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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 —

Standard Fire and Special Perils Policy – extent to which the claim of the appellant is required to be accepted and the respondent be directed to reimburse the same – – on the exchange of correspondence between surveyor and the appellant who brought on record additional material before the surveyor to indicate that the machinery cannot be repaired, the amount assessed was Rs.2,32,02,000 – Appeal partly allowed

SUPREME COURT OF INDIA DIVISION BENCH M/S SUPER LABEL MFG. CO. — Appellant Vs. NEW INDIA ASSURANCE COMPANY LIMITED — Respondent ( Before : A.S. Bopanna and Dipankar Datta, JJ.…

Prevention of Corruption Act – IPC – The directions issued in the said original petition for de novo investigation are set aside. The Investigation Officer shall proceed with further investigation in all cases by including the offences under the PC Act – writ petitions challenging the initiation of proceedings by ED shall stand dismissed.

SUPREME COURT OF INDIA DIVISION BENCH Y. BALAJI — Appellant Vs. KARTHIK DESARI & ANR. ETC. — Respondent ( Before : Krishna Murari and V. Ramasubramanian, JJ. ) Criminal Appeal…

“…gold would not be precious if we all had gold to spare………..” HELD held that bitumen is not a valuable article in the context of Section 69A and the assessee here was not the owner of the concerned bitumen for the purpose of section 69A of the Income Tax Act,1961.

SUPREME COURT OF INDIA DIVISION BENCH M/S.D.N. SINGH — Appellant Vs. COMMISSIONER OF INCOME TAX, CENTRAL, PATNA AND ANOTHER — Respondent ( Before : K.M. Joseph and Hrishikesh Roy, JJ.…

Gambling – Benefit of probation – Incident pertains to the year 2007, when the appellant was about 31 years of age and has been sentenced to undergo imprisonment for a period of one month – As per the information furnished by the learned counsel for the State, the appellant has never indulged in any case of gambling – Probation granted

SUPREME COURT OF INDIA DIVISION BENCH SOORI @ T.V. SURESH — Appellant Vs. THE STATE OF KARNATAKA — Respondent ( Before : Abhay S. Oka and Rajesh Bindal, JJ. )…

Will – Writ petitioner did not have any knowledge about the contents of the Will and the bequest made under the Will – Therefore, this appears to be a case where the writ petitioner is on a treasure hunt, if not a wild goose chase, in the hope that there exists a treasure and that if found, it will be hers – The Court cannot go to the aid of such a person.

SUPREME COURT OF INDIA DIVISION BENCH A. WILSON PRINCE — Appellant Vs. THE NAZAR AND OTHERS — Respondent ( Before : V. Ramasubramanian and Pankaj Mithal, JJ. ) Special Leave…

Civil Procedure Code, 1908 (CPC) – Order 1 Rule 8 – Consumer Protection Act, 2019 – Section 12(1)(c) – there is no question of Order I Rule 8 CPC being complied with as they do not represent the others, particularly when there is no larger public interest involved. Such complainants seek reliefs for themselves and nothing beyond.

SUPREME COURT OF INDIA DIVISION BENCH ALPHA G184 OWNERS ASSOCIATION — Appellant Vs. MAGNUM INTERNATIONAL TRADING COMPANY PVT. LTD. — Respondent ( Before : J.K. Maheshwari and M. M. Sundresh,…

(CrPC) – Sections 107 and 360 – Karnataka Police Act, 1963 – Section 80 – Gambling – Benefit of probation – Appellant is directed to be released on probation under Section 360 Cr.P.C. on entering into bond and two sureties each to ensure that he will maintain peace and good behaviour for the duration of his sentence, failing which he can be called upon to serve the sentence.

SUPREME COURT OF INDIA DIVISION BENCH SOORI @ T.V. SURESH — Appellant Vs. THE STATE OF KARNATAKA — Respondent ( Before : Abhay S. Oka and Rajesh Bindal, JJ. )…

Service Matters

Service Law – Dismissal of ISRO Scientist – Unauthorised Absence and publication of paper without permission – When such acts/conduct occur/occurs from a scientist in a sensitive and strategic organization, the decision to impose dismissal from service cannot be said to be illegal or absolutely unwarranted.

SUPREME COURT OF INDIA DIVISION BENCH DR. V.R. SANAL KUMAR — Appellant Vs. UNION OF INDIA AND OTHERS — Respondent ( Before : M.R. Shah and C.T. Ravikumar, JJ. )…

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