Tag: Landmark Judgment

Supreme Court Rules: How a Tax Exemption for Local Manufacturers Failed the Constitutional Test
19Nov By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules: How a Tax Exemption for Local Manufacturers Failed the Constitutional Test

This Supreme Court judgment struck down a Rajasthan VAT exemption notification for violating Article 304(a) of the Constitution. The Court held that granting a tax exemption exclusively to locally manufactured asbestos goods, without a valid justification discernible from the notification itself, constituted discriminatory protectionism against imported goods and was not a permissible differentiation. Facts Of The Case: The appellants, manufacturers of asbestos cement products with manufacturing units outside Rajasthan but sales depots within the state, challenged a Rajasthan Government notification dated 09.03.2007. This notification granted an exemption from Value Added Tax on the sale of asbestos cement sheets and bricks manufactured within Rajasthan, provided they contained 25% or mo...
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Clarity on Post-Award Interest: Supreme Court Explains When Hyder Consulting Judgment Applies
15Nov By The Legal ChamberNo Comments
Supreme Court

Clarity on Post-Award Interest: Supreme Court Explains When Hyder Consulting Judgment Applies

This Supreme Court judgment clarifies that an arbitral award granting a composite interest rate from the cause of action until the date of repayment, based on a contract between the parties, excludes the default application of separate post-award interest under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996. Party autonomy governs, and a decree-holder cannot claim compound interest at the execution stage if it was not stipulated in the contract or awarded by the tribunal, as this would amount to impermissibly modifying the award. Facts Of The Case: The dispute originated from a Memorandum of Understanding (MoU) dated 09.04.2014 between HLV Limited and PBSAMP Projects Pvt. Ltd. for the sale of land in Hyderabad. PBSAMP paid an advance of Rs. 15.5 crores to HLV. After...
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Supreme Court Rules: Promotion Cannot Be Denied Due to Illegal Departmental Proceedings
13Nov By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules: Promotion Cannot Be Denied Due to Illegal Departmental Proceedings

The Supreme Court held that when departmental proceedings are quashed for being illegal and vitiated by delay, the employee must be restored to the position they would have occupied in the service's normal course. This entitles them to retrospective promotion from the date their immediate junior was promoted, with all attendant consequential benefits, including pay, allowances, and pensionary benefits. Facts Of The Case: The appellant, Jyotshna Singh, was a Block Development Officer in Jharkhand. In 2007, an audit objection raised a suspicion of misappropriation, but a subsequent inquiry by the Deputy Commissioner cleared her, finding the expenditure was within the estimated cost. A decade later, in 2017, a charge-sheet was issued on the same allegation, culminating in a punishment of wi...
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Can’t Withhold Pension for Not Vacating Govt Quarter: Supreme Court Rules for Employee
13Nov By The Legal ChamberNo Comments
Supreme Court

Can’t Withhold Pension for Not Vacating Govt Quarter: Supreme Court Rules for Employee

This Supreme Court judgment reaffirms that pension and retiral dues are a statutory right, not a bounty, and cannot be withheld by the employer. The Court held that non-vacation of a government residence is not a valid justification for withholding such dues, as the right to pension is distinct from the right to occupation of service accommodation. Facts Of The Case: The respondent, a state government employee since 1980, superannuated on 30th June 2013, but his pension and retiral dues were not sanctioned or paid. Subsequently, the appellant department passed an order quashing his earlier pay revision and refixing his salary to a lower scale. This refixation was challenged and later withdrawn by the department, but the retiral dues remained unpaid, ostensibly because the respondent had ...
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Co-accused’s Acquittal Leads to Supreme Court Setting Aside Another’s Conviction
7Nov By The Legal ChamberNo Comments
Supreme Court

Co-accused’s Acquittal Leads to Supreme Court Setting Aside Another’s Conviction

Based on the principle of parity, the Supreme Court acquitted the appellant. The Court held that when a co-accused, prosecuted on identical evidence in a joint trial, is acquitted and the State does not challenge it, sustaining the conviction of the remaining accused would be unjust and inequitable. Facts Of The Case: On January 1, 2002, the State Task Force officials near Dayamani Restaurant, Kathipudi, noticed two women, the appellant Vaddi Ratnam (Accused No.2) and Nerella Vijaya Lakshmi (Accused No.1). Upon seeing the officials, the co-accused handed a yellow handbag to the appellant, after which both attempted to flee but were apprehended. A search of the bag revealed six packets containing a total of 5.5 kilograms of opium. The accused confessed to being involved in the opium trade...
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Supreme Court Backs Landowners: Unused ‘Bachat’ Land Doesn’t Belong to Panchayat
6Nov By The Legal ChamberNo Comments
Supreme Court

