Tag: contractual dispute

Supreme Court: Disputed No-Dues Certificate Can’t Be Ground to Quash Criminal Proceedings
2Mar By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Disputed No-Dues Certificate Can’t Be Ground to Quash Criminal Proceedings

The Supreme Court held that criminal proceedings cannot be quashed where allegations prima facie disclose essential ingredients of an offence. The power under Section 482 CrPC is sparing; disputed documents like No-Dues Certificate cannot be relied upon at pre-trial stage. Civil remedy coexistence doesn't bar prosecution if allegations support criminal liability. Facts Of The Case: The dispute in this case arose from contractual and financial dealings between the appellant (accused no. 2) and respondent no. 2 (complainant) concerning construction work undertaken between 2008 and 2010. A No Dues Certificate was issued by respondent no. 2 on 10.06.2010 and acknowledged on 12.06.2010, recording that no payments were outstanding. Subsequently, disputes emerged between the parties, leading to...
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Mere Use of Word “Arbitration” Doesn’t Bind Parties: Key Business Contract Lesson from Supreme Court
20Jan By The Legal ChamberNo Comments
Supreme Court

Mere Use of Word “Arbitration” Doesn’t Bind Parties: Key Business Contract Lesson from Supreme Court

The Supreme Court held that Clause 8.28 did not constitute a valid arbitration agreement under Section 7 of the Arbitration and Conciliation Act, 1996. The clause lacked essential attributes, such as finality and a binding decision by a neutral tribunal, as it ultimately permitted parties to seek remedies in civil courts if unresolved. Facts Of The Case: The appellant, M/s Alchemist Hospitals Ltd., entered into a Software Implementation Agreement with the respondent, M/s ICT Health Technology Services India Pvt. Ltd., on 1st November 2018 for upgrading its hospital-information software. Following implementation, the appellant alleged persistent technical failures and operational issues with the respondent's "HINAI Web Software," leading to the system being rolled back i...
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Supreme Court Quashes FIR in Land Dispute, Decries Criminalization of Civil Disputes
15Nov By The Legal ChamberNo Comments
Supreme Court

Supreme Court Quashes FIR in Land Dispute, Decries Criminalization of Civil Disputes

The Supreme Court reiterated that criminal proceedings which are manifestly mala fide or constitute an abuse of the legal process are liable to be quashed under Section 482 of the Cr.P.C. It emphasized that criminal law cannot be invoked to settle purely civil disputes or for wreaking vengeance, applying the principles established in State of Haryana v. Bhajan Lal. The Court allowed the appeal and quashed the FIR and charge sheet. Facts Of The Case: The appellant, Anukul Singh, became embroiled in a criminal prosecution originating from a property dispute. His father had purchased a piece of land, and after objecting to the performance of Qurbani (animal sacrifice) on it, the appellant alleged harassment from local authorities and the Shaher Imam. Subsequently, eight FIRs were register...
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Supreme Court Ruling: Port Tariffs Must Be Set By Experts, Not Arbitrators
14Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Ruling: Port Tariffs Must Be Set By Experts, Not Arbitrators

The Supreme Court held that tariff fixation for port facilities is a technical and expert-driven function, best adjudicated by specialized bodies like TAMP. It emphasized that contractual agreements cannot override statutory tariff-setting mechanisms under the Major Port Authorities Act, 2021. The Court remanded the matter to TAMP for fresh determination, underscoring the need for expert appraisal of tariff revisions and compliance with natural justice. Facts Of The Case: A bilateral agreement was executed in 1985 between Paradip Port Trust (now Authority) and Paradeep Phosphates Ltd. (PPL), then a public sector unit, for the exclusive use of a captive fertilizer berth. The agreement stipulated a tariff schedule, with a clause for future mutual enhancement. In 1993, the Port unilaterally...
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Supreme Court Quashes FIR in Land Dispute : Civil Dispute or Criminal Case?
14Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Quashes FIR in Land Dispute : Civil Dispute or Criminal Case?

The Supreme Court quashed an FIR under Sections 406 and 420 IPC, ruling that the dispute was purely civil in nature and lacked criminal intent. The Court condemned the misuse of criminal proceedings to pressure the appellants in a land deal, imposing ₹10 lakh costs on the complainant for abuse of legal process. It emphasized that contractual breaches must be resolved through civil remedies, not criminal prosecution, unless fraudulent intent is clearly established. The judgment reaffirmed the need for courts to prevent harassment via frivolous FIRs in commercial disputes. Facts Of The Case: The case involved appellants Mala Choudhary (a 70-year-old widow of an Army officer) and her daughter, who owned a 500-square-yard plot in Telangana. In 2020, they orally agreed to sell the land to a c...
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