Tag: Indian Kanoon

Supreme Court Revives Cheque Bounce Cases, Says ‘Sick Company’ Status is Not a Get-Out-of-Jail Card
9Oct By The Legal ChamberNo Comments
Supreme Court

Supreme Court Revives Cheque Bounce Cases, Says ‘Sick Company’ Status is Not a Get-Out-of-Jail Card

The Supreme Court held that proceedings under Section 138 of the Negotiable Instruments Act are not automatically barred against a company declared sick under SICA, even if a restraint order under Section 22A exists. The nature of the restraint and the purpose of the cheque issuance are mixed questions of law and fact to be decided during trial based on evidence. Furthermore, a Magistrate lacks the inherent power to review or recall the issuance of summons. Facts Of The Case: The appellant, Shree Nagani Silk Mills Pvt. Ltd., supplied goods to the first respondent, L.D. Industries Ltd., which was declared a sick company by the BIFR. Towards the payment for these supplies, the accused company issued several cheques in 2001, which were subsequently dishonoured due to "insufficient funds"....
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Supreme Court Ruling: Fraudulent Share Transfer Struck Down: Key Takeaways from the Satori Global Judgement
9Oct By The Legal ChamberNo Comments
Supreme Court

Supreme Court Ruling: Fraudulent Share Transfer Struck Down: Key Takeaways from the Satori Global Judgement

The Supreme Court ruled that the NCLT has wide jurisdiction under Sections 397 and 398 of the Companies Act, 1956, to adjudicate on allegations of fraud, oppression, and mismanagement when integral to the complaint. It upheld that acts violating the Articles of Association and statutory provisions, including invalid share transfers and board meetings, constitute oppression, empowering the Tribunal to grant comprehensive relief. Facts Of The Case: The case involves Mrs. Shailja Krishna, a majority shareholder holding over 98% of a private company, and her husband, Mr. Ved Krishna. In December 2010, during a strained marital relationship, Mrs. Krishna allegedly resigned from her directorship and executed a gift deed transferring her entire shareholding to her mother-in-law. She contended s...
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No Interest on Delayed Payment Clause: Supreme Court Explains Its Limits
9Oct By The Legal ChamberNo Comments
Supreme Court

No Interest on Delayed Payment Clause: Supreme Court Explains Its Limits

This Supreme Court judgment clarifies that a contractual clause merely barring interest on delayed or disputed payments does not, by itself, expressly or by necessary implication prohibit an arbitral tribunal from awarding pendente lite interest. The power to award such interest under Section 31(7)(a) of the Arbitration and Conciliation Act, 1996, is only denuded if the agreement contains a clear and comprehensive bar. Facts Of The Case: The dispute arose from an arbitral award dated 21.11.2004, which directed the appellant, Oil and Natural Gas Corporation Ltd. (ONGC), to pay a total sum of USD 6,56,272.34 to the respondent, M/s G & T Beckfield Drilling Services Pvt. Ltd., for outstanding invoices and other claims. The arbitral tribunal rejected ONGC's preliminary objection to the ma...
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Witness Protection vs. Bail Cancellation: Supreme Court Explains the Crucial Difference
7Oct By The Legal ChamberNo Comments
Supreme Court

Witness Protection vs. Bail Cancellation: Supreme Court Explains the Crucial Difference

This Supreme Court judgment clarifies the distinct legal roles of bail cancellation and the Witness Protection Scheme, 2018. The Supreme Court held that the Scheme is a curative measure to protect witnesses, while bail cancellation is a judicial remedy for violations of bail conditions. The existence of the Scheme cannot be a ground to deny cancellation of bail when an accused intimidates witnesses, as these are separate legal avenues serving different purposes. Facts Of The Case: The case originated from an FIR (No. 137 of 2022) lodged by the appellant, Phireram, for offences including murder and conspiracy under the IPC. The accused were arrested and subsequently granted bail by the High Court, subject to specific conditions prohibiting them from threatening witnesses or tampering with...
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Supreme Court Explains When It Can’t Be Trusted :Dying Declaration Sole Basis for Conviction?
7Oct By The Legal ChamberNo Comments
Supreme Court

Supreme Court Explains When It Can’t Be Trusted :Dying Declaration Sole Basis for Conviction?

