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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 —

Motor Vehicles Act, 1988 — Section 166 and 140 — Compensation for death in motor vehicular accident — Negligence — Truck stationed on road at night without warning lights or indicators — Wagon-R car collided from behind — Held, truck driver was negligent in leaving the vehicle unattended on the road without adequate precautionary measures, which was the proximate cause of the accident.

2026 INSC 653 SUPREME COURT OF INDIA DIVISION BENCH THE ORIENTAL INSURANCE COMPANY LIMITED Vs. KALU RAM AND OTHERS ( Before : Prashant Kumar Mishra and N.V. Anjaria, JJ. )…

Penal Code, 1860 (IPC) — Sections 420, 467, 468, 471 — Forgery and use of forged documents in judicial proceedings — Appeal confined to quantum of sentence, conviction upheld — Occurrence of offence in 2014, appellant facing proceedings for over a decade, no prior or subsequent criminal antecedents, forged document detected at early stage, no irreversible consequences — These factors warrant reconsideration of substantive sentence on grounds of proportionality and mitigating circumstances.

2026 INSC 654 SUPREME COURT OF INDIA DIVISION BENCH ISRAFIL @ PAPPU @ NAIMUDDIN KHAN Vs. STATE OF MADHYA PRADESH ( Before : Prashant Kumar Mishra and N.V. Anjaria, JJ.…

Constitution of India, 1950 — Article 19(1)(d), Article 21 — Fundamental Right to Walk — The right to walk is a fundamental right integral to the right to movement under Article 19(1)(d), read with other provisions of Article 19 and Article 21 — This fundamental right includes the right to demarcated footpaths, which must take precedence over the movement of motorised vehicles

2026 INSC 647 SUPREME COURT OF INDIA DIVISION BENCH MANIYAR ILIYAZ @ SHAIK RIYAZ AND ANOTHER Vs. P. AYYAPPAN AND OTHERS ( Before : Pamidighantam Sri Narasimha and Atul S.…

Civil Procedure Code, 1908 (CPC) — Order 21 — Execution proceedings — High Court’s directions for assessment of compensation in execution proceedings — Held, impermissible when original suit did not seek compensation and parties did not consent — Setting aside of trial court and first appellate court decrees, followed by direction to execute court to assess value of construction, is not supported by CPC

2026 INSC 648 SUPREME COURT OF INDIA DIVISION BENCH RAJAT KUMAR AND OTHERS Vs. S D ADARSH JAIN KANYA MAHA VIDYALAYA SADHAURA AND OTHERS ( Before : S.V.N. Bhatti and…

Service Matters

Delhi Municipal Corporation Act, 1957 — Section 59(d), 92 and 95(1) — Delhi Municipal Corporation Service (Control and Appeal) Regulations, 1959 — Regn. 7, Schedule — Disciplinary Authority — Competency of Commissioner to dismiss Group ‘A’ Officer — Substitution of Section 59(d) by Delhi Municipal Corporation (Amendment) Act, 1993, w.e.f. 01.10.1993 — Legislative Intent — Post-1993 amendment, the Commissioner is put in complete control both as the appointing authority and the disciplinary authority — Phrase “subject to any regulation that may be made in this behalf” used in Section 59(d) refers to regulations that may be made in future and not the existing 1959 Regulations — Commissioner held fully competent to pass dismissal orders against Group ‘A’ officers despite old regulations naming the ‘Corporation’ as the disciplinary authority.

2026 INSC 646 SUPREME COURT OF INDIA DIVISION BENCH RAJESH SHARMA Vs. NORTH DELHI MUNICIPAL CORPORATION AND ANOTHER ( Before : Sanjay Karol and Manoj Misra, JJ. ) Civil Appeal…

Service Matters

Constitution of India, 1950 — Art. 16 and 226 — Public Employment — Direct Recruitment — Eligibility Criteria — Workshop Experience — Pendency of workshop renewal applications — Effect on candidates — Where a recruitment notification mandates a minimum of one year of experience in a Government-approved workshop, candidates cannot be prejudiced or disqualified merely because the workshop’s application for renewal of approval was pending with the State authorities during the period they gained experience — Depriving an otherwise eligible candidate of employment due to an administrative “period of eclipse” or delay on the part of state machinery is arbitrary and discriminatory–Ashok Kumar Yadav v. State of Haryana, 1985 INSC 137, relied on; State of Uttar Pradesh v. Atul Kumar Dwivedi, 2022 INSC 24, Distinguished.

2026 INSC 645 SUPREME COURT OF INDIA DIVISION BENCH S. SENTHIL KUMARAN BOSE Vs. THE STATE OF TAMIL NADU AND OTHERS ( Before : J.K. Maheshwari and Atul S. Chandurkar,…

Right to Information Act, 2005 — S. 24(4) — Madhya Pradesh Special Police Establishment Act, 1947 — S. 2(1), S. 3 — “Intelligence and Security Organisation” — Scope and Applicability of Exemption — Jurisdiction of Special Police Establishment (SPE) — The expression “intelligence and security organisations” under Section 24 of the RTI Act implies that the concerned entity must be statutory or institutionally empowered to handle matters of intelligence and national/state security — The Special Police Establishment (SPE) of Madhya Pradesh, established under Section 2(1) of the Act of 1947, is clothed with a limited jurisdiction restricted strictly to investigating offences punishable under the Prevention of Corruption Act, 1988, and select economic/fraud offenses under Sections 409, 420, and Chapter XVIII of the Indian Penal Code — Because neither the Lokayukt nor the SPE handles matters connected to general ‘intelligence’ and ‘security’, the SPE cannot be deemed an “intelligence and security organisation” under Section 24(4) of the RTI Act — Principle of institutional parity cannot be invoked to grant blanket exemptions to a anti-corruption investigation agency.

2026 INSC 644 SUPREME COURT OF INDIA DIVISION BENCH SPECIAL POLICE ESTABLISHMENT Vs. KAMTA PRASAD MISHRA AND OTHERS ( Before : J.K. Maheshwari and Atul S. Chandurkar, JJ. ) Criminal…

Civil Procedure Code, 1908 (CPC) — Section 11, Explanation IV — Constructive Res Judicata — Application of the principle depends on the facts and circumstances of each case, considering the ambit of earlier proceedings and the nexus of the matter to the controversy — It is founded on public policy to prevent multiplicity of proceedings and avoid parties being vexed twice over for the same litigation — Parties are expected to exercise reasonable diligence and bring forward every point that properly belonged to the subject of litigation and which they might and ought to have brought forward — Negligence, inadvertence, or accident in omitting a part of the case does not exempt from its application.

2026 INSC 636 SUPREME COURT OF INDIA DIVISION BENCH MAKARDHWAJ RAM Vs. JAGDISH RAI (DEAD) TH. LRS. AND ANOTHER ( Before : Sanjay Karol and Nongmeikapam Kotiswar Singh, JJ. )…

Motor Vehicles Act, 1988 — Section 165 and 166 — Liability for injuries sustained due to falling tree branch — Injuries caused by falling tree branch while vehicle was stationary under the tree during rain — Held, not an accident “arising out of the use of a motor vehicle” as the motor vehicle did not play an active role. [

2026 INSC 637 SUPREME COURT OF INDIA DIVISION BENCH THE COMMISSIONER, BRUHAT BANGALORE MAHANAGARA PALIKE Vs. K.K.UMESH KUMAR AND OTHERS ( Before : Sanjay Karol and Nongmeikapam Kotiswar Singh, JJ.…

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