Tag: Supreme Court Judgement

Supreme Court Ruling: Family of US-Based Driver Wins Enhanced Compensation
11Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Ruling: Family of US-Based Driver Wins Enhanced Compensation

The Supreme Court, applying the principles established in National Insurance Co. Ltd. v. Pranay Sethi, held that a self-employed person, even one working abroad, is entitled to an addition of 40% of their established income towards future prospects when computing compensation in motor accident claims. The Court enhanced the compensation by recalculating the loss of dependency and conventional heads as per the standardized formula mandated by the Constitution Bench. Facts Of The Case: The case arose from a motor accident that occurred on 31st August 2007 at approximately 3:00 a.m. at Nirmal Kutia Chowk, Karnal. The deceased, Rajinder Singh Mihnas, a 31-year-old U.S. national, was travelling in a car from Delhi to Hoshiarpur when it was struck by a rashly and negligently driven Swaraj Mazd...
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Supreme Court Decides: Who Pays When a Car Insurance Policy is Cancelled?
9Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Decides: Who Pays When a Car Insurance Policy is Cancelled?

This Supreme Court case reaffirms the principle that an insurance policy stands rescinded upon dishonour of the premium cheque and intimation to the concerned parties, absolving the insurer from statutory liability. However, applying the "pay and recover" doctrine, the insurer was directed to pay the awarded compensation to the third-party claimants and was permitted to recover the same from the vehicle owner. Facts Of The Case: On August 22, 2005, Dheeraj Singh died when his motorcycle was hit from behind by a speeding truck (HR 46 A 1020). The deceased, a 36-year-old computer engineer, was found to be earning ₹3,364 per month. His dependents filed a claim before the Motor Accident Claims Tribunal. The appellant, National Insurance Company Ltd., disowned liability by contending that the...
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Employers Must Accommodate: Supreme Court’s Landmark Ruling on Medical Disability & Jobs
29Aug By The Legal ChamberNo Comments
Supreme Court

Employers Must Accommodate: Supreme Court’s Landmark Ruling on Medical Disability & Jobs

This Supreme Court held that a binding Memorandum of Settlement under the Industrial Disputes Act, 1947, which specifically provided alternate employment for colour-blind drivers, created an enforceable statutory obligation on the employer. The subsequent settlement and internal circulars could not override this specific contractual right, and the Corporation's failure to explore redeployment violated principles of natural justice and statutory compliance. Facts Of The Case: The appellant was appointed as a driver by the Andhra Pradesh State Road Transport Corporation (APSRTC) in 2014. During a subsequent periodic medical examination, he was found to be colour blind and declared medically unfit to continue in his role as a driver. Following this, the appellant sought alternate employment...
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Supreme Court Landmark Ruling : Death During Travel to Workplace is an Employment Injury
25Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Landmark Ruling : Death During Travel to Workplace is an Employment Injury

The Supreme Court ruled that an accident occurring during an employee's commute arises "out of and in the course of employment" under the Employees' Compensation Act, 1923. It held that the beneficial interpretation from a parallel amendment in the ESI Act is applicable, requiring only a established nexus between the commute and employment. Facts Of The Case: Shahu Sampatrao Jadhavar, employed as a watchman by a sugar factory, was scheduled for duty from 3:00 AM to 11:00 AM on April 22, 2003. While commuting from his residence to the workplace on his motorcycle, he was involved in a fatal accident approximately 5 kilometers from the factory premises, never arriving for his shift. His dependents, including his widow, four children, and mother, filed a claim for compensation under the Empl...
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Supreme Court Judgment: Banks Can Classify MSME Loans as NPA Without Prior “Stress Identification”
25Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Judgment: Banks Can Classify MSME Loans as NPA Without Prior “Stress Identification”

