Supreme Court - The Legal Chamber

SARFAESI Act vs EPF Act: Supreme Court Says Provident Fund Charge Prevails Over Bank

9Feb

By The Legal ChamberNo Comments

Supreme Court

SARFAESI Act vs EPF Act: Supreme Court Says Provident Fund Charge Prevails Over Bank

This Supreme Court judgment interprets the interplay between the priority of secured creditors under Section 26E of the SARFAESI Act and the statutory first charge for provident fund dues under Section 11(2) of the EPF & MP Act. The Supreme Court held that the statutory first charge for provident fund contributions overrides the priority granted to secured creditors, even under a non-obstante clause in a later enactment. Facts Of The Case: The appellant, Jalgaon District Central Co-operative Bank Ltd., is a secured creditor which had advanced loans to a co-operative sugar society, secured by a mortgage and hypothecation of the society's assets. The sugar factory became defunct, leading to loan defaults. The bank initiated recovery under the SARFAESI Act, took possession o...

Supreme Court Explains: How Legal Representatives Must Be Heard Before Estate Is Attached

9Feb

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Explains: How Legal Representatives Must Be Heard Before Estate Is Attached

The Supreme Court held that the Arbitration Act is a self-contained code, limiting judicial interference. Letters Patent Appeals against execution orders under the Act are not maintainable. It mandated the issuance of notice under Order XXI, Rule 22 of the CPC to legal representatives as a jurisdictional prerequisite before proceeding against a deceased judgment debtor's estate. Facts Of The Case: The dispute originated from an arbitral award dated 12.07.2010, passed in favour of the appellant, Bharat Kantilal Dalal, against his late father concerning family assets. After the father's death, the appellant sought to execute the award against his uncle (the father's brother), who was the sole beneficiary and executor under the father's Will. The uncle, along with other respondents, res...

Supreme Court Approves New Definition of Aravali Range, Bans New Mining Pending Study

7Feb

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Approves New Definition of Aravali Range, Bans New Mining Pending Study

The Supreme Court, while accepting a committee's operational definition of the Aravali Hills and Ranges for mining regulation, directed the preparation of a Management Plan for Sustainable Mining. This plan must identify conservation zones and permissible mining areas based on ecological carrying capacity. The Court ordered that no new mining leases be granted until this scientific study is finalized, balancing environmental protection with regulated mining activities. Facts Of The Case: The case originated from issues raised in the long-standing writ petition, T.N. Godavarman Thirumulpad v. Union of India, concerning the conservation of forests. A specific question arose before the Supreme Court in January 2024 regarding whether certain mining activities in Rajasthan fell within the leg...

Direct Recruits vs. Promotees: Supreme Court Lays Down Seniority Rules for Higher Judiciary

7Feb

By The Legal ChamberNo Comments

Supreme Court

Direct Recruits vs. Promotees: Supreme Court Lays Down Seniority Rules for Higher Judiciary

The Supreme Court, exercising its powers under Article 142, upheld the principle that upon entry into the Higher Judicial Service, officers from different recruitment sources lose their "birthmark." It mandated a uniform 4-point annual roster system for determining seniority, based on merit-cum-seniority within the cadre, and rejected preferential treatment based on prior service in lower judicial ranks. Facts Of The Case: The case originated from an interlocutory application filed in the long-pending All India Judges Association writ petition. The application, brought by the Amicus Curiae, highlighted a recurring dispute regarding the criteria for determining inter se seniority among three categories of officers within the Higher Judicial Services (HJS): Regular Promotees (RPs), those p...

Supreme Court: Concluded Land Compensation Agreement is Final, Bars Interest Claim

7Feb

By The Legal ChamberNo Comments

Supreme Court

Supreme Court: Concluded Land Compensation Agreement is Final, Bars Interest Claim

The Supreme Court held that a concluded compensation agreement voluntarily entered into under Section 7 of the Tamil Nadu Acquisition of Land for Industrial Purposes Act, 1997, is a final and binding contract. Such an agreement precludes parties from subsequently invoking statutory provisions, like Section 12 for interest, as the contract subsumes all related claims and disputes. Facts Of The Case: The case involved the acquisition of lands in Coimbatore District, initially leased to the Defence Department in 1942, for the expansion of Coimbatore Airport runway. Proceedings under the Tamil Nadu Acquisition of Land for Industrial Purposes Act, 1997 were initiated in 2011. In 2018, a meeting was convened under Section 7(2) of the Act between authorities and landowners, resulting in a...

