Tag: Judicial Interpretation

Supreme Court: Prosecution Without Confirmed Penalty is Abuse of Process
30Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Prosecution Without Confirmed Penalty is Abuse of Process

The Supreme Court quashed the prosecution under Section 276C(1) of the Income Tax Act, 1961, holding that its continuation after a conclusive settlement order granting immunity from penalty was an abuse of process. The Revenue's action was in blatant disregard of its own binding circulars which mandated prosecution only after penalty confirmation by the ITAT. Facts Of The Case: A search u/s 132 of the Income Tax Act, 1961, was conducted at the appellant's residence on 24.04.2016, leading to the seizure of unaccounted cash. Based on this, the Revenue initiated prosecution u/s 276C(1) for the Assessment Year 2017-2018, alleging a wilful attempt to evade tax. The appellant's petition before the High Court to quash these proceedings was dismissed. Subsequently, the appellant filed an...
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Who Gets Paid First? Supreme Court Reopens Case on Priority Between Employee Provident Fund and Secured Lenders
30Sep By The Legal ChamberNo Comments
Supreme Court

Who Gets Paid First? Supreme Court Reopens Case on Priority Between Employee Provident Fund and Secured Lenders

The Supreme Court remanded the matter to the High Court to determine the priority of charges between the EPFO, under Section 11(2) of the Employees' Provident Fund Act, 1952, and secured creditors, including Axis Bank, under Section 35 of the SARFAESI Act, 2002. The core legal issue for fresh adjudication is the conflict between the statutory first charge of EPFO dues and the primacy claimed by secured creditors. Facts Of The Case: M/s Acropetal Technologies Pvt. Ltd. defaulted on its Employees' Provident Fund (EPF) dues from July 2013. The EPFO determined a liability and, upon learning the company's properties were to be auctioned by various banks, invoked its priority under the EPF Act. The EPFO specifically asserted a first charge over the 'Attibele property' being auctioned by Axis B...
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Supreme Court Ensures Consumer Rights Are Enforced : No More Paper Decrees
26Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Ensures Consumer Rights Are Enforced : No More Paper Decrees

This judgment addresses an anomaly in Section 25 of the Consumer Protection Act, 1986, as amended in 2002, which inadvertently limited enforcement to "interim orders" only. The Supreme Court applied purposive interpretation to read "any order" in place of "interim order," thereby allowing enforcement of final orders as decrees under CPC Order XXI for the period 2003–2020. It also clarified that appeals against execution orders lie only to the State Commission, with no further appeal. Facts Of The Case: The appellant, Palm Groves Cooperative Housing Society Ltd., comprising flat purchasers, filed a consumer complaint against the respondent builder, M/s Magar Girme and Gaikwad Associates, alleging deficient services and seeking execution of a conveyance deed for the common areas. The Distr...
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Supreme Court Reinstates Separate Compensation for “Loss of Enjoyment of Life” in Motor Accident Cases
25Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Reinstates Separate Compensation for “Loss of Enjoyment of Life” in Motor Accident Cases

The Supreme Court held that compensation for permanent disability is a distinct head from loss of income and cannot be denied merely because the latter is awarded. It further ruled that future medical and attendant charges must account for the victim's full life expectancy, not a restricted period. The Court also reinstated compensation for loss of enjoyment of life and family's pain and suffering, emphasizing these are legitimate and independent heads of claim. Facts Of The Case: On July 3, 2011, the appellant, Kavin, a 21-year-old arts student, was travelling as a passenger in an Omni bus from Coimbatore to Chennai. At around 10:15 PM, the bus, driven rashly and negligently by its driver, dashed against a tamarind tree on the left side of the road. The accident resulted in grievous inj...
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Mens Rea is Must: Supreme Court Rules Accused Must Intend to Drive Victim to Suicide for Abetment Charge
19Sep By The Legal ChamberNo Comments
Supreme Court

Mens Rea is Must: Supreme Court Rules Accused Must Intend to Drive Victim to Suicide for Abetment Charge

The Supreme Court reiterated that to establish abetment of suicide under Section 306 IPC, there must be clear evidence of mens rea and a proximate act of instigation by the accused, which directly led the deceased to commit suicide. Mere allegations of harassment, without positive action intended to push the victim toward suicide, are insufficient to sustain the charge. The absence of a live link between the alleged acts and the suicide warranted quashing of the FIR. Facts Of The Case: A seven-term independent Member of Parliament committed suicide on 22 February 2021, leaving behind a suicide note. In the note, he named several officials from the administration and police of Dadra and Nagar Haveli, accusing them of conspiring to defame, degrade, and demean him to end his political caree...
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When Can an Election Be Overturned? Supreme Court Explains the Difference Between Major and Minor Non-Disclosure
18Sep By The Legal ChamberNo Comments
Supreme Court

