Supreme Court - The Legal Chamber

CPC Order XXI Rule 90(3): Supreme Court Clarifies Time-Bar for Challenging Execution Sales

10Feb

By The Legal ChamberNo Comments

Supreme Court

CPC Order XXI Rule 90(3): Supreme Court Clarifies Time-Bar for Challenging Execution Sales

The Supreme Court held that Order XXI Rule 90(3) CPC bars judgment debtors from challenging an execution sale on grounds they could have raised before the sale proclamation was drawn up. Failure to object to the sale of an entire property, rather than a sufficient part, at the appropriate stage precludes a subsequent challenge under Order XXI Rule 90. Facts Of The Case: In 1995, decree-holder Rasheeda Yasin filed a suit for recovery of ₹3.75 lakhs against Komala Ammal and her son K.J. Prakash Kumar. An ex-parte decree was passed in 1997. Execution proceedings began in 1998 to attach and sell the judgment debtors' property—a house and site in Chennai. After multiple unsuccessful auctions due to high upset prices, the court, upon the decree-holder's applications, progressively reduced the ...

Supreme Court Ruling: Defective Affidavit Can Be Corrected in Insolvency Petitions

10Feb

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Ruling: Defective Affidavit Can Be Corrected in Insolvency Petitions

The Supreme Court held that a defective affidavit filed in support of a Section 7 IBC application is a curable procedural irregularity and does not render the application non est. The Court emphasized that the mandatory notice under Section 7(5)(b) of the IBC must be specifically issued to the applicant before rejection, and procedural rules should not defeat substantive rights. Facts Of The Case: HDFC Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Livein Aqua Solutions Pvt. Ltd. for a defaulted loan of ₹5.5 crores. The application, verified on July 26, 2023, was supported by an affidavit deposed on July 17, 2023. The NCLT Ahmedabad Bench rejected the petition at the threshold, citing this date discrepancy in the affidavit as a fatal ...

Supreme Court Balances Fairness & Flexibility in Govt. Contracts, Upholds Cancellation of LoI in Himachal Case

10Feb

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Balances Fairness & Flexibility in Govt. Contracts, Upholds Cancellation of LoI in Himachal Case

This Supreme Court judgment clarifies that a Letter of Intent is a conditional, non-binding precursor to a contract, creating no vested rights until stipulated prerequisites are fulfilled. The Court held that the State's cancellation of such an LoI is valid if based on genuine grounds of non-compliance and public interest, and is not arbitrary per se. Facts Of The Case: The State of Himachal Pradesh initiated a tender process to upgrade its Public Distribution System with biometric and IRIS-enabled ePOS devices. After four rounds of tendering, M/s OASYS Cybermatics Pvt. Ltd. emerged as the sole technically qualified bidder and was issued a Letter of Intent (LoI) in September 2022. The LoI was conditional, requiring successful compatibility testing, live demonstrations, an...

Landmark Judgment: Supreme Court on When a “False Promise of Marriage” Becomes Rape

10Feb

By The Legal ChamberNo Comments

Supreme Court

Landmark Judgment: Supreme Court on When a “False Promise of Marriage” Becomes Rape

The Supreme Court quashed FIR and chargesheet under Sections 376, 376(2)(n), and 507 IPC. It ruled that a prolonged consensual physical relationship, even if accompanied by an unfulfilled promise of marriage, does not constitute rape unless consent was vitiated by a mala fide false promise made with no intention to marry from the inception. Facts Of The Case: The appellant, an advocate, met the complainant (respondent No.2) in January 2022 while she was engaged in a maintenance case against her estranged husband. They developed a close relationship and engaged in a consensual physical relationship over three years, during which she became pregnant multiple times and underwent abortions. The complainant alleged the appellant established relations on a false pretext of marriage and lat...

Supreme Court Draws the Line: When a Business Dispute Becomes a Civil, Not Criminal, Matter

10Feb

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Draws the Line: When a Business Dispute Becomes a Civil, Not Criminal, Matter

The Supreme Court quashed criminal proceedings under Sections 406/420 IPC, holding that the complaint failed to establish essential ingredients. Allegations did not demonstrate dishonest inducement for cheating nor fraudulent misappropriation for criminal breach of trust. The Court emphasized that criminal law cannot be used to settle civil disputes or for vindictive prosecution. Facts Of The Case: The appellant, Inder Chand Bagri, and four others, including the complainant-respondent No. 1 Jagadish Prasad Bagri, formed a partnership firm in 1976. The appellant contributed his land to the firm for constructing godowns, which were leased to the Food Corporation of India. A supplementary agreement in 1981 permitted the appellant to use the land for his benefit, stipulating it would r...

