Tag: Case Law

Supreme Court Strikes Down Unilateral Arbitration Clauses, Upholds Neutral Appointments
19Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Strikes Down Unilateral Arbitration Clauses, Upholds Neutral Appointments

This Supreme Court judgment affirms that a unilateral arbitration clause granting one party the sole power to appoint an arbitrator is invalid. Following the Constitution Bench in CORE, the Court held that an ineligible person (such as a Managing Director) cannot nominate a sole arbitrator, as it raises justifiable doubts regarding impartiality under Section 12(5) of the Arbitration and Conciliation Act, 1996. Facts Of The Case: The appellant, Bhayana Builders Pvt. Ltd., filed petitions before the Delhi High Court under Section 14(2) of the Arbitration and Conciliation Act, 1996, seeking to terminate the mandate of a sole arbitrator. This arbitrator had been unilaterally appointed by the Managing Director of the respondent, Oriental Structural Engineers Pvt. Ltd., pursuant to Clause 9.03...
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Wake-Up Call for Courts: Supreme Court Says Long Delays Can Create New Rights in Property Disputes
18Sep By The Legal ChamberNo Comments
Supreme Court

Wake-Up Call for Courts: Supreme Court Says Long Delays Can Create New Rights in Property Disputes

The Supreme Court set aside the High Court's order condoning a delay of 5,250 days in filing a restoration application. It held that courts must be cognizant of third-party rights created during prolonged delays and that such condonation requires reasoned orders after hearing affected parties, who may be impleaded. The matter was remanded for fresh consideration. Facts Of The Case: The case originated from a suit for eviction filed by Mafatlal Mangilal Kothari and another (Respondent Nos. 1 and 2) against the defendants concerning a disputed property. The Trial Court dismissed the suit in 1988, prompting the plaintiffs to file a First Appeal. This appeal was admitted by the Bombay High Court in 1989 but was eventually listed in 2008, where the Court passed an order stating that if the co...
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Supreme Court Acquits Village Assistant: Merely Accepting Bribe Isn’t Enough
14Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Acquits Village Assistant: Merely Accepting Bribe Isn’t Enough

The Supreme Court upheld the conviction of the main accused under Sections 7 and 13 of the Prevention of Corruption Act, 1988, as demand and acceptance of illegal gratification were proven. However, the conviction of the co-accused was set aside due to the absence of a specific charge of abetment and lack of evidence proving his connivance or independent demand for the bribe. Facts Of The Case: The case involved two government officials, A. Karunanithi (A-1), the Village Administrative Officer, and P. Karunanithi (A-2), the Village Assistant. The complainant approached A-1 to obtain a necessary community certificate for a government job. On two separate occasions, A-1 demanded a bribe of Rs. 500 from the complainant to process the application. The complainant subsequently lodged a formal...
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Landmark Judgment: Supreme Court Explains How to Calculate Compensation for a Child’s Death
11Sep By The Legal ChamberNo Comments
Supreme Court

Landmark Judgment: Supreme Court Explains How to Calculate Compensation for a Child’s Death

The Supreme Court clarified that in claims under Section 166 of the MV Act, a notional income for a deceased child need not be limited to the figures in Schedule II (for Section 163-A claims). It reinstated the Tribunal's calculation, confirming no deduction for personal expenses is required in such cases. Facts Of The Case: The case originated from a motor accident involving a 10-year-old boy who was fatally struck by a bus owned by the Tamil Nadu State Transport Corporation while he was cycling to school. The parents of the deceased child filed a claim petition before the Motor Accidents Claims Tribunal. The Tribunal, acknowledging the undisputed negligence of the bus driver, awarded a total compensation of ₹8,55,000. This calculation was based on attributing a notional monthly...
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Supreme Court Recalls Its Own Order Against a Judge, Upholds High Court Chief Justice’s Authority
11Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Recalls Its Own Order Against a Judge, Upholds High Court Chief Justice’s Authority

