Supreme Court - The Legal Chamber

Supreme Court Decides “what It Means for Future Agreements” : Lead Partner Liable for Full Payment in Power Project Dispute

19May

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Decides “what It Means for Future Agreements” : Lead Partner Liable for Full Payment in Power Project Dispute

The Supreme Court upheld the doctrine of privity of contract, ruling that Brua Hydrowatt Pvt. Ltd. (BHP) was solely liable for transmission bay costs under its agreement with HP Power Transmission Corporation (HPPTC), despite internal arrangements with third parties. The Court held that non-signatories (Respondent Nos. 2 & 3) could not be bound by the contract, reversing APTEL’s order. The judgment reaffirmed that contractual obligations apply only to parties to the agreement, unless explicitly extended. Facts Of The Case: The dispute arose between HP Power Transmission Corporation Ltd. (HPPTC) and M/s Brua Hydrowatt Pvt. Ltd. (BHP) over the liability for construction and maintenance costs of a 66kV power transmission bay at Urni, Himachal Pradesh. BHP, along with two other power com...

“Courts Can’t Decide Arbitrability” Supreme Court Clarifies Arbitrator Appointment Scope Under Section 11 Arbitration Act

17May

By The Legal ChamberNo Comments

Supreme Court

“Courts Can’t Decide Arbitrability” Supreme Court Clarifies Arbitrator Appointment Scope Under Section 11 Arbitration Act

The Supreme Court ruled that under Section 11(6A) of the Arbitration Act, courts must limit their examination to the existence of an arbitration agreement and cannot decide arbitrability or exclude claims as "excepted matters" at the appointment stage. Citing the 7-judge bench in In Re: Interplay and 3-judge bench in SBI General Insurance, it held that arbitral tribunals—not courts—must determine whether claims fall under non-arbitrable categories. The judgment clarifies that courts cannot bifurcate claims into arbitrable/non-arbitrable during arbitrator appointments, ensuring minimal judicial interference at the referral stage. Facts Of The Case: The dispute arose from a contractual agreement between Office for Alternative Architecture (Appellant) and IRCON Infrastructure (Respondent), ...

“Masterminds Can’t Claim Parity with Minor Accused”: Supreme Court Overrules Bail Order under 302 IPC

17May

By The Legal ChamberNo Comments

Supreme Court

“Masterminds Can’t Claim Parity with Minor Accused”: Supreme Court Overrules Bail Order under 302 IPC

The Supreme Court ruled that bail parity cannot be mechanically applied when material distinctions exist between accused persons. It held that alleged conspirators/masterminds of a serious crime (Section 302 IPC) cannot claim bail parity with minor co-accused, especially when evidence suggests their active role in hiring a contract killer. The Court emphasized that bail decisions must consider the gravity of allegations, evidentiary role of each accused, and potential witness intimidation, rather than granting parity as a blanket rule. The judgment clarified that "parity" under Section 439 CrPC requires comparable roles, not mere similarity of charges. Facts Of The Case: The case involves a brutal shooting during a marriage procession in Rajasthan on November 28, 2023. The prosecution al...

Supreme Court Clarifies Section 195 CrPC Doesn’t Protect Post-Proceeding Forgery”: Courts Records Safety

17May

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Clarifies Section 195 CrPC Doesn’t Protect Post-Proceeding Forgery”: Courts Records Safety

The Supreme Court ruled that Section 195 CrPC does not bar prosecution for tampering with court records after proceedings conclude, as such acts no longer affect "proceedings in court" under Section 195(1)(b). It held that fabricating documents in record rooms post-withdrawal constitutes standalone offences under IPC, not requiring court-sanctioned complaints. The judgment clarified that Section 195 applies only when offences directly impact live judicial proceedings or documents in active court custody, distinguishing between administrative record-keeping and judicial administration of justice. The Court affirmed that FIRs remain valid for post-proceeding forgeries. Facts Of The Case: The case originated from a 2005 FIR lodged by the Registrar of Bharuch District Court against Parshotta...

Supreme Court Rejects Delay Condonation in Property Dispute: No Second Chance for Delay “Limitation Act”

17May

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Rejects Delay Condonation in Property Dispute: No Second Chance for Delay “Limitation Act”

The Supreme Court ruled that repeated applications for condonation of delay under different procedural provisions (Order IX Rule 13 and Order XLI Rule 3A CPC) cannot be entertained when the same grounds were already rejected in earlier rounds. Emphasizing strict adherence to limitation laws, the Court held that finality of judicial orders must prevail over belated challenges, and litigants cannot abuse process by re-agitating identical delay explanations. The judgment reaffirmed that Section 14 of the Limitation Act doesn’t apply where prior delay condonation pleas were dismissed on merits. Facts Of The Case: The dispute arose from a 2015 sale agreement between the appellant (Thirunagalingam) and respondent No. 1 (Lingeswaran) concerning property in Nainarkoil village. When the responden...

