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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 —

Arbitral Award — Contractual Dispute — The court held that the date of the arbitral award’s enforceability is the date when the objections against it are finally decided, and this date should be used to convert the award amount — If the award debtor deposits some amount before the court during the pendency of proceedings, the date of deposit should be used for conversion — The court further clarified that if the award holder is permitted to withdraw the deposited amount, even if it is conditional and subject to the final decision in the matter, the court must consider that the award holder could access and benefit from such deposit, and it is then the burden of the award holder to furnish security, as required by the court’s orders, to utilize the amount or to make an application for modification of the condition if it is unable to fulfill the same.

2024 INSC 593 SUPREME COURT OF INDIA DIVISION BENCH DLF LTD. (FORMERLY KNOWN AS DLF UNIVERSAL LTD) AND ANOTHER — Appellant Vs. KONCAR GENERATORS AND MOTORS LTD. — Respondent (…

Service Matters

Service Law — Removal from Service — Respondent appointed as Inspector in 1960 and later as Assistant Registrar, faced multiple charges of misconduct, including unauthorized appointments and financial irregularities —The main issue was whether the disciplinary proceedings and the subsequent removal of from service were justified —The State of Rajasthan argued that respondent’s actions demonstrated insubordination and financial misconduct, justifying his removal — Respondent contended that the disciplinary proceedings were flawed and that there was no substantial evidence to support the charges against him —Supreme Court quashed the High Court’s decision, reinstating the removal order against respondent —The Court found that the disciplinary proceedings were conducted fairly and that there was sufficient evidence to support the charges —The Court emphasized that it is not the role of the High Court to reappraise evidence in disciplinary matters unless there is a clear violation of natural justice —The Supreme Court restored the removal order, finding no procedural impropriety or lack of evidence in the disciplinary proceedings.

2024 INSC 592 SUPREME COURT OF INDIA DIVISION BENCH THE STATE OF RAJASTHAN AND OTHERS — Appellant Vs. BHUPENDRA SINGH — Respondent ( Before : Hima Kohli and Ahsanuddin Amanullah,…

Penal Code, 1860 (IPC) — Sections 302, 323 read with Section 120B — Murder —Dispute over water supply — They were sentenced to life imprisonment by the trial court, and the conviction was upheld by the High Court — The main issue was whether the appellants were rightly convicted based on the evidence presented — The appellants argued that the evidence was unreliable, key witnesses were not credible, and there were procedural lapses in the investigation — The State argued that the evidence was sufficient, the FIR was lodged promptly, and the injuries and recoveries corroborated the prosecution’s case —The Supreme Court acquitted the appellants, finding the evidence insufficient and the investigation flawed — The Court found inconsistencies in witness testimonies, procedural lapses, and lack of credible evidence linking the appellants to the crime —The Court emphasized the importance of reliable evidence and proper investigation procedures, citing previous judgments to support its decision —The appeals were allowed, and the appellants were acquitted, with the Court highlighting the need for credible evidence and proper investigation.

2024 INSC 590 SUPREME COURT OF INDIA DIVISION BENCH ALLARAKHA HABIB MEMON ETC. — Appellant Vs. STATE OF GUJARAT — Respondent ( Before : B.R. Gavai and Sandeep Mehta, JJ.…

Service Matters

Service Law — Pay fixation error — The appellant, a retired government employee, was promoted and received a revised pay scale — Years after retirement, the government sought to recover excess payments due to a pay fixation error — Whether the government can retrospectively reduce the appellant’s pay scale and recover excess payments after retirement — The appellant argued that the government resolution protecting promotions before a certain date was misinterpreted, and the recovery was arbitrary and violated natural justice —The State of Bihar contended that the resolution applied uniformly and the recovery was justified due to the error in pay fixation —The Supreme Court quashed the government’s order to reduce the pay scale and recover excess payments, ruling it illegal and arbitrary —The court emphasized that the appellant’s promotion was valid and protected by the resolution, and the recovery was unjustified after such a long period —The court cited precedents where recovery of excess payments was deemed inequitable if not promptly addressed and without employee fault —The appellant’s pay scale and pension were restored, and any recovered amounts were to be reimbursed with interest.

2024 INSC 591 SUPREME COURT OF INDIA DIVISION BENCH JAGDISH PRASAD SINGH — Appellant Vs. STATE OF BIHAR AND OTHERS — Respondent ( Before : Sandeep Mehta and R. Mahadevan,…

Gujarat Provincial Municipal Corporation Act, 1949 — Sections 139 and 140 — Primary responsibility for property taxes on whom to rest —Supreme Court upheld the High Court decision to refund a portion of property tax paid by Respondent No. 2 the Appellant — The dispute concerned tax arrears for a period before Respondent No. 2 acquired ownership of the property on September 3, 2015 — The Court ruled that under the Gujarat Provincial Municipal Corporations Act, 1949, the liability for property tax lies with the owner of the property at the time of assessment — Since Respondent No. 2 became the owner after the arrears had accrued, it was not liable for those taxes — The Court also noted that the previous owner had deposited a significant portion of the disputed tax in ongoing legal proceedings, further supporting the refund to Respondent No — 2. This decision clarifies that property tax liability is tied to ownership and cannot be automatically transferred to new owners for periods prior to their ownership.

