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Supreme Court Clarifies: Licensee Must Pay Arrears, Not Liquidated Damages, at Interim Stage

4Dec

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Clarifies: Licensee Must Pay Arrears, Not Liquidated Damages, at Interim Stage

In a suit for eviction under a lapsed license agreement, the Supreme Court ruled that the trial court cannot grant liquidated damages as an interim measure under Order XXXIX Rules 1 & 2 CPC. However, it upheld the application of Order XV-A CPC (Bombay Amendment), directing the licensee to pay ascertained arrears and ongoing license fees with annual increments, failing which the defense can be struck off. Facts Of The Case: The case originated from a Leave and License Agreement executed on 08.10.2013 between the appellant licensors and the respondent licensee for 36 months, from 01.11.2013 to 31.10.2016, with a 7% annual increase in license fee. Clause 19 stipulated liquidated damages of Rs. 10,000 per day if the licensee failed to vacate upon expiry. After the license period lapsed, ...

Justice Delayed is Justice Denied: Supreme Court Orders Strict Timelines for Pronouncing Judgments

This Supreme Court judgment reiterates the legal imperative for timely pronouncement of reserved judgments to uphold the right to speedy justice. The Supreme Court directed all High Courts to strictly adhere to the guidelines established in Anil Rai v. State of Bihar, mandating a monitoring mechanism by the Registrar General and the Chief Justice to ensure judgments are delivered within three months of being reserved. Facts Of The Case: The appellant, the de-facto complainant in the case, challenged interim orders from the High Court of Judicature at Allahabad concerning a long-pending criminal appeal filed by respondent no. 2 in 2008. The core grievance was the inordinate delay in the High Court's disposal of this criminal appeal. The appeal had initially been heard at length by a Div...

Supreme Court Directs Uniform Rules for Court Managers: Mandates Better Pay & Service Conditions for Court Managers

The Supreme Court directed all High Courts to frame uniform rules for Court Managers within 3 months, adopting Assam's 2018 Rules as a model. It mandated their regularization, Class-II Gazetted status, and career progression, while allowing states to modify rules as needed. The judgment emphasized judicial efficiency and upheld Article 229 & 309 (Constitution) for service conditions. Existing contractual Court Managers must pass a suitability test for regularization, with benefits from their initial appointment date but no arrears. The ruling ensures standardized administrative support to reduce judges' workload and enhance justice delivery. Facts Of The Case: The case originated from multiple Interlocutory Applications (IAs) and a Writ Petition concerning the service conditions of C...