Tag: legal precedent

Investment vs. Debt: Supreme Court Explains Why Preference Shares Don’t Trigger IBC
13Jan By The Legal ChamberNo Comments
Supreme Court

Investment vs. Debt: Supreme Court Explains Why Preference Shares Don’t Trigger IBC

The Supreme Court held that Cumulative Redeemable Preference Shares (CRPS) represent an equity investment, not a financial debt under the IBC. Preference shareholders are not creditors, and redemption is contingent upon company profits under the Companies Act. Therefore, they cannot initiate insolvency proceedings under Section 7 of the IBC for non-redemption. Facts Of The Case: EPC Constructions India Limited (EPCC) held outstanding receivables from Matix Fertilizers and Chemicals Limited for construction work. In 2015, to help Matix meet lender-mandated debt-equity ratios, the parties agreed to convert ₹400 crores of dues into 8% Cumulative Redeemable Preference Shares (CRPS). Matix subsequently allotted CRPS worth ₹250 crores to EPCC. When the shares matured after three years, M...
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Supreme Court Quashes Conviction in POCSO Case After Marriage to Victim
6Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Quashes Conviction in POCSO Case After Marriage to Victim

The Supreme Court invoked Article 142 to quash the appellant's conviction under POCSO and IPC, balancing societal deterrence with familial rehabilitation. The ruling prioritized "complete justice" and marital harmony post-marriage to the victim, imposing a lifelong condition of maintenance and non-desertion, while cautioning against precedent. Facts Of The Case: The appellant was convicted under Section 366 of the Indian Penal Code and Section 6 of the POCSO Act, receiving sentences of rigorous imprisonment for 5 and 10 years respectively. His appeal before the Madras High Court was dismissed in September 2021. During the pendency of this appeal, in May 2021, the appellant married the victim. Subsequently, they had a male child. The appellant's wife filed an affidavit expressing ...
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Supreme Court Clarifies Law on Witness Intimidation: Victims Can Go Straight to Police
6Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies Law on Witness Intimidation: Victims Can Go Straight to Police

This Supreme Court judgment clarifies the procedural conflict regarding offences under Section 195A IPC (threatening to give false evidence). The Supreme Court holds that Section 195A IPC is a cognizable offence. Consequently, the police have the independent power to register an FIR and investigate under Sections 154/156 CrPC, and the restrictive complaint procedure under Section 195(1)(b)(i) CrPC is not applicable. Facts Of The Case: The case originated from two separate sets of proceedings. In the first, from Kerala, an FIR was registered under Section 195A IPC after a de facto complainant, who had turned approver in a murder case, was threatened with dire consequences to give false evidence. The accused sought bail, arguing the mandatory procedure under Section 195(1)(b)(i) CrPC—requi...
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Injured Witness Testimony Crucial: Supreme Court Dismisses Appeals in 1988 Double Murder Case
6Jan By The Legal ChamberNo Comments
Supreme Court

Injured Witness Testimony Crucial: Supreme Court Dismisses Appeals in 1988 Double Murder Case

The Supreme Court upheld the appellants' conviction under Sections 302/149 and 307/149 IPC, affirming the High Court's judgment. It ruled the case did not fall under Exception 4 to Section 300 IPC, as the assault with sharp weapons in furtherance of common intention established murder, not culpable homicide. The ocular and medical evidence was found reliable. Facts Of The Case: On May 19, 1988, an altercation arose between two groups of relatives over a land boundary dispute in a sugarcane field. The appellants, led by Molhar and Dharamvir, allegedly damaged a ridge (mendh) on the complainant's side. When the deceased Dile Ram objected, a fight ensued. The appellants, armed with lathis, spades, and phawadas, assaulted Dile Ram, Braham Singh, and Bangal Singh (PW-2). Both Dile Ram and Bra...
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Supreme Court Clarifies: Pending Cases Don’t Justify Violating Active Court Orders
6Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies: Pending Cases Don’t Justify Violating Active Court Orders

The Supreme Court held that once an interim court order is in operation, it remains binding unless specifically vacated. Merely releasing a reserved matter does not invalidate or nullify an existing interim order. Violating such an order without obtaining prior leave from the court constitutes a prima facie case for contempt proceedings. Facts Of The Case: The appellant, a professor at KGMU, was appointed as the Nodal Officer for implementing a software system in 2010. In 2017, audit objections arose regarding expenditures during his tenure, leading to a disciplinary inquiry. The professor challenged the preliminary inquiry and a subsequent notice via his first writ petition in 2018. While this petition was reserved for judgment, the disciplinary committee sent him a questionnaire, which...
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Supreme Court Ruling: Drug Disposal Committee Cannot Overtake Court’s Power to Release Seized Vehicles
4Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Ruling: Drug Disposal Committee Cannot Overtake Court’s Power to Release Seized Vehicles

