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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 —

Civil Procedure Code, 1908 (CPC) – Order 39 – Temporary injunction – Jurisdiction – Under Order 39 of the Code of Civil Procedure, jurisdiction of the Court to interfere – Since the relief is wholly equitable in nature, the party invoking the jurisdiction of the Court has to show that he himself was not at fault and that he himself was not responsible for bringing about the state of things complained of and that he was not unfair or inequitable in his dealings with the party against whom he was seeking relief. His conduct should be fair and honest

SUPREME COURT OF INDIA DIVISION BENCH AMBALAL SARABHAI ENTERPRISE LIMITED — Appellant Vs. KS INFRASPACE LLP LIMITED AND ANOTHER — Respondent ( Before : Ashok Bhushan and Navin Sinha, JJ.…

Service Matters

Punjab Civil Services Rules – Rules 4.22 and 4.23 – Grant of pension by adding interruption of service – It is clear that the case of the appellant was not covered by Rule 4.23 and further the request for granting relaxation by the Government from Rule 4.23 was not acceded to – When the State has refused to grant relaxation in the rule, the refusal by the respondent for adding the period of interruption for pensionary benefit cannot be faulted

SUPREME COURT OF INDIA DIVISION BENCH SURINDER NATH KESAR — Appellant Vs. BOARD OF SCHOOL EDUCATION AND OTHERS — Respondent ( Before : Ashok Bhushan and M.R. Shah, JJ. )…

Narcotic Drugs and Psychotropic Substances Act, 1985 – Sections 18 and 50 – Criminal Procedure Code, 1973 (CrPC) – Section 313 – Possession of 1kg 750 grams of opium – Conviction and sentence – Appeal against – Merely because prosecution has not examined any independent witness, same would not necessarily lead to the conclusion that the appellant has been falsely implicated.

SUPREME COURT OF INDIA FULL BENCH SURINDER KUMAR — Appellant Vs. STATE OF PUNJAB — Respondent ( Before : N.V. Ramana, R. Subhash Reddy and B.R. Gavai, JJ. ) Criminal…

H E L D – The respondents had paid 85% of the agreed consideration, together with the agreement to sell, and even the balance at the time when the sale deed was executed on 11 February 2013. Having paid the consideration, it was evidently not in their interest to delay the receipt of possession. Though the sale deed records that possession was handed over, it is clear from the contemporaneous record that it was only on 28 August 2014 that all the sets of keys of the apartment were handed over to the respondents. Consequently, the appellant would be liable to pay reasonable compensation to the respondents for the period between 9 February 2013 and 28 August 2014, in addition to the contractual payment due for the period between 8 August 2012 and 8 February 2013.

SUPREME COURT OF INDIA DIVISION BENCH M/S LANCO HILLS TECHNOLOGY PARK PRIVATE LIMITED — Appellant Vs. MANISHA BALKRISHNA KULKARNI AND ANOTHER — Respondent ( Before : Dr. Dhananjaya Y. Chandrachud…

INJUNCTION – The division bench held that there is no documentary evidence to prima facie show that the Appellant – Developer is in physical possession of the suit property. Furthermore, the issue whether the Appellant – Developer has paid part consideration for the entire suit property was required to be determined in the trial. The division bench took the view that the Appellant – Developer had not made out a prima facie case for grant of Temporary Injunction. The Respondents being the lawful owners of the suit property, granting such an injunction would cause irreparable loss and hardship to them.

SUPREME COURT OF INDIA FULL BENCH SAKETA VAKSANA LLP AND ANOTHER — Appellant Vs. KAUKUTLA SARALA AND OTHERS — Respondent ( Before : Uday Umesh Lalit, Indu Malhotra and Krishna…

Penal Code, 1860 (IPC) – Sections 143, 147, 148, 302 read with Section 149 – Explosive Substances Act, 1908 – Sections 3 and 5 – Unlawful assembly – Persons were armed with deadly weapons like country­ made bombs etc. HELD the scope of interference in an appeal against acquittal is very limited, the appellate court set aside the judgment of the trial court. It is obvious that the High Court also did not find material evidence to convict the accused and, therefore, set aside the judgment and remitted the matter to the trial court. In a criminal case, remand is not to be ordered as a matter of course. It is only if there is a minis­trial or some technical issues have arisen that such an order may be made but in very rare circumstances. – The trial court was justified in acquitting the accused

SUPREME COURT OF INDIA DIVISION BENCH KOOLI SASEENDRAN AND OTHERS — Appellant Vs. STATE OF KERALA ETC. — Respondent ( Before : Deepak Gupta and Aniruddha Bose, JJ. ) Criminal…

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