Judiciary vs Parliament: Supreme Court Repeats Warning on Tribunal Independence

7Feb

By The Legal ChamberNo Comments

Supreme Court

Judiciary vs Parliament: Supreme Court Repeats Warning on Tribunal Independence

In Madras Bar Association v. Union of India (2023), the Supreme Court struck down the Tribunal Reforms Act, 2021, declaring its provisions on age limits, tenure, and appointment committees unconstitutional. The Court held the Act was an impermissible legislative override, violating the principles of separation of powers, judicial independence, and constitutional supremacy established in its prior judgements. Facts Of The Case: The Madras Bar Association challenged the constitutional validity of the Tribunal Reforms Act, 2021, before the Supreme Court of India. The Act sought to govern the appointment, tenure, qualifications, and service conditions of members across various tribunals. Its key provisions included a minimum age of 50 for appointment, a fixed four-year tenure, a ...

Key Ruling: Supreme Court Upholds NGT’s Decision, Stresses Strict Timelines for Environment Appeals

7Feb

By The Legal ChamberNo Comments

Supreme Court

Key Ruling: Supreme Court Upholds NGT’s Decision, Stresses Strict Timelines for Environment Appeals

The Supreme Court held that for calculating limitation under Section 16(h) of the NGT Act, 2010, the period commences from the earliest date of communication of the environmental clearance by any duty bearer. The obligation to communicate rests on multiple authorities, and limitation is triggered upon the first clear and complete public communication. Facts Of The Case: The appellant, Talli Gram Panchayat, sought to challenge an Environmental Clearance (EC) granted on January 5, 2017, for a limestone mining project in Gujarat. The Panchayat filed an appeal before the National Green Tribunal (NGT) under Section 16(h) of the NGT Act, 2010, but the appeal was delayed. It contended that it first learned of the EC through a Right to Information reply received on February 14, 2017, and t...

Supreme Court Orders Uniform National Policy for Organ Donation & Transplantation

7Feb

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Orders Uniform National Policy for Organ Donation & Transplantation

The Supreme Court, exercising its jurisdiction under Article 32, issued comprehensive directions to ensure uniformity in India's organ transplantation framework. It mandated the adoption of the 2011 Amendment and 2014 Rules by all States, and directed the formulation of a uniform national policy for allocation, swap transplantation, and live donor welfare to prevent discrimination and commercialization. Facts Of The Case: The Writ Petition was filed by the Indian Society of Organ Transplantation, highlighting systemic deficiencies in India's organ donation and transplantation ecosystem. The petitioner argued that the lack of uniform adoption of the Transplantation of Human Organs (Amendment) Act, 2011, and the Transplantation of Human Organs and Tissues Rules, 2014, by certai...

Supreme Court: Decree for Specific Performance Does Not Create Title, So Assignment Deed Need Not Be Registered

6Feb

By The Legal ChamberNo Comments

Supreme Court

Supreme Court: Decree for Specific Performance Does Not Create Title, So Assignment Deed Need Not Be Registered

The Supreme Court held that a deed assigning a decree for specific performance of a sale agreement concerning immovable property does not require mandatory registration under Section 17(1)(e) of the Registration Act, 1908. This is because such a decree does not itself create, assign, or extinguish any right, title, or interest in the immovable property; it merely confers a right to seek performance through court execution. Facts Of The Case: The appellants are the legal heirs of a judgment-debtor against whom an ex-parte decree for specific performance of a sale agreement concerning immovable property was passed on 13.09.1993. The first respondent, Shanmugam, claimed to be the assignee of this decree by virtue of an assignment deed dated 17.07.1995. In 2004, the assignee filed an e...

Supreme Court Orders Assam to Provincialise Services of Music Teachers

6Feb

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Orders Assam to Provincialise Services of Music Teachers

The Supreme Court held that the appellants' right to provincialisation had crystallised under the 2011 Act. Despite favourable findings, the High Court erred in not granting mandamus relief. The Court modified the impugned judgment, ruling that a Writ Court has inherent power under Article 226 to mould relief and grant consequential mandamus to remedy injustice, which it duly issued. Facts Of The Case: The case originated from a batch of appeals before the Supreme Court, filed by a large group of Music Teachers employed in various provincialised schools in Assam. Their grievance stemmed from the State of Assam's failure to formally provincialise their services under the Assam Venture Educational Institutions (Provincialisation of Services) Act, 2011. The appellants' eligibility had been ...