Latest Post

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 —

Penal Code, 1860 (IPC) — Sections 384, 389, 406 and 420 r/w Section 34 and 120B — Quashing of the summoning order and criminal proceedings — The appellant challenged the High Court of Jharkhand’s decision to quash the summoning order and criminal proceedings related to a fraud case — Whether the High Court was correct in quashing the summoning order and criminal proceedings — The appellant argued that the documents submitted by the respondents were forged and that the High Court overstepped its jurisdiction by quashing the summoning order —The respondents contended that the documents were not forged and that the appellant had ulterior motives — The Supreme Court quashed the High Court’s decision and remanded the matter back to the Judicial Magistrate for trial — The High Court exceeded its jurisdiction by delving into factual disputes that should be resolved during the trial — The Supreme Court emphasized that the High Court should not conduct a mini-trial at the stage of quashing proceedings —The appeals were allowed, and the matter was sent back for trial.

2024 INSC 583 SUPREME COURT OF INDIA DIVISION BENCH DHARAMBEER KUMAR SINGH — Appellant Vs. THE STATE OF JHARKHAND AND ANOTHER — Respondent ( Before : Vikram Nath and Prasanna…

Determining Equivalence — The decision on whether a particular qualification should be regarded as equivalent to the prescribed qualification lies with the state or the recruiting authority, not the court — This is a technical academic matter that cannot be implied or assumed. — Any decision by an academic body or university regarding the equivalence of qualifications must be made through a specific order or resolution, which should be duly published — A mere certificate without such formal backing is not sufficient to establish equivalence.

2024 INSC 580 SUPREME COURT OF INDIA DIVISION BENCH SHIFANA P.S. — Appellant Vs. THE STATE OF KERALA AND OTHERS — Respondent ( Before : Hima Kohli and Sandeep Mehta,…

Service Matters

Career Advancement Scheme (CAS) eligibility — The Court clarified that the benefits of CAS are not automatically granted to all Assistant Professors — Instead, eligibility is subject to fulfilling certain conditions, including completion of a specific number of years of service after “regular appointment” — The Court held that redesignation from one post to another does not automatically qualify as “regular appointment”.

2024 INSC 581 SUPREME COURT OF INDIA DIVISION BENCH RAJASTHAN AGRICULTURAL UNIVERSITY, BIKANER, THROUGH ITS REGISTRAR — Appellant Vs. DR. ZABAR SINGH SOLANKI AND OTHERS — Respondent ( Before :…

Contractual Dispute — Dispute over a contract for displaying advertisements on street hoardings — The main issue is whether the debarment of the appellant for five years by the Corporation was valid and justified — The appellant argued that the Corporation could only impose a penalty for late payments, not blacklisting, and that the blacklisting was disproportionate and unfair — The Corporation defended the blacklisting, citing the appellant’s failure to fulfill contractual obligations and non-payment of dues — The Supreme Court set aside the Division Bench’s judgment and restored the Single Judge’s decision, ruling that the blacklisting was disproportionate — The Court found that the appellant had a bona fide dispute with the Corporation and that the blacklisting was a disproportionate penalty — The Court emphasized that blacklisting is a drastic remedy and should only be used in cases involving harm to public interest — The Supreme Court allowed the appeal, setting aside the blacklisting order and restoring the Single Judge’s judgment.

2024 INSC 589 SUPREME COURT OF INDIA DIVISION BENCH THE BLUE DREAMZ ADVERTISING PVT. LTD. AND ANOTHER — Appellant Vs. KOLKATA MUNICIPAL CORPORATION AND OTHERS — Respondent ( Before :…

2024 INSC 588 SUPREME COURT OF INDIA DIVISION BENCH TUSHARBHAI RAJNIKANTBHAI SHAH — Appellant Vs. KAMAL DAYANI AND OTHERS — Respondent ( Before : B.R. Gavai and Sandeep Mehta, JJ.…

