Tag: Judicial Precedent

Supreme Court Ruling: Courts Must Appoint Arbitrator Even If Serious Fraud is Alleged
5Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Ruling: Courts Must Appoint Arbitrator Even If Serious Fraud is Alleged

The Supreme Court reaffirmed that under Section 11(6A) of the Arbitration Act, a court's role is prima facie confined to examining the existence of an arbitration agreement. All other contentious issues, including allegations of serious fraud and non-arbitrability, are jurisdictional matters that must be decided by the arbitral tribunal under Section 16. Facts Of The Case: The appellant, Bihar State Food and Civil Supplies Corporation, entered into agreements with various rice millers for the custom milling of paddy procured from farmers. The agreements contained an arbitration clause. When the millers allegedly failed to deliver the stipulated quantity of rice, the Corporation initiated recovery proceedings under the Bihar and Orissa Public Demands Recovery Act, 1914. The millers challe...
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Supreme Court: Criminal Cases Against In-Laws Can Be Dropped After Amicable Settlement
28Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Criminal Cases Against In-Laws Can Be Dropped After Amicable Settlement

This Supreme Court, invoking Article 142 of the Constitution, quashed all criminal proceedings arising from matrimonial discord, including charges under Section 494 and 498A IPC. Relying on precedents, it held that continuing prosecution after a full and final settlement and divorce constitutes an abuse of the legal process and serves no legitimate purpose. Facts Of The Case: The marriage between the respondent-wife and the appellant's brother was solemnized in 2001. The couple moved to the USA, but their relationship soured, leading to a mutual divorce decree from a California court in 2007. After returning to India, the wife initiated multiple legal proceedings against her husband and his family (the appellants). These included a complaint case alleging cruelty, a case under the Domest...
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Supreme Court Reinstates Drug Case: Acquittal Based on “Same Informant-Investigator” Rule Overturned
26Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Reinstates Drug Case: Acquittal Based on “Same Informant-Investigator” Rule Overturned

The Supreme Court held that an investigation is not automatically vitiated solely because the informant and investigator are the same. This procedural irregularity must be examined on a case-specific basis for bias. The Court overruled the contrary precedent in Mohan Lal and restored the matter for a merits-based hearing. Facts Of The Case: Based on the secret information received on September 20, 2009, police intercepted a truck. The respondent, Gurnam @ Gama, was found sitting on a stack of bags in the cargo area, while the other respondent, Jaswinder Singh, was driving the vehicle. Upon search, the authorities recovered a significant quantity of 750 kilograms of poppy husk along with two motorcycles. Consequently, FIR No. 221 of 2009 was registered under the relevant sections of the N...
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Supreme Court: Company Balance Sheets Can Reset Limitation Clock for Creditors Under IBC
26Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Company Balance Sheets Can Reset Limitation Clock for Creditors Under IBC

The Supreme Court held that entries in a company’s balance sheet, when read in the context of surrounding circumstances and previous financial statements, can constitute a valid acknowledgment of debt under Section 18 of the Limitation Act, 1963, thereby extending the limitation period for filing an application under Section 7 of the IBC. The Court clarified that the exclusion period under its COVID-19 limitation order applied from 15.03.2020 to 28.02.2022, making the application timely. Facts Of The Case: The appellant, IL & FS Financial Services Ltd., extended a term loan of ₹30 crores to the respondent, Adhunik Meghalaya Steels Pvt. Ltd., on 27.02.2015, secured by a pledge of shares. The respondent's account was declared a Non-Performing Asset (NPA) on 01.03.2018. The appellant fi...
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Supreme Court: Jail Overcrowding Can’t Be a Ground for Granting Bail in Heinous Crimes
25Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Jail Overcrowding Can’t Be a Ground for Granting Bail in Heinous Crimes

The Supreme Court held that the High Court erred in granting bail without properly considering the absence of "new circumstances" as mandated by the Court's earlier judgment cancelling bail. The impugned order lacked cogent reasoning, relied on irrelevant factors like jail overcrowding, and failed to accord due deference to the Supreme Court's previous decision, warranting its quashing. Facts Of The Case: The case involves an appeal by the informant, Ajwar, against an order of the Allahabad High Court granting bail to the accused, Waseem. Waseem was charged under various sections of the IPC, including Section 302 (murder). His bail was initially granted by the High Court in 2022 but was cancelled by the Supreme Court. A subsequent grant of bail by the High Court was again cancelled by th...
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Legal Victory for Farmers: Supreme Court Explains How to Calculate Fair Land Acquisition Value
25Aug By The Legal ChamberNo Comments
Supreme Court

