Restitution - The Legal Chamber

Supreme Court: Amicable Settlement Leads to Full Quashing of FIR, Including Dacoity Charge

4Feb

By The Legal ChamberNo Comments

Supreme Court

Supreme Court: Amicable Settlement Leads to Full Quashing of FIR, Including Dacoity Charge

The Supreme Court quashed an FIR for dacoity (BNS S. 310(2)/IPC S. 395) as the alleged acts lacked dishonest intention for theft/robbery—a prerequisite for dacoity. The Court held that subsequent full restitution and amicable settlement with the complainant negated the core criminal intent, rendering the entire prosecution unsustainable. Facts Of The Case: The complainant, a school clerk, alleged that on October 4, 2024, six to seven unknown persons entered P.G. Public School in Nandurbar. They demanded specific Engineering and B.A.M.S. files, assaulted and intimidated staff, and forcibly took a cheque book, blank letterheads, stamps, cash (Rs. 1,50,000), and a computer. The accused were allegedly searching for institutional documents, and the taking of property was incidental. Subsequen...

Supreme Court Sets Aside Mining Tender: “Previous Year” Means Year Before Bid

21Jan

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Sets Aside Mining Tender: “Previous Year” Means Year Before Bid

The Supreme Court emphasized that judicial review in tender matters ensures fairness and non-arbitrariness under Article 14. It held that misinterpretation of a tender condition, which wrongly excludes the highest bidder and deprives the state of revenue, vitiates the decision-making process. The court underscored the state's duty to maximize public value in natural resource auctions. Facts Of The Case: The case involved a public auction for a five-year sand quarry lease in Odisha. The appellant, M/s Shanti Construction Pvt. Ltd., was the highest bidder but its bid was rejected by the Tender Committee for allegedly failing to comply with Rule 27(4)(iv) of the Odisha Minor Mineral Concession Rules, 2016. The rule required submission of an Income Tax Return for the "previous Financial Year...

Just Compensation Explained: Supreme Court Raises MACT Award from Rs 30 Lakh to Rs 85 Lakh

28Dec

By The Legal ChamberNo Comments

Supreme Court

Just Compensation Explained: Supreme Court Raises MACT Award from Rs 30 Lakh to Rs 85 Lakh

The Supreme Court enhanced compensation by applying established principles under the Motor Vehicles Act. It awarded amounts under non-pecuniary heads like marriage prospects and pain & suffering, and granted attendant charges for two attendants, citing precedents to ensure just and equitable restitution for the claimant's 100% disability. Facts Of The Case: The claimant-appellant, Reshma, aged 24, suffered severe injuries in a motor vehicle accident on February 23, 2015, due to the rash and negligent driving of the offending vehicle, which was duly insured. The Motor Accidents Claims Tribunal (MACT) initially awarded compensation of ₹30,24,800, assessing her income at ₹10,000 per month and her disability at 100%. Dissatisfied, she appealed to the High Court, which enhanced the total ...

Specific Performance Suit Fails: Supreme Court Explains Why Buyer Must Vacate Despite Long Possession

4Dec

By The Legal ChamberNo Comments

Supreme Court

Specific Performance Suit Fails: Supreme Court Explains Why Buyer Must Vacate Despite Long Possession

The Supreme Court affirmed the executability of a warrant of possession, ruling that a party who receives substantial monetary compensation in lieu of specific performance cannot retain possession of the property. The Court held that equity prevents unjust enrichment and that execution proceedings exist to enforce judgments, not to facilitate windfalls for unscrupulous litigants. Facts Of The Case: On 12.06.1989, the defendants agreed to sell a property to the plaintiff for ₹14,50,000, with ₹25,000 paid as earnest money. Possession of the vacant ground floor was handed over to the plaintiff. In 1990, the plaintiff first filed and withdrew a suit for permanent injunction. Subsequently, in June 1990, the plaintiff filed a suit for specific performance, which was decreed by the Trial Court ...

