Tag: Judicial Interpretation

SARFAESI Act vs EPF Act: Supreme Court Says Provident Fund Charge Prevails Over Bank
9Feb By The Legal ChamberNo Comments
Supreme Court

SARFAESI Act vs EPF Act: Supreme Court Says Provident Fund Charge Prevails Over Bank

This Supreme Court judgment interprets the interplay between the priority of secured creditors under Section 26E of the SARFAESI Act and the statutory first charge for provident fund dues under Section 11(2) of the EPF & MP Act. The Supreme Court held that the statutory first charge for provident fund contributions overrides the priority granted to secured creditors, even under a non-obstante clause in a later enactment. Facts Of The Case: The appellant, Jalgaon District Central Co-operative Bank Ltd., is a secured creditor which had advanced loans to a co-operative sugar society, secured by a mortgage and hypothecation of the society's assets. The sugar factory became defunct, leading to loan defaults. The bank initiated recovery under the SARFAESI Act, took possession o...
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Supreme Court: Decree for Specific Performance Does Not Create Title, So Assignment Deed Need Not Be Registered
6Feb By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Decree for Specific Performance Does Not Create Title, So Assignment Deed Need Not Be Registered

The Supreme Court held that a deed assigning a decree for specific performance of a sale agreement concerning immovable property does not require mandatory registration under Section 17(1)(e) of the Registration Act, 1908. This is because such a decree does not itself create, assign, or extinguish any right, title, or interest in the immovable property; it merely confers a right to seek performance through court execution. Facts Of The Case: The appellants are the legal heirs of a judgment-debtor against whom an ex-parte decree for specific performance of a sale agreement concerning immovable property was passed on 13.09.1993. The first respondent, Shanmugam, claimed to be the assignee of this decree by virtue of an assignment deed dated 17.07.1995. In 2004, the assignee filed an e...
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Key Takeaway from Supreme Court Judgement: Only CBI Can Appeal in CBI-Investigated Cases, Not State Govt
21Jan By The Legal ChamberNo Comments
Supreme Court

Key Takeaway from Supreme Court Judgement: Only CBI Can Appeal in CBI-Investigated Cases, Not State Govt

The Supreme Court upheld the legal principle from Lalu Prasad Yadav that only the Central Government, not a State Government, can file an appeal against an acquittal in cases investigated by the CBI. It also ruled that a victim's right to appeal under Section 372 CrPC is prospective, applying only to acquittals passed after December 31, 2009. Facts Of The Case: On June 4, 2003, Ramavatar Jaggi, a political leader, was murdered in Raipur. The local police initially investigated and filed a chargesheet against several accused. Dissatisfied, the victim's son secured a transfer of the case to the CBI. The CBI, after further investigation, filed a fresh chargesheet alleging a conspiracy and implicated Amit Jogi, the son of the then Chief Minister. In 2007, the trial court convicte...
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Insurance Must Pay Victims First: Supreme Court Upholds ‘Pay and Recover’ in Route Deviation Case
13Jan By The Legal ChamberNo Comments
Supreme Court

Insurance Must Pay Victims First: Supreme Court Upholds ‘Pay and Recover’ in Route Deviation Case

This Supreme Court judgment affirms the application of the "pay and recover" principle where an insured vehicle deviates from its permitted route. While the insurer remains statutorily liable to compensate accident victims, it is entitled to subsequently recover the paid amount from the policyholder for breaching the contract's geographical terms. Facts Of The Case: On October 7, 2014, the deceased Srinivasa (alias Murthy) died on the spot after his motorcycle was hit by a rashly and negligently driven bus (KA-52-9099). His dependents filed a claim petition before the Motor Accidents Claims Tribunal (MACT) seeking compensation. The Tribunal awarded ₹18,86,000. Dissatisfied, the claimants appealed to the High Court for enhanced compensation, while the insurance company also appealed...
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Supreme Court Clarifies Law on Witness Intimidation: Victims Can Go Straight to Police
6Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies Law on Witness Intimidation: Victims Can Go Straight to Police

This Supreme Court judgment clarifies the procedural conflict regarding offences under Section 195A IPC (threatening to give false evidence). The Supreme Court holds that Section 195A IPC is a cognizable offence. Consequently, the police have the independent power to register an FIR and investigate under Sections 154/156 CrPC, and the restrictive complaint procedure under Section 195(1)(b)(i) CrPC is not applicable. Facts Of The Case: The case originated from two separate sets of proceedings. In the first, from Kerala, an FIR was registered under Section 195A IPC after a de facto complainant, who had turned approver in a murder case, was threatened with dire consequences to give false evidence. The accused sought bail, arguing the mandatory procedure under Section 195(1)(b)(i) CrPC—requi...
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Landmark Ruling Protects IP Owners: Supreme Court Says Continuous Infringement Creates Inherent Urgency
4Jan By The Legal ChamberNo Comments
Supreme Court

Landmark Ruling Protects IP Owners: Supreme Court Says Continuous Infringement Creates Inherent Urgency

This Supreme Court judgment clarifies that under Section 12A of the Commercial Courts Act, a suit alleging continuing infringement of intellectual property rights inherently contemplates urgent interim relief. The Court held that mere delay in filing the suit does not negate urgency, as each ongoing act of infringement causes immediate and irreparable harm, and public interest in preventing market deception also factors into the assessment. Facts Of The Case: The appellant, a Danish company named Novenco Building and Industry A/S, held patents and design registrations in India for its industrial fans sold under the brand ‘Novenco ZerAx’. It had entered into a dealership agreement with respondent No. 1, Xero Energy Engineering Solutions Pvt. Ltd., in 2017. The appellant later discov...
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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 Explains “Sufficient Cause”: Key Tests for Granting Stay on a Money Decree
4Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Explains “Sufficient Cause”: Key Tests for Granting Stay on a Money Decree

The Supreme Court upheld the High Court's grant of unconditional stay on a money decree's execution under Order XLI Rule 5, CPC, ruling that deposit of the decretal amount is not mandatory. An unconditional stay can be granted in exceptional cases where the decree is egregiously perverse, patently illegal, or facially untenable, upon establishing "sufficient cause." Facts Of The Case: The petitioners, Lifestyle Equities C.V. & Anr., proprietors of the "Beverly Hills Polo Club" (BHPC) trademark, filed a suit for infringement and damages against Amazon Technologies Inc. and others before the Delhi High Court. The suit claimed damages of approximately Rs. 2 crore. Amazon was proceeded against ex parte in April 2022. The learned Single Judge, after an ex parte trial, decreed the suit...
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No Redemption After Auction Notice: Supreme Court Major Ruling on Bank Loan Recovery
10Nov By The Legal ChamberNo Comments
Supreme Court

No Redemption After Auction Notice: Supreme Court Major Ruling on Bank Loan Recovery

This Supreme Court judgment clarifies that the right of redemption of a mortgagor under Section 13(8) of the SARFAESI Act is extinguished upon the publication of the notice of sale, as per the 2016 amendment. The Court held that this amended provision is retrospective in operation and overrides the general right of redemption under the Transfer of Property Act, 1882. The ruling emphasizes that only a single composite notice of sale is required under the SARFAESI Rules, irrespective of the mode of transfer adopted by the secured creditor. Facts Of The Case: The borrowers, M/s KPK Oils and Proteins India Pvt. Ltd. and its guarantors, availed credit facilities from the respondent Bank in January 2016, creating an equitable mortgage over various properties. After the loan account was classif...
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