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Arbitration and Conciliation Act, 1996 — Sections 5, 34, and 37 — Scope of Judicial Intervention — Minimum intervention of judicial authority in domestic arbitration matters is required under Section 5 — Challenge to an arbitral award under Section 34 is limited to specific grounds, including patent illegality or conflict with the public policy of India — Scope of interference by the Appellate Court under Section 37 is akin to and cannot travel beyond the restrictions laid down under Section 34 — Appellate Court cannot undertake an independent assessment of the merits of the award or re-interpret contractual clauses if the interpretation by the Arbitral Tribunal was a plausible view and upheld under Section 34 — Setting aside an arbitral award under Section 37, which was upheld under Section 34, based on providing a different interpretation of contractual clauses is unsustainable in law. (Paras 24, 25, 30, 31, 36, 37, 39, 50, 51) Limitation Act, 1963 — Article 54 — Suit for specific performance — Commencement of limitation period — Where the defendant subsequently executed an affidavit ratifying the agreement to sell and conveying no-objection to the transfer, the period of limitation commences from the date of the admitted affidavit, as this is the stage at which the executant finally refused to execute the sale deed to the extent of her share — Trial court and High Court erred in dismissing the suit on the ground of limitation calculated from an earlier disputed date. (Paras 13, 35, 36, 37) Arbitration and Conciliation Act, 1996 — Section 9(2) read with Rule 9(4) of 2001 Rules — Setting aside High Court judgment — High Court erroneously treated the date of filing of the Section 11 petition (28.06.2024) as the commencement date, leading to the conclusion that proceedings commenced beyond the statutory period — Where the arbitration notice was served (on 11.04.2024) well within the 90-day period from the ad-interim injunction order (17.02.2024), proceedings commenced in time as per Section 21 — High Court’s finding unsustainable, resulting in the restoration of the Trial Court’s initial ad-interim injunction order. (Paras 28, 31, 32) E. Arbitration and Conciliation Act, 1996 — Section 9 — Interim injunction — Dispute regarding existence Motor Vehicles Act, 1988 — Section 2(28) — Definition of “motor vehicle” — Components — Definition has two parts: an inclusive part (mechanically propelled vehicle adapted for use upon roads) and an exclusive part — The second part expressly excludes “a vehicle of a special type adapted for use only in a factory or in any other enclosed premises” — Although Dumpers, Loaders, etc., may fall under the first part of the definition, they are excluded if their nature of use is confined to factory or enclosed premises, being special type vehicles/Construction Equipment Vehicles. (Paras 36, 37, 38, 39) Telangana Prevention of Dangerous Activities of BootLeggers, Dacoits, Drug-Offenders, Goondas, Immoral Traffic Offenders etc. Act, 1986 — Section 3(2) — Preventive Detention — Grounds for Detention — Requirement of finding ‘prejudicial to the maintenance of public order’ — Detenu, a ‘drug offender’, was detained based on three criminal cases involving Ganja, with an apprehension that if released on bail, she would engage in similar activities — Held, mere apprehension that the detenu, if released on bail, would be likely to indulge in similar crimes would not be a sufficient ground for ordering preventive detention — Order of detention failed to indicate how the detenu’s activities were prejudicial to ‘public order’ as opposed to ‘law and order’ and was therefore unsustainable. (Paras 3, 5, 8, 9, 10, 11)

Arbitration and Conciliation Act, 1996 — Sections 5, 34, and 37 — Scope of Judicial Intervention — Minimum intervention of judicial authority in domestic arbitration matters is required under Section 5 — Challenge to an arbitral award under Section 34 is limited to specific grounds, including patent illegality or conflict with the public policy of India — Scope of interference by the Appellate Court under Section 37 is akin to and cannot travel beyond the restrictions laid down under Section 34 — Appellate Court cannot undertake an independent assessment of the merits of the award or re-interpret contractual clauses if the interpretation by the Arbitral Tribunal was a plausible view and upheld under Section 34 — Setting aside an arbitral award under Section 37, which was upheld under Section 34, based on providing a different interpretation of contractual clauses is unsustainable in law. (Paras 24, 25, 30, 31, 36, 37, 39, 50, 51)

Limitation Act, 1963 — Article 54 — Suit for specific performance — Commencement of limitation period — Where the defendant subsequently executed an affidavit ratifying the agreement to sell and conveying no-objection to the transfer, the period of limitation commences from the date of the admitted affidavit, as this is the stage at which the executant finally refused to execute the sale deed to the extent of her share — Trial court and High Court erred in dismissing the suit on the ground of limitation calculated from an earlier disputed date. (Paras 13, 35, 36, 37)

