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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 —

Service Matters

Navy (Pension) Regulations, 1964 – Regulations 78, 105B, 107 and 107(1) – Quantification of disability pension – Individual – A person who has completed the period of engagement is entitled to disability element apart from service pension. The expression ‘service pension’ admissible is not restricted to the qualifying service provided under Regulation 78. It is not for the Courts to remedy the defect in the Statute.

SUPREME COURT OF INDIA DIVISION BENCH UNION OF INDIA AND OTHERS — Appellant Vs. V.R. NANUKUTTAN NAIR — Respondent ( Before : L. Nageswara Rao and Hemant Gupta, JJ. )…

Acquittal in offences under Section 147, 148, 149 and 302 of the Indian Penal Code, 1860- HELD In a criminal trial, the prosecution can succeed only if the guilt of the accused is brought home. That the accused may have done the crime barely suffices. The case of the prosecution as sought to be made out must be established.

SUPREME COURT OF INDIA DIVISION BENCH STATE OF UTTARAKHAND — Appellant Vs. DARSHAN SINGH — Respondent ( Before : Sanjay Kishan Kaul and K.M. Joseph, JJ. ) Criminal Appeal No.…

Service Matters

Central Civil Services (Pension) Rules, 1972 – Rule 88 – Grant of pension – The services rendered by the respondents as GDS or other Extra­Departmental Agents cannot be factored in for computing their qualifying services in regular posts under the postal department on the question of grant of pension.

SUPREME COURT OF INDIA FULL BENCH UNION OF INDIA AND OTHERS — Appellant Vs. GANDIBA BEHERA — Respondent ( Before : Ranjan Gogoi, CJI, Deepak Gupta and Aniruddha Bose, JJ.…

Service Matters

Constitution of India, 1950 – Article 311(2)(b) – Dismissal of the judicial officers dispensing with the departmental inquiry. HELD The appeals are dismissed and the stay order is vacated, albeit we clarify that the respondents, in terms of the judgment passed by the Division Bench, would be required to proceed in accordance with law.

SUPREME COURT OF INDIA DIVISION BENCH HARI NIWAS GUPTA — Appellant Vs. STATE OF BIHAR AND ANOTHER — Respondent ( Before : Indu Malhotra and Sanjiv Khanna, JJ. ) Civil…

Arbitration and Conciliation Act, 1996 – Sections 34 and 37 – Levy of liquidated damages – the Division Bench of the High Court rightly set aside the order of the learned Arbitrator with regard to claim No.6 by holding that levy of liquidated damages/compensation is adjustable against the final bill payable to the appellant.

SUPREME COURT OF INDIA FULL BENCH M/S. MITRA GUHA BUILDERS (INDIA) COMPANY — Appellant Vs. OIL AND NATURAL GAS CORPORATION LIMITED — Respondent ( Before : R. Banumathi, A.S. Bopanna…

Service Matters

Air Force Rules, 1969 – Rules 15(2), 15(2)(g)(ii) and Rule 15(2)(k) – Habitual offender -The show cause notice issued to the Respondent is in accordance with the Habitual Offenders Policy. A second warning letter is not required when it is decided to pass a final order without giving another chance. There is no violation of the procedure prescribed by the Policy –

SUPREME COURT OF INDIA DIVISION BENCH UNION OF INDIA AND OTHERS — Appellant Vs. 794898 T. EX. CORPORAL ABHISHEK PANDEY — Respondent ( Before : L. Nageswara Rao and Hemant…

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