Supreme Court - The Legal Chamber

Landmark Ruling: Supreme Court Shields Property Owners from Criminal Case Over Failed Sale Agreement

28Aug

By The Legal ChamberNo Comments

Supreme Court

Landmark Ruling: Supreme Court Shields Property Owners from Criminal Case Over Failed Sale Agreement

The Supreme Court quashed the FIR and criminal proceedings, holding that the allegations did not constitute offences under Sections 406 or 420 IPC. The dispute was essentially civil in nature, and the essential ingredients of criminal breach of trust or cheating—such as entrustment of property or dishonest inducement at inception—were absent. The Court emphasized that criminal proceedings cannot be used to settle purely civil disputes. Facts Of The Case: The case originated from a private complaint filed by respondent no. 2, Keerthiraj Shetty, alleging that the appellants (family members of the original landowners) had cheated him. The parties had entered into an Agreement to Sell (ATS) in 2015 for a property, with the complainant paying an advance. The appellants also executed a General...

Supreme Court Shields Daughters-in-Law from Criminal Case Over Property Will

28Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Shields Daughters-in-Law from Criminal Case Over Property Will

The Supreme Court quashed criminal proceedings under Sections 419, 420, 467, 468, and 471 IPC, ruling the allegations did not prima facie constitute the alleged offences. Relying on Bhajan Lal, it held that criminal process cannot be used to settle civil disputes, as it amounts to an abuse of the court's process. Facts Of The Case: A testator, Shri Ram Baksh Dubey, executed an unregistered will in 1993 bequeathing his property to his four daughters-in-law, apprehensive that his third son, Ashish Kumar, would squander the estate. After the testator’s death in 1994, Ashish Kumar sold his purported share to the complainant, Balram, via a registered sale deed. The daughters-in-law, unaware of this sale, successfully obtained a mutation order in their favor based on the will. When Balram inte...

When Protest Isn’t Nuisance: Supreme Court Explains Limits of Police Power, Quashes 5-Year-Old Case

28Aug

By The Legal ChamberNo Comments

Supreme Court

When Protest Isn’t Nuisance: Supreme Court Explains Limits of Police Power, Quashes 5-Year-Old Case

The Supreme Court quashed the criminal proceedings, applying the Bhajan Lal principles. It held that the allegations, even if accepted entirely, did not prima facie constitute the offences under Sections 290, 341, 171F IPC, and Section 34 of the Police Act, 1861, as their essential ingredients were absent. Continuing the prosecution was deemed an abuse of the process of law. Facts Of The Case: During the 2019 General Elections, the Model Code of Conduct was in force in Andhra Pradesh. On March 22, 2019, appellants Manchu Mohan Babu, an educational institution chairman, and his son, along with staff and students, conducted a rally and dharna on the Tirupati-Madanapalli Road. They were protesting the state government's failure to provide student fee reimbursements. The gathering, which las...

Supreme Court Upholds Right to Peaceful Protest, Quashes Criminal Case Against Andhra Educationists

28Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Upholds Right to Peaceful Protest, Quashes Criminal Case Against Andhra Educationists

The Supreme Court held that certified copies of municipal documents, duly certified under Section 376 of the Karnataka Municipalities Act, 1964, carry the same evidentiary value as originals. The failure of the Municipal Council to produce original records despite court orders justified drawing an adverse inference, and a registered sale certificate cannot be invalidated by a mere administrative resolution. Facts Of The Case: The dispute concerned two plots, No. 394 and 395, auctioned by the City Municipal Council (CMC). Respondent No. 2, Prabhudeva, purchased plot No. 395 in a 1973 auction, but his 1988 sale deed erroneously mentioned plot No. 394. Upon realizing this mistake, he applied for rectification in 1992. The CMC's Junior Engineer inspected the site and confirmed the error, lea...

Supreme Court Cancels Top Cop’s Anticipatory Bail in Corruption Case, Stresses “No One Above Law”

28Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Cancels Top Cop’s Anticipatory Bail in Corruption Case, Stresses “No One Above Law”

The Supreme Court held that the absence of a requirement for custodial interrogation is not, by itself, a sufficient ground to grant anticipatory bail. The court must primarily consider the prima facie case and the nature of the alleged offence. The High Court erred in conducting a mini-trial and rendering detailed findings on evidence at the anticipatory bail stage. Facts Of The Case: An IPS officer, holding the post of Additional Director General of Police in Andhra Pradesh, was accused of manipulating tenders and misappropriating public funds. The allegations involved two key transactions. First, an agreement for awareness camps on the SC/ST Act was signed on January 30, 2024, and the entire payment was approved on the very same day without any verification of the work done. Second, l...

