Tag: Indian case law

Supreme Court: Insurance Can’t Deny Claim Based on Policy Clause When Vehicle Was Properly Registered & Permitted
11Oct By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Insurance Can’t Deny Claim Based on Policy Clause When Vehicle Was Properly Registered & Permitted

Supreme Court Judgment Based on the policy's "Limitation as to Use" clause, the Supreme Court ruled that an insurance company cannot deny liability for a utility vehicle registered and permitted as a "contract carriage" to carry passengers. The clause applies only to goods carriages, and the insurer, having issued the policy with full knowledge of the vehicle's registration and permit, is bound to indemnify the owner for third-party claims. The "pay and recover" order was set aside. Facts Of The Case: The case originated from a tragic accident involving a utility vehicle, which led to the filing of five separate claim petitions before the Motor Accidents Claims Tribunal (MACT) by the legal representatives of the deceased. The owner of the vehicle, Shyam Lal, was the appellant b...
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Supreme Court Relief for Companies: Tax Exemption for Vehicles Confined to Plant Premises
1Oct By The Legal ChamberNo Comments
Supreme Court

Supreme Court Relief for Companies: Tax Exemption for Vehicles Confined to Plant Premises

The Supreme Court ruled that motor vehicle tax under the Andhra Pradesh Act is leviable only if a vehicle is used or kept for use in a "public place." It held that restricted industrial premises, inaccessible to the public, do not constitute a public place. Consequently, vehicles operating exclusively within such enclosed areas are not liable for the tax, and a rule creating a presumption of 'use' must be read in harmony with this charging section. Facts Of The Case: The appellant, M/s Tarachand Logistic Solutions Limited, was awarded a contract to operate within the enclosed central dispatch yard of the Visakhapatnam Steel Plant (RINL). Pursuant to this, it deployed 36 registered motor vehicles which, from April 1, 2021, were confined solely to operating inside this restricted premises,...
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Landmark Ruling: Supreme Court Bars Prosecution of Company Directors Without Suing the Company First
30Sep By The Legal ChamberNo Comments
Supreme Court

Landmark Ruling: Supreme Court Bars Prosecution of Company Directors Without Suing the Company First

The Supreme Court quashed the criminal defamation proceedings against the bank officials. It held that for offences under the Indian Penal Code, there is no concept of vicarious liability. Prosecuting officers without arraigning the company as an accused and without specific allegations of their culpable role is impermissible and an abuse of process. Facts Of The Case: The case originated from a loan default by Phoenix India, which had secured credit facilities from the Bank of Baroda. After the firm's account was classified as a non-performing asset, the Bank initiated recovery under the SARFAESI Act. A critical error occurred when the Bank issued a symbolic possession notice under Section 13(4) of the Act, which inadvertently quoted the outstanding dues as approximately Rs. 56.15 cro...
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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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How Unexplained Injuries and a Family Dispute Led to an Acquittal by the Supreme Court
9Sep By The Legal ChamberNo Comments
Supreme Court

How Unexplained Injuries and a Family Dispute Led to an Acquittal by the Supreme Court

The Supreme Court acquitted the appellant, granting the benefit of doubt. The conviction was overturned due to material inconsistencies in the prosecution's case, including an unexplained timeline of death, unrebutted defence evidence of family enmity, and a lack of medical corroboration for the alleged weapon and dying declaration. Facts Of The Case: Based on the altercation, the appellant and her husband were accused of fatally beating the deceased with sticks near a temple later that night. The prosecution's case, supported by eyewitnesses including the deceased's father (PW-7), was that the attack was retaliation for the afternoon dispute. The victim was allegedly carried home unconscious and died minutes later, with a First Information Report (FIR) lodged around 9:00 PM. How...
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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 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 Landmark Ruling: Awards Pension to Temporary Railway Employee’s Family
12Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Landmark Ruling: Awards Pension to Temporary Railway Employee’s Family

The Supreme Court ruled that temporary railway employees completing over one year of continuous service are entitled to family pension under Rule 75 of the Railway Pension Rules, 1993, regardless of regularization. The Court emphasized that legislative intent protects dependents of deceased employees, rejecting the 10-year threshold argument and directing arrears payment with ₹5 lakh ex-gratia relief under Article 142. Facts Of The Case: The case involves Mala Devi, widow of Om Prakash Maharaj, a temporary railway employee who died in service after 9 years and 8 months of continuous work. Appointed as a "Summer Waterman" in 1986, he later cleared screening tests and was deputed as a Guard/Shuntman before his fatal accident in 1996. While Mala Devi received ex-gratia payment and compassio...
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Supreme Court How Contradictory Witness Testimonies Saved a Man from the Death Penalty
12Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court How Contradictory Witness Testimonies Saved a Man from the Death Penalty

The Supreme Court acquitted the appellant, overturning his death sentence, due to glaring inconsistencies in eyewitness testimonies (PW1, PW2) and lack of corroborative evidence. The prosecution failed to prove guilt beyond reasonable doubt, as recoveries were unreliable, forensic links were absent, and material contradictions undermined the case. The Court emphasized strict adherence to evidentiary standards in capital offenses. Facts Of The Case: The case involves the brutal murder of four family members—Seema Rani (the appellant’s wife), Reena Rani (sister-in-law), and two minor children, Sumani Kumari (3-4 years) and Harsh (1.5-2 years)—along with injuries to two others, Harry (5 years) and Om Prakash (18 years). The incident occurred on November 29, 2013, in the early morning at the...
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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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