Tag: Abuse of process

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...
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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...
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Supreme Court: Key Takeaway from a Property Dispute: Exhaust Legal Remedies First, Go to Court Later
4Feb By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Key Takeaway from a Property Dispute: Exhaust Legal Remedies First, Go to Court Later

The Supreme Court dismissed the appeal, holding that the statutory remedy under Sections 37-A/38 of the Tamil Nadu Revenue Recovery Act, 1864, providing a 30-day period to challenge an auction, is mandatory. Failure to exhaust this specific remedy within limitation bars subsequent writ jurisdiction under Article 226, irrespective of other pending proceedings or interim orders. Facts Of The Case: The case concerns recovery proceedings against the legal heirs of late Ramaswamy Udayar for arrack shop dues from 1972-73. Following an ex-parte decree in 1987, the Revenue authorities issued an auction notice in 2005 for his properties. The appellant, his widow, challenged this notice via a writ petition. Although the High Court granted an interim stay on the confirmation of sale, the auction it...
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Supreme Court Sets Aside Quashing of Dowry Case, Reiterates Limits of High Court’s Power
21Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Sets Aside Quashing of Dowry Case, Reiterates Limits of High Court’s Power

The Supreme Court held that the High Court erred in quashing criminal proceedings under Section 482 CrPC by conducting a "mini-trial" on the credibility of allegations. The power to quash an FIR is to be exercised sparingly and only when allegations, taken at face value, disclose no cognizable offence. The existence of prima facie allegations necessitates permitting the investigation to proceed. Facts Of The Case: The appellant, Muskan, married respondent No. 1, Ishaan Khan, on 20.11.2020. After five to six months of marriage, she alleged that her husband and his family (respondents 1 to 5) began harassing and taunting her for insufficient dowry. Specific incidents included being slapped by her brother-in-law on 22.07.2021 and, on 27.11.2022, her husband demanding Rs. 50 lakhs from h...
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Arbitration Award Final: Supreme Court Dismisses MMTC’s Post-Decree Objections
17Jan By The Legal ChamberNo Comments
Supreme Court

Arbitration Award Final: Supreme Court Dismisses MMTC’s Post-Decree Objections

This Supreme Court judgment reaffirms that objections to the execution of an arbitral award under Section 47 of the CPC are maintainable only within a very narrow compass, limited to grounds of jurisdictional infirmity or voidness. The Court emphasized that allegations of fraud or breach of fiduciary duty by a party’s own officers, raised after the award has attained finality, do not constitute such grounds unless they render the award a nullity. The business judgment rule protects decisions that fall within a range of reasonableness. Facts Of The Case: The dispute arose from a Long Term Agreement (LTA) dated 07.03.2007 between MMTC Limited and Anglo American Metallurgical Coal Pvt. Limited for the supply of coking coal. The agreement included an option for MMTC to extend the con...
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Supreme Court Protects Religious Freedom: Quashes Multiple UP Conversion FIRs
2Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Protects Religious Freedom: Quashes Multiple UP Conversion FIRs

This Supreme Court judgment quashed multiple FIRs under the Uttar Pradesh Prohibition of Unlawful Conversion of Religion Act, 2021, holding that the unamended Section 4 restricted lodging of complaints only to aggrieved persons or their relatives. The Court found the subsequent FIRs were impermissible as they pertained to the same incident, violated the principle against multiplicity of proceedings, and were an abuse of process. Facts Of The Case: The case involves a batch of petitions and appeals concerning six FIRs registered under the Indian Penal Code and the Uttar Pradesh Prohibition of Unlawful Conversion of Religion Act, 2021. The primary FIR (No. 224/2022) was lodged on 15.04.2022 at the instance of Himanshu Dixit, a Vice President of the Vishwa Hindu Parishad, alleging mass reli...
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Supreme Court Halts Transfer of Investigation to CBI, Calls High Court’s Order Illegal
23Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Halts Transfer of Investigation to CBI, Calls High Court’s Order Illegal

The Supreme Court held that a High Court cannot review or recall its own order under the inherent powers of Section 482 CrPC (Section 528 BNSS) once it has attained finality. Such power is barred by Section 362 CrPC, which only permits the correction of clerical errors. The Court quashed the impugned orders directing transfer of investigation to the CBI as they amounted to an impermissible review. Facts Of The Case: The complainant, Parmeshwar Ramlal Joshi, a granite mining businessman, alleged criminal intimidation, theft, and criminal conspiracy by accused individuals, including a former Revenue Minister. Following his complaint, FIRs were registered. Dissatisfied with the local police investigation, which filed a negative report in one case, he approached the Rajasthan High Court seek...
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Supreme Court Cancels Bail in Cheating Case, Slams Accused for “Misleading Courts”
19Nov By The Legal ChamberNo Comments
Supreme Court

Supreme Court Cancels Bail in Cheating Case, Slams Accused for “Misleading Courts”

The Supreme Court set aside the bail orders, emphasizing that the grant of bail must consider the totality of circumstances, including the accused's conduct and antecedents. The Court held that lower courts erred by ignoring relevant factors and precedents, and by granting bail mechanically without proper application of mind to the material on record. Facts Of The Case: The appellant, M/s Netsity Systems Pvt. Ltd., filed a criminal complaint alleging that the accused respondents, a husband and wife, had cheated them of ₹1.9 crores by promising to transfer a piece of land that was already mortgaged and sold to a third party. An FIR was subsequently registered. The accused sought anticipatory bail, and the High Court granted them interim protection for nearly four years, during which media...
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Supreme Court Cracks Down on Misuse of Disciplinary Process, Imposes Costs on Bar Council
19Nov By The Legal ChamberNo Comments
Supreme Court

Supreme Court Cracks Down on Misuse of Disciplinary Process, Imposes Costs on Bar Council

The Supreme Court ruled that a disciplinary complaint under the Advocates Act cannot be maintained by a litigant against the opposing party's advocate, absent a jural relationship. It further held that a State Bar Council's referral order must record reasoned satisfaction of a prima facie case of misconduct, and a cryptic order is legally unsustainable. Facts Of The Case: The case originated from a complaint filed by Khimji Devji Parmar with the Bar Council of Maharashtra and Goa (BCMG) against advocate Rajiv Nareshchandra Narula. Parmar alleged that his late father was a partner in a firm, M/s. Volga Enterprises, which had rights over a disputed property. A suit concerning this land was pending before the High Court, involving the original owner, Nusli Randelia, and a claimant, M/s. Uni...
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Supreme Court Slams Misuse of Criminal Law to Settle Civil Disputes, Quashes Proceedings
4Nov By The Legal ChamberNo Comments
Supreme Court

Supreme Court Slams Misuse of Criminal Law to Settle Civil Disputes, Quashes Proceedings

The Supreme Court quashed criminal proceedings under Section 420 IPC, ruling that a mere breach of contract does not constitute cheating. The essential ingredient of a dishonest intention at the inception of the agreement was absent. Allegations of supplying non-conforming goods disclosed only a civil dispute, not a criminal offense, making the FIR unsustainable. Facts Of The Case: The case originated from a business transaction dated 12.12.2017, where M/s Soma Stone Crusher (complainant) agreed to purchase a 'sand rrulla machine' from M/s Saini Engineering Works, run by Sarabjit Singh. An advance of ₹5,00,000 was paid via cheque. The complainant alleged that the appellant, Paramjeet Singh, acting on behalf of his brother, had assured that the machine would meet specific specifications (...
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