The Supreme Court, while deleting specific administrative directions against a High Court judge upon the CJI's request, reaffirmed its supervisory jurisdiction under Article 136. It emphasized that persistent judicial errors raising institutional concerns compel the Court to intervene to protect the rule of law and maintain the judiciary's dignity and credibility. Facts Of The Case: The case originated from a Special Leave Petition filed by M/s Shikhar Chemicals challenging an order passed by the Allahabad High Court. The Supreme Court, in its order dated 4th August 2025, found the High Court's judgment to be erroneous. Consequently, it set aside the impugned order and remanded the matter back to the High Court for a fresh consideration on the merits. The apex court's directive i...
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Supreme Court Ruling: Family of US-Based Driver Wins Enhanced Compensation
11Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Ruling: Family of US-Based Driver Wins Enhanced Compensation

The Supreme Court, applying the principles established in National Insurance Co. Ltd. v. Pranay Sethi, held that a self-employed person, even one working abroad, is entitled to an addition of 40% of their established income towards future prospects when computing compensation in motor accident claims. The Court enhanced the compensation by recalculating the loss of dependency and conventional heads as per the standardized formula mandated by the Constitution Bench. Facts Of The Case: The case arose from a motor accident that occurred on 31st August 2007 at approximately 3:00 a.m. at Nirmal Kutia Chowk, Karnal. The deceased, Rajinder Singh Mihnas, a 31-year-old U.S. national, was travelling in a car from Delhi to Hoshiarpur when it was struck by a rashly and negligently driven Swaraj Mazd...
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Key Income Tax Ruling: Supreme Court Divided on Limitation Period Under Sections 144C & 153
11Sep By The Legal ChamberNo Comments
Supreme Court

Key Income Tax Ruling: Supreme Court Divided on Limitation Period Under Sections 144C & 153

The Supreme Court delivered a split verdict on the interplay between Sections 144C and 153 of the Income Tax Act, 1961. The key legal question was whether the detailed procedure and timelines under Section 144C for eligible assessees operate within or in addition to the limitation period prescribed under Sections 153 for passing assessment orders. The divergence of opinion led to the matter being referred to a larger bench for final determination. Facts Of The Case: The case involved several foreign companies, including Shelf Drilling Ron Tappmeyer Ltd., engaged in oil exploration in India. For Assessment Years 2014-15 and 2018-19, the companies filed returns declaring losses. Their cases were selected for scrutiny, and the Assessing Officers passed draft assessment orders ...
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Supreme Court Rules: You Can’t Claim Adverse Possession for the First Time on Appeal
9Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules: You Can’t Claim Adverse Possession for the First Time on Appeal

The Supreme Court reaffirmed that a plea of title by adverse possession cannot be raised for the first time at the appellate stage if it was not specifically pleaded in the plaint, framed as an issue, and proven during trial. Such a surprise claim prejudices the opposite party and is impermissible as a decision must be based on the case pleaded. Facts Of The Case: The case originated from a title suit filed in 1999 by the plaintiffs (Kishundeo Rout & Ors.) against the defendants (Govind Rao & Ors.). The plaintiffs sought a declaration that a 1997 sale deed executed by the original plaintiff, Sudama Devi, in favour of the defendants was bogus, inoperative, and fit for cancellation. They also prayed for confirmation of their possession and a permanent injunction again...
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How Unexplained Injuries and a Family Dispute Led to an Acquittal by the Supreme Court
9Sep By The Legal ChamberNo Comments
Supreme Court

How Unexplained Injuries and a Family Dispute Led to an Acquittal by the Supreme Court

The Supreme Court acquitted the appellant, granting the benefit of doubt. The conviction was overturned due to material inconsistencies in the prosecution's case, including an unexplained timeline of death, unrebutted defence evidence of family enmity, and a lack of medical corroboration for the alleged weapon and dying declaration. Facts Of The Case: Based on the altercation, the appellant and her husband were accused of fatally beating the deceased with sticks near a temple later that night. The prosecution's case, supported by eyewitnesses including the deceased's father (PW-7), was that the attack was retaliation for the afternoon dispute. The victim was allegedly carried home unconscious and died minutes later, with a First Information Report (FIR) lodged around 9:00 PM. How...
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