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Presidency Towns Insolvency Act, 1909 — Section 9(2) — “Decree or order” — Whether includes a recovery certificate issued by a Debts Recovery Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (pre-2016 amendment) — Held, no — Insolvency Act, being weighed with grave civil consequence of “civil death”, must be strictly construed — Expression “decree or order” must bear the meaning assigned under Ss. 2(2) and 2(14), CPC, requiring adjudication by a “court” in a “suit” — A DRT recovery certificate, not being a decree or order of a court within this meaning, cannot found an insolvency notice under S. 9(2) — Ratio of Paramjeet Singh Patheja v. ICDS Ltd., (2006) 13 SCC 322 (rendered qua arbitral awards) held to rest on a wider principle applicable equally to DRT recovery certificates — Impugned judgment of Division Bench, Bombay High Court, affirming Single Judge’s quashing of insolvency notice, upheld. Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 — Section 47 — Non-discrimination in government employment — Employee acquiring disability during service — Mandatory obligation on employer to shift employee to alternate post with same pay and service benefits, or, failing that, to accommodate on supernumerary post till superannuation — Respondent, a CRPF Constable (Driver), rendered blind/partially blind in 1996 and medically invalidated from service in 1998 without consideration of alternate posting — Held, S. 47 casts a positive and mandatory obligation on employer to protect disabled employee and not await a request for accommodation — Order of medical invalidation dated 11-3-1998 held ultra vires S. 47 and Arts. 14 and 21 of the Constitution — Single Judge’s direction reinstating respondent, upheld by Division Bench, affirmed in principle, though relief modified in view of respondent’s superannuation — Kunal Singh v. Union of India, (2003) 4 SCC 524; Bhagwan Dass v. Punjab State Electricity Board, (2008) 1 SCC 579; Ravinder Kumar Dhariwal v. Union of India, (2023) 2 SCC 209, relied on. 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

Presidency Towns Insolvency Act, 1909 — Section 9(2) — “Decree or order” — Whether includes a recovery certificate issued by a Debts Recovery Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (pre-2016 amendment) — Held, no — Insolvency Act, being weighed with grave civil consequence of “civil death”, must be strictly construed — Expression “decree or order” must bear the meaning assigned under Ss. 2(2) and 2(14), CPC, requiring adjudication by a “court” in a “suit” — A DRT recovery certificate, not being a decree or order of a court within this meaning, cannot found an insolvency notice under S. 9(2) — Ratio of Paramjeet Singh Patheja v. ICDS Ltd., (2006) 13 SCC 322 (rendered qua arbitral awards) held to rest on a wider principle applicable equally to DRT recovery certificates — Impugned judgment of Division Bench, Bombay High Court, affirming Single Judge’s quashing of insolvency notice, upheld.

Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 — Section 47 — Non-discrimination in government employment — Employee acquiring disability during service — Mandatory obligation on employer to shift employee to alternate post with same pay and service benefits, or, failing that, to accommodate on supernumerary post till superannuation — Respondent, a CRPF Constable (Driver), rendered blind/partially blind in 1996 and medically invalidated from service in 1998 without consideration of alternate posting — Held, S. 47 casts a positive and mandatory obligation on employer to protect disabled employee and not await a request for accommodation — Order of medical invalidation dated 11-3-1998 held ultra vires S. 47 and Arts. 14 and 21 of the Constitution — Single Judge’s direction reinstating respondent, upheld by Division Bench, affirmed in principle, though relief modified in view of respondent’s superannuation — Kunal Singh v. Union of India, (2003) 4 SCC 524; Bhagwan Dass v. Punjab State Electricity Board, (2008) 1 SCC 579; Ravinder Kumar Dhariwal v. Union of India, (2023) 2 SCC 209, relied on.

Advance Tax Ruling System – Aim of any properly framed advance ruling system ought to be a dialogue between taxpayers and revenue authorities to fulfil the mutually beneficial purpose for taxpayers and revenue authorities HELD Swedish model and the New Zealand system may be a possible way forward.

  SUPREME COURT OF INDIA DIVISION BENCH NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION — Appellant Vs. COMMISSIONER OF INCOME TAX, DELHI-V — Respondent ( Before : Sanjay Kishan Kaul and Indu Malhotra,…

Prevention of Corruption Act, 1988 – IPC , 1860 – Evidence Act, 1872 – Ss 165 – Constitution of India, Art 14 – Corruption Charges – Punishment of dismissal was disproportionate to the allegation of corruption, is without merit – It is a settled legal proposition that the Disciplinary Authority has wide discretion in imposing punishment for a proved delinquency, subject to principles of proportionality and fair play

  SUPREME COURT OF INDIA FULL BENCH PRAVIN KUMAR — Appellant Vs. UNION OF INDIA AND OTHERS — Respondent ( Before : N.V. Ramana, S. Abdul Nazeer and Surya Kant,…

N D P S Act, 1985 – Ss 20(b)(ii)(B) & 50 – Possession 20 kg – Ganja from the motor cycle – NDPS Trial is not vitiated merely because ownership of Vehicle from which Contraband was seized is not established – It is enough to establish and prove that the contraband articles were found from the accused from the vehicle purchased by the accused

  SUPREME COURT OF INDIA FULL BENCH RIZWAN KHAN — Appellant Vs. THE STATE OF CHHATTISGARH — Respondent ( Before : Ashok Bhushan, R. Subhash Reddy and M.R. Shah, JJ.…

Service Matters

Road Transport Corporation Act, 1950 – S 45 – Rajasthan State Road Transport Corporation Employees Corporation Pension Regulations, 1989 – Regulations 3, 3(1), 3(k) and 43 – Rejection of pension – HELD Merely because the respondent had withdrawn the entire CPF amount prior to his absorption would not make any difference because the CPF account was closed by the Board on the employee’s absorption – Appeal dismissed.

  SUPREME COURT OF INDIA DIVISION BENCH RAJASTHAN STATE ROAD TRANSPORT CORPORATION AND OTHERS — Appellant Vs. GOVERDHAN LAL SONI AND ANOTHER — Respondent ( Before : Ashok Bhushan and…

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.…

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