Civil Procedure Code, 1908 (CPC) – Section 2(12) – In the case of determination of a lease by the lease coming to an end, tenant would be liable to pay damages for use and occupation at the rate at which the landlord could have let out the premises on being vacated by the tenant

SUPREME COURT OF INDIA DIVISON BENCH INDIAN OIL CORPORATION LTD. — Appellant Vs. SUDERA REALTY PRIVATE LIMITED — Respondent ( Before : K.M. Joseph and Pamidi Ghantam Sri Narasimha, JJ.…

Gujarat Value Added Tax, 2003 – IBC – State is a secured creditor under the GVAT Act. Section 3(30) of the IBC defines secured creditor to mean a creditor in favour of whom security interest is credited. Such security interest could be created by operation of law – Definition of secured creditor in the IBC does not exclude any Government or Governmental Authority

SUPREME COURT OF INDIA DIVISON BENCH STATE TAX OFFICER (1) — Appellant Vs. RAINBOW PAPERS LIMITED — Respondent ( Before : Indira Banerjee and A.S. Bopanna, JJ. ) Civil Appeal…

Faridkot Royal Family Property Dispute – Raja of Faridkot’s Estate Act, 1948 was not a valid enactment and would not be applicable for succession to the estate of the Ruler – No case was made out for the applicability of Rule of Primogeniture and succession based on said Rule – Order of High Court granting the majority share to Amrit Kaur and Deepinder Kaur is upheld.

CE DECEASED) THROUGH LRS. AND OTHERS — Appellant Vs. RAJKUMARI AMRIT KAUR AND OTHERS — Respondent ( Before : Uday Umesh Lalit CJI., S. Ravindra Bhat and Sudhanshu Dhulia, JJ.…

Arbitration and Conciliation Act, 1996 – Section 7 – Arbitration agreement – Section 7 of the Act does not mandate any particular form for the arbitration clause – – Deficiency of words in agreement which otherwise fortifies the intention of the parties to arbitrate their disputes, cannot legitimise the annulment of arbitration clause

SUPREME COURT OF INDIA DIVISON BENCH BABANRAO RAJARAM PUND — Appellant Vs. M/S. SAMARTH BUILDERS AND DEVELOPERS AND ANOTHER — Respondent ( Before : Surya Kant and Abhay S. Oka,…

Claimant was working as a Mason – Serious injuries – Multiplier 15 – Judgment and order passed by the High Court modified awarding Rs. 24,000/ towards loss of earing; Rs. 9,00,000/ towards future economic loss (instead of Rs. 5,40,000/ as awarded by the High Court) and Rs. 4,00,000/ towards pain, shock, and suffering – Thus, the claimant shall be entitled to a total sum of Rs. 15,42,800/ with 7.5% interest per annum from the date of the claim petition, till satisfaction – Appeal allowed.

SUPREME COURT OF INDIA DIVISON BENCH VELAYUDHAN — Appellant Vs. NATIONAL INSURANCE CO. LTD. AND ANOTHER — Respondent ( Before : M.R. Shah and Krishna Murari, JJ. ) Civil Appeal…

(CrPC) – Section 482 – Quashing of criminal proceedings on the basis of settlement – Court cannot deal with cases involving abuse of official position and adoption of corrupt practices, like suits for specific performance, where the refund of the money paid may also satisfy the agreement holder – High Court completely erred – Appeal allowed.

SUPREME COURT OF INDIA DIVISON BENCH P. DHARAMARAJ — Appellant Vs. SHANMUGAM AND OTHERS — Respondent ( Before : S. Abdul Nazeer and V. Ramasubramanian, JJ. ) Criminal Appeal No.…

Service Matters

Mistake of State who issued impugned circular – State was not justified in ordering recovery of the excess amount paid with interest, more particularly, when it is reported that some of the doctors/dentists – members of the association have retired on attaining the age of superannuation and the recovery shall be from their pension/pensionary benefits.

SUPREME COURT OF INDIA DIVISON BENCH M.P. MEDICAL OFFICERS ASSOCIATION — Appellant Vs. THE STATE OF MADHYA PRADESH AND OTHERS — Respondent ( Before : M.R. Shah and B.V. Nagarathna,…

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