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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. Civil Procedure Code, 1908 (CPC) — Order 23 Rule 3 — Compromise decree — Requirement of signature/voluntary authorisation — Compromise petition in a partition suit signed on behalf of defendant not personally but through counsel, absent express authorisation or exigent circumstance — Held, invalid — A compromise, to be lawful under Order XXIII Rule 3, must be in writing and signed by the parties themselves; a counsel or authorised representative may sign on a party’s behalf only where there is express authorisation in the vakalatnama or an exigency of circumstance justifying such action — In the absence of either, and there being nothing on record to show that defendant no.5 had authorised his counsel to compromise away his substantial rights in the suit property, the mandatory requirement of a voluntary, party-signed compromise under Order XXIII Rule 3 was not satisfied — The resultant compromise decree was accordingly contrary to law and rightly set aside. Civil Procedure Code, 1908 (CPC) — Order 7 Rule 11(d) — Rejection of plaint — Suit barred by limitation — Suit for specific performance filed 38 years after an unregistered agreement to sell, seeking to enforce it — Held, plaint liable to be rejected — On a complete reading of the plaint, its foundation was the agreement to sell dated 21.08.1984, and no explanation was forthcoming for the respondents’ failure to institute a suit for execution of the conveyance deed for over three decades — Under Article 54 of the Limitation Act, 1963, the period of limitation for a suit for specific performance is three years — A litigant who remains silent for decades cannot be permitted to file such a suit as an afterthought in disregard of the law of limitation — Trial Court and High Court erred in rejecting the applications under Order VII Rule 11(d) CPC — Suit held to be an abuse of the process of court and barred by law — Orders of the Courts below set aside; appeal allowed. Gujarat Municipalities Act, 1963 — Gujarat Municipalities (Conduct of Elections) Rules, 1994 — Rule 7A(1) — Election affidavit — Non-disclosure of immovable property — Construction of Rule requiring disclosure of assets of “myself, my spouse and dependents” — Held, the comma after “myself” is a mere listing comma and does not create any distinction or exclusion — the word “of” governs all three categories collectively — a candidate is required to disclose immovable property held by the candidate, the spouse, and dependents, including property held solely by the spouse — The appellant’s failure to disclose property standing solely in her husband’s name accordingly amounted to non-disclosure in breach of the Rule. Remission — Premature release of life convicts — Applicable policy — Conflict between Haryana’s 2002 Policy (dated 12.4.2002) and 2008 Policy (dated 13.8.2008) — Source of power — Held, the 2002 Policy, being in substance and effect referable to Article 161 of the Constitution of India (papers to be routed to the Governor for orders), is constitutional in origin, notwithstanding that it does not expressly recite the source of power — The 2008 Policy, by contrast, expressly invokes Sections 432 and 433 of the Code of Criminal Procedure, 1973 and makes the Chief Minister the deciding authority, and is thus statutory in character — A policy traceable to a statute cannot override or supersede the exercise of the constitutional power under Article 161, that power being distinct, independent and uninfluenced by any statutory power — The purported “supersession” of the 2002 Policy by the 2008 Policy is accordingly untenable in law qua convicts governed by the 2002 Policy — Appellant held entitled to the benefit of the more liberal 2002 Policy.

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.

Civil Procedure Code, 1908 (CPC) — Order 23 Rule 3 — Compromise decree — Requirement of signature/voluntary authorisation — Compromise petition in a partition suit signed on behalf of defendant not personally but through counsel, absent express authorisation or exigent circumstance — Held, invalid — A compromise, to be lawful under Order XXIII Rule 3, must be in writing and signed by the parties themselves; a counsel or authorised representative may sign on a party’s behalf only where there is express authorisation in the vakalatnama or an exigency of circumstance justifying such action — In the absence of either, and there being nothing on record to show that defendant no.5 had authorised his counsel to compromise away his substantial rights in the suit property, the mandatory requirement of a voluntary, party-signed compromise under Order XXIII Rule 3 was not satisfied — The resultant compromise decree was accordingly contrary to law and rightly set aside.

Bank guarantee encashed in 2016 requisite amount stood transferred to Government account that was the end of the matter – This “Breaking Point” should be treated as the date at which the cause of action arose – statutory time period cannot be defeated on the ground that the parties were negotiating

SUPREME COURT OF INDIA DIVISION BENCH M/S B AND T AG — Appellant Vs. MINISTRY OF DEFENCE — Respondent ( Before : Dr. Dhananjaya Y. Chandrachud, CJI. and J. B.…

Insurance Policy – Exclusionary Clause – It is trite to say that wherever such an exclusionary clause is contained in a policy, it would be for the insurer to show that the case falls within the purview of such clause – In case of ambiguity, the contract of insurance has to be construed in favour of the insured.

SUPREME COURT OF INDIA DIVISION BENCH NATIONAL INSURANCE COMPANY LTD. — Appellant Vs. VEDIC RESORTS AND HOTELS PVT. LTD. — Respondent ( Before : Ajay Rastogi and Bela M. Trivedi,…

Service Matters

Disciplinary proceedings – Judicial review – Limit of – When the changed form of quotation also contained signature of respondent no.1, it clearly established his involvement in the tampering of document. This fact has not even been noticed by the Division Bench of the High Court – Appeal allowed

SUPREME COURT OF INDIA DIVISION BENCH THE INDIAN OIL CORPORATION AND OTHERS — Appellant Vs. AJIT KUMAR SINGH AND ANOTHER — Respondent ( Before : Abhay S. Oka and Rajesh…

(CrPC) – Sections 372 and 378(4) – Appeal against order of acquittal – – where the victim and/or the complainant, as the case may be, has not preferred and/or availed the remedy of appeal against the order of acquittal as provided under Section 372 Cr.P.C. or Section 378(4), as the case may be, the revision application against the order of acquittal at the instance of the victim or the complainant, as the case may be, shall not be entertained and the victim or the complainant, as the case may be, shall be relegated to prefer the appeal as provided under Section 372 or Section 378(4), as the case may be.

(2022) 119 ACrC 239 : (2022) 231 AIC 223 : (2022) AIR(SC) 670 : (2022) AIR(SC)Cri 460 : (2022) 1 ALT(Crl) 296 : (2022) 1 AndhLD(Criminal) 959 : (2022) 1…

BURDEN OF PROVING A VALID TICKET LIES ON THE RAILWAY ADMINISTRATION FOR COMPENSATION – Railway Administration shall be liable to pay compensation as prescribed – Appellants are held entitled for compensation to the tune of Rs. 4,00,000/- along with interest @ 7% p.a. from the date of filing the claim application till its realisation.

SUPREME COURT OF INDIA DIVISION BENCH KAMUKAYI AND OTHERS — Appellant Vs. UNION OF INDIA AND OTHERS — Respondent ( Before : Surya Kant and J.K. Maheshwari, JJ. ) Civil…

(CPC) – Section 47 read with Order 21 Rule 97 – – Supreme Court in its discretion does entertain special leave petitions directly from orders of tribunals/courts without the High Court having been approached only in matters where substantial questions of general importance are involved or where a similar issue is pending for its (the Supreme Court’s) consideration.

SUPREME COURT OF INDIA DIVISION BENCH JINI DHANRAJGIR AND ANOTHER — Appellant Vs. SHIBU MATHEW AND ANOTHER. ETC. — Respondent ( Before : A.S. Bopanna and Dipankar Datta, JJ. )…

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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.