Supreme Court - The Legal Chamber

Supreme Court Upholds Departmental Inquiries: Authority for Minor Penalties Can Issue Major Charge Sheets

22Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Upholds Departmental Inquiries: Authority for Minor Penalties Can Issue Major Charge Sheets

The Supreme Court held that under Rule 13(2) of the CCS (CCA) Rules, 1965, a disciplinary authority competent to impose only minor penalties is fully empowered to institute proceedings and issue a charge-sheet for imposing major penalties. The final order, however, must be passed by the authority competent to impose a major penalty. Facts Of The Case: The respondent, R. Shankarappa, was a Sub Divisional Engineer in the Department of Telecommunications who retired in 2018. In 2003, he was prosecuted by the CBI in two cases: one for demanding and accepting a bribe, and another for possessing assets disproportionate to his known sources of income. He was convicted in both cases, but the High Court later stayed the conviction and sentence, with the criminal appeals remaining pending. Paralle...

Supreme Court Rules: Insurer Must Pay Full Claim If It Didn’t Plead ‘Limited Liability’ Earlier

22Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Rules: Insurer Must Pay Full Claim If It Didn’t Plead ‘Limited Liability’ Earlier

The Supreme Court ruled that an insurer's contractual liability under a personal accident cover is distinct from its statutory third-party liability. The defense of "limited liability" must be specifically pleaded and proved before the Tribunal; it cannot be raised for the first time in appeal. The insurer was thus liable to pay the full compensation awarded. Facts Of The Case: The deceased, who was the brother of the car owner, was driving the vehicle when its right rear tyre suddenly burst. This caused the car to go out of control, topple, and resulted in a fatal head injury that led to his death. The car was also occupied by the owner, his wife, and the deceased's wife, all of whom sustained injuries. The claimants, the deceased's widow, minor children, and parents, filed for compensa...

Win for Taxpayers: Supreme Court Says GST Authorities Can’t Skip Adjudication After Payment

22Aug

By The Legal ChamberNo Comments

Supreme Court

Win for Taxpayers: Supreme Court Says GST Authorities Can’t Skip Adjudication After Payment

The Supreme Court held that payment of tax and penalty under Section 129 of the CGST Act does not absolve the proper officer from passing a reasoned order under Section 129(3). Such an order is mandatory to safeguard the taxpayer’s right to appeal and ensure compliance with principles of natural justice and due process under Article 265 of the Constitution. Facts Of The Case: The appellant, M/s ASP Traders, a Karnataka-based dealer, consigned 17,850 kg of dry arceanut to a Delhi-based company. During transit, the goods were transhipped, and seven bags went missing. The vehicle was subsequently detained by the Uttar Pradesh Mobile Squad in Jhansi. A notice was issued under Section 129(3) of the CGST Act, alleging discrepancies including the shortfall in quantity and questioning the existe...

Parallel Proceedings Valid: Supreme Court Clarifies Law in Central Excise Act Dispute

18Aug

By The Legal ChamberNo Comments

Supreme Court

Parallel Proceedings Valid: Supreme Court Clarifies Law in Central Excise Act Dispute

The Supreme Court upheld the continuation of criminal proceedings under Sections 9 and 9AA of the Central Excise Act, 1944, despite the quashing of adjudication orders on procedural grounds. Relying on Radheshyam Kejriwal, it ruled that parallel departmental and criminal proceedings are permissible, and discharge cannot be sought merely due to pending adjudication. The Court emphasized that prima facie evidence in the complaint justified the trial, rejecting technical objections under CrPC Section 245(2). It clarified that remand for de novo adjudication does not equate to exoneration on merits, ensuring criminal liability remains independent of administrative outcomes. Facts Of The Case: The case involved M/s Rimjhim Ispat Limited, M/s Juhi Alloys Limited, and Yogesh Aggarwal (Appellant...

Supreme Court Verdict on Cross-Border Taxation: Hyatt’s India Operations Fall Under PE, Income Taxable

18Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Verdict on Cross-Border Taxation: Hyatt’s India Operations Fall Under PE, Income Taxable

The Supreme Court of India upheld the Delhi High Court's ruling that Hyatt International Southwest Asia Ltd. had a Permanent Establishment (PE) in India under Article 5(1) of the India-UAE Double Taxation Avoidance Agreement (DTAA). The Court emphasized that a fixed place of business PE exists if the enterprise has a right to use and control a physical location for its business activities, regardless of exclusive possession. The appellant's extensive control over hotel operations under the Strategic Oversight Services Agreement (SOSA) satisfied the "disposal test" and established a PE. Consequently, the income derived from these activities was deemed taxable in India under Article 7 of the DTAA. The appeals were dismissed, affirming the tax liability. Facts Of The Case: Hyatt Internation...

