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Companies Act, 2013 — Section 185 — Loan to directors — Violation of Section 185 — Loan from company to director for securing bail without special resolution — Deposit of Rs. 50 Crores for bail sourced from company funds without proper approval — Held to be not sustainable in law. Contract Law — Termination and Blacklisting — Principles of Judicial Review — Courts must apply distinct standards of legality, rationality, and proportionality when reviewing administrative actions related to contract termination and blacklisting, considering the differing gravity of these measures and their consequences. Service Law — Disciplinary proceedings — Punishment — Judicial review — The court’s power to review punishment is limited and generally does not allow substitution of its own judgment for that of the disciplinary authority unless the punishment is illogical, suffers from procedural impropriety, or shocks the conscience of the court Waqf Act, 1995 — Section 3(i) and Section 32(2)(g) — Jurisdiction of Civil Court versus Waqf Board — Distinction between Sajjadanashin and Mutawalli — Sajjadanashin is a spiritual head with religious duties, while Mutawalli is a secular manager of Waqf property — Waqf Board has jurisdiction over appointment and removal of Mutawallis but not Sajjadanashins — Civil Court retains jurisdiction over disputes concerning the office of Sajjadanashin — High Court wrongly held Civil Court lacked jurisdiction. National Highways Act, 1956 — Amendments and compensation provisions — Section 3-J introduced in 1997 removed applicability of Land Acquisition Act, 1894 (1894 Act) provisions for solatium and interest — Overturned by various High Courts, including reading down Sections 3-G and 3-J to grant solatium and interest — Subsequently, Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (2013 Act) and its amended provisions extended to NH Act — Court clarified that landowners acquired lands under NH Act between 1997 and 2015 are entitled to solatium and interest — Review Petition filed by NHAI arguing financial burden was underestimated rejected, but clarification on delayed claims issued.
Service Matters

Gujarat Civil Services (Pay) Rules, 2002 — Rule 21 — Stepping up of a pay of Government Employee on the basis of the pay of his junior — Whether the principle of stepping up the pay of an employee based on the pay of a junior applies when the appellants are on a lesser pay scale than Assistant Professors appointed before them as ad hoc lecturers and subsequently regularized — Whether Rule 21 of the 2002 Pay Rules applies to the appellants’ situation, where juniors are paid more due to their ad hoc services being counted for Senior Scale/Selection Grade — The appellants argued that they are entitled to pay parity with their juniors under Rule 21, as they belong to the same cadre and the anomaly in pay is due to the application of the rule — The respondents contended that Rule 21 does not apply as the anomaly is not a direct result of the rule but due to the juniors’ ad hoc services being counted — The Supreme Court dismissed the appeals, holding that Rule 21 is inapplicable as the anomaly is not a direct result of the rule — The court reasoned that granting the appellants’ request would result in inequity, as they would benefit from years of service they did not render — The appeals were dismissed, and Rule 21 was deemed inapplicable in this case.

2024 INSC 608 SUPREME COURT OF INDIA DIVISION BENCH MAHESHKUMAR CHANDULAL PATEL AND ANOTHER — Appellant Vs. THE STATE OF GUJARAT AND OTHERS — Respondent ( Before : Vikram Nath…

Cess and Other Taxes on Minerals (Validation) Act 1992 — The case involves the Mineral Area Development Authority (MADA) and the Steel Authority of India (SAIL), focusing on the validity of state tax demands on mineral rights — Whether the judgment in MADA should be applied retrospectively or prospectively, impacting tax demands and commercial transactions — Petitioners argue for prospective application to avoid retrospective tax burdens on end consumers and commercial disruptions — Respondents argue that prospective overruling should not apply to tax legislation, emphasizing the public interest and financial stability of states — The court rejected the prospective application of the MADA judgment, allowing states to levy taxes but with conditions to mitigate financial burdens on assesses — The court emphasized the need to balance financial interests of states and assesses, avoiding retrospective tax demands before April 2005 — The court applied the doctrine of prospective overruling to ensure equitable outcomes and financial stability — The court provided a pragmatic solution to reconcile conflicting interests, allowing tax demands with staggered payments and waived interest for the period before July 2024.

2024 INSC 607 SUPREME COURT OF INDIA 8 JUDGES BENCH MINERAL AREA DEVELOPMENT AUTHORITY AND ANOTHER — Appellant Vs. M/S STEEL AUTHORITY OF INDIA AND ANOTHER ETC. — Respondent (…

Date of Performance determines Limitation Period — The Court clarified that when a specific date for performance is fixed in a contract, the limitation period for filing a suit for specific performance begins to run from that date, not from any later date mentioned in the agreement regarding its validity — This interpretation reinforces the principle that the statute of limitations is triggered by the failure to perform as agreed, not by the contract’s overall duration.Validity Clause does not Extend Limitation Period — The Court held that a clause in a contract extending its validity does not automatically extend the limitation period for enforcing the contract’s terms — This distinction is crucial for determining when legal action must be initiated to seek specific performance.

2024 INSC 599 SUPREME COURT OF INDIA DIVISION BENCH USHA DEVI AND OTHERS — Appellant Vs. RAM KUMAR SINGH AND OTHERS — Respondent ( Before : Vikram Nath and Prasanna…

Limitation Act, 1963 — Section 5 — Condonation of Delay — The appellant was penalized for deserting his family and living with another woman — The penalty was challenged due to procedural delays and alleged mistakes by his counsel — Whether the delay in filing the appeal should be condoned and whether the penalty imposed was justified — The delay was due to the counsel’s mistake, and the penalty was disproportionate since the complainant (his wife) had withdrawn her complaint — The representations were examined and rejected, and the withdrawal of the O.A. was authorized by the appellant — The Supreme Court set aside the impugned orders, holding that the appellant is entitled to all consequential benefits — The delay was sufficiently explained, and the penalty was disproportionate given the withdrawal of the complaint and lack of evidence — The court emphasized a liberal approach to condonation of delay and the need for substantial justice — The appeals were allowed, and the appellant was granted all consequential benefits.

