Canara Bank - The Legal Chamber

Supreme Court Denies Specific Performance for Deal Breaching Construction Laws

27Dec

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Denies Specific Performance for Deal Breaching Construction Laws

The Supreme Court held that an agreement mandating construction violating building laws is void and unenforceable. The illegality rendered specific performance impossible under Section 12 of the Specific Relief Act, as the unlawful object was essential to the contract. The Court affirmed that contracts contravening statutory provisions cannot be severed to remove their core illegal purpose. Facts Of The Case: The appellant, Canara Bank, entered into an agreement with the respondent, K.L. Rajgarhia, on 27.12.1984 for the purchase of residential flats to be constructed on a plot in East of Kailash, Delhi. The total consideration was ₹32,07,500, of which approximately 90% (₹28,86,750) was paid upfront. The agreement stipulated the construction and delivery of eight flats and a basement with...

When a Contract Becomes Void: Supreme Court Explains the Limits of Specific Performance

25Dec

By The Legal ChamberNo Comments

Supreme Court

When a Contract Becomes Void: Supreme Court Explains the Limits of Specific Performance

The Supreme Court held that an agreement to sell flats, which was contingent upon construction violating building bye-laws and the master plan, was unlawful and void under Section 23 of the Indian Contract Act. The Court ruled that specific performance cannot be granted for an illegal contract, and courts cannot rewrite or sever its essential, unlawful terms to make it enforceable. Facts Of The Case: In December 1984, Canara Bank entered into an agreement with K.L. Rajgarhia to purchase residential flats to be constructed on his plot in East of Kailash, Delhi, for ₹32,07,500. The bank paid approximately 90% of the consideration upfront. The agreement specified the construction and sale of eight flats and a basement, with completion required within 18 months. When the defendant failed to ...

Supreme Court Reins In High Court’s Review Power in Judicial Recruitment Case

13Nov

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Reins In High Court’s Review Power in Judicial Recruitment Case

The Supreme Court held that the High Court exceeded its review jurisdiction by re-adjudicating matters already decided in the original writ petition. The Court reiterated that review is not an appeal and cannot be invoked to re-examine a contention merely because a different view is possible. The scope of review is limited to correcting errors apparent on the face of the record. Facts Of The Case: The Madhya Pradesh High Court issued an advertisement for recruiting Civil Judges (Entry Level) under amended rules that prescribed new eligibility criteria. The respondents, Jyotsna Dohalia and another, participated in the preliminary examination but failed to secure the cut-off marks of 113. Their writ petition challenging the result was dismissed by the High Court on May 7, 2024, which held ...

Landmark Ruling: Supreme Court Clarifies Scope of Judicial Review in Employee Disciplinary Matters

27Oct

By The Legal ChamberNo Comments

Supreme Court

Landmark Ruling: Supreme Court Clarifies Scope of Judicial Review in Employee Disciplinary Matters

This Supreme Court judgment reiterates the limited scope of judicial review in disciplinary proceedings. Courts cannot act as appellate authorities to re-appreciate evidence. The standard of proof is preponderance of probability, not strict evidence rules. Interference is only permissible if the finding is perverse, based on no evidence, or violates natural justice. The Tribunal exceeded its jurisdiction under Section 11-A of the Industrial Disputes Act by doing so. Facts Of The Case: The respondent, Ganganarasimhaiah, was a Sub-Staff employee at Canara Bank's V.G. Doddi branch. An investigation revealed serious irregularities, including unauthorized loans and tampering with bank records. Specifically, it was alleged that he facilitated loans for his wife and father without the man...