledge of commission of offence based on person’s own senses — Includes awareness founded on receipt of credible information regarding commission of offence punishable under the Act — Where such information is received directly from the victim, capable of communicating/reporting/informing, the same is deemed credible — Restrictive construction confining “knowledge” to direct, sensory knowledge would render sub-sections (5) & (6) of S. 19 and R. 4 of POCSO Rules, 2012 non-functional, and defeat the protective purpose of the Act — Person receiving report from victim not obliged to independently verify or investigate truth of allegation before reporting — Conducting a prior “verification exercise” to ascertain correctness of the child’s complaint, and reporting only if own assessment finds signs of assault, is impermissible and defeats the very purpose of the Act, since it may result in disappearance of evidence and delay —

Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 — Sections 3 and 4 — The Indian Medical Association (IMA) filed a writ petition against Patanjali Ayurved Limited, Acharya Balkrishna, and Baba Ramdev for spreading misinformation about modern medicine — Whether Patanjali violated court orders by continuing to make misleading claims about their products’ medicinal efficacy —IMA argued that Patanjali continued to make false claims about their products despite court orders prohibiting such actions — Patanjali and its representatives claimed that any misleading statements were inadvertent and offered apologies — The court found Patanjali in contempt for violating its orders and issued further restrictions on their advertising practices — The court emphasized the importance of upholding the dignity of the judiciary and preventing misleading advertisements —The court referred to the Contempt of Courts Act, 1971, and relevant case law to justify its decision —Patanjali was found in contempt, and further measures were imposed to ensure compliance with court orders.

2024 INSC 605 SUPREME COURT OF INDIA DIVISION BENCH IN RE : PATANJALI AYURVED LIMITED THROUGH ITS MANAGING DIRECTOR, ACHARYA BALKRISHNA AND BABA RAMDEV IN THE MATTER OF : INDIAN…

Penal Code, 1860 (IPC) — Sections 193, 376 and 504 — Establishing relations on the false pretext of marriage — Accused was granted bail, which the complainant sought to cancel — Whether the appellant’s denial in his affidavit constitutes an offence under Section 193 IPC (false evidence) — Petitioner argue that mere denial of averments does not constitute perjury — The court is not bound to make a complaint under Section 195(1)(b) unless it is expedient in the interest of justice — Respondent states that the appellant misrepresented facts and continued relations with the complainant despite being engaged to someone else —The Supreme Court set aside the High Court’s direction to file a complaint against the appellant for perjury —Denial simpliciter does not meet the threshold for perjury — No malafide intention or deliberate attempt was evident from the appellant’s statements —Prosecution for perjury should be initiated only in exceptional circumstances where there is deliberate falsehood on a matter of substance —The appeal was allowed, and the proceedings arising from the High Court’s direction were quashed — The decision does not affect the ongoing criminal case against the appellant.

2024 INSC 601 SUPREME COURT OF INDIA DIVISION BENCH JAMES KUNJWAL @APPELANT Vs. STATE OF UTTARAKHAND AND ANOTHER — Respondent ( Before : B.R. Gavai, Sanjay Karol and K.V. Viswanathan,…

Burden of Proof in Section 138 N.I. Act Cases — The court reaffirmed that once the issuance of a cheque and its dishonor for insufficiency of funds are established, a presumption arises under Sections 138, 139, and 118(a) of the N.I. Act that the amount mentioned in the cheque was legally due and payable by the drawer to the payee — The burden then shifts to the accused to rebut this presumption by producing satisfactory evidence.

2024 INSC 602 SUPREME COURT OF INDIA DIVISION BENCH SRI SUJIES BENEFIT FUNDS LIMITED — Appellant Vs. M. JAGANATHUAN — Respondent ( Before : Hima Kohli and Ahsanuddin Amanullah, JJ.…

Bail is the rule, jail is the exception — The court reiterated the well-established principle that bail should be the norm and imprisonment should be the exception — This principle applies even in cases involving stringent conditions for the grant of bail, as in the UAPA.

2024 INSC 604 SUPREME COURT OF INDIA DIVISION BENCH JALALUDDIN KHAN — Appellant Vs. UNION OF INDIA — Respondent ( Before : Abhay S. Oka and Augustine George Masih, JJ.…

Penal Code, 1860 (IPC) — Sections 304 Part I and 304 Part II — Murder during a quarrel in family dispute — Modification of sentence — The main issue is whether the conviction should be under Section 304 Part I or Part II of the IPC — The petitioner argued that the incident was a result of self-defence and that the conviction should be set aside — The respondent supported the High Court’s decision and argued for the dismissal of the appeal — The Supreme Court upheld the High Court’s decision to alter the conviction from Section 304 Part I to Part II IPC but modified the sentence to the period already undergone by the appellant — The Court noted the emotional state of the young appellant and the non-premeditated nature of the incident — The Court emphasized the heat of the moment and the lack of control over anger leading to the incident — The appeal was partly allowed, modifying the sentence to the period already undergone while maintaining the conviction.