Supreme Court Clarifies Limits of SC/ST Act: No Prosecution Without Caste-Based Intent

18Aug

By The Legal ChamberNo Comments

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Supreme Court Clarifies Limits of SC/ST Act: No Prosecution Without Caste-Based Intent

The Supreme Court dismissed the appeal, upholding the High Court's quashing of proceedings under the SC/ST (Prevention of Atrocities) Act, 1989. It ruled that mere allegations of caste-based malice were insufficient without concrete evidence. The Court emphasized that prosecution under the Act requires proof of intent linked to the victim's caste, preventing misuse for personal vendettas. Legal infirmities in the complaint and lack of prima facie case justified the quashing under Section 482 CrPC. Facts Of The Case: The case originated from a land allotment dispute in Duvva village, where the appellant, Konde Nageshwar Rao, alleged that Respondent No. 2, the Mandal Revenue Officer (MRO), manipulated the allotment of plots reserved for Scheduled Caste (SC) beneficiaries to upper-caste ind...

Abuse of Legal Process? : Supreme Court Quashes Second Petition , Not Allowed Without New Grounds

18Aug

By The Legal ChamberNo Comments

Supreme Court

Abuse of Legal Process? : Supreme Court Quashes Second Petition , Not Allowed Without New Grounds

The Supreme Court ruled that a second quashing petition under Section 482 CrPC is impermissible if based on grounds available during the first petition, as it effectively amounts to a review barred under Section 362 CrPC. The Court emphasized that inherent powers cannot override statutory prohibitions, preventing abuse of legal process through successive petitions. The judgment reaffirmed that change in circumstances or new grounds must be demonstrated for entertaining subsequent quashing petitions, ensuring judicial discipline and preventing harassment via repetitive litigation. The High Court's order allowing a second petition was set aside, restoring the criminal complaint for trial. Facts Of The Case: The case involves a dispute between the appellant, M.C. Ravikumar, and the respon...

Can Juvenility Be Claimed Decades Later? Supreme Court Says Yes in Historic 2025 Judgment

18Aug

By The Legal ChamberNo Comments

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Can Juvenility Be Claimed Decades Later? Supreme Court Says Yes in Historic 2025 Judgment

The Supreme Court upheld the conviction of the appellant under Sections 342 and 376 IPC, rejecting arguments about discrepancies in prosecution evidence and delay in FIR registration. However, the Court accepted the appellant’s juvenility claim under the Juvenile Justice Act, 2000, based on school records confirming his age as 16 years at the time of the offense. The sentence was set aside, and the case was referred to the Juvenile Justice Board for appropriate orders, affirming that juvenility can be raised at any stage, even post-conviction, as per precedents like Dharambir v. State (NCT of Delhi). The Court emphasized that credible prosecutrix testimony, corroborated by medical evidence, suffices for conviction in rape cases. Facts Of The Case: The case involves an appeal against the ...

Supreme Court Slams Fraudulent Litigation, Nullifies Compensation Order in Land Dispute

18Aug

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Supreme Court Slams Fraudulent Litigation, Nullifies Compensation Order in Land Dispute

The Supreme Court held that judicial orders obtained through fraud are null and void, as "fraud unravels everything." It emphasized that suppression of material facts vitiates proceedings, regardless of the court's hierarchy. The doctrine of merger does not apply to fraudulent judgments. The Court recalled its earlier order and remanded the case to the High Court for fresh adjudication, affirming that fraud is an exception to finality in litigation. Procedural technicalities cannot shield fraudulent litigants from judicial scrutiny. Facts Of The Case: The case involves a dispute over land ownership and compensation between Vishnu Vardhan, Reddy Veeranna, and T. Sudhakar. The trio jointly purchased land in Gautam Budh Nagar, Uttar Pradesh, in 1997, which was later acquired by NOIDA in 200...

Supreme Court Ruling : Doubt Over Witness Claims Leads to Acquittal in TN Murder Case

18Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Ruling : Doubt Over Witness Claims Leads to Acquittal in TN Murder Case

The Supreme Court acquitted the appellants, overturning their conviction under Sections 302 and 34 IPC, due to unreliable eyewitness testimonies. The Court emphasized the need for cautious scrutiny of related witnesses (PW-1 and PW-2) and highlighted improbabilities in their accounts, including the unrealistic timeline of events. The prosecution failed to prove guilt beyond reasonable doubt, rendering the conviction unsustainable. The judgments of the Trial Court and High Court were set aside, underscoring the principle that doubts in prosecution cases must benefit the accused. Facts Of The Case: The case involves the murder of Edison Suvisedha Muthu, a habitual drunkard with a criminal record, including detention under the Tamil Nadu Goondas Act. The prosecution alleged that on 14.04.20...