Tag: Civil Appeal

Supreme Court Sets Guidelines: What Constitutes an “Accidental Fire” for Insurance?
16Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Sets Guidelines: What Constitutes an “Accidental Fire” for Insurance?

The Supreme Court held that in fire insurance claims, the precise cause of fire is immaterial unless fraud or instigation by the insured is proven. The insured is not required to prove the exact origin if the loss is due to fire. Exclusion clauses must be interpreted narrowly, and coverage provisions broadly, with ambiguities resolved in favor of the insured. Facts Of The Case: The case involves cross-appeals arising from a fire insurance claim dispute. Orion Commerx Pvt. Ltd. (the Insured) suffered a fire at its premises on September 25, 2010. The National Insurance Co. Ltd. repudiated the claim, primarily relying on the report of its final Surveyor, which concluded the fire was not accidental and originated from multiple sources, thus excluding it from policy coverage...
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Supreme Court Rules No Compassionate Job if Retiral Benefits Accepted
15Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules No Compassionate Job if Retiral Benefits Accepted

The Supreme Court ruled that for a missing person, the date of civil death is legally presumed to be after seven years from disappearance, not the date they went missing, as per Section 108 of the Indian Evidence Act, 1872. A court decree declaring death merely recognizes this presumption without fixing an earlier date. This legal presumption is central to claims dependent on establishing the date of death. Facts Of The Case: The case involved a claim for compassionate appointment by Shubham, the son of Gulab Mahagu Bawankule, an employee of the Nagpur Municipal Corporation. Gulab went missing on September 1, 2012. During the period of his disappearance, he was treated as being in continuous service and was duly retired on January 31, 2015. His family received all retiral ben...
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Specific Performance Upheld: Supreme Court Reinstates Decree in Property Dispute
15Jan By The Legal ChamberNo Comments
Supreme Court

Specific Performance Upheld: Supreme Court Reinstates Decree in Property Dispute

The Supreme Court held that the High Court exceeded its jurisdiction under Section 100 CPC by interfering with the first appellate court's findings of fact, particularly regarding additional payment and the plaintiff's readiness and willingness. The Court reiterated that time is not ordinarily the essence in immovable property contracts and that acceptance of further payment post-deadline constitutes a waiver of the right to forfeit earnest money, making the suit for specific performance maintainable without a separate declaratory relief. Facts Of The Case: The appellant, Annamalai, entered into a registered sale agreement dated 08.01.2010 with Saraswathi (D-1) and Dharmalingam (D-2) for two property items. The total consideration was Rs. 4,80,000, of which Rs. 4,70,000 was paid as a...
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Insurance Must Pay Victims First: Supreme Court Upholds ‘Pay and Recover’ in Route Deviation Case
13Jan By The Legal ChamberNo Comments
Supreme Court

Insurance Must Pay Victims First: Supreme Court Upholds ‘Pay and Recover’ in Route Deviation Case

This Supreme Court judgment affirms the application of the "pay and recover" principle where an insured vehicle deviates from its permitted route. While the insurer remains statutorily liable to compensate accident victims, it is entitled to subsequently recover the paid amount from the policyholder for breaching the contract's geographical terms. Facts Of The Case: On October 7, 2014, the deceased Srinivasa (alias Murthy) died on the spot after his motorcycle was hit by a rashly and negligently driven bus (KA-52-9099). His dependents filed a claim petition before the Motor Accidents Claims Tribunal (MACT) seeking compensation. The Tribunal awarded ₹18,86,000. Dissatisfied, the claimants appealed to the High Court for enhanced compensation, while the insurance company also appealed...
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Investment vs. Debt: Supreme Court Explains Why Preference Shares Don’t Trigger IBC
13Jan By The Legal ChamberNo Comments
Supreme Court

Investment vs. Debt: Supreme Court Explains Why Preference Shares Don’t Trigger IBC

The Supreme Court held that Cumulative Redeemable Preference Shares (CRPS) represent an equity investment, not a financial debt under the IBC. Preference shareholders are not creditors, and redemption is contingent upon company profits under the Companies Act. Therefore, they cannot initiate insolvency proceedings under Section 7 of the IBC for non-redemption. Facts Of The Case: EPC Constructions India Limited (EPCC) held outstanding receivables from Matix Fertilizers and Chemicals Limited for construction work. In 2015, to help Matix meet lender-mandated debt-equity ratios, the parties agreed to convert ₹400 crores of dues into 8% Cumulative Redeemable Preference Shares (CRPS). Matix subsequently allotted CRPS worth ₹250 crores to EPCC. When the shares matured after three years, M...
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Supreme Court Clarifies: Pending Cases Don’t Justify Violating Active Court Orders
6Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies: Pending Cases Don’t Justify Violating Active Court Orders