The Supreme Court held that the obligation to identify incipient stress under the MSME Rehabilitation Framework is not a mandatory precondition for a bank to classify an account as an NPA or issue a demand notice under the SARFAESI Act. The benefit of the Framework must be actively claimed by the MSME borrower in response to a notice under Section 13(2), supported by an affidavit, which then obligates the bank to consider the claim and pause recovery actions. Facts Of The Case: An MSME-registered enterprise, Shri Swami Samarth Construction & Finance Solution, had availed a loan from NKGSB Co-operative Bank. Upon defaulting on repayments, its account was classified as a Non-Performing Asset (NPA). The bank's authorized officer subsequently issued a demand notice under Section 13(2) of...
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Legal Victory for Farmers: Supreme Court Explains How to Calculate Fair Land Acquisition Value
25Aug By The Legal ChamberNo Comments
Supreme Court

Legal Victory for Farmers: Supreme Court Explains How to Calculate Fair Land Acquisition Value

The Supreme Court held that when multiple sale exemplars exist, the highest bona fide transaction must be used to determine market value for compensation, and averaging is impermissible unless prices fall within a narrow range. The Court emphasized that certified sale deeds have presumptive value under Section 51A of the Land Acquisition Act, 1894, and the absence of rebuttal evidence strengthens their validity. Facts Of The Case: The appellants were farmers whose land, Survey Nos. 103 and 104 admeasuring 16.79 Hectares in Village Pungala, Parbhani, Maharashtra, was acquired in the early 1990s under the Maharashtra Industrial Development Act, 1961 for setting up an industrial area near Jintur town. The Land Acquisition Officer awarded compensation at Rs. 10,800 per acre in an award dated...
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Win for Taxpayers: Supreme Court Says GST Authorities Can’t Skip Adjudication After Payment
22Aug By The Legal ChamberNo Comments
Supreme Court

Win for Taxpayers: Supreme Court Says GST Authorities Can’t Skip Adjudication After Payment

The Supreme Court held that payment of tax and penalty under Section 129 of the CGST Act does not absolve the proper officer from passing a reasoned order under Section 129(3). Such an order is mandatory to safeguard the taxpayer’s right to appeal and ensure compliance with principles of natural justice and due process under Article 265 of the Constitution. Facts Of The Case: The appellant, M/s ASP Traders, a Karnataka-based dealer, consigned 17,850 kg of dry arceanut to a Delhi-based company. During transit, the goods were transhipped, and seven bags went missing. The vehicle was subsequently detained by the Uttar Pradesh Mobile Squad in Jhansi. A notice was issued under Section 129(3) of the CGST Act, alleging discrepancies including the shortfall in quantity and questioning the existe...
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Supreme Court Rules in Favor of Unselected Judge Candidate
13Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules in Favor of Unselected Judge Candidate

The Supreme Court ruled that Rule 8(2) of the Uttar Pradesh Higher Judicial Service Rules, 1975, applies only when the number of eligible candidates is less than the advertised vacancies. Since one recommended candidate was rejected, the next eligible candidate (appellant) should have been appointed instead of carrying forward the vacancy. The Court emphasized strict adherence to statutory rules in judicial appointments, reinforcing that vacancies must be filled from the existing merit list unless rules explicitly permit otherwise. The judgment clarifies that "selected direct recruits available for appointment" includes candidates next in line if recommended candidates are not approved. Facts Of The Case: The case involved Tosh Kumar Sharma, who participated in the 2016 recruitment proce...
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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 Enhances Compensation for Disabled CRPF Officer in Accident Case : Future Prospects & Pension Rights
17May By The Legal ChamberNo Comments
Supreme Court

Supreme Court Enhances Compensation for Disabled CRPF Officer in Accident Case : Future Prospects & Pension Rights

The Supreme Court ruled that pension benefits cannot be deducted from salary when computing motor accident compensation, as they are statutory rights unrelated to the accident. It upheld 78% disability (overriding lower courts' 50-61.94% assessments) and mandated 30% future prospects for the 43-year-old victim. The Court enhanced compensation to ₹67.36 lakhs with 7% interest, applying multipliers consistently with Sarla Verma and Pranay Sethi precedents, while clarifying that post-accident medical assessments must prevail over initial disability evaluations if unrebutted. Facts Of The Case: On May 10, 2010, Hanumantharaju B., a CRPF Sub-Inspector, met with a motor accident in Bengaluru when an Omni car collided with his motorcycle. He suffered grievous injuries, underwent multiple surg...
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