Tag: public sector undertaking

Model Litigant?: Supreme Court Slams State Agency for Derailing 3-Year Arbitration Process
14Feb By The Legal ChamberNo Comments
Supreme Court

Model Litigant?: Supreme Court Slams State Agency for Derailing 3-Year Arbitration Process

The Supreme Court held that an arbitration agreement survives even if the unilateral appointment mechanism is invalid; such offending portions are severable. Courts cannot review Section 11 orders absent patent error. Joint Section 29A extensions constitute waiver under Section 4 but cannot cure Section 12(5) ineligibility, which requires express post-dispute written waiver. Non-speaking SLP dismissal does not affirm underlying judgment Facts Of The Case: The dispute originated from a contract dated 04.03.2014 awarded by Respondent No. 1, Bihar Rajya Pul Nirman Nigam Limited, to the appellant, Hindustan Construction Company Limited, for construction of a bridge over the River Sone in Bihar. The contract contained Clause 25 providing for arbitration. The appellant had previously inv...
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Errors Do Not Change Decision – Supreme Court Dismisses Konkan Railway’s Review Plea in Resignation Dispute
12Feb By The Legal ChamberNo Comments
Supreme Court

Errors Do Not Change Decision – Supreme Court Dismisses Konkan Railway’s Review Plea in Resignation Dispute

The Supreme Court held that apparent errors in factual findings do not warrant review unless they materially alter the decision. Justice and equity may override strict contractual principles where long, unblemished service exists. Settled “no work, no pay” rule is not absolute; back-wages can be reduced proportionately without disturbing reinstatement. No review lies for re-argument. Facts Of The Case: Konkan Railway Corporation Ltd. approached the Supreme Court by way of a review petition against the judgment dated 13th September, 2024 passed in Civil Appeal No. 10567 of 2024. In the original appeal, the respondent-employee, S.D. Manohara, had challenged the decision of the High Court of Karnataka at Bengaluru, which had held that he could not withdraw his resignation. The employe...
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Arbitration Award Final: Supreme Court Dismisses MMTC’s Post-Decree Objections
17Jan By The Legal ChamberNo Comments
Supreme Court

Arbitration Award Final: Supreme Court Dismisses MMTC’s Post-Decree Objections

This Supreme Court judgment reaffirms that objections to the execution of an arbitral award under Section 47 of the CPC are maintainable only within a very narrow compass, limited to grounds of jurisdictional infirmity or voidness. The Court emphasized that allegations of fraud or breach of fiduciary duty by a party’s own officers, raised after the award has attained finality, do not constitute such grounds unless they render the award a nullity. The business judgment rule protects decisions that fall within a range of reasonableness. Facts Of The Case: The dispute arose from a Long Term Agreement (LTA) dated 07.03.2007 between MMTC Limited and Anglo American Metallurgical Coal Pvt. Limited for the supply of coking coal. The agreement included an option for MMTC to extend the con...
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Supreme Court Boosts Accident Compensation: Key Takeaways on Salary & Tax Calculation
31Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Boosts Accident Compensation: Key Takeaways on Salary & Tax Calculation

The Supreme Court clarified that for computing compensation in motor accident claims, the deceased's income includes all allowances, regardless of taxability. Future prospects for a permanent employee below 40 are to be added at 50%. Income tax deduction, if applicable, must be calculated as per the actual tax slab rates for the relevant year. Facts Of The Case: The case originated from a motor accident claim filed by the dependents of a 27-year-old engineer employed with the Power Grid Corporation of India, who died in an accident. The Motor Accident Claims Tribunal awarded compensation of approximately ₹88.20 lakhs. This computation included his full monthly salary of ₹53,367 (comprising basic pay, DA, and other allowances), applied a multiplier of 18, added 50% for future prospe...
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Retired AFC Employees Win Supreme Court Battle for Higher Gratuity Payout
29Dec By The Legal ChamberNo Comments
Supreme Court

Retired AFC Employees Win Supreme Court Battle for Higher Gratuity Payout

The Supreme Court held that under the AFC’s Staff Regulations, the gratuity ceiling for employees is linked to notifications issued by the State Government. Consequently, AFC employees are entitled to the enhanced gratuity limit prescribed by the Government of Assam, as the regulations incorporate such external ceilings for employee benefit. Facts Of The Case: The Assam Financial Corporation Limited (AFC) appealed against a High Court judgment favouring its retired employees. The employees, who retired between 2018–2019, had been paid gratuity under AFC’s internal regulations, which had a ceiling of Rs. 7 lakhs as per a 2012 office order. They contended that they were entitled to a higher gratuity ceiling as per the Payment of Gratuity Act, 1972, which was aligned with the enhanced...
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Coal India’s 20% Price Hike for Select Industries Upheld by Supreme Court
1Nov By The Legal ChamberNo Comments
Supreme Court

Coal India’s 20% Price Hike for Select Industries Upheld by Supreme Court

The Supreme Court upheld the constitutional validity of Coal India's Interim Pricing Policy, ruling that the 20% price increase for the non-core sector was a valid economic policy decision. The Court affirmed that such price fixation, based on reasonable classification and to subserve the common good, does not violate Article 14, and set aside the refund directed by the High Court. Facts Of The Case: Following the Supreme Court's 2006 decision in Ashoka Smokeless that struck down the e-auction system for coal sales, Coal India Limited (CIL) introduced an Interim Coal Policy on December 15, 2006. This policy increased the price of coal by 20% over the pre-e-auction notified price specifically for linked consumers in the non-core sector, such as manufacturers of smokeless fuel. An associat...
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