Supreme Court Takes Charge: Major Order to Save Rajasthan’s Polluted Rivers

10Feb

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Takes Charge: Major Order to Save Rajasthan’s Polluted Rivers

The Supreme Court affirmed that the right to life under Article 21 encompasses a pollution-free environment. Criticizing prolonged state inaction, the Court modified an interim stay on NGT orders to allow enforcement of remedial measures. It constituted a High-Level Oversight Committee to ensure time-bound implementation, underscoring the constitutional duty to protect public health and ecology. Facts Of The Case: The case originated from severe and long-standing industrial and sewage pollution in the Jojari, Bandi, and Luni river system in Rajasthan, endangering the health and livelihoods of nearly two million people. The Supreme Court took suo moto cognizance in September 2025 based on a documentary highlighting the crisis. This matter was clubbed with several pending civil appeals aga...

Supreme Court: Subsequent Contracts Don’t Override Original Arbitration Agreement

9Feb

By The Legal ChamberNo Comments

Supreme Court

Supreme Court: Subsequent Contracts Don’t Override Original Arbitration Agreement

The Supreme Court held that Part I of the Arbitration & Conciliation Act, 1996, including Section 11, does not apply to a foreign-seated international commercial arbitration. The arbitration clause in the principal "mother agreement" governs, and subsequent ancillary contracts with different parties cannot novate it or confer jurisdiction on Indian courts. Facts Of The Case: The petitioner, Balaji Steel Trade, entered into a Buyer and Seller Agreement (BSA) dated 06.06.2019 with respondent no. 1, Fludor Benin S.A., for the supply of cottonseed cake, containing an arbitration clause specifying arbitration in Benin. An Addendum was later executed. Subsequently, respondent no. 1 assigned its supply obligations. The petitioner then entered into separate Sales Contracts with r...

Law is a Force for Justice, Not Absurdity: Supreme Court on Rent Arrears Eviction Case

9Feb

By The Legal ChamberNo Comments

Supreme Court

Law is a Force for Justice, Not Absurdity: Supreme Court on Rent Arrears Eviction Case

The Supreme Court held that in appeals challenging eviction orders under Section 12(3) of the Kerala Buildings Act, the Appellate Authority is not required to mandatorily re-initiate the entire Section 12 procedure. The deposit of admitted arrears, as determined by the Rent Controller, is a precondition to contest the appeal, unless supervening events warrant a fresh application. Facts Of The Case: The appellants are landlords who filed eviction petitions against the respondent-tenant for two shops in Kochi, alleging non-payment of rent since early 2020. The Rent Controller, relying on a prior money decree for arrears, passed orders under Section 12(1) of the Kerala Buildings Act, directing the tenant to pay substantial outstanding and future rents. Upon the tenant's failure to comply, e...

Landmark Ruling: Supreme Court Clarifies Grounds for Rejecting a Plaint Under Order VII Rule 11

9Feb

By The Legal ChamberNo Comments

Supreme Court

Landmark Ruling: Supreme Court Clarifies Grounds for Rejecting a Plaint Under Order VII Rule 11

The Supreme Court upheld the High Court's decision to restore the suit, affirming that rejection of a plaint under Order VII Rule 11 CPC is a threshold scrutiny. Contentions regarding cause of action, limitation, and res judicata are mixed questions requiring a full trial, not adjudication at the preliminary stage. Facts Of The Case: The case originated from a civil suit (O.S. No.26246 of 2023) filed by the respondents (Archbishop of Bangalore & Others) against the appellant, C.M. Meenakshi, and others. The plaintiffs sought a declaration of absolute ownership over a scheduled property in Bangalore, cancellation of two sale deeds from 2014 and 2020, and permanent injunctions to prevent any alteration or alienation of the property. During the suit's pendency, defendants 1 to 8 f...

Supreme Court Rules: Delayed Investigations Violate Fundamental Rights

9Feb

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Rules: Delayed Investigations Violate Fundamental Rights

In this appeal, the Supreme Court allowed the petition and quashed the criminal proceedings against the appellant. The Court held that the prosecution sanction under Section 197 CrPC was a non-speaking order devoid of application of mind and was therefore invalid. Furthermore, the inordinate delay of over 11 years in completing the investigation violated the appellant's fundamental right to a speedy trial under Article 21 of the Constitution. Facts Of The Case: The case originates from the alleged irregular issuance of arms licenses in 2004-2005 when the appellant, an IAS officer, served as the District Magistrate-cum-Licensing Authority in Saharsa, Bihar. An FIR was registered in 2005 alleging that licenses were granted to unfit, non-resident, and even fictitious persons without p...