Supreme Court Rules: “Right to Prefer an Appeal” Includes “Right to Prosecute it” for Victims

28Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Rules: “Right to Prefer an Appeal” Includes “Right to Prosecute it” for Victims

The Supreme Court held that the right to prefer an appeal under the proviso to Section 372 CrPC includes the right to prosecute it. Consequently, upon the death of the original appellant-victim, their legal heir is entitled to be substituted to continue the appeal. The definition of ‘victim’ under Section 2(wa) CrPC is broad and inclusive, enabling such substitution to ensure the right of access to justice is not defeated. Facts Of The Case: On December 9, 1992, an attack occurred in which Virendra Singh was killed, and informant Tara Chand (PW-1) and his son Khem Singh (PW-3) were injured. The Sessions Court convicted accused Ashok, Pramod, and Anil @ Neelu, sentencing them to life imprisonment, but acquitted six other accused. The convicted accused appealed to the High Court, which, vi...

Clarifying Jurisdiction: Supreme Court Reaffirms Exclusive Power of MP Arbitration Tribunal for Public Works

28Aug

By The Legal ChamberNo Comments

Supreme Court

Clarifying Jurisdiction: Supreme Court Reaffirms Exclusive Power of MP Arbitration Tribunal for Public Works

The Supreme Court upheld the exclusive jurisdiction of the Madhya Pradesh Arbitration Tribunal over disputes arising from state works contracts, as per the MP Madhyastham Adhikaran Adhiniyam, 1983. It ruled that a private arbitration clause in a concession agreement cannot override this statutory mandate, rendering such arbitration non-est in law. Facts Of The Case: The dispute arose from a Concession Agreement dated 05.01.2012 between Umri Pooph Pratappur Tollways Pvt. Ltd. (Appellant) and the Madhya Pradesh Road Development Corporation (Respondent) for the development of a state highway on a BOT (Toll + Annuity) basis. Following alleged breaches and delays attributed to the Respondent, the Appellant first initiated proceedings in 2018 before the Madhya Pradesh Arbitration Tribunal, a s...

Supreme Court: Criminal Cases Against In-Laws Can Be Dropped After Amicable Settlement

28Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court: Criminal Cases Against In-Laws Can Be Dropped After Amicable Settlement

This Supreme Court, invoking Article 142 of the Constitution, quashed all criminal proceedings arising from matrimonial discord, including charges under Section 494 and 498A IPC. Relying on precedents, it held that continuing prosecution after a full and final settlement and divorce constitutes an abuse of the legal process and serves no legitimate purpose. Facts Of The Case: The marriage between the respondent-wife and the appellant's brother was solemnized in 2001. The couple moved to the USA, but their relationship soured, leading to a mutual divorce decree from a California court in 2007. After returning to India, the wife initiated multiple legal proceedings against her husband and his family (the appellants). These included a complaint case alleging cruelty, a case under the Domest...

Supreme Court Reinstates Drug Case: Acquittal Based on “Same Informant-Investigator” Rule Overturned

26Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Reinstates Drug Case: Acquittal Based on “Same Informant-Investigator” Rule Overturned

The Supreme Court held that an investigation is not automatically vitiated solely because the informant and investigator are the same. This procedural irregularity must be examined on a case-specific basis for bias. The Court overruled the contrary precedent in Mohan Lal and restored the matter for a merits-based hearing. Facts Of The Case: Based on the secret information received on September 20, 2009, police intercepted a truck. The respondent, Gurnam @ Gama, was found sitting on a stack of bags in the cargo area, while the other respondent, Jaswinder Singh, was driving the vehicle. Upon search, the authorities recovered a significant quantity of 750 kilograms of poppy husk along with two motorcycles. Consequently, FIR No. 221 of 2009 was registered under the relevant sections of the N...

Supreme Court: Company Balance Sheets Can Reset Limitation Clock for Creditors Under IBC

26Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court: Company Balance Sheets Can Reset Limitation Clock for Creditors Under IBC

The Supreme Court held that entries in a company’s balance sheet, when read in the context of surrounding circumstances and previous financial statements, can constitute a valid acknowledgment of debt under Section 18 of the Limitation Act, 1963, thereby extending the limitation period for filing an application under Section 7 of the IBC. The Court clarified that the exclusion period under its COVID-19 limitation order applied from 15.03.2020 to 28.02.2022, making the application timely. Facts Of The Case: The appellant, IL & FS Financial Services Ltd., extended a term loan of ₹30 crores to the respondent, Adhunik Meghalaya Steels Pvt. Ltd., on 27.02.2015, secured by a pledge of shares. The respondent's account was declared a Non-Performing Asset (NPA) on 01.03.2018. The appellant fi...