When Can an Election Be Overturned? Supreme Court Explains the Difference Between Major and Minor Non-Disclosure

The Supreme Court ruled that non-disclosure of income details in an election affidavit is not automatically a 'substantial defect' voiding an election under Section 100 of the Representation of the People Act, 1951. The defect must be of a consequential nature to constitute a corrupt practice or improper nomination acceptance. The people's mandate cannot be invalidated on mere technicalities. Facts Of The Case: The appellant, Ajmera Shyam, an Indian National Congress candidate, challenged the election of respondent Smt. Kova Laxmi (BRS party) to the Telangana Legislative Assembly from the Asifabad (ST) constituency. The election was declared on December 3, 2023, with Laxmi winning by a margin of 22,798 votes. The challenge was based on the alleged improper acceptance of her nomination pa...
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Supreme Court Key Ruling: Tenant’s Defence Struck Out for Missing 30-Day Deposit Deadline
17Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Key Ruling: Tenant’s Defence Struck Out for Missing 30-Day Deposit Deadline

This Supreme Court held that the time limit under Section 7(1) and (2) of the WBPT Act for depositing admitted rent and filing an application is mandatory and cannot be extended by Section 5 of the Limitation Act. The proviso to Section 7(2) only permits an extension for paying the amount determined by the court post-adjudication, not for the initial statutory deposit and application. Facts Of The Case: The appellant, Seventh Day Adventist Senior Secondary School, is a tenant in a premises in Kolkata for which the admitted monthly rent was Rs. 1090. The respondents, the landlords, filed an ejectment suit on 11.06.2019 on grounds including arrears of rent. The summons for this suit was served upon the appellant-tenant on 29.09.2022. The statutory period of 30 days for compliance und...
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Supreme Court Ruling: Family of US-Based Driver Wins Enhanced Compensation
11Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Ruling: Family of US-Based Driver Wins Enhanced Compensation

The Supreme Court, applying the principles established in National Insurance Co. Ltd. v. Pranay Sethi, held that a self-employed person, even one working abroad, is entitled to an addition of 40% of their established income towards future prospects when computing compensation in motor accident claims. The Court enhanced the compensation by recalculating the loss of dependency and conventional heads as per the standardized formula mandated by the Constitution Bench. Facts Of The Case: The case arose from a motor accident that occurred on 31st August 2007 at approximately 3:00 a.m. at Nirmal Kutia Chowk, Karnal. The deceased, Rajinder Singh Mihnas, a 31-year-old U.S. national, was travelling in a car from Delhi to Hoshiarpur when it was struck by a rashly and negligently driven Swaraj Mazd...
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Key Income Tax Ruling: Supreme Court Divided on Limitation Period Under Sections 144C & 153
11Sep By The Legal ChamberNo Comments
Supreme Court

Key Income Tax Ruling: Supreme Court Divided on Limitation Period Under Sections 144C & 153

The Supreme Court delivered a split verdict on the interplay between Sections 144C and 153 of the Income Tax Act, 1961. The key legal question was whether the detailed procedure and timelines under Section 144C for eligible assessees operate within or in addition to the limitation period prescribed under Sections 153 for passing assessment orders. The divergence of opinion led to the matter being referred to a larger bench for final determination. Facts Of The Case: The case involved several foreign companies, including Shelf Drilling Ron Tappmeyer Ltd., engaged in oil exploration in India. For Assessment Years 2014-15 and 2018-19, the companies filed returns declaring losses. Their cases were selected for scrutiny, and the Assessing Officers passed draft assessment orders ...
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Landmark Ruling: Supreme Court Explains How to Calculate “Just Compensation” for Accident Deaths
8Sep By The Legal ChamberNo Comments
Supreme Court

Landmark Ruling: Supreme Court Explains How to Calculate “Just Compensation” for Accident Deaths

This Supreme Court judgment clarifies that allowances forming part of a deceased's salary, if used for family support, must be included in income computation for motor accident compensation. It applies established principles from Sarla Verma and Pranay Sethi to include future prospects and awards consortium as per Magma General Insurance, ensuring just compensation under the Motor Vehicles Act. Facts Of The Case: On February 16, 2009, Lokender Kumar died in a motor accident caused by the rash and negligent driving of a Santro car on the Sohna-Gurgaon Road. His widow and two minor children filed a claim petition before the Motor Accident Claims Tribunal in Gurgaon, seeking Rs. 25 lakhs in compensation. The Tribunal, considering his basic salary of Rs. 3,665 per month and applying a multip...
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