Supreme Court Backs Landowners: Unused ‘Bachat’ Land Doesn’t Belong to Panchayat

The Supreme Court upheld that lands contributed by proprietors during consolidation proceedings, but not specifically reserved or utilized for common purposes (known as bachat land), do not vest in the Gram Panchayat or the State. Relying on the doctrine of stare decisis and Constitution Bench precedents, the Court affirmed that such land continues to belong to the original proprietors, dismissing the State's appeal. Facts Of The Case: The case originated from a challenge by landowners (respondents) to an amendment made by the State of Haryana in 1992 to the Punjab Village Common Lands (Regulation) Act, 1961. This amendment, via Haryana Act No. 9 of 1992, expanded the definition of "shamilat deh" (village common land) to include lands reserved for common purposes under the consolidation ...
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Supreme Court Quashes FIR in Property Dispute, Calls it “Abuse of Process of Law”
6Nov By The Legal ChamberNo Comments
Supreme Court

Supreme Court Quashes FIR in Property Dispute, Calls it “Abuse of Process of Law”

The Supreme Court quashed the criminal proceedings, holding that the continuation thereof amounted to an abuse of the process of law. The allegations, arising from a civil dispute over a loan and its guarantee, did not constitute a criminal offense, especially after the withdrawal of an earlier complaint on the same cause of action. Facts Of The Case: This case originated from an FIR registered against the appellant, Bhawana Jain, under Sections 406, 420, 504, and 506 of the IPC. The dispute concerned a plot purchased jointly by her deceased husband and the complainant, Respondent No. 2. After a mutual partition, the husband mortgaged his share to secure a bank loan, with the appellant acting as a guarantor. Following her husband's death in 2016, the complainant filed a private complaint...
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No Complete Freeze on Waqf Law, Says Supreme Court: Caps Non-Muslim Members on Boards
4Nov By The Legal ChamberNo Comments
Supreme Court

No Complete Freeze on Waqf Law, Says Supreme Court: Caps Non-Muslim Members on Boards

In an interim order, the Supreme Court declined to stay the Waqf (Amendment) Act, 2025, upholding the legislative presumption of constitutionality. However, it partially stayed specific provisions, including the "five-year practice of Islam" requirement and certain clauses related to government property inquiries, deeming them prima facie arbitrary pending a final constitutional validity hearing. Facts Of The Case: A batch of writ petitions challenged the constitutional validity of the Waqf (Amendment) Act, 2025, before the Supreme Court. The petitioners, arguing on behalf of Muslim community interests, contended that the amendments violated fundamental rights under Articles 14, 15, 19, 21, 25, 26, and 300A of the Constitution. Key challenges were mounted against provisions that de-recog...
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Supreme Court Slams Misuse of Criminal Law to Settle Civil Disputes, Quashes Proceedings
4Nov By The Legal ChamberNo Comments
Supreme Court

Supreme Court Slams Misuse of Criminal Law to Settle Civil Disputes, Quashes Proceedings

The Supreme Court quashed criminal proceedings under Section 420 IPC, ruling that a mere breach of contract does not constitute cheating. The essential ingredient of a dishonest intention at the inception of the agreement was absent. Allegations of supplying non-conforming goods disclosed only a civil dispute, not a criminal offense, making the FIR unsustainable. Facts Of The Case: The case originated from a business transaction dated 12.12.2017, where M/s Soma Stone Crusher (complainant) agreed to purchase a 'sand rrulla machine' from M/s Saini Engineering Works, run by Sarabjit Singh. An advance of ₹5,00,000 was paid via cheque. The complainant alleged that the appellant, Paramjeet Singh, acting on behalf of his brother, had assured that the machine would meet specific specifications (...
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Supreme Court :You Can’t Escape a Murder Charge Just Because the Victim Lived for Months
4Nov By The Legal ChamberNo Comments
Supreme Court

Supreme Court :You Can’t Escape a Murder Charge Just Because the Victim Lived for Months

This Supreme Court judgment clarifies that a time gap between the infliction of an injury and death does not automatically reduce the offence from murder to attempt to murder. If the original injury was sufficient in the ordinary course of nature to cause death, subsequent complications like septicemia do not break the chain of causation. The offence remains punishable under Section 302 IPC, rendering Section 307 inapplicable. Facts Of The Case: The case originated from a violent incident on February 22, 2022, in which the appellant, Maniklal Sahu, along with three co-accused, trespassed into the house of Rekhchand Verma. They dragged the victim to the terrace of his house and flung him down. After the fall, the accused further assaulted the injured Rekhchand with sticks and fists. The v...
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