The Supreme Court held that once an interim court order is in operation, it remains binding unless specifically vacated. Merely releasing a reserved matter does not invalidate or nullify an existing interim order. Violating such an order without obtaining prior leave from the court constitutes a prima facie case for contempt proceedings. Facts Of The Case: The appellant, a professor at KGMU, was appointed as the Nodal Officer for implementing a software system in 2010. In 2017, audit objections arose regarding expenditures during his tenure, leading to a disciplinary inquiry. The professor challenged the preliminary inquiry and a subsequent notice via his first writ petition in 2018. While this petition was reserved for judgment, the disciplinary committee sent him a questionnaire, which...
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Supreme Court Rules: Non-Examination of Complainant Vitiates Departmental Inquiry
4Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules: Non-Examination of Complainant Vitiates Departmental Inquiry

The Supreme Court held that a departmental inquiry is vitiated if based on the unexamined statement of a key complainant, denying the delinquent employee the right to cross-examination—a violation of natural justice. Charges unsupported by conclusive evidence cannot sustain a dismissal order, warranting judicial intervention under Article 226. Facts Of The Case: The appellant, V.M. Saudagar, was a Travelling Ticket Examiner (TTE) with Central Railway, Nagpur. On 31 May 1988, a Railway Vigilance team conducted a surprise check on his coach. He was subsequently charge-sheeted in July 1989 for alleged misconduct, including demanding illegal gratification from three passengers for berth allotment, possessing excess undeclared cash, failing to recover a small fare difference, and forgin...
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Landmark Ruling Protects IP Owners: Supreme Court Says Continuous Infringement Creates Inherent Urgency
4Jan By The Legal ChamberNo Comments
Supreme Court

Landmark Ruling Protects IP Owners: Supreme Court Says Continuous Infringement Creates Inherent Urgency

This Supreme Court judgment clarifies that under Section 12A of the Commercial Courts Act, a suit alleging continuing infringement of intellectual property rights inherently contemplates urgent interim relief. The Court held that mere delay in filing the suit does not negate urgency, as each ongoing act of infringement causes immediate and irreparable harm, and public interest in preventing market deception also factors into the assessment. Facts Of The Case: The appellant, a Danish company named Novenco Building and Industry A/S, held patents and design registrations in India for its industrial fans sold under the brand ‘Novenco ZerAx’. It had entered into a dealership agreement with respondent No. 1, Xero Energy Engineering Solutions Pvt. Ltd., in 2017. The appellant later discov...
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Supreme Court Rules: “Vacancies Can Increase After Advertisement” – Quashes Illegal Terminations from 2008
2Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules: “Vacancies Can Increase After Advertisement” – Quashes Illegal Terminations from 2008

The Supreme Court held that appointments made in excess of originally advertised vacancies are permissible under the rules if filled from a valid waiting list within a reasonable period, typically the recruitment year or the succeeding year. Terminations based solely on the "excess vacancy" ground were found unjustified when such appointments align with the recruitment rule's intent and the advertisement's stipulation that vacancy numbers were subject to change. Facts Of The Case: The case involved four appellants who were appointed to Class IV posts in the District Judgeship of Ambedkar Nagar, Uttar Pradesh, in 2001 against an advertisement that notified twelve vacancies but included a rider that the number of posts could increase or decrease. In 2008, their services were te...
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Supreme Court to Re-examine If Ayurveda, Homeopathy Doctors Should Retire at Same Age as MBBS Doctors
2Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court to Re-examine If Ayurveda, Homeopathy Doctors Should Retire at Same Age as MBBS Doctors

The Supreme Court has referred to a larger bench the question of whether MBBS (allopathic) and AYUSH (indigenous system) doctors can be treated equally for service conditions like retirement age and pay. The Court noted divergent precedents on whether classification based on educational qualification and differing job functions violates Articles 14 and 16 of the Constitution. Facts Of The Case: The case involves a batch of Special Leave Petitions concerning the service conditions of doctors, specifically whether practitioners of allopathy (MBBS doctors) and those of indigenous systems like Ayurveda, Homeopathy, and Unani (AYUSH doctors) can be treated equally, particularly regarding retirement age. The legal dispute stems from varying retirement ages set by different states for the...
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