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Indian Air Force — Short Service Commission Officers (SSCOs) — Reinstatement and consideration for Permanent Commission (PC) — Dismissal of appeal challenging AFT order — Delay in approaching legal forum. Short Service Commission Women Officers (SSCWOs) — Eligibility for Permanent Commission (PC) and pensionary benefits — Applicability of Air Force Human Resource Policy — Refusal of benefits due to not meeting minimum average Annual Confidential Report (ACR) grading of 6.5 — Court’s refusal to grant benefits where minimum criteria not met and no demonstrated mitigating circumstances exist compared to other successful applicants. Air Force Act, 1950 — Short Service Commission Women Officers (SSCWOs) — Permanent Commission (PC) — Denial of PC — Assessment of performance and eligibility — HRP 01/2019 — Minimum Performance Criteria — ACR gradings — Mandatory In-Service Courses (MISCs) — Categorisation — Arbitrariness — Hurried implementation — Inadequate opportunity to meet criteria — Pregnancy — Deemed qualifying service for pension — One-time measure. Army Act, 1950 — Short Service Commission Officers (SSCOs) — Permanent Commission (PC) — Annual Vacancy Cap — The Supreme Court examined the annual cap of 250 vacancies for PC, finding it not to be an immutable rule and that it had been breached historically for exigencies of service and policy changes, thus it should not act as an absolute bar to corrective relief, especially when the method of assessment was found to be unfair. Service Law — Indian Navy — Short Service Commission Officers (SSCOs) — Grant of Permanent Commission (PC) — Assessment of suitability for PC — Whether casual grading of ACRs and “Not Recommended for PC” endorsements prejudiced officers’ chances of PC — Held yes, as officers were considered ineligible for PC at the time of their ACRs, leading to a distorted assessment of their inter se merit for PC — This circularity transformed past ineligibility into deemed unsuitability for career progression, creating an uneven playing field.

Prevention of Corruption Act, 1988 read with Bihar Special Courts Act, 2009 (BSCA) — Confiscation proceedings against family members of a deceased public servant — Death of the public servant during pendency of appeal — Whether confiscation proceedings can continue against the family members — Held, the BSCA provides for specific circumstances for return of confiscated property, namely, modification/annulment by High Court or acquittal by Special Court — The Act does not provide for abatement of proceedings upon death of the public servant, especially when family members were also put to notice — proceedings against family members cannot be automatically set aside due to the death of the public servant, and appeals should be decided on merits.

2026 INSC 272 SUPREME COURT OF INDIA DIVISION BENCH THE STATE OF BIHAR THROUGH VIGILANCE Vs. SUDHA SINGH ( Before : Sanjay Karol and Nongmeikapam Kotiswar Singh, JJ. ) Criminal…

Service Matters

Gratuity — Withholding of gratuity due to non-vacation of company-allotted accommodation — SAIL Gratuity Rules, 1978, Rule 3.2.1(c) expressly empowers management to withhold gratuity for non-compliance with company rules, including non-vacation of accommodation — No interest payable on gratuity withheld for period of unauthorized occupation — Management is entitled to adjust penal rent accrued for retention beyond permissible period from gratuity amount — Order of March 31, 2017 in Ram Naresh Singh’s case was a concession based on specific facts and not binding precedent, unlike the order of December 15, 2020 in S.L.P — (C) No — 11025 of 2020 which clarified principles of penal rent adjustment

2026 INSC 263 SUPREME COURT OF INDIA DIVISION BENCH THE MANAGEMENT OF STEEL AUTHORITY OF INDIA AND OTHERS Vs. SHAMBHU PRASAD SINGH AND OTHERS ( Before : Pankaj Mithal and…

Motor Vehicles Act, 1988 — Section 166 — Motor Accidents Claims Tribunal (MACT) — Assessment of compensation — Functional disability vs — Physical disability — High Court reduced functional disability from 63% assessed by Medical Board to 30% without providing cogent reasons, constituting an erroneous appreciation of evidence and misapplication of legal principles — Such reduction, without convincing evidence impeaching medical certificates and without assigning adequate reasons, was unjustified — Supreme Court, to do complete justice and avoid further delay, examined functional disability on merits, considering medical and neuropsychological reports indicating severe cognitive impairment, partial blindness, and orthopedic limitations — Held, functional disability for calculating loss of earning capacity should be assessed at 100% given the claimant’s managerial role and the profound impact of injuries on his cognitive and functional abilities — Compensation recalculated accordingly, enhancing the award from Rs — 35,61,000/- to Rs — 97,73,011/-.

