Tag: Civil Appeal

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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Supreme Court Rules: Private Schools Can Sue in Civil Court to Recover Unpaid Fees
5Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules: Private Schools Can Sue in Civil Court to Recover Unpaid Fees

The Supreme Court held that the civil courts retain jurisdiction to adjudicate fee recovery suits filed by unaided private schools, as there is no express or implied ouster of jurisdiction under the Haryana School Education Act and Rules. The statutory remedy before the Fee and Fund Regulatory Committee is available only to parents/students to challenge excessive fees, not to schools for recovery. Facts Of The Case: The appellant, Apeejay School, an unaided private institution, filed suits for recovery of fees against students and their parents. The dispute arose from a fee hike implemented by the school for the academic year 2009-10, which the respondents refused to pay, continuing instead to remit only the pre-hike amount. The school's suits were initially decreed by the trial court. W...
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Supreme Court Quashes Decree Against Odisha Corp, Clarifies Law on Interest for Pre-1992 Transactions
5Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Quashes Decree Against Odisha Corp, Clarifies Law on Interest for Pre-1992 Transactions

The Supreme Court held that the suit against the State Financial Corporation was not maintainable due to non-compliance with the mandatory notice under Section 80 CPC. The decree was declared a nullity as it erroneously applied the Interest on Delayed Payments Act, 1993, to a pre-enactment transaction and fastened liability without privity of contract. Execution proceedings were quashed. Facts Of The Case: In 1985, Respondent No. 1, M/s. Vigyan Chemical Industries, supplied raw materials to Respondent No. 2, an industrial unit. Due to a loan default, the Appellant, Odisha State Financial Corporation (OSFC), took possession of Respondent No. 2's unit in 1987 under the State Financial Corporations Act, 1951. In 1988, Respondent No. 1 filed a recovery suit for its unpaid dues. OSFC was impl...
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Supreme Court Empowers Pollution Boards to Levy Environmental Damages
5Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Empowers Pollution Boards to Levy Environmental Damages

The Supreme Court held that Pollution Control Boards can impose restitutionary and compensatory damages, including ex-ante bank guarantees, under Sections 33A and 31A of the Water and Air Acts. This power is distinct from punitive penalties and is grounded in the 'Polluter Pays' principle to remediate environmental damage. Facts Of The Case: The Delhi Pollution Control Committee (DPCC) issued show cause notices in 2006 to multiple entities, including residential and commercial complexes, for operating without the mandatory "consent to establish" and "consent to operate" under the Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981. As a condition for granting consent, the DPCC demanded the payment of fixed sums a...
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