Tag: Civil Appeal

Supreme Court Decides: Who Pays When a Car Insurance Policy is Cancelled?
9Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Decides: Who Pays When a Car Insurance Policy is Cancelled?

This Supreme Court case reaffirms the principle that an insurance policy stands rescinded upon dishonour of the premium cheque and intimation to the concerned parties, absolving the insurer from statutory liability. However, applying the "pay and recover" doctrine, the insurer was directed to pay the awarded compensation to the third-party claimants and was permitted to recover the same from the vehicle owner. Facts Of The Case: On August 22, 2005, Dheeraj Singh died when his motorcycle was hit from behind by a speeding truck (HR 46 A 1020). The deceased, a 36-year-old computer engineer, was found to be earning ₹3,364 per month. His dependents filed a claim before the Motor Accident Claims Tribunal. The appellant, National Insurance Company Ltd., disowned liability by contending that the...
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Promises Must Be Kept: Supreme Court Protects Industry from Unexpected Tariff Hikes by State Board
9Sep By The Legal ChamberNo Comments
Supreme Court

Promises Must Be Kept: Supreme Court Protects Industry from Unexpected Tariff Hikes by State Board

The Supreme Court held that the electricity board was estopped from resiling from its contractual obligation to provide a concessional tariff after having sanctioned, agreed, and partially implemented it. The board's unilateral withdrawal of the concession after over two years was deemed arbitrary, illegal, and unsustainable in law. Facts Of The Case: The appellant, an existing industrial unit with a Low Tension (LT) power connection, underwent significant expansion by installing a large induction furnace, which necessitated a High Tension (HT) or bulk power supply. It applied for this new connection in 1998. The respondent electricity board, after inspection, sanctioned the HT connection via a memo that explicitly stipulated the appellant’s eligibility for a 25% concessional tarif...
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Landmark Ruling: Supreme Court Explains How to Calculate “Just Compensation” for Accident Deaths
8Sep By The Legal ChamberNo Comments
Supreme Court

Landmark Ruling: Supreme Court Explains How to Calculate “Just Compensation” for Accident Deaths

This Supreme Court judgment clarifies that allowances forming part of a deceased's salary, if used for family support, must be included in income computation for motor accident compensation. It applies established principles from Sarla Verma and Pranay Sethi to include future prospects and awards consortium as per Magma General Insurance, ensuring just compensation under the Motor Vehicles Act. Facts Of The Case: On February 16, 2009, Lokender Kumar died in a motor accident caused by the rash and negligent driving of a Santro car on the Sohna-Gurgaon Road. His widow and two minor children filed a claim petition before the Motor Accident Claims Tribunal in Gurgaon, seeking Rs. 25 lakhs in compensation. The Tribunal, considering his basic salary of Rs. 3,665 per month and applying a multip...
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Courts Can’t Settle Political Scores: Supreme Court’s Big Ruling on Govt. Advertisements
8Sep By The Legal ChamberNo Comments
Supreme Court

Courts Can’t Settle Political Scores: Supreme Court’s Big Ruling on Govt. Advertisements

The Supreme Court ruled that naming government welfare schemes after political leaders is not prohibited by law. It clarified that the Common Cause judgments primarily regulate the use of photographs in government advertisements, not the naming of schemes themselves, thereby setting aside the interim order of the High Court. Facts Of The Case: The State of Tamil Nadu government launched a welfare initiative named the "Ungaludan Stalin" (Your's Stalin) scheme. Its stated objective was to bridge the gap between citizens and existing government programs by organizing camps and dispatching volunteers to help people understand and access their entitled benefits. An opposition Member of Parliament filed a complaint with the Election Commission of India (ECI), alleging the scheme's name and ass...
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Not Just Salaried: Supreme Court Rules Self-Employed Accident Victims Get Future Income Rise
8Sep By The Legal ChamberNo Comments
Supreme Court

Not Just Salaried: Supreme Court Rules Self-Employed Accident Victims Get Future Income Rise

The Supreme Court held that self-employed claimants are entitled to future prospects, affirming the principles in Santosh Devi and Pranay Sethi. It further ruled that uncontroverted medical evidence on disability must be accepted in its entirety, and the percentage of disability assessed by the treating doctor cannot be arbitrarily reduced by the Tribunal or High Court without reasoning. Facts Of The Case: On November 19, 2016, at approximately 6:00 a.m., the appellant, Lokesh B, a 38-year-old tailor, was driving his Omni car on the Peenya flyover in Bengaluru. His vehicle collided with a stationary lorry that was allegedly parked in the middle of the flyover without any indicators or reflective warnings. As a result of the collision, Lokesh sustained grievous injuries, including skull f...
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Who Pays for Unpaid Power Bills? Supreme Court Explains ‘Regulatory Asset’ Mess and Orders a Fix
6Sep By The Legal ChamberNo Comments
Supreme Court