2024 INSC 596 SUPREME COURT OF INDIA DIVISION BENCH RAJKOT MUNICIPAL CORPORATION — Appellant Vs. STATE OF GUJARAT AND OTHERS — Respondent ( Before : Abhay S. Oka and Augustine…

Motor Accident Claims — Accurate Disability assessment — Supreme Court addressed the issue of compensation for a motor accident victim who sustained injuries to both hands requiring surgery and resulting in permanent disability — The Motor Accident Claims Tribunal (Tribunal) initially awarded Rs.5,38,872/- as compensation, considering a 25% disability — The insurance company appealed, and the High Court reduced the compensation to Rs.4,74,072/-, adjusting the disability percentage to 20% — The Supreme Court upon reviewing the medical records and testimony of doctor, who certified a 50% disability, set aside the High Court’s judgment — It restored the Tribunal’s decision, which had assessed a 25% disability — The Court directed the insurance company to deposit the full compensation amount, as determined by the Tribunal — The appeal was thus allowed, emphasizing the importance of accurate disability assessment in determining fair compensation for accident victims.

2024 INSC 598 SUPREME COURT OF INDIA DIVISION BENCH RAHUL — Appellant Vs. NATIONAL INSURANCE COMPANY LTD. AND ANOTHER — Respondent ( Before : Sudhanshu Dhulia and R. Mahadevan, JJ.…

Prevention of Corruption Act, 1988 — Sections 7, 7A, 8 and 12 — Penal Code, 1860 — Sections 420, 201 and 120B — Prevention of Money Laundering Act, 2002 — Section 3 — Manish Sisodia’s bail applications were rejected by the High Court of Delhi — He is involved in cases registered by the CBI and ED related to alleged irregularities in Delhi’s Excise Policy for 2021-22 —Whether the appellant is entitled to bail considering the prolonged incarceration and the right to a speedy trial — Petitioner argues that the trial is delayed, and the appellant has been in custody for a long time — The prosecution has not completed the investigation, and the trial is proceeding at a snail’s pace — ED Contends that the appellant is influential and may tamper with evidence or influence witnesses — The trial delay is due to the appellant’s actions — The Supreme Court granted bail to Manish Sisodia, emphasizing the right to a speedy trial and noting the prolonged incarceration — The trial has not commenced despite assurances, and the appellant’s prolonged detention violates the right to liberty — The right to a speedy trial is fundamental, and bail should not be withheld as punishment — The court also considered the large volume of documents and witnesses involved — The appellant is granted bail with conditions to ensure his presence at trial and prevent tampering with evidence.

2024 INSC 595 SUPREME COURT OF INDIA DIVISION BENCH MANISH SISODIA — Appellant Vs. DIRECTORATE OF ENFORCEMENT — Respondent ( Before : B.R. Gavai and K.V. Viswanathan, JJ. ) Criminal…

Suit for Partition of jointly owned Property — Liability to render accounts — The court held that the defendant Nos. 3(a) and defendant Nos. 15 to 19 are liable to render accounts and contribute rent as assessed by the Trial Court during the course of passing the final decree for the portions in their respective possession The court clarified that being in self-occupation of a property does not absolve a co-sharer from rendering accounts — The defendant No. 3(a) who purchased the property from defendant No. 3 after it had already been vacated by a tenant, was held liable to contribute rent as determined by the Trial Court. Business carried out in the property — The court held that defendant Nos. 15 to 19, who admitted to carrying on their own business in the portion of the property in their possession, are liable to render accounts and contribute rent as determined by the Trial Court.

2024 INSC 552 SUPREME COURT OF INDIA DIVISION BENCH RAJINDER KAUR (DECEASED) THROUGH LEGAL HEIR USHA — Appellant Vs. GURBHAJAN KAUR (DECEASED) THROUGH LRS UPINDER KAUR AND OTHERS — Respondent…

NEET Examination — Supreme Court ruled that a fresh NEET (UG) 2024 examination is not necessary, and the results of the examination should be declared as valid, subject to certain modifications — The Court found no systemic breach in the sanctity of the examination and no conclusive material to lead to the conclusion that the entire result stands vitiated or that there was a systemic leak of the question paper — The Court allowed students with individual grievances to pursue their rights and remedies in accordance with law, including by moving the jurisdictional High Courts under Article 226 of the Constitution — The Court also constituted a seven-member Expert Committee to strengthen the process of conducting NEET (UG) and other examinations and prevent similar instances in the future.

2024 INSC 553 SUPREME COURT OF INDIA FULL BENCH VANSHIKA YADAV — Appellant Vs. UNION OF INDIA AND OTHERS — Respondent ( Before : Dr Dhananjaya Y Chandrachud, CJI, J…

Genetically Modified Organisms — Regulation and approval of genetically modified organisms — Environmental release of transgenic mustard hybrid DMH-11 — The Supreme Court has quashed the approval of the environmental release of transgenic mustard hybrid DMH-11, developed by the Centre for Genetic Manipulation of Crop Plants (CGMCP) at the University of Delhi — The court found that the decision-making process was arbitrary and violated the precautionary principle — The court directed the government to take a fresh decision on the release of the transgenic mustard hybrid, considering the recommendations of the Technical Expert Committee (TEC) and the Parliamentary Standing Committee on Agriculture — The court also directed the government to formulate a National Policy on GM crops, involving all stakeholders, and to ensure transparency and public participation in the decision-making process — The court emphasized the importance of protecting the environment, biodiversity, and the health of citizens in the context of genetically modified organisms.

2024 INSC 545 SUPREME COURT OF INDIA DIVISION BENCH GENE CAMPAIGN AND ANOTHER — Appellant Vs. UNION OF INDIA AND OTHERS — Respondent ( Before : B.V. Nagarathna and Sanjay…

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