2026 INSC 260 SUPREME COURT OF INDIA DIVISION BENCH R. HALLE Vs. RELIANCE GENERAL INSURANCE COMPANY LIMITED ( Before : Prashant Kumar Mishra and Sandeep Mehta, JJ. ) Civil Appeal…

Criminal Procedure Code, 1973 (CrPC) — Sections 221 and 222 — Conviction for offence not charged — High Court rightly reversed the conviction under Section 364 of IPC when the charge was for Section 302 of IPC, as Section 364 is not a minor or cognate offence to Section 302, making conviction without specific charge or notice prejudicial to fair trial

2026 INSC 256 SUPREME COURT OF INDIA DIVISION BENCH THE STATE OF UTTAR PRADESH Vs. RAM SWAROOP @ BARKAT ( Before : Aravind Kumar and Augustine George Masih, JJ. )…

Consumer Protection Act, 1986 — Section 2(1)(d) — Definition of “consumer” — Commercial purpose — Deposit of surplus funds by a company in a bank for earning interest does not automatically make it a commercial purpose, but if the deposit is made to leverage credit facilities for augmenting business, it would have a direct nexus with revenue generation/profits — The identity of the purchaser or the value of the transaction is not conclusive, but the dominant intention or purpose behind the transaction is determining.

2026 INSC 264 SUPREME COURT OF INDIA DIVISION BENCH SANT ROHIDAS LEATHER INDUSTRIES AND CHARMAKAR DEVELOPMENT CORPORATION LTD. Vs. VIJAYA BANK ( Before : Pamidighantam Sri Narasimha and Manoj Misra,…

Penal Code, 1860 (IPC) — Sections 406 and 420 — Criminal breach of trust and cheating — For an offence of cheating under Section 415 IPC, a fraudulent or dishonest intention must exist at the time of making the promise or representation — Mere failure to keep a promise subsequently does not automatically prove dishonest intention from the beginning — Every breach of contract does not amount to cheating, unless there was deception at the inception.

2026 INSC 265 SUPREME COURT OF INDIA DIVISION BENCH V. GANESAN Vs. STATE REP BY THE SUB INSPECTOR OF POLICE AND ANOTHER ( Before : Pamidighantam Sri Narasimha and Manoj…

Service Matters

Service Law — Disciplinary proceedings post-superannuation — Where service regulations permit continuation of disciplinary proceedings initiated before superannuation, they can be concluded thereafter — Punishment of reduction in pay scale can be implemented by computing pension based on the reduced salary.

2026 INSC 266 SUPREME COURT OF INDIA DIVISION BENCH VIRINDER PAL SINGH Vs. PUNJAB AND SIND BANK AND OTHERS ( Before : Pamidighantam Sri Narasimha and Manoj Misra, JJ. )…

Securities and Exchange Board of India Act, 1992 — Section 15Z — Appeal to Supreme Court against SAT order setting aside Adjudicating Officer’s order imposing penalties for violation of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 and Securities Contracts (Regulation) Act, 1956 — Held, diversion of funds from preferential issue was in violation of Regulations and detrimental to investors — SAT’s reversal of AO’s order based on shareholder ratification was erroneous — Appeals allowed — Order of Adjudicating Officer restored.

2026 INSC 245 SUPREME COURT OF INDIA DIVISON BENCH SECURITIES AND EXCHANGE BOARD OF INDIA Vs. TERRASCOPE VENTURES LIMITED ETC ( Before : J.B. Pardiwala and K. V. Viswanathan, JJ.…

Constitution of India, 1950 — Article 21 — Right to dignified life — Includes reproductive autonomy and the right to foster a family through adoption — Restricting maternity benefit based on the age of an adopted child infringes upon this right by denying adoptive mothers the opportunity to bond and integrate with their child, compromising both maternal and child welfare.

2026 INSC 246 SUPREME COURT OF INDIA DIVISON BENCH HAMSAANANDINI NANDURI Vs. UNION OF INDIA AND OTHERS ( Before : J.B. Pardiwala and R. Mahadevan, JJ. ) Writ Petition (C)…

Contract Act, 1872 — Section 126 — Guarantee — Corporate Guarantee — Defendant No.1 executed a written undertaking (Corporate Guarantee) to pay a sum of USD 100,000 — This constituted a valid guarantee, not just a freight payment arrangement — Liability of surety is co-extensive with principal debtor.

2026 INSC 247 SUPREME COURT OF INDIA DIVISON BENCH CANARA BANK OVERSEAS BRANCH REP. BY SENIOR MANAGER Vs. ARCHEAN INDUSTRIES PRIVATE LIMITED AND ANOTHER ( Before : J.B. Pardiwala and…

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