Landmark Ruling - The Legal Chamber

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 ...

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...

Supreme Court Cancels Anticipatory Bail in Property Dispute Case

16Aug

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Cancels Anticipatory Bail in Property Dispute Case

The Supreme Court cancelled the anticipatory bail granted by the Bombay High Court, holding that such relief is an "extraordinary remedy" and must not be granted routinely, especially in grave offences. The Court emphasized that concealing material facts (like a vacated injunction order) and witness intimidation vitiate bail. Custodial interrogation was deemed necessary due to the accused's non-cooperation and criminal antecedents, violating bail conditions. The ruling reaffirmed strict judicial scrutiny under Srikant Upadhyay v. State of Bihar (2024) to prevent miscarriage of justice[ Facts Of The Case: The case involves a property dispute between Nikita Jagganath Shetty (the appellant) and her estranged husband, Vishwajeet Jadhav (respondent No. 4), along with other co-accused. Nikit...

Supreme Court Late Payment Surcharge Valid: Coal India’s Levy Ruled as ‘Change in Law’

11Jun

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Late Payment Surcharge Valid: Coal India’s Levy Ruled as ‘Change in Law’

The Supreme Court upheld the Appellate Tribunal for Electricity's (APTEL) ruling that a Coal India Limited (CIL) notification imposing Evacuation Facility Charges (EFC) constitutes a "change in law" event under the Power Purchase Agreement (PPA). The judgment affirmed that the power generator is entitled to compensation from the notification date with carrying cost at Late Payment Surcharge (LPS) rates on a compounding basis, based on restitutionary principles. The Court clarified that only a substantial question of law is appealable, and the supplementary bill is required only after due adjudication. Facts Of The Case: A Power Purchase Agreement (PPA) was signed on January 28, 2010, between Rajasthan Discoms and Adani Power Rajasthan Ltd. for 1200 MW. On December 19, 2017, Coal India ...

UP Gangster Act Misuse? Supreme Court Sets Guidelines for Fair Enforcement

10Jun

By The Legal ChamberNo Comments

Supreme Court

UP Gangster Act Misuse? Supreme Court Sets Guidelines for Fair Enforcement

The Supreme Court quashed criminal proceedings under the UP Gangsters Act, emphasizing that a gang chart's approval requires independent application of mind by authorities and cannot be based solely on prior FIRs, especially without overt acts, violence, or economic gain. The judgment clarified the stringent conditions necessary for invoking the Act and upheld the importance of due process in such cases. Facts Of The Case: The case involved a criminal appeal against a High Court judgment that refused to quash proceedings initiated under the Uttar Pradesh Gangsters & Anti-Social Activities (Prevention) Act, 1986, against the appellant, Vinod Bihari Lal. The appellant was implicated in a "gang chart" based on previous FIRs. He sought to quash the proceedings and non-bailable warrants i...

CBI vs. Accused: Supreme Court Rules on Discharge in Cotton MSP Scam Case

7Jun

By The Legal ChamberNo Comments

Supreme Court

CBI vs. Accused: Supreme Court Rules on Discharge in Cotton MSP Scam Case

The Supreme Court held that the trial court and High Court erred in discharging the accused under Section 239 CrPC by relying on defence-produced documents (CCI’s exoneration letter) at the pre-trial stage. Reiterating Debendra Nath Padhi, it ruled that only prosecution material under Section 173 CrPC can be considered for discharge, not extraneous evidence. The Court emphasized that discharge requires examining whether the chargesheet discloses a prima facie case, without evaluating defence merits. The matter was remanded for fresh consideration under Section 239 CrPC, barring reliance on non-prosecution documents. Facts Of The Case: The case involves a criminal conspiracy where Rayapati Subba Rao (A-1), a Cotton Purchase Officer (CPO) of Cotton Corporation of India (CCI), Guntur, alleg...