Supreme Court Enhances Compensation for Disabled CRPF Officer in Accident Case : Future Prospects & Pension Rights

17May

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Enhances Compensation for Disabled CRPF Officer in Accident Case : Future Prospects & Pension Rights

The Supreme Court ruled that pension benefits cannot be deducted from salary when computing motor accident compensation, as they are statutory rights unrelated to the accident. It upheld 78% disability (overriding lower courts' 50-61.94% assessments) and mandated 30% future prospects for the 43-year-old victim. The Court enhanced compensation to ₹67.36 lakhs with 7% interest, applying multipliers consistently with Sarla Verma and Pranay Sethi precedents, while clarifying that post-accident medical assessments must prevail over initial disability evaluations if unrebutted. Facts Of The Case: On May 10, 2010, Hanumantharaju B., a CRPF Sub-Inspector, met with a motor accident in Bengaluru when an Omni car collided with his motorcycle. He suffered grievous injuries, underwent multiple surg...

Supreme Court Clarifies Dependency Rights in Accident Claims: Key Takeaways on Legal Heirs & Dependency

17May

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Clarifies Dependency Rights in Accident Claims: Key Takeaways on Legal Heirs & Dependency

The Supreme Court upheld the High Court's decision denying enhanced compensation to the married daughter (Appellant No. 1) under the Motor Vehicles Act, 1988, as she failed to prove financial dependency on the deceased. However, it reversed the dismissal of the mother’s (Appellant No. 2) claim, awarding her ₹19.22 lakhs, recognizing her dependency and applying principles from Pranay Sethi and Sarla Verma for just compensation. The ruling clarified that legal heirs must establish dependency for loss-of-income claims, except under Section 140’s no-fault liability. Facts Of The Case: On January 26, 2008, Smt. Paras Sharma died in a road accident when a Rajasthan Roadways bus, negligently taking a sudden right turn, crushed her two-wheeler. Her married daughter (Appellant No. 1) and elderly ...

Supreme Court Rules on Mumbai Flat Dispute: Directs Payment of ₹1.4 Crore for Alternate Flat in Worli Project

16May

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Rules on Mumbai Flat Dispute: Directs Payment of ₹1.4 Crore for Alternate Flat in Worli Project

The Supreme Court upheld the NCDRC's order directing execution of a sale agreement for an alternate flat under MOFA 1963, while modifying financial liabilities. It penalized the builder for violating NCDRC's interim order by alienating the original flat, and balanced equities by capping the buyer's dues at ₹1.4 crore (including taxes/admitted charges) while waiving contested interest/penalties. The judgment enforced consumer rights under MOFA while considering the builder's maintenance costs, and mandated registration within two months of payment. The Court exercised its discretionary powers under Article 142 to resolve the 12-year dispute finally. Facts Of The Case: The case involves a dispute between Jawala Real Estate Pvt Ltd (later amalgamated with Macrotech Developers) and homebuyer...

Supreme Court Ends Pension Discrimination for Merged Employees: Pension Rights to MPSEB Absorbed Workers

16May

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Ends Pension Discrimination for Merged Employees: Pension Rights to MPSEB Absorbed Workers

The Supreme Court ruled that employees absorbed by MPSEB from cooperative societies are entitled to pension under MPSEB rules, but only from their absorption date (15.03.2002), not their prior society service. Invoking Article 142, it mandated uniform treatment for all absorbed employees, upholding functional integration principles from Panchraj Tiwari (2014) while interpreting "qualifying service" under MP Madhya Pradesh Civil Services (Pension) Rules, 1976. The Court rejected retrospective pension claims for pre-absorption periods as society service wasn’t state-regulated. Facts Of The Case: The case concerns employees of electricity distribution cooperative societies in Madhya Pradesh that were merged with the Madhya Pradesh State Electricity Board (MPSEB) in 2002 due to financial cri...

Supreme Court Sets New Benchmark for Accident Claims: Enhances Compensation for 100% Disabled Accident Victim

16May

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Sets New Benchmark for Accident Claims: Enhances Compensation for 100% Disabled Accident Victim

The Supreme Court enhanced compensation under the Motor Vehicles Act, applying principles from Pranay Sethi to determine a monthly income of ₹10,000 for an unskilled worker (2015 accident). It upheld 100% functional disability, used an 18x multiplier, and awarded ₹35.91 lakh with 8% interest, reinforcing "just compensation" standards for catastrophic injuries. The judgment reaffirmed future prospects (40% addition) and lifetime care costs while rejecting insurer's belated policy coverage objections due to their failure to appeal the Tribunal's order. Facts Of The Case: The case involves a 25-year-old unskilled laborer, Shaikh Sadik Shaikh Rafique, who suffered catastrophic injuries in a 2015 truck accident, leaving him permanently bedridden with 100% disability. While traveling in his em...