Tag: Justice J.B. Pardiwala

When a Society Becomes a “Trust”: Supreme Court’s Landmark Ruling on Mismanagement in Charitable NGOs
6Sep By The Legal ChamberNo Comments
Supreme Court

When a Society Becomes a “Trust”: Supreme Court’s Landmark Ruling on Mismanagement in Charitable NGOs

The Supreme Court ruled that a society registered under the Societies Registration Act, 1860, can be construed as a constructive trust under Section 92 CPC if it is created for public charitable purposes and its properties are held in a fiduciary capacity. This allows aggrieved parties to sue for breach of trust and seek remedies like a scheme for administration. Facts Of The Case: In 2005, Operation ASHA, a society registered under the Societies Registration Act, 1860, was established to provide healthcare services, particularly tuberculosis treatment, to underprivileged sections of society. A dispute arose in 2020 when its co-founder and CEO, Sandeep Ahuja (Respondent No. 3), terminated the services of another co-founder, Dr. Shelly Batra (Respondent No. 1), alleging misrepresentation ...
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Supreme Court Acquits Man: “Confession to Police” Cannot Be Used as Evidence
6Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Acquits Man: “Confession to Police” Cannot Be Used as Evidence

The Supreme Court acquitted the accused, holding that a confessional FIR made to a police officer is wholly inadmissible as evidence under Section 25 of the Indian Evidence Act, 1872. The prosecution failed to prove its case with legally admissible evidence, rendering the medical and other evidence insufficient for conviction. Facts Of The Case: The appellant, Narayan Yadav, himself lodged an FIR at Korba Kotwali Police Station on 27.09.2019, confessing to the murder of Ram Babu Sharma. In the FIR, he stated that a quarrel ensued at the deceased's residence after the latter made an obscene remark upon seeing a photograph of the appellant's girlfriend. In a fit of rage, the appellant claimed he picked up a vegetable knife and inflicted injuries on the deceased, later also hitting him with...
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Supreme Court Quashes Decree Against Odisha Corp, Clarifies Law on Interest for Pre-1992 Transactions
5Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Quashes Decree Against Odisha Corp, Clarifies Law on Interest for Pre-1992 Transactions

The Supreme Court held that the suit against the State Financial Corporation was not maintainable due to non-compliance with the mandatory notice under Section 80 CPC. The decree was declared a nullity as it erroneously applied the Interest on Delayed Payments Act, 1993, to a pre-enactment transaction and fastened liability without privity of contract. Execution proceedings were quashed. Facts Of The Case: In 1985, Respondent No. 1, M/s. Vigyan Chemical Industries, supplied raw materials to Respondent No. 2, an industrial unit. Due to a loan default, the Appellant, Odisha State Financial Corporation (OSFC), took possession of Respondent No. 2's unit in 1987 under the State Financial Corporations Act, 1951. In 1988, Respondent No. 1 filed a recovery suit for its unpaid dues. OSFC was impl...
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Clarifying Jurisdiction: Supreme Court Reaffirms Exclusive Power of MP Arbitration Tribunal for Public Works
28Aug By The Legal ChamberNo Comments
Supreme Court

Clarifying Jurisdiction: Supreme Court Reaffirms Exclusive Power of MP Arbitration Tribunal for Public Works

The Supreme Court upheld the exclusive jurisdiction of the Madhya Pradesh Arbitration Tribunal over disputes arising from state works contracts, as per the MP Madhyastham Adhikaran Adhiniyam, 1983. It ruled that a private arbitration clause in a concession agreement cannot override this statutory mandate, rendering such arbitration non-est in law. Facts Of The Case: The dispute arose from a Concession Agreement dated 05.01.2012 between Umri Pooph Pratappur Tollways Pvt. Ltd. (Appellant) and the Madhya Pradesh Road Development Corporation (Respondent) for the development of a state highway on a BOT (Toll + Annuity) basis. Following alleged breaches and delays attributed to the Respondent, the Appellant first initiated proceedings in 2018 before the Madhya Pradesh Arbitration Tribunal, a s...
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Supreme Court Rules Stem Cell Banking is Healthcare Service, Exempt from Tax
8Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules Stem Cell Banking is Healthcare Service, Exempt from Tax

