Tag: Indian judiciary.

When a Contract Becomes Void: Supreme Court Explains the Limits of Specific Performance
25Dec By The Legal ChamberNo Comments
Supreme Court

When a Contract Becomes Void: Supreme Court Explains the Limits of Specific Performance

The Supreme Court held that an agreement to sell flats, which was contingent upon construction violating building bye-laws and the master plan, was unlawful and void under Section 23 of the Indian Contract Act. The Court ruled that specific performance cannot be granted for an illegal contract, and courts cannot rewrite or sever its essential, unlawful terms to make it enforceable. Facts Of The Case: In December 1984, Canara Bank entered into an agreement with K.L. Rajgarhia to purchase residential flats to be constructed on his plot in East of Kailash, Delhi, for ₹32,07,500. The bank paid approximately 90% of the consideration upfront. The agreement specified the construction and sale of eight flats and a basement, with completion required within 18 months. When the defendant failed to ...
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Supreme Court Rules Insurance Company Liable for Worker Compensation Alongside Employer
25Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules Insurance Company Liable for Worker Compensation Alongside Employer

The Supreme Court held that under the Employee’s Compensation Act, 1923, an insurer can be made a party and held jointly and severally liable for compensation if the employer's liability is covered by the insurance policy. The Court clarified that Section 19 of the Act empowers the Commissioner to determine the liability of the insurer, ensuring the workman's remedy is effective and not illusory. Facts Of The Case: The case originated from a claim filed by a workman (the second respondent), who was employed as a driver by the appellant, Alok Kumar Ghosh. The workman suffered a disabling injury due to an accident arising out of and in the course of his employment. He filed for compensation under the Workmen’s Compensation Act, 1923, against both his employer (the appellant) and The New In...
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Society Cannot Evade Decree by Raising Unauthorized Constructions, Rules Supreme Court
24Dec By The Legal ChamberNo Comments
Supreme Court

Society Cannot Evade Decree by Raising Unauthorized Constructions, Rules Supreme Court

The Supreme Court upheld the enforceability of a cooperative court's decree for specific performance, ruling that subsequent unauthorized constructions and unapproved plot mergers do not render a decree inexecutable. The Court directed the removal of obstructing structures to facilitate the allotment and delivery of vacant possession to the decree-holder, affirming the executability of the award. Facts Of The Case: The appellant, Southern Nagpur Co-operative Society Limited, was directed by the Cooperative Court in a 2000 award to allot Plot No. 5A to its member, respondent Ganpati Yadavrao Kumbhare, a decree upheld in subsequent appeals. During execution proceedings, the appellant society objected, claiming the plot had lost its identity as it was merged with adjoining Plots 4 and 4A in...
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Supreme Court: Right to Cross-Examine Survives Even If Written Statement Is Not Filed
24Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Right to Cross-Examine Survives Even If Written Statement Is Not Filed

The Supreme Court held that the mandatory 120-day period for filing a written statement in a commercial suit was extended by its COVID-19 limitation orders. Crucially, it ruled that even if a written statement is not filed, the defendant’s fundamental right to cross-examine the plaintiff’s witnesses is not forfeited, as procedural rules must serve substantive justice. Facts Of The Case: In 2019, M/s Anvita Auto Tech Works Pvt. Ltd. appointed M/s Aroush Motors as a dealer for CFMOTO motorcycles. The plaintiff invested significant sums in security deposits, showroom setup, and initial stock. The business was disrupted when a government ban on BS-IV vehicles took effect in April 2020, and the defendant failed to supply promised upgrade kits. Consequently, the plaintiff terminated the dealer...
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Supreme Court Eases Burden of Proof for Railway Accident Victims in Landmark Ruling
24Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Eases Burden of Proof for Railway Accident Victims in Landmark Ruling

In this judgment, the Supreme Court clarified the burden of proof in railway accident compensation claims under Section 124-A of the Railways Act, 1989. The Court held that the initial burden on claimants can be discharged by affidavit and verified ticket records, shifting the onus to the Railways. Mere absence of a ticket or seizure memo does not defeat a legitimate claim, as the statutory regime is a welfare-oriented, no-fault liability system based on preponderance of probabilities. Facts Of The Case: The case arose from the death of Sanjesh Kumar Yagnik on 19 May 2017. He was allegedly travelling from Indore to Ujjain by the Ranthambore Express (Train No. 12465) when, due to overcrowding, he was pushed from the moving train near Ujjain, sustaining fatal head injuries. The police regi...
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Supreme Court Judgment: When a “Security Bond” is Actually a Mortgage: A Landmark Stamp Duty Ruling
23Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Judgment: When a “Security Bond” is Actually a Mortgage: A Landmark Stamp Duty Ruling

