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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

Appellant cannot be denied payment of pension applicable to the rank of Lt. Colonel (TS) on the ground that he fell short of the reckonable service of 21 years – Appellant retired in the year 1991 and has been made to run from pillar to post to get his rightful pension – It appropriate that apart from his entitlement to the pension applicable to the post of Lt. Colonel (TS), he is also entitled to be compensated for the avoidable litigation to which he was unnecessarily dragged into – Appeal allowed.

SUPREME COURT OF INDIA DIVISION BENCH  IC 29547 L BOBBY JOSEPH — Appellant Vs. UNION OF INDIA AND OTHERS — Respondent ( Before : L. Nageswara Rao and Hemant Gupta,…

Service Matters

Uttar Pradesh Secondary Education Services Commission Act, 1982. In view of the enquiry report dated 06.05.2009 and the endorsement of the Management in their letters, it is clear that Respondent No.5 had actually worked during 1985 to 1995 and he was eligible for being considered for regularization of his service as LT Grade Teacher. The order of regularization was rightly upheld by the Division Bench – Appeal dismissed.

SUPREME COURT OF INDIA DIVISION BENCH  C/M KISAN INTER COLLEGE MANAGER — Appellant Vs. THE STATE OF UTTAR PRADESH AND OTHERS — Respondent ( Before : L. Nageswara Rao and…

V IMP : Inherent Powers Under Article 142 Can Be Invoked To Dissolve Marriage Which Has Broken Down Irretrievably. HELD:” in exercise of powers under Article 142 of the Constitution of India the marriage cannot be dissolved on the ground of irretrievable breakdown of marriage is concerned, the aforesaid has no substance: SC

Inherent Powers Under Article 142 Can Be Invoked To Dissolve Marriage Which Has Broken Down Irretrievably: SC HELD: ” in   exercise   of   powers   under   Article…

V IMP : LEVY OF SERVICE TAX BY INCORPORATED CLUBS – HELD – We are also of the view that from 2005 onwards, the Finance Act of 1994 does not purport to levy service tax on members’ clubs in the incorporated form. The expression “body of persons” may subsume within it persons who come together for a common purpose, but cannot possibly include a company or a registered cooperative society. Thus, Explanation 3(a) to Section 65B(44) does not apply to members’ clubs which are incorporated. Consequently, show-cause notices, demand notices and other action taken to levy and collect service tax from incorporated members’ clubs are declared to be void and of no effect in law.

1.The definition of “club or association” contained in Section 65 (25a) makes it plain that any person or body of persons providing services for a subscription or any other amount…

Society Matters – we are of the view that the only way to bring to an end all the litigations between the parties before various fora is to set aside the impugned order and the elections held pursuant thereto and to appoint an Advocate Commissioner to convene the General Body as well as the Executive Committee for the election of office bearers.

SUPREME COURT OF INDIA DIVISION BENCH  VIRUDHUNAGAR HINDU NADARGAL DHARMA PARIBALANA SABAI AND OTHERS — Appellant Vs. TUTICORIN EDUCATIONAL SOCIETY AND OTHERS — Respondent ( Before : Rohinton Fali Nariman…

Service Matters

Entitlement Rules for Casualty Pensionary Awards, 1982 – Rule 14 – Grant of disability pension – Provision of grant of disability pension is a beneficial provision but, mental disorder at the time of recruitment cannot normally be detected when a person behaves normally – Since there is a possibility of non-detection of mental disorder, therefore, it cannot be said that Schizophrenia is presumed to be attributed to or aggravated by military service.

SUPREME COURT OF INDIA DIVISION BENCH  NO. 14666828M EX CFN NARSINGH YADAV — Appellant Vs. UNION OF INDIA AND OTHERS — Respondent ( Before : L. Nageswara Rao and Hemant…

Madhya Pradesh Nagar Tatha Gram Nivesh Adhiniyam, 1973 – Sections 58 and 86 – Allotment of land – considered view that directing the Indore Development Authority to revisit the matter afresh at this stage when the lease deed of the plot has been executed and the appellant has raised construction – No purpose.

We are of the considered view that directing the Indore Development Authority to revisit the matter afresh at this stage when the lease deed of the plot has been executed…

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