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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 —

Motor Vehicles Act, 1988 – Sections 112, 132(1)(c), 133, 134, 183, 184, 185, 186, 187, 188, 208, 208(3), 209 – Penal Code, 1860 (IPC) – Sections 5, 279, 304 Part II and 304A IPC -………….we set aside the directions issued by the Gauhati High Court to the States of Assam, Nagaland, Meghalaya, Manipur, Tripura, Mizoram and Arunachal Pradesh to issue appropriate instructions to their subordinate officers to prosecute offenders in motor vehicle accidents only under the provisions of the Motor Vehicles Act, 1988 and not the IPC.

SUPREME COURT OF INDIA DIVISION BENCH  THE STATE OF ARUNACHAL PRADESH — Appellant Vs. RAMCHANDRA RABIDAS @ RATAN RABIDAS AND ANOTHERS — Respondent ( Before : Indu Malhotra and Sanjiv…

Penal Code, 1860 (IPC) – Sections 498A, 306, 323 and 149 – Dowry Prohibition Act, 1961 – Sections 3 and 7 – Committed suicide – Reliance cannot be placed on the sole testimony of PW1, on the basis of which the Appellant was convicted under Sections 498A, 114 and 323 as there is no corroboration by PW4 who is alleged to have given the information to him. Other than the above allegation, the Appellant stands on the same footing as of Accused Nos. 3, 4 and 5 who have been acquitted by the High Court. As the accusation of the physical assault by the appellant on the deceased is not proved, he is entitled to be acquitted.

SUPREME COURT OF INDIA DIVISION BENCH  KANTILAL — Appellant Vs. THE STATE OF GUJARAT — Respondent ( Before : L. Nageswara Rao and Hemant Gupta, JJ. ) Criminal Appeal No.…

Service Matters

Rajasthan State Road Transport Corporation Compassionate Appointment Regulations, 2010 – Regulation 4(3) – Constitution of India, 1950 – Article 14 – Motor Vehicles Act, 1988 – Section 166 and 140 – Compassionate appointment – As the Respondent has received the compensation under the Act, he is not entitled for compassionate appointment under the Regulations – The judgment of the High Court is set aside the Appeal is allowed.

SUPREME COURT OF INDIA DIVISION BENCH  RAJASTHAN STATE ROAD TRANSPORT CORPORATION — Appellant Vs. DANISH KHAN — Respondent ( Before : L. Nageswara Rao and Hemant Gupta, JJ. ) Civil…

Civil Procedure Code, 1908 (CPC) – Order 1 Rule 10 and Order 12 Rule 10 – Transfer of Property Act, 1882 – Section 52- It is well settled law that mere non-mentioning of an incorrect provision is not fatal to the application if the power to pass such an order is available with the court.

SUPREME COURT OF INDIA DIVISION BENCH  PRUTHVIRAJSINH NODHUBHA JADEJA (D) BY LRS. — Appellant Vs. JAYESHKUMAR CHHAKADDAS SHAH AND OTHERS — Respondent ( Before : Deepak Gupta and Aniruddha Bose,…

Constitution of India, 1950 – Article 142 – Prevention of Food Adulteration Act, 1954 – Section 16(1)(a) – Food adulteration – Minimum sentence – This Court are clearly of the view that the power under Article 142 cannot be exercised against the specific provision of law. Section 16(1)(a) of the Act lays down a minimum sentence of six months.

SUPREME COURT OF INDIA DIVISION BENCH  RAJ KUMAR — Appellant Vs. THE STATE OF UTTAR PRADESH — Respondent ( Before : Deepak Gupta and Aniruddha Bose, JJ. ) Criminal Appeal…

Commercial Courts Act, 2015 – Section 2(1)(c)(vii) – Civil Procedure Code, 1908 (CPC) – Order 7 Rule 10 – Return of plaint-A dispute relating to immovable property per se may not be a commercial dispute. But it becomes a commercial dispute, if it falls under sub-clause (vii) of Section 2(1)(c) of the Act viz. “the agreements relating to immovable property used exclusively in trade or commerce”. The words “used exclusively in trade or commerce” are to be interpreted purposefully. The word “used” denotes “actually used” and it cannot be either “ready for use” or “likely to be used” or “to be used”. It should be “actually used”. Such a wide interpretation would defeat the objects of the Act and the fast tracking procedure

SUPREME COURT OF INDIA DIVISION BENCH  AMBALAL SARABHAI ENTERPRISES LTD. — Appellant Vs. K.S. INFRASPACE LLP AND ANOTHER — Respondent ( Before : A.S. Bopanna and R. Banumathi, JJ. )…

Service Matters

Kerala Abkari Shops Disposal Rules, 2002 – Rules 4(2) and 9(10)(b) – Ban of arrack in State of Kerala – Right of Employment.- It cannot be said that a vested right accrued to all the abkari workers to claim employment in retail outlets in the Corporation. This Court not agree with the submission of the Respondents that a vested right was created by the Government Order dated 20.02.2002 and that it was indefeasible.

SUPREME COURT OF INDIA DIVISION BENCH  KERALA STATE BEVERAGES (M AND M) CORPORATION LIMITED — Appellant Vs. P.P. SURESH AND OTHERS — Respondent ( Before : L. Nageswara Rao and…

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