Who Pays for Unpaid Power Bills? Supreme Court Explains ‘Regulatory Asset’ Mess and Orders a Fix

The Supreme Court ruled that Regulatory Assets, while a valid regulatory tool, must be created only in exceptional circumstances and liquidated in a time-bound manner. It upheld the legal framework under the Electricity Act, 2003, and directed strict adherence to the newly inserted Rule 23 of the Electricity Rules, which mandates a maximum 3% gap in revenue and a 7-year liquidation period for existing assets. The judgment emphasizes the duty of Regulatory Commissions to ensure cost-reflective tariffs and affirms APTEL's power under Section 121 to issue directions against regulatory failure. Facts Of The Case: The case originated from petitions and appeals filed by three private power distribution companies (Discoms) in Delhi—BSES Rajdhani, BSES Yamuna, and Tata Power Delhi—agains...
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Supreme Court Rules Property Can Be Returned During Insolvency If Not Needed
6Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules Property Can Be Returned During Insolvency If Not Needed

This Supreme Court judgment affirms the paramountcy of the commercial wisdom of the Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code, 2016. It clarifies that the moratorium under Section 14(1)(d) does not bar the return of possession of a corporate debtor's leased asset when such a decision is a conscious business choice made by the CoC and the Resolution Professional to alleviate a financial burden on the estate. Facts Of The Case: The case originated from a dispute over the possession of a property leased by Nandini Impex Private Limited, the corporate debtor. The appellants had provided loans to the company, secured by the title deeds of the property's front and rear portions. Following a default, the property was conveyed to the appellants through separate deeds ...
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When a Society Becomes a “Trust”: Supreme Court’s Landmark Ruling on Mismanagement in Charitable NGOs
6Sep By The Legal ChamberNo Comments
Supreme Court

When a Society Becomes a “Trust”: Supreme Court’s Landmark Ruling on Mismanagement in Charitable NGOs

The Supreme Court ruled that a society registered under the Societies Registration Act, 1860, can be construed as a constructive trust under Section 92 CPC if it is created for public charitable purposes and its properties are held in a fiduciary capacity. This allows aggrieved parties to sue for breach of trust and seek remedies like a scheme for administration. Facts Of The Case: In 2005, Operation ASHA, a society registered under the Societies Registration Act, 1860, was established to provide healthcare services, particularly tuberculosis treatment, to underprivileged sections of society. A dispute arose in 2020 when its co-founder and CEO, Sandeep Ahuja (Respondent No. 3), terminated the services of another co-founder, Dr. Shelly Batra (Respondent No. 1), alleging misrepresentation ...
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Supreme Court Rules on Loan Disguised as Property Deal, Protects Homeowner from Forced Sale
6Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules on Loan Disguised as Property Deal, Protects Homeowner from Forced Sale

The Supreme Court held that the plaintiff failed to prove the existence of a valid sale agreement, a prerequisite for specific performance under Man Kaur v. Hartar Singh Sangha. The burden of proof was not discharged as the sole evidence was self-serving and key witnesses were not examined. The High Court's reversal of concurrent factual findings was erroneous. Facts Of The Case: The respondents (original plaintiffs) filed a suit for specific performance of an alleged sale agreement dated 12.02.1999, claiming the appellant (defendant) had agreed to sell his house for Rs. 70,000. They asserted having paid Rs. 55,000 as advance and taken possession, subsequently renting the property back to the appellant. The appellant contested the suit, denying any agreement to sell. His defense was that...
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Supreme Court Ruling: Courts Must Appoint Arbitrator Even If Serious Fraud is Alleged
5Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Ruling: Courts Must Appoint Arbitrator Even If Serious Fraud is Alleged

The Supreme Court reaffirmed that under Section 11(6A) of the Arbitration Act, a court's role is prima facie confined to examining the existence of an arbitration agreement. All other contentious issues, including allegations of serious fraud and non-arbitrability, are jurisdictional matters that must be decided by the arbitral tribunal under Section 16. Facts Of The Case: The appellant, Bihar State Food and Civil Supplies Corporation, entered into agreements with various rice millers for the custom milling of paddy procured from farmers. The agreements contained an arbitration clause. When the millers allegedly failed to deliver the stipulated quantity of rice, the Corporation initiated recovery proceedings under the Bihar and Orissa Public Demands Recovery Act, 1914. The millers challe...
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