Tag: Supreme Court Judgement

Supreme Court: Delayed Payment Not Always Contempt, But Bank Must Pay for Protracted Litigation
20Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Delayed Payment Not Always Contempt, But Bank Must Pay for Protracted Litigation

The Supreme Court declined to initiate contempt proceedings, finding the delayed payment of dues, while a violation, was not wilful. It reinforced that contempt jurisdiction cannot be used to adjudicate new claims like pension, which were not part of the original decree. The Court, however, awarded compensatory costs for the protracted litigation. Facts Of The Case: A.K. Jayaprakash, a manager at Nedungadi Bank Ltd., was dismissed from service in 1985 on grounds of alleged irregularities in sanctioning loans and delays in reporting. He challenged this dismissal under the Tamil Nadu Shops and Establishment Act, 1947. The Deputy Commissioner of Labour initially set aside the dismissal and ordered his reinstatement. This decision was repeatedly challenged by the Bank, first in the Madras Hi...
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Supreme Court Curbs “Prove Prejudice” Rule: A Landmark Win for Natural Justice
19Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Curbs “Prove Prejudice” Rule: A Landmark Win for Natural Justice

The Supreme Court ruled that violating mandatory procedural safeguards in disciplinary inquiries, like failing to question an employee on adverse evidence, inherently constitutes prejudice. Relying on undisclosed material, such as a vigilance report, to enhance punishment also violates natural justice. No independent proof of prejudice is required for such fundamental breaches. Facts Of The Case: The appellant, K. Prabhakar Hegde, was a senior officer and Zonal Head of Vijaya Bank (which later merged with Bank of Baroda). In 1999, he was served with notices alleging irregularities in sanctioning temporary overdrafts to various parties. Formal disciplinary proceedings were initiated against him in 2001. An inquiry officer was appointed, who submitted a report holding the charges proved. N...
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Supreme Court Clarifies GST Law: When Can Central and State Authorities Investigate the Same Case?
17Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies GST Law: When Can Central and State Authorities Investigate the Same Case?

The Supreme Court held that the issuance of a summons under Section 70 of the CGST Act does not constitute the "initiation of proceedings" under Section 6(2)(b). The bar against parallel proceedings is triggered only upon the issuance of a show-cause notice, which formally crystallizes the subject matter and commences adjudication. Facts Of The Case: The petitioner, M/S Armour Security (India) Ltd., a company providing security services, was issued a show-cause notice dated 18.11.2024 by the State GST authority (Respondent No. 2) under Section 73 of the CGST Act. This notice raised a tax demand for the period April 2020-March 2021 on grounds of under-declared tax and excess Input Tax Credit (ITC) claims. Subsequently, on 16.01.2025, the Central GST authority (Respondent No. 1) conducted ...
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Supreme Court Slams Trend of “Transfer Culture” and Baseless Criticism of Judges
13Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Slams Trend of “Transfer Culture” and Baseless Criticism of Judges

The Supreme Court reaffirmed that a lawyer's primary duty is to the court, not the client, especially when allegations scandalize the judiciary. Signing pleadings with unverified, scurrilous remarks against judges constitutes contempt. The Court emphasized that such actions, even under client instruction, violate professional ethics and the majesty of law. Facts Of The Case: In Transfer Petition (Criminal) No. 613 of 2025, the petitioner, N. Peddi Raju, sought to transfer his case, Criminal Petition No. 4162 of 2020, from the Telangana High Court to the Bombay High Court's Nagpur Bench. The primary grounds for this request were allegations of bias and procedural discrimination against the learned Single Judge hearing the matter. The petitioner specifically contended that his argu...
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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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