Tag: Legal Interpretation

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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Supreme Court Stops Misuse of Rape Laws : No Rape If Relationship Was Consensual
12Jun By The Legal ChamberNo Comments
Supreme Court

Supreme Court Stops Misuse of Rape Laws : No Rape If Relationship Was Consensual

The Supreme Court of India quashed criminal proceedings against the Appellant, finding that the alleged sexual assault and unnatural sex charges under Sections 376, 376(2)(n), 377, 504, and 506 of the IPC were not established. The Court held that the relationship was consensual, not based on a false promise to marry, and the complaint was likely motivated by a "disgruntled state of mind". The case fell under categories for quashing criminal proceedings to prevent abuse of process of law. Facts Of The Case: This appeal arises from the dismissal of Amol Bhagwan Nehul's petition to quash Criminal Case C.R. No. 490/2023, registered on July 31, 2023, for alleged offenses under Sections 376, 376(2)(n), 377, 504, and 506 IPC. The Complainant, Respondent No. 2, alleged that the Appellant forci...
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SARFAESI Act’s Section 11: Supreme Court Affirms Mandatory Arbitration for Financial Institutions
11Jun By The Legal ChamberNo Comments
Supreme Court

SARFAESI Act’s Section 11: Supreme Court Affirms Mandatory Arbitration for Financial Institutions

The Supreme Court, in Bank of India vs. M/s Sri Nangli Rice Mills Pvt. Ltd., ruled that Section 11 of the SARFAESI Act is mandatory, requiring inter-se disputes between banks and financial institutions concerning secured assets to be resolved through arbitration. No explicit arbitration agreement is needed; the provision legally mandates it, thereby divesting DRT of jurisdiction in such matters. Facts Of The Case: In the case of Bank of India vs. M/s Sri Nangli Rice Mills Pvt. Ltd. & Ors., the core dispute involved the priority of charge over secured assets (stocks of paddy and rice) belonging to a common borrower, M/s Sri Nangli Rice Mills Pvt. Ltd., between two public sector banks: Bank of India (appellant) and Punjab National Bank (respondent). Both banks had extended credit facil...
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Supreme Court : No More Delays! High Court Must Decide Property Dispute in 6 Months
10Jun By The Legal ChamberNo Comments
Supreme Court

Supreme Court : No More Delays! High Court Must Decide Property Dispute in 6 Months

The Supreme Court allowed the appeal, setting aside the High Court's second remand order for de-novo disposal, finding it erroneous given the possibility of deciding the appeal based on the interpretation of existing documents (sale deed, conveyance deed, and settlement deed). The Court directed the High Court to decide the appeal on its merits expeditiously within six months. Facts Of The Case: This appeal challenges a judgment from the High Court of Kerala, which set aside a trial court's dismissal of a suit and remanded the matter for de-novo disposal. The dispute concerns 9 cents of land in Poomthura Village, Ernakulam. The appellant's father executed a sale deed in 1955 for "Verumpattom Rights" over land in Survey No. 1236. Later, in 1964, he executed a conveyance deed for "Jenmam ...
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No Double Benefits: Supreme Court Clarifies Double Deduction Rules Under Income Tax Act
3Jun By The Legal ChamberNo Comments
Supreme Court

No Double Benefits: Supreme Court Clarifies Double Deduction Rules Under Income Tax Act

The Supreme Court ruled that Section 80-IA(9) of the Income Tax Act, 1961, bars double deductions on the same profits under both Sections 80-IA and 80-HHC. It held that while deductions can be computed separately under different provisions, the total deduction cannot exceed the eligible profits of the business. The Court upheld the Bombay High Court’s interpretation, clarifying that Section 80-IA(9) restricts the allowability—not computation—of deductions, ensuring taxpayers do not claim overlapping benefits under Chapter VI-A. Facts Of The Case: The case involved Shital Fibers Limited, which filed its income tax return for the Assessment Year 2002-03, declaring a taxable income of ₹46,99,293 and claiming deductions under Sections 80-HHC (export profits) and 80-IA (industrial undertaking...
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