2024 INSC 609 SUPREME COURT OF INDIA DIVISION BENCH HUSSAINBHAI ASGARALI LOKHANDWALA AND OTHERS — Appellant Vs. STATE OF GUJARAT AND OTHERS — Respondent ( Before : Abhay S. Oka…

Service Matters

Gujarat Civil Services (Pay) Rules, 2002 — Rule 21 — Stepping up of a pay of Government Employee on the basis of the pay of his junior — Whether the principle of stepping up the pay of an employee based on the pay of a junior applies when the appellants are on a lesser pay scale than Assistant Professors appointed before them as ad hoc lecturers and subsequently regularized — Whether Rule 21 of the 2002 Pay Rules applies to the appellants’ situation, where juniors are paid more due to their ad hoc services being counted for Senior Scale/Selection Grade — The appellants argued that they are entitled to pay parity with their juniors under Rule 21, as they belong to the same cadre and the anomaly in pay is due to the application of the rule — The respondents contended that Rule 21 does not apply as the anomaly is not a direct result of the rule but due to the juniors’ ad hoc services being counted — The Supreme Court dismissed the appeals, holding that Rule 21 is inapplicable as the anomaly is not a direct result of the rule — The court reasoned that granting the appellants’ request would result in inequity, as they would benefit from years of service they did not render — The appeals were dismissed, and Rule 21 was deemed inapplicable in this case.

2024 INSC 608 SUPREME COURT OF INDIA DIVISION BENCH MAHESHKUMAR CHANDULAL PATEL AND ANOTHER — Appellant Vs. THE STATE OF GUJARAT AND OTHERS — Respondent ( Before : Vikram Nath…

Cess and Other Taxes on Minerals (Validation) Act 1992 — The case involves the Mineral Area Development Authority (MADA) and the Steel Authority of India (SAIL), focusing on the validity of state tax demands on mineral rights — Whether the judgment in MADA should be applied retrospectively or prospectively, impacting tax demands and commercial transactions — Petitioners argue for prospective application to avoid retrospective tax burdens on end consumers and commercial disruptions — Respondents argue that prospective overruling should not apply to tax legislation, emphasizing the public interest and financial stability of states — The court rejected the prospective application of the MADA judgment, allowing states to levy taxes but with conditions to mitigate financial burdens on assesses — The court emphasized the need to balance financial interests of states and assesses, avoiding retrospective tax demands before April 2005 — The court applied the doctrine of prospective overruling to ensure equitable outcomes and financial stability — The court provided a pragmatic solution to reconcile conflicting interests, allowing tax demands with staggered payments and waived interest for the period before July 2024.

2024 INSC 607 SUPREME COURT OF INDIA 8 JUDGES BENCH MINERAL AREA DEVELOPMENT AUTHORITY AND ANOTHER — Appellant Vs. M/S STEEL AUTHORITY OF INDIA AND ANOTHER ETC. — Respondent (…

Date of Performance determines Limitation Period — The Court clarified that when a specific date for performance is fixed in a contract, the limitation period for filing a suit for specific performance begins to run from that date, not from any later date mentioned in the agreement regarding its validity — This interpretation reinforces the principle that the statute of limitations is triggered by the failure to perform as agreed, not by the contract’s overall duration.Validity Clause does not Extend Limitation Period — The Court held that a clause in a contract extending its validity does not automatically extend the limitation period for enforcing the contract’s terms — This distinction is crucial for determining when legal action must be initiated to seek specific performance.

2024 INSC 599 SUPREME COURT OF INDIA DIVISION BENCH USHA DEVI AND OTHERS — Appellant Vs. RAM KUMAR SINGH AND OTHERS — Respondent ( Before : Vikram Nath and Prasanna…

Limitation Act, 1963 — Section 5 — Condonation of Delay — The appellant was penalized for deserting his family and living with another woman — The penalty was challenged due to procedural delays and alleged mistakes by his counsel — Whether the delay in filing the appeal should be condoned and whether the penalty imposed was justified — The delay was due to the counsel’s mistake, and the penalty was disproportionate since the complainant (his wife) had withdrawn her complaint — The representations were examined and rejected, and the withdrawal of the O.A. was authorized by the appellant — The Supreme Court set aside the impugned orders, holding that the appellant is entitled to all consequential benefits — The delay was sufficiently explained, and the penalty was disproportionate given the withdrawal of the complaint and lack of evidence — The court emphasized a liberal approach to condonation of delay and the need for substantial justice — The appeals were allowed, and the appellant was granted all consequential benefits.

2024 INSC 577 SUPREME COURT OF INDIA DIVISION BENCH MOOL CHANDRA — Appellant Vs. UNION OF INDIA AND ANOTHER — Respondent ( Before : Aravind Kumar and Sandeep Mehta, JJ.…

Constitution of India, 1950 — Articles 21, 39(e), 42, 43, and 48A — Highlighting the State’s duty to ensure workers’ health and safety — Issue of ‘silicosis’ among workers in various industries in India — The main issues were the prevalence of silicosis, lack of detection, monitoring, and remedial measures , and violation of workers fundamental rights — Right to health and safety under Article 21 of the Constitution was being neglected, and the State’s failure to protect workers and provide adequate care was a violation of constitutional mandates — They were directed to provide compensation and rehabilitation for affected workers and to ensure compliance with safety measures — The Court directed the NGT to oversee the environmental aspects and the NHRC to oversee the compensation process — The Court emphasized the need for systemic reforms to address the detection, prevention, and treatment of silicosis and to protect workers’ health and rights — The writ petition was disposed of with directions to the NGT and NHRC to ensure compliance with the Court’s orders and to take necessary steps to prevent the spread of silicosis and ensure compensation for affected workers.

2024 INSC 582 SUPREME COURT OF INDIA DIVISION BENCH PEOPLES RIGHTS AND SOCIAL RESEARCH CENTRE (PRASAR) AND OTHERS — Appellant Vs. UNION OF INDIA AND OTHERS — Respondent ( Before…

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