Arbitration Act, 1940 — Sections 14 and 17 — Interest on interest for the post-award period — The case involves a contract from 1984-85 between petitioners and respondent with an arbitration award passed in 1997 — Whether the petitioner is entitled to compound interest or interest on interest for the post-award period — The petitioner argued that the 12% interest awarded for the pre-award period should be included in the principal sum for calculating the 15% post-award interest — The respondent contended that compound interest or interest on interest is not payable unless specifically granted by the award or court order — The Supreme Court dismissed the petition, upholding the lower courts’ decisions that only simple interest is payable — The court emphasized that neither the Arbitration Act nor the contract provided for compound interest or interest on interest — The court referred to various legal provisions and precedents, including Section 34 of the CPC and the Interest Act, 1978, which prohibit awarding interest on interest — The Special Leave Petition was dismissed.

2024 INSC 587 SUPREME COURT OF INDIA DIVISION BENCH M/S D. KHOSLA AND COMPANY — Appellant Vs. THE UNION OF INDIA — Respondent ( Before : Pamidighantam Sri Narasimha and…

Negotiable Instruments Act, 1881 — Section 138 — The appellant lent Rs. 2,00,000 to the respondent, who issued a cheque as a guarantee — The cheque was dishonored due to insufficient funds — Whether the respondent committed an offence under Section 138 of the Act, 1881 and Section 420 of the IPC — The appellant argued that the respondent failed to repay the loan and intentionally cheated him — The respondent claimed the cheque was issued for security purposes to a third party and denied the loan transaction — The Supreme Court dismissed the appeal, affirming the High Court’s judgment that favored the respondent’s acquittal — The court found contradictions in the appellant’s statements and lack of evidence regarding the loan transaction — The court emphasized the presumption under Section 139 of the NI Act, 1881, and the burden on the respondent to rebut it — The appeal was dismissed, and the respondent’s acquittal was upheld.

2024 INSC 586 SUPREME COURT OF INDIA DIVISION BENCH SRI DATTATRAYA — Appellant Vs. SHARANAPPA — Respondent ( Before : B.V. Nagarathna and Augustine George Masih, JJ. ) Criminal Appeal…

Motor Accident Claims — Enhancement of Compensation — The claimant-appellant’s husband died in a motor accident involving an ambulance and a truck — The deceased was employed as a ‘Khalasi’ in the ambulance — The maintainability of the claim for compensation, the rash and negligent conduct of the truck driver, and the extent of compensation payable — The High Court awarded Rs. 8,30,000 as compensation, deducting Rs. 6,25,000 already paid by the employer — The Supreme Court modified the compensation to Rs. 10,06,900 with 7.5% interest — The appeal was allowed, and the compensation amount was modified.

2024 INSC 584 SUPREME COURT OF INDIA DIVISION BENCH ROJALINI NAYAK AND OTHERS — Appellant Vs. AJIT SAHOO AND OTHERS — Respondent ( Before : C.T. Ravikumar and Sanjay Karol,…

Motor Accident Compensation — Contributory Negligence — The claimant and his wife were involved in a motorcycle accident with two tractors, resulting in the wife’s death and the claimant’s severe injuries — The main issues were rash and negligent driving, contributory negligence and insurance liability — The claimant argued for higher compensation due to the loss of income from their business and the misapplication of the multiplier by the Tribunal — The respondents contended that the claimant was also negligent and thus partly responsible for the accident — The Supreme Court revised the compensation to Rs. 11,25,000 from Rs. 1,01,250, acknowledging the error in the Tribunal’s application of the multiplier and contributory negligence — The Court found that the claimant’s act of overtaking was not rash or negligent and that the offending vehicle was driven negligently — The appeal was allowed, and the compensation was significantly increased, with the interest rate adjusted to 8%.

2024 INSC 585 SUPREME COURT OF INDIA DIVISION BENCH PREM LAL ANAND AND OTHERS — Appellant Vs. NARENDRA KUMAR AND OTHERS — Respondent ( Before : C.T. Ravikumar and Sanjay…

You missed