In this judgment, the Supreme Court clarified the distinction between a mortgage deed and a security bond for stamp duty under the Indian Stamp Act, 1899. The Court held that the substance of an instrument, not its nomenclature, determines its character. For Article 57 (security bond) to apply, a third-party surety distinct from the principal debtor must be involved. Since the deeds were executed by the principal debtors themselves to secure their own obligations, they were rightly classified as mortgage deeds chargeable under Article 40. Facts Of The Case: In Civil Appeal No. 7661 of 2014, M/s Godwin Construction Pvt. Ltd. executed a "Security Bond cum Mortgage Deed" on 19.12.2006 in favour of the Meerut Development Authority (MDA). This was done to secure performance of its oblig...
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Supreme Court Judgment: Family Gifts & Registered Deeds Matter More Than Authority Claims
23Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Judgment: Family Gifts & Registered Deeds Matter More Than Authority Claims

The Supreme Court upheld the exemption from Open Space Reservation charges under Annexure XX of the Development Regulations, applicable to holdings below 3000 square metres. It affirmed that a lawful pre-1975 subdivision, evidenced by registered deeds and revenue records, created a separate holding, preventing the authority from notionally recombining it with a larger parent estate to levy charges. Facts Of The Case: The property originated from the estate of Haji Syed Ali Akbar Ispahani. Following a 1949 partition, 21 grounds in Nunganbakkam were allotted to his son, Syed Jawad Ispahani. In 1972 and 1973, Syed Jawad gifted 11 grounds to his own son, Syed Ali Ispahani, via registered deeds, and separate pattas were issued for this holding. In 1984, Syed Ali gifted a small portion (125 sq...
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Supreme Court Halts Transfer of Investigation to CBI, Calls High Court’s Order Illegal
23Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Halts Transfer of Investigation to CBI, Calls High Court’s Order Illegal

The Supreme Court held that a High Court cannot review or recall its own order under the inherent powers of Section 482 CrPC (Section 528 BNSS) once it has attained finality. Such power is barred by Section 362 CrPC, which only permits the correction of clerical errors. The Court quashed the impugned orders directing transfer of investigation to the CBI as they amounted to an impermissible review. Facts Of The Case: The complainant, Parmeshwar Ramlal Joshi, a granite mining businessman, alleged criminal intimidation, theft, and criminal conspiracy by accused individuals, including a former Revenue Minister. Following his complaint, FIRs were registered. Dissatisfied with the local police investigation, which filed a negative report in one case, he approached the Rajasthan High Court seek...
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Supreme Court Acquits Man in POCSO Death Penalty Case Citing Procedural Flaws
23Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Acquits Man in POCSO Death Penalty Case Citing Procedural Flaws

This Supreme Court judgment sets aside the appellant's conviction and death sentence, holding that the trial was vitiated due to a denial of fair trial rights, including inadequate legal representation and failure to provide documents. The prosecution's circumstantial evidence—last seen, CCTV footage, disclosure statements, and DNA reports—was found unreliable and unproven beyond reasonable doubt. Facts Of The Case: A seven-year-old girl went missing on February 5, 2017, from her residence in Chengalpet, Tamil Nadu, while her parents were out shopping. After an unsuccessful search, a missing persons report was filed. Investigations, including reviewing CCTV footage from a nearby temple, led the police to suspect the appellant, Dashwanth, a neighbour residing in the same building. He was ...
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Supreme Court Clarifies: Licensee Must Pay Arrears, Not Liquidated Damages, at Interim Stage
4Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies: Licensee Must Pay Arrears, Not Liquidated Damages, at Interim Stage

In a suit for eviction under a lapsed license agreement, the Supreme Court ruled that the trial court cannot grant liquidated damages as an interim measure under Order XXXIX Rules 1 & 2 CPC. However, it upheld the application of Order XV-A CPC (Bombay Amendment), directing the licensee to pay ascertained arrears and ongoing license fees with annual increments, failing which the defense can be struck off. Facts Of The Case: The case originated from a Leave and License Agreement executed on 08.10.2013 between the appellant licensors and the respondent licensee for 36 months, from 01.11.2013 to 31.10.2016, with a 7% annual increase in license fee. Clause 19 stipulated liquidated damages of Rs. 10,000 per day if the licensee failed to vacate upon expiry. After the license period lapsed, ...
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