Jural Relationship - The Legal Chamber

Supreme Court Cracks Down on Misuse of Disciplinary Process, Imposes Costs on Bar Council

19Nov

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Cracks Down on Misuse of Disciplinary Process, Imposes Costs on Bar Council

The Supreme Court ruled that a disciplinary complaint under the Advocates Act cannot be maintained by a litigant against the opposing party's advocate, absent a jural relationship. It further held that a State Bar Council's referral order must record reasoned satisfaction of a prima facie case of misconduct, and a cryptic order is legally unsustainable. Facts Of The Case: The case originated from a complaint filed by Khimji Devji Parmar with the Bar Council of Maharashtra and Goa (BCMG) against advocate Rajiv Nareshchandra Narula. Parmar alleged that his late father was a partner in a firm, M/s. Volga Enterprises, which had rights over a disputed property. A suit concerning this land was pending before the High Court, involving the original owner, Nusli Randelia, and a claimant, M/s. Uni...

Proof of Tenancy: Supreme Court’s Key Ruling on Rent Receipts and Title Disputes

The Supreme Court held that In disputes over landlord-tenant relationships, the Supreme Court clarified that under the Karnataka Rent Act, 1999, the production of rent receipts signed by the landlord constitutes prima facie evidence of the jural relationship. Once this initial burden is discharged, the Rent Controller is justified in proceeding with the eviction case without delving into title disputes, which are beyond its scope. Facts Of The Case: The appellant, H.S. Puttashankara, filed an eviction petition against the respondent, Yashodamma, under the Karnataka Rent Act, 1999, concerning a property in Bengaluru. The appellant claimed to be the landlord, asserting that the property originally belonged to his great-grandfather and devolved to him through a release deed from other legal...

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...