Tag: Civil Procedure Code

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 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 Upholds Right to Peaceful Protest, Quashes Criminal Case Against Andhra Educationists
28Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Upholds Right to Peaceful Protest, Quashes Criminal Case Against Andhra Educationists

The Supreme Court held that certified copies of municipal documents, duly certified under Section 376 of the Karnataka Municipalities Act, 1964, carry the same evidentiary value as originals. The failure of the Municipal Council to produce original records despite court orders justified drawing an adverse inference, and a registered sale certificate cannot be invalidated by a mere administrative resolution. Facts Of The Case: The dispute concerned two plots, No. 394 and 395, auctioned by the City Municipal Council (CMC). Respondent No. 2, Prabhudeva, purchased plot No. 395 in a 1973 auction, but his 1988 sale deed erroneously mentioned plot No. 394. Upon realizing this mistake, he applied for rectification in 1992. The CMC's Junior Engineer inspected the site and confirmed the error, lea...
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Legal Heirs Not Substituted in Time? Supreme Court Explains When Entire Appeal Gets Dismissed
14Aug By The Legal ChamberNo Comments
Supreme Court

Legal Heirs Not Substituted in Time? Supreme Court Explains When Entire Appeal Gets Dismissed

The Supreme Court dismissed the appeal, holding that the High Court correctly rejected the applications for condonation of delay and substitution of legal representatives of the deceased appellant. The Court ruled that the second appeal abated entirely as the decree was joint and indivisible, and non-substitution of the deceased appellant's legal representatives would lead to inconsistent decrees. The Court clarified that Order XLI Rule 4 of the CPC does not override the abatement principles under Order XXII, especially when the appeal was jointly filed by all appellants. The judgment emphasized that abatement is inevitable if the decree is based on common grounds and its reversal would create conflicting outcomes. Facts Of The Case: The case arose from Civil Suit No. 13 of 1983 (r...
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Supreme Court Upholds Specific Performance: Land Sale Agreement Enforced After 24 Years
8Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Upholds Specific Performance: Land Sale Agreement Enforced After 24 Years

The Supreme Court upheld the decree for specific performance of a 2001 land sale agreement, ruling that the plaintiffs proved readiness and willingness under the Specific Relief Act, 1963. It nullified subsequent fraudulent sales under Section 52 of the Transfer of Property Act (lis pendens) and affirmed the court’s power to grant possession under Section 22 despite omitted pleadings. The judgment emphasized that mere price escalation cannot deny equitable relief and imposed an additional ₹25 lakh payment to balance interests. Collusive transactions were declared void, reinforcing protections against pendente lite transfers. Facts Of The Case: In 2001, Krishan Gopal (appellant) agreed to sell 9 acres of agricultural land in Punjab to Gurmeet Kaur and her two sons for ₹10 lakh under an Ag...
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Supreme Court : Res Judicata & Limitation Apply Even if Court Grants Liberty
4Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court : Res Judicata & Limitation Apply Even if Court Grants Liberty

The Supreme Court held that the liberty granted by the High Court to file a fresh suit does not revive a time-barred cause of action or override the principles of res judicata. The Court affirmed that limitation under the Limitation Act and Order 23 Rule 2 CPC applies strictly, and a fresh suit cannot re-agitate issues already decided in prior proceedings. The judgment reinforces that judicial liberty cannot circumvent statutory bars or reopen conclusively adjudicated matters. Facts Of The Case: The case involved a dispute over a property transaction where the original plaintiff (predecessor of the petitioners) had entered into a sale agreement with the first defendant, a cooperative housing society. A Power of Attorney (PoA) was executed in favor of the society’s secretary (second defen...
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Supreme Court : Sale Deeds Executed After Property Power of Attorney Revoked Are Invalid
10Jun By The Legal ChamberNo Comments
Supreme Court

Supreme Court : Sale Deeds Executed After Property Power of Attorney Revoked Are Invalid

The Supreme Court clarified that an unregistered agreement to sell or power of attorney does not confer title or interest in immovable property. The Court emphasized that property transfer requires a registered deed of conveyance. It also ruled that a plaint cannot be rejected entirely under Order VII Rule 11 CPC if even one distinct cause of action is triable. Facts Of The Case: Vinod Infra Developers Ltd. (appellant) claimed ownership of agricultural land and obtained a loan of Rs. 7.5 crores from Mahaveer Lunia (Respondent No. 1) in May 2014. The appellant's Board of Directors authorized their Managing Director and Respondent No. 1 to sell the property. Subsequently, an unregistered power of attorney and agreement to sell were executed in favor of Respondent No. 1 on May 24, 2014.In A...
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Legal Heir or Tenant? : Supreme Court Decides on Protracted Property Battle in Kerala
7Jun By The Legal ChamberNo Comments
Supreme Court

Legal Heir or Tenant? : Supreme Court Decides on Protracted Property Battle in Kerala

The Supreme Court dismissed an appeal challenging the impleadment of a party in execution proceedings, holding that the application for deletion was barred by res judicata as objections were not raised earlier. It ruled that a decree for specific performance implicitly includes possession unless contested by a third party. The Court rejected claims of tenancy rights under the Kerala Rent Control Act due to lack of evidence and upheld the lower courts' findings, emphasizing that frivolous pleas cannot delay execution. Costs of ₹25,000 were imposed for protracting litigation. The Executing Court was directed to ensure possession is handed over within two months Facts Of The Case: The case originated from a 1996 agreement to sell between the original plaintiff (Prakasan) and defendant (Jame...
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Supreme Court Allows Execution Petition: No Time Limit for Enforcing Permanent Injunctions
26May By The Legal ChamberNo Comments
Supreme Court

Supreme Court Allows Execution Petition: No Time Limit for Enforcing Permanent Injunctions

The Supreme Court ruled that a decree of permanent injunction creates a perpetual right enforceable at any time against future breaches, clarifying that satisfaction recorded in one execution petition doesn't bar subsequent petitions under Section 47 CPC for fresh violations. It held that Article 136 of the Limitation Act imposes no time limit for enforcing perpetual injunctions, rejecting the erroneous application of res judicata by lower courts. The judgment emphasizes that each breach of injunction constitutes a fresh cause of action, requiring executing courts to examine subsequent execution petitions on merits regardless of prior disposals. The Court distinguished between temporary and permanent injunctions while underscoring the continuing nature of injunctive relief. Facts Of The C...
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