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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)

Wealth-Tax Act, 1957 – Sections 21AA and 167A – Club Rules – Rule 35 – Liability to pay Wealth Tax – Section 21AA does not enlarge the field of tax payers but only plugs evasion -applying the ratio of CWT v. Trustees of H.E.H. Nizam’s Family 108 ITR 555 (1977), HELD club members fixed body as on the date of liquidation. Appeal allowed.

  SUPREME COURT OF INDIA FULL BENCH M/S BANGALORE CLUB — Appellant Vs. THE COMMISSIONER OF WEALTH TAX AND ANOTHER — RespondentS ( Before : R. F. Nariman, Navin Sinha…

Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 – Regulation 36A – Invitation for expression of interest- HELD The second meeting of the Committee of Creditors was held on 27.03.2018. The advertisement was approved in the said meeting – It was the unamended Regulation 36A that was in force at that time – This has not been appreciated by NCLAT, order of is flawed

  SUPREME COURT OF INDIA FULL BENCH THE KARAD URBAN COOPERATIVE BANK LIMITED — Appellant Vs. SWWAPNIL BHINGARDEVAY AND OTHERS — Respondent ( Before : S. A. Bobde, CJI., A.…

Service Matters

Service Law – Recruitment – Post of District Judges (Entry Level) – Grievance of the petitioners is that despite being the senior most in the cadre of District Judges, HELD a person holding a judicial office is better placed, as he is assured of a career progression (though in a limited sense) after being placed in something like a conveyor belt. There is no such assurance for an advocate – Appeal Dismissed.

  SUPREME COURT OF INDIA FULL BENCH R. POORNIMA AND OTHERS — Appellant Vs. UNION OF INDIA AND OTHERS — Respondent ( Before : S. A. Bobde, CJI., A. S.…

Prevention of Food Adulteration Rules, 1955 – Rule 32(e) – Misbranded Standards – Product had the necessary barcode on it that contained all the relevant information as required by Rule 32(e) such as batch no./code no./lot no etc HELD information under Rule 32(e) with regard to the lot/code/batch identification to facilitate it being traced to the manufacturer are available prosecution to continue and it will be an abuse of the process of law

  SUPREME COURT OF INDIA FULL BENCH RAGHAV GUPTA — Appellant Vs. STATE (NCT OF DELHI) AND ANOTHER — Respondent ( Before : R.F. Nariman, Navin Sinha and Indira Banerjee,…

HELD “… difference between the offences in Section 195(1)(b)(i) & Section 195(1)(b)(ii) of the CrPC – Where the facts mentioned in a complaint attracts the provisions of Ss 191 to 193 of the IPC, Section 195(1)(b)(i) of the CrPC applies. The offence punishable under these sections does not have to be committed only in any proceeding in any Court but can also be an offence alleged to have been committed in relation to any proceeding in any Court.

HELD “…it is important to understand the difference between the offences mentioned in Section 195(1)(b)(i) and Section 195(1)(b)(ii) of the CrPC. Where the facts mentioned in a complaint attracts the…

Urban Land (Ceiling and Regulation) Act, 1976 – Sections 20, 21 and 38(4) – Grant of exemption – competent authority being a creature of the statute under Section 2(d) of the Act, cannot act beyond its statutory jurisdiction and the exercise of its powers shall remain circumscribed by the provisions of the Act – Hence demand of price and recovery of property price outside the purview of act illegal.

  SUPREME COURT OF INDIA DIVISION BENCH SHRIDHAR C. SHETTY (DECEASED) THR. LRS. — Appellant Vs. THE ADDITIONAL COLLECTOR AND COMPETENT AUTHORITY AND OTHERS — Respondent ( Before : Rohinton…

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