Legal Victory for Farmers: Supreme Court Explains How to Calculate Fair Land Acquisition Value

The Supreme Court held that when multiple sale exemplars exist, the highest bona fide transaction must be used to determine market value for compensation, and averaging is impermissible unless prices fall within a narrow range. The Court emphasized that certified sale deeds have presumptive value under Section 51A of the Land Acquisition Act, 1894, and the absence of rebuttal evidence strengthens their validity. Facts Of The Case: The appellants were farmers whose land, Survey Nos. 103 and 104 admeasuring 16.79 Hectares in Village Pungala, Parbhani, Maharashtra, was acquired in the early 1990s under the Maharashtra Industrial Development Act, 1961 for setting up an industrial area near Jintur town. The Land Acquisition Officer awarded compensation at Rs. 10,800 per acre in an award dated...
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Supreme Court Upholds Departmental Inquiries: Authority for Minor Penalties Can Issue Major Charge Sheets
22Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Upholds Departmental Inquiries: Authority for Minor Penalties Can Issue Major Charge Sheets

The Supreme Court held that under Rule 13(2) of the CCS (CCA) Rules, 1965, a disciplinary authority competent to impose only minor penalties is fully empowered to institute proceedings and issue a charge-sheet for imposing major penalties. The final order, however, must be passed by the authority competent to impose a major penalty. Facts Of The Case: The respondent, R. Shankarappa, was a Sub Divisional Engineer in the Department of Telecommunications who retired in 2018. In 2003, he was prosecuted by the CBI in two cases: one for demanding and accepting a bribe, and another for possessing assets disproportionate to his known sources of income. He was convicted in both cases, but the High Court later stayed the conviction and sentence, with the criminal appeals remaining pending. Paralle...
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Supreme Court Rules on Oral Family Arrangement: Legal Heirs Can’t Overturn Registered Will
16Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules on Oral Family Arrangement: Legal Heirs Can’t Overturn Registered Will

The Supreme Court upheld the validity of a registered Will executed by Metpalli Rajanna, recognizing its presumption of genuineness under law. The Court ruled that the burden to disprove the Will lay on the contesting party, which was not discharged. It emphasized that the oral family settlement, supported by possession and revenue records, further validated the Will's distribution of properties. The trial court's decree granting absolute rights to the plaintiff under the Will was restored, overturning the High Court's interference. The judgment reaffirmed the sanctity of registered Wills and family arrangements in property disputes. Facts Of The Case: The case involved a dispute over 4 acres and 16 guntas of land in Dasnapur village between the legal heirs of Metpalli Rajanna. Rajanna, ...
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Supreme Court Clarifies When Courts Can Summon New Accused During Trial Section 319 CrPC
13Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies When Courts Can Summon New Accused During Trial Section 319 CrPC

The Supreme Court clarified the legal principles governing the exercise of power under Section 319 of the CrPC, emphasizing that it can be invoked based on evidence collected during trial, even if the person was not charge-sheeted. The Court held that the standard for summoning an additional accused is stricter than a prima facie case but does not require proof beyond reasonable doubt. The evidence must show strong complicity, and the power should be exercised sparingly to ensure fairness. The Court restored the Trial Court's summoning order, underscoring that the High Court erred in conducting a mini-trial at this stage. The judgment reaffirmed that the provision aims to prevent the guilty from escaping justice. Facts Of The Case: The case arose from an incident on 29th November 2017, w...
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Supreme Court Verdict : Police Can’t Serve Appearance Notices via WhatsApp
13Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Verdict : Police Can’t Serve Appearance Notices via WhatsApp

The Supreme Court dismissed the application seeking modification of its earlier order, holding that electronic communication (e.g., WhatsApp) is not a valid mode for serving notices under Section 35 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023. The Court emphasized that such notices, which impact personal liberty, must adhere strictly to prescribed modes of service under the BNSS. It clarified that while electronic service is permissible for court summons under Sections 63, 64, and 71 of the BNSS, the same cannot be extended to investigative notices under Section 35, as the legislative intent excludes electronic modes for this purpose. The judgment underscores the importance of safeguarding individual liberty under Article 21 of the Constitution. Facts Of The Case: The case aro...
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