The Supreme Court held that stem cell banking services qualify as "Healthcare Services" under Notification No. 25/2012-ST, exempting them from service tax. The Court ruled that the extended limitation period under Section 73 of the Finance Act, 1994, was unwarranted as there was no suppression or intent to evade tax. The subsequent Notification No. 4/2014-ST, though prospective, was deemed clarificatory. Penalties were set aside due to the appellant's bona fide belief and lack of deliberate contravention. The impugned order was quashed, and the refund of the deposited amount was ordered Facts Of The Case: The appellant, M/s. Stemcyte India Therapeutics Pvt. Ltd., engaged in the collection, processing, and storage of umbilical cord blood stem cells, claimed exemption from service tax unde...
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Who Pays Entry Tax? Supreme Court Decides Liquor Warehouse vs. Manufacturer Case
7Aug By The Legal ChamberNo Comments
Supreme Court

Who Pays Entry Tax? Supreme Court Decides Liquor Warehouse vs. Manufacturer Case

The Supreme Court upheld the levy of entry tax on liquor manufacturers under the Madhya Pradesh Entry Tax Act, 1976. It ruled that manufacturers "caused the entry of goods" into local areas under Section 3(1) read with Section 2(3), even through state warehouses. The Court clarified that Section 3B (special provision for liquor) was merely an enabling provision, and the absence of a notification under it did not bar tax collection under Section 14 (general machinery provision). The judgment affirmed that the tax liability rests on manufacturers, not warehouses, as they initiated the goods' movement into the state. Facts Of The Case: The case involved M/S United Spirits Ltd. and other liquor manufacturers challenging their liability to pay entry tax under the Madhya Pradesh Entry Tax Act,...
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Supreme Court Clarifies Rules for Senior Advocate Designation: Transparency vs. Discretion
5Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies Rules for Senior Advocate Designation: Transparency vs. Discretion

The Supreme Court upheld the validity of Rule 6(9) of the High Court of Orissa (Designation of Senior Advocate) Rules, 2019, which permits the Full Court to designate advocates as Senior Advocates suo motu based on exceptional merit. The Court clarified that such designations must adhere to the principles of fairness, transparency, and objectivity, as outlined in Section 16(2) of the Advocates Act, 1961, and the guidelines in Indira Jaising v. Supreme Court of India. The judgment emphasized that the suo motu power of the Full Court is supplementary to the application-based process and does not undermine the statutory framework. The amended Rule 6(9) was upheld, ensuring alignment with constitutional principles. Facts Of The Case: The case arose from a challenge to the High Court of Oriss...
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Supreme Court’s Mandate: New Public Notice for Nagaland Village Recognition
10Jun By The Legal ChamberNo Comments
Supreme Court

Supreme Court’s Mandate: New Public Notice for Nagaland Village Recognition

The Supreme Court, exercising judicial review over executive decisions, set aside the High Court's directive for village recognition in Nagaland. The Court emphasized adherence to customary laws and specific Office Memorandums requiring "No Objection Certificates" from ancestral villages. It remanded the matter for comprehensive consideration of objections, including those from the appellant, affirming that inter-district boundary disputes are irrelevant to village recognition. Facts Of The Case: This Supreme Court judgment stems from a dispute concerning the recognition of Kakiho Village in Nagaland. The core of the matter involved the application of existing government Office Memorandums (O.M.'s) dated March 22, 1996, and October 1, 2005, which outline criteria for village recognition...
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Supreme Court Denies Anticipatory Bail in Andhra Liquor Scam Case
26May By The Legal ChamberNo Comments
Supreme Court

Supreme Court Denies Anticipatory Bail in Andhra Liquor Scam Case

The Supreme Court upheld the denial of anticipatory bail, emphasizing that custodial interrogation is crucial in corruption cases involving influential accused. It clarified that confessional statements of co-accused under Section 161 CrPC cannot be considered at the bail stage, being inadmissible under Sections 25-26 of the Evidence Act. The Court reiterated that political vendetta allegations alone cannot justify anticipatory bail when prima facie evidence exists. It directed investigating agencies to avoid third-degree methods while preserving their right to seek custodial interrogation if warranted. The judgment reaffirmed the higher threshold for anticipatory bail compared to regular bail in serious economic offences. Facts Of The Case: The case arose from allegations of corruption ...
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