Tag: Legal Interpretation

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 Rules: “Right to Prefer an Appeal” Includes “Right to Prosecute it” for Victims
28Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules: “Right to Prefer an Appeal” Includes “Right to Prosecute it” for Victims

The Supreme Court held that the right to prefer an appeal under the proviso to Section 372 CrPC includes the right to prosecute it. Consequently, upon the death of the original appellant-victim, their legal heir is entitled to be substituted to continue the appeal. The definition of ‘victim’ under Section 2(wa) CrPC is broad and inclusive, enabling such substitution to ensure the right of access to justice is not defeated. Facts Of The Case: On December 9, 1992, an attack occurred in which Virendra Singh was killed, and informant Tara Chand (PW-1) and his son Khem Singh (PW-3) were injured. The Sessions Court convicted accused Ashok, Pramod, and Anil @ Neelu, sentencing them to life imprisonment, but acquitted six other accused. The convicted accused appealed to the High Court, which, vi...
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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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Supreme Court Reduces Life Term in POCSO Case, Cites Constitutional Protection Against Harsher Retroactive Penalties
23Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Reduces Life Term in POCSO Case, Cites Constitutional Protection Against Harsher Retroactive Penalties

The Supreme Court upheld the conviction under Section 6 of the POCSO Act but modified the sentence. Relying on Article 20(1) of the Constitution, it held that the enhanced punishment of imprisonment for the remainder of natural life, introduced by the 2019 amendment, could not be applied retrospectively to an offence committed prior to its enactment. Facts Of The Case: On May 20, 2019, the appellant, Saturam Mandavi, was accused of luring a five-year-old girl to his house and raping her while her parents were away attending a marriage ceremony in the village. The victim's mother, upon returning and being unable to locate her daughter, confronted the appellant at his house, after which he fled. An FIR was subsequently registered against him. The Trial Court convicted the appellant under S...
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Supreme Court : Key NDPS Ruling Courts Can Impose Harsher Sentences Without Specific Reasons
13Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court : Key NDPS Ruling Courts Can Impose Harsher Sentences Without Specific Reasons

The Supreme Court clarified the interpretation of Section 32-B of the NDPS Act, ruling that courts are not restricted to the factors listed in clauses (a) to (f) for imposing sentences higher than the minimum. The judgment affirmed that judicial discretion allows consideration of additional relevant factors, such as the quantity of contraband, to justify enhanced punishment. It overturned the High Court’s erroneous view that special reasons under Section 32-B were mandatory for exceeding the minimum sentence. The decision reinforces that sentencing flexibility under the NDPS Act remains broad, subject only to reasonableness and relevance of the factors considered. Facts Of The Case: In September 2018, the police in Ambikapur, Chhattisgarh, received information that Narayan Das and anothe...
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Supreme Court Overrules Precedent on Power of Attorney Validity in Property Sales
11Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Overrules Precedent on Power of Attorney Validity in Property Sales

The Supreme Court examined the validity of documents executed by a Power of Attorney (PoA) holder under the Registration Act, 1908. It held that a PoA holder remains an agent, not an "executant" under Section 32(a), and must comply with Sections 32(c), 33, 34, and 35 for authentication. The court disagreed with the earlier Rajni Tandon ruling, emphasizing that a PoA holder cannot bypass statutory scrutiny while executing or presenting documents for registration. The issue was referred to a larger bench for clarity. Facts Of The Case: The case revolves around the validity of an Irrevocable General Power of Attorney (GPA) dated 15.10.1990, allegedly executed by Ranveer Singh and his wife, Gyanu Bai, in favor of their tenant, G. Rajender Kumar. Using this GPA, Rajender Kumar executed three ...
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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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Supreme Court Quashes FIR in 498A Dowry Case: Rules on Delay & False Allegations
16Jun By The Legal ChamberNo Comments
Supreme Court

Supreme Court Quashes FIR in 498A Dowry Case: Rules on Delay & False Allegations

The Supreme Court of India quashed an FIR and chargesheet, holding that while the complaint was within the limitation period as per Section 468 CrPC (relevant date for limitation being filing of complaint, not cognizance date), the allegations lacked specific incidents of cruelty and appeared to be a misuse of legal provisions. Facts Of The Case: The present appeal challenges a High Court order dated April 1, 2024, which set aside a Sessions Court order from October 4, 2008. The Sessions Court had discharged the Appellant from charges under Section 498A of the Indian Penal Code, 1860, in FIR No. 1098/2002. The case originated from a complaint filed by the Complainant wife (Respondent no. 2) on July 3, 2002, leading to the FIR being registered on December 19, 2002, at PS Malviya Nagar...
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