Supreme Court Rules: Bank’s Illegal Mortgage Voids Multi-Crore Property Auction

21Nov

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Rules: Bank’s Illegal Mortgage Voids Multi-Crore Property Auction

The Supreme Court quashed the e-auction sale as the proclamation violated Rule 53 of the Income Tax Act's Second Schedule, applicable via the RDDB Act. It failed to disclose material encumbrances, specifically DDA's claim for unearned increase. The Court held the sale was void, applying principles of restitution to refund the auction purchaser with interest. Facts Of The Case: The Delhi Development Authority (DDA) allotted a plot to Sarita Vihar Club on a leasehold basis. The club mortgaged the plot to Corporation Bank without obtaining the mandatory prior written consent from the Lieutenant Governor, as required by the lease deed. When the club defaulted on its loan, the Bank initiated recovery proceedings. The Debt Recovery Tribunal (DRT) ordered the sale of the plot. Despite DDA's obj...

Supreme Court Rules on Power Theft: Generator Must Pay Full Compensation for Diverted Electricity

19Nov

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Rules on Power Theft: Generator Must Pay Full Compensation for Diverted Electricity

In a significant ruling, the Supreme Court clarified that compensation for wrongful diversion of electricity under a Power Purchase Agreement is distinct from the reimbursement of fixed charges. The Court held that the beneficiary is entitled to both remedies concurrently, reinforcing the 'proportionate principle' and preventing unjust enrichment by the power generator. Facts Of The Case: The dispute originated from a 1996 Power Purchase Agreement (PPA) between Gujarat Electricity Board (GEB, later GUVNL) and Essar Power Limited (EPL). EPL's plant had a total capacity of 515 MW, with 300 MW allocated to GEB and 215 MW to its sister concern, Essar Steel Limited (ESL). The core issue arose when EPL began supplying more power to ESL from GUVNL's allocated 58% share, violating the ag...

Supreme Court Backs Discom: Upholds Right to Encash Bank Guarantee in Delayed Solar Project

29Sep

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Backs Discom: Upholds Right to Encash Bank Guarantee in Delayed Solar Project

The Supreme Court held that the Power Purchase Agreement's explicit terms govern the parties' rights. The encashment of the performance bank guarantee was valid as the developer failed to seek an extension under the contractual mechanism or issue a mandatory Force Majeure notice. Regulatory commissions cannot rewrite the contractual risk allocation or grant remedies outside the agreed framework. Facts Of The Case: The dispute arose from a Power Purchase Agreement (PPA) executed between Chamundeshwari Electricity Supply Company Ltd. (CESC) and Saisudhir Energy Pvt. Ltd. for a 10 MW solar power project. The PPA stipulated that the developer was to achieve the Commercial Operation Date (COD) within 12 months, preceded by fulfilling certain Conditions Precedent within 240 days. A critical pr...

What Qualifies as ‘Goods’? Supreme Court Explains Why a Power Plant Isn’t Eligible for Export Benefits

20Sep

By The Legal ChamberNo Comments

Supreme Court

What Qualifies as ‘Goods’? Supreme Court Explains Why a Power Plant Isn’t Eligible for Export Benefits

The Supreme Court held that a press release announcing a policy change does not constitute a "Change in Law" under a Power Purchase Agreement, as only duly promulgated notifications have legal force. It further ruled that deemed export benefits under the Foreign Trade Policy are inapplicable to immovable, integrated power plants, as the policy is designed for movable "goods" and requires strict adherence to defined supply and procurement conditions. Facts Of The Case: The case involved appeals by Nabha Power Limited and Talwandi Sabo Power Limited against the Punjab State Power Corporation Limited (PSPCL). The dispute arose from a Power Purchase Agreement (PPA) executed following a tariff-based competitive bidding process. The appellants claimed that post-bid notifications from the...

Supreme Court Empowers Pollution Boards to Levy Environmental Damages

5Sep

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Empowers Pollution Boards to Levy Environmental Damages

The Supreme Court held that Pollution Control Boards can impose restitutionary and compensatory damages, including ex-ante bank guarantees, under Sections 33A and 31A of the Water and Air Acts. This power is distinct from punitive penalties and is grounded in the 'Polluter Pays' principle to remediate environmental damage. Facts Of The Case: The Delhi Pollution Control Committee (DPCC) issued show cause notices in 2006 to multiple entities, including residential and commercial complexes, for operating without the mandatory "consent to establish" and "consent to operate" under the Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981. As a condition for granting consent, the DPCC demanded the payment of fixed sums a...