The Supreme Court held that the Narcotic Drugs and Psychotropic Substances (Seizure, Storage, Sampling and Disposal) Rules, 2022 do not oust the jurisdiction of Special Courts to grant interim custody of vehicles seized under the NDPS Act. The statutory power of courts under Sections 60(3) and 63 of the NDPS Act, read with relevant CrPC/BNSS provisions for interim release, remains operative independently of the administrative disposal mechanism under the 2022 Rules. Facts Of The Case: The appellant, Denash, is the owner of a lorry (TN 52 Q 0315) which was lawfully hired to transport iron sheets from Chhattisgarh to Tamil Nadu. On 14th July 2024, during transit, police intercepted the vehicle and recovered a total of 6 kilograms of Ganja. The contraband was found concealed benea...
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Landmark Ruling Protects IP Owners: Supreme Court Says Continuous Infringement Creates Inherent Urgency
4Jan By The Legal ChamberNo Comments
Supreme Court

Landmark Ruling Protects IP Owners: Supreme Court Says Continuous Infringement Creates Inherent Urgency

This Supreme Court judgment clarifies that under Section 12A of the Commercial Courts Act, a suit alleging continuing infringement of intellectual property rights inherently contemplates urgent interim relief. The Court held that mere delay in filing the suit does not negate urgency, as each ongoing act of infringement causes immediate and irreparable harm, and public interest in preventing market deception also factors into the assessment. Facts Of The Case: The appellant, a Danish company named Novenco Building and Industry A/S, held patents and design registrations in India for its industrial fans sold under the brand ‘Novenco ZerAx’. It had entered into a dealership agreement with respondent No. 1, Xero Energy Engineering Solutions Pvt. Ltd., in 2017. The appellant later discov...
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Supreme Court Overturns Life Sentences, Grants Benefit of Doubt in 1990 Murder Case
2Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Overturns Life Sentences, Grants Benefit of Doubt in 1990 Murder Case

The Supreme Court acquitted the accused-appellant and three co-convicts, finding the prosecution's eyewitness testimonies wholly unreliable and contradictory regarding the genesis and location of the incident. The Court held that the prosecution failed to establish its case beyond reasonable doubt, warranting the benefit of doubt under Article 142 of the Constitution. Facts Of The Case: The case stems from an incident on 28th September 1990, where an altercation allegedly occurred in a village involving ten accused persons. According to the FIR lodged by Gobariya (PW-2), the incident began when the accused were damaging a temporary hutment belonging to Jagya (PW-3). Gobariya's son, Ramesh, intervened to pacify them, upon which the assailants allegedly turned on him and assaul...
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Supreme Court Rules: “Vacancies Can Increase After Advertisement” – Quashes Illegal Terminations from 2008
2Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules: “Vacancies Can Increase After Advertisement” – Quashes Illegal Terminations from 2008

The Supreme Court held that appointments made in excess of originally advertised vacancies are permissible under the rules if filled from a valid waiting list within a reasonable period, typically the recruitment year or the succeeding year. Terminations based solely on the "excess vacancy" ground were found unjustified when such appointments align with the recruitment rule's intent and the advertisement's stipulation that vacancy numbers were subject to change. Facts Of The Case: The case involved four appellants who were appointed to Class IV posts in the District Judgeship of Ambedkar Nagar, Uttar Pradesh, in 2001 against an advertisement that notified twelve vacancies but included a rider that the number of posts could increase or decrease. In 2008, their services were te...
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Supreme Court to Re-examine If Ayurveda, Homeopathy Doctors Should Retire at Same Age as MBBS Doctors
2Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court to Re-examine If Ayurveda, Homeopathy Doctors Should Retire at Same Age as MBBS Doctors

The Supreme Court has referred to a larger bench the question of whether MBBS (allopathic) and AYUSH (indigenous system) doctors can be treated equally for service conditions like retirement age and pay. The Court noted divergent precedents on whether classification based on educational qualification and differing job functions violates Articles 14 and 16 of the Constitution. Facts Of The Case: The case involves a batch of Special Leave Petitions concerning the service conditions of doctors, specifically whether practitioners of allopathy (MBBS doctors) and those of indigenous systems like Ayurveda, Homeopathy, and Unani (AYUSH doctors) can be treated equally, particularly regarding retirement age. The legal dispute stems from varying retirement ages set by different states for the...
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