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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

Major penalty was imposed upon him–Appellant preferred appeal–Division Bench remitted the matter to the Single Judge to be heard afresh–No serious infirmity with the impugned judgment of the Division Bench–However, the appellant has been facing inquiry and Court proceedings for almost twenty five years and at this stage remitting the matter to the Single Judge would be very harsh–Supreme Court directed that instead of withholding of two increments, three increments be withheld which should meet the ends of justice.

2010(1) LAW HERALD (SC) 464 IN THE SUPREME COURT OF INDIA Before The Hon’ble Mr. Justice Dalveer Bhandari The Hon’ble Mr. Justice Asok Kumar Ganguly Civil Appeal Nos. 475-476 of…

Indian Penal Code, 1860, S. 302–Murder–Murder of Wife–Circumstantial evidence –Burn injuries–Kerosene oil stove was planted at the site in a fake attempt to hide the homicidal death–Prosecution proved beyond pale of doubt that the deceased died a homicidal death and not an accidental death on account of bringing insufficient dowry and appellant having extra-marital affairs–Presence of kerosene oil on the body of the deceased and clothes put on by her, rules out the theory of accidental fire.

2010(1) LAW HERALD (SC) 455 IN THE SUPREME COURT OF INDIA Before The Hon’ble Mr. Justice Harjit Singh Bedi The Hon’ble Mr. Justice J.M.Panchal Criminal Appeal No. 125 of 2009…

Investigation–Transfer of investigation to CBI–In an appropriate case when the court feels that the investigation by the police authorities is not in the proper direction,  it is always open to the court to hand over the investigation to the independent agency like CBI –Cannot be said that after the charge sheet is submitted, SC is not empowered, to hand over the investigation to an independent agency like CBI. Investigation–Transfer of investigation to CBI–Accusations are directed against the local police personnel in which high Police officials of the State involved– Direction issued to CBI to take up the investigation

2010(1) LAW HERALD (SC) 441 IN THE SUPREME COURT OF INDIA Before The Hon’ble Mr. Justice Tarun Chatterjee The Hon’ble Mr. Justice Aftab Alam Writ Petition (Crl.) No.6 of 2007…

PIL–Classic case of the abuse of the process of the court–Appointment of  Judge of a High Court challenged before the High Court in a Public Interest Litigation on the ground that he could not hold the Office and was ineligible because he had attained the age of 62 years much before he was appointed as the Advocate General–Third clause of Article 165 says that the Advocate General shall hold office during the pleasure of the Governor, hence the provision does not limit the duration of his appointment by reference to any particular age–High Court entertained the petition despite the fact that the controversy involved in the case was no longer res integra –SC  directed to quash the proceedings

2010(1) LAW HERALD (SC) 401 IN THE SUPREME COURT OF INDIA Before The Hon’ble Mr. Justice Dalveer Bhandari The Hon’ble Mr. Justice Mukundakam Sharma Civil Appeal Nos. 1134-1135 of 2002…

No delay was caused by petitioner in filing application for restoration–Petitioner had been diligently prosecuting the litigation since 1982–Improper to punish petitioner for non-appearance of his counsel–Orders of the High Court set aside.                                   

2010(1) LAW HERALD (SC) 392 IN THE SUPREME COURT OF INDIA Before The Hon’ble Mr. Justice Tarun Chatterjee The Hon’ble Mr. Justice R.M. Lodha Civil Appeal Nos. 7648-7649 of 2009…

Relaxation in age limit–Concession in fee and age relaxation only enabled certain candidates belonging to the reserved category to fall within the zone of consideration but do not tilt the balance in favour of the reserved category candidates, in the preparation of final merit/select list–No infringement of Article 16(1) of the Constitution of India if relaxation in age or concession in fee given.

2010(1) LAW HERALD (SC) 372 IN THE SUPREME COURT OF INDIA Before The Hon’ble Mr. Justice Tarun Chatterjee The Hon’ble Mr. Justice Surinder Singh Nijjar Civil Appeal No. 74 of…

Lease and Licence–Distinction–Difference between lease and the licence is to be determined by finding the real intention of the parties from the total reading of the document and also considering the surrounding circumstances—- Lease and Licence–Distinction–Difference between a tenancy and a licence is that, in a tenancy, an interest passes in the land, whereas, in a licence, it does not.     

2010(1) LAW HERALD (SC) 366 IN THE SUPREME COURT OF INDIA Before The Hon’ble Mr. Justice Markandey Katju The Hon’ble Mr. Justice Asok Kumar Ganguly Civil Appeal No. 6391 of…

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