This Supreme Court judgment underscores the indispensable procedural safeguards for a fair trial, particularly the right to effective legal representation. It reiterates that a conviction based solely on a dying declaration requires the court to be fully satisfied of its voluntariness, truthfulness, and that the deceased was in a fit state of mind. The ruling emphasizes that such a declaration cannot form the basis for conviction if it suffers from grave infirmities, such as the lack of a fitness certification from an identified doctor and the recording officer's failure to note his own satisfaction regarding the declarant's condition. Facts Of The Case: On March 31, 2012, Munish Kumar and his brother Amit were returning to their village by car when they were intercepted by two other veh...
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Supreme Court Rules :Procedural Lapses Can’t Be A Safe Haven For Rapists
6Oct By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules :Procedural Lapses Can’t Be A Safe Haven For Rapists

The Supreme Court held that procedural irregularities, such as defective charge framing or improper joint trial under Section 223 CrPC, do not automatically vitiate the proceedings unless a failure of justice is proven. The Court emphasized that minor inconsistencies and procedural lapses should not be elevated to the level of reasonable doubt to acquit an accused, especially in heinous offences, if the core prosecution evidence remains credible and consistent. The conviction was restored as no prejudice was established. Facts Of The Case: In 2016, a few months after the Holi festival, the appellant's minor daughter began experiencing health issues. Her deteriorating condition led her mother to take her to a hospital in Ballia, Uttar Pradesh, for treatment. On July 1, 2016, a medic...
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Supreme Court Rules: High Court Cannot Grant Anticipatory Bail if FIR Discloses SC/ST Act Offence
6Oct By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules: High Court Cannot Grant Anticipatory Bail if FIR Discloses SC/ST Act Offence

The Supreme Court held that Section 18 of the SC/ST Act creates a statutory bar against granting anticipatory bail when a prima facie case under the Act is made out from the FIR. The court's role at this stage is limited to verifying the FIR's averments and cannot extend to a mini-trial or appreciation of evidence. The High Court erred in disregarding this bar. Facts Of The Case: The complainant, belonging to the "Mang" Scheduled Caste community, lodged an FIR alleging that on 25.11.2024, the accused, Rajkumar Jain and others, confronted him outside his home. The accused were angered because the complainant had not voted for their candidate in the recent assembly elections. They verbally abused the complainant using the casteist slur "Mangtyano," beat him with an iron rod, and threatened...
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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 Slashes NGT’s ₹50 Crore Fine, Rules Turnover Can’t Dictate Environmental Penalty
25Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Slashes NGT’s ₹50 Crore Fine, Rules Turnover Can’t Dictate Environmental Penalty

In this judgment, the Supreme Court curtailed the National Green Tribunal's (NGT) powers, ruling that environmental compensation cannot be arbitrarily linked to a polluter's turnover, lacking a direct nexus to the actual damage. It also held that the NGT lacks jurisdiction to direct investigations by the Enforcement Directorate under the PMLA, affirming that such actions require a scheduled offence to be registered. The Court emphasized that penalties must be determined based on established methodologies and legal principles, not rhetoric. Facts Of The Case: The case originated from a Public Interest Litigation (PIL) filed by Adil Ansari before the National Green Tribunal (NGT) in 2019 against M/s C.L. Gupta Export Ltd. The allegations were that the company, an exporter of handicraft ite...
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Supreme Court Rules :You Can’t Be Guilty of Handling Stolen Goods If There Was No Theft
20Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules :You Can’t Be Guilty of Handling Stolen Goods If There Was No Theft

The Supreme Court acquitted the appellant, ruling that a conviction under Section 411 IPC for dishonestly receiving stolen property is legally unsustainable once the accused stands acquitted of the primary offence of theft under Section 379 IPC. The Court further held that the burden of proof lies entirely on the prosecution and cannot be reversed onto the accused. Facts Of The Case: The case originated from the disappearance and suspected murder of M. Narsalah on December 22, 2005, after he traveled to Warangal to collect outstanding business dues of approximately ₹2.92 lakh. When his phone was switched off, his cousin filed a missing person's report. The prosecution alleged that Narsalah's former employer and business rival, Accused-Moulana, murdered him, stole the cash, and enlisted t...
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