Tag: Supreme Court Judgment

Fraud Case Closed: Supreme Court Rules in Favor of Accused After Bank Settlement
13Jun By The Legal ChamberNo Comments
Supreme Court

Fraud Case Closed: Supreme Court Rules in Favor of Accused After Bank Settlement

The Supreme Court quashed criminal proceedings under Sections 120B, 420, 468, and 471 IPC, and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, against the appellants. This decision was based on a comprehensive One Time Settlement with the Bank, full repayment of dues, and dismissal of recovery proceedings. The Court noted that continuing the proceedings would serve no purpose, especially given similar cases against co-accused were also quashed on grounds of settlement Facts Of The Case: N.S. Gnaneshwaran and N.S. Madanlal, accused nos. 3 and 6 respectively, are the appellants in this case. They were facing criminal proceedings in C.C. No. 16 of 2006, arising from FIR No. RC MA1 2005 0020, based on a complaint lodged by respondent no.2 - Bank on April 27, 2...
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Supreme Court Verdict on Delhi Ridge : DDA Must Pay for Environmental Damage in Delhