Tag: loan transaction

When One Accused Gets Relief, Others Should Too: Supreme Court Quashes FIR in Land Grab Case
Supreme Court

When One Accused Gets Relief, Others Should Too: Supreme Court Quashes FIR in Land Grab Case

In this judgment, the Supreme Court quashed criminal proceedings against the appellants based on the principle of parity. Since co-accused in the same FIR had already been granted relief under Section 482 CrPC by the High Court—a decision which had attained finality—the Court held the same benefit must extend to the appellants. Facts Of The Case: Vasanthi, sister of respondent No. 2/complainant, availed a loan of Rupees Twenty Lakhs from appellant No. 2 (accused No. 5). As security for the said loan, Vasanthi executed a Power of Attorney in favour of appellant No. 1 (accused No. 4) concerning a property measuring 1980 sq. ft. situated at Villanur Revenue Village. It was alleged that appellant No. 1 fraudulently executed a sale deed in respect of the suit property in favour of h...
Supreme Court Denies Specific Performance for Deal Breaching Construction Laws
Supreme Court

Supreme Court Denies Specific Performance for Deal Breaching Construction Laws

The Supreme Court held that an agreement mandating construction violating building laws is void and unenforceable. The illegality rendered specific performance impossible under Section 12 of the Specific Relief Act, as the unlawful object was essential to the contract. The Court affirmed that contracts contravening statutory provisions cannot be severed to remove their core illegal purpose. Facts Of The Case: The appellant, Canara Bank, entered into an agreement with the respondent, K.L. Rajgarhia, on 27.12.1984 for the purchase of residential flats to be constructed on a plot in East of Kailash, Delhi. The total consideration was ₹32,07,500, of which approximately 90% (₹28,86,750) was paid upfront. The agreement stipulated the construction and delivery of eight flats and a basement with...