2024 INSC 577 SUPREME COURT OF INDIA DIVISION BENCH MOOL CHANDRA — Appellant Vs. UNION OF INDIA AND ANOTHER — Respondent ( Before : Aravind Kumar and Sandeep Mehta, JJ.…

Constitution of India, 1950 — Articles 21, 39(e), 42, 43, and 48A — Highlighting the State’s duty to ensure workers’ health and safety — Issue of ‘silicosis’ among workers in various industries in India — The main issues were the prevalence of silicosis, lack of detection, monitoring, and remedial measures , and violation of workers fundamental rights — Right to health and safety under Article 21 of the Constitution was being neglected, and the State’s failure to protect workers and provide adequate care was a violation of constitutional mandates — They were directed to provide compensation and rehabilitation for affected workers and to ensure compliance with safety measures — The Court directed the NGT to oversee the environmental aspects and the NHRC to oversee the compensation process — The Court emphasized the need for systemic reforms to address the detection, prevention, and treatment of silicosis and to protect workers’ health and rights — The writ petition was disposed of with directions to the NGT and NHRC to ensure compliance with the Court’s orders and to take necessary steps to prevent the spread of silicosis and ensure compensation for affected workers.

2024 INSC 582 SUPREME COURT OF INDIA DIVISION BENCH PEOPLES RIGHTS AND SOCIAL RESEARCH CENTRE (PRASAR) AND OTHERS — Appellant Vs. UNION OF INDIA AND OTHERS — Respondent ( Before…

Penal Code, 1860 (IPC) — Sections 384, 389, 406 and 420 r/w Section 34 and 120B — Quashing of the summoning order and criminal proceedings — The appellant challenged the High Court of Jharkhand’s decision to quash the summoning order and criminal proceedings related to a fraud case — Whether the High Court was correct in quashing the summoning order and criminal proceedings — The appellant argued that the documents submitted by the respondents were forged and that the High Court overstepped its jurisdiction by quashing the summoning order —The respondents contended that the documents were not forged and that the appellant had ulterior motives — The Supreme Court quashed the High Court’s decision and remanded the matter back to the Judicial Magistrate for trial — The High Court exceeded its jurisdiction by delving into factual disputes that should be resolved during the trial — The Supreme Court emphasized that the High Court should not conduct a mini-trial at the stage of quashing proceedings —The appeals were allowed, and the matter was sent back for trial.

2024 INSC 583 SUPREME COURT OF INDIA DIVISION BENCH DHARAMBEER KUMAR SINGH — Appellant Vs. THE STATE OF JHARKHAND AND ANOTHER — Respondent ( Before : Vikram Nath and Prasanna…

Determining Equivalence — The decision on whether a particular qualification should be regarded as equivalent to the prescribed qualification lies with the state or the recruiting authority, not the court — This is a technical academic matter that cannot be implied or assumed. — Any decision by an academic body or university regarding the equivalence of qualifications must be made through a specific order or resolution, which should be duly published — A mere certificate without such formal backing is not sufficient to establish equivalence.

2024 INSC 580 SUPREME COURT OF INDIA DIVISION BENCH SHIFANA P.S. — Appellant Vs. THE STATE OF KERALA AND OTHERS — Respondent ( Before : Hima Kohli and Sandeep Mehta,…

Service Matters

Career Advancement Scheme (CAS) eligibility — The Court clarified that the benefits of CAS are not automatically granted to all Assistant Professors — Instead, eligibility is subject to fulfilling certain conditions, including completion of a specific number of years of service after “regular appointment” — The Court held that redesignation from one post to another does not automatically qualify as “regular appointment”.

2024 INSC 581 SUPREME COURT OF INDIA DIVISION BENCH RAJASTHAN AGRICULTURAL UNIVERSITY, BIKANER, THROUGH ITS REGISTRAR — Appellant Vs. DR. ZABAR SINGH SOLANKI AND OTHERS — Respondent ( Before :…

Contractual Dispute — Dispute over a contract for displaying advertisements on street hoardings — The main issue is whether the debarment of the appellant for five years by the Corporation was valid and justified — The appellant argued that the Corporation could only impose a penalty for late payments, not blacklisting, and that the blacklisting was disproportionate and unfair — The Corporation defended the blacklisting, citing the appellant’s failure to fulfill contractual obligations and non-payment of dues — The Supreme Court set aside the Division Bench’s judgment and restored the Single Judge’s decision, ruling that the blacklisting was disproportionate — The Court found that the appellant had a bona fide dispute with the Corporation and that the blacklisting was a disproportionate penalty — The Court emphasized that blacklisting is a drastic remedy and should only be used in cases involving harm to public interest — The Supreme Court allowed the appeal, setting aside the blacklisting order and restoring the Single Judge’s judgment.

2024 INSC 589 SUPREME COURT OF INDIA DIVISION BENCH THE BLUE DREAMZ ADVERTISING PVT. LTD. AND ANOTHER — Appellant Vs. KOLKATA MUNICIPAL CORPORATION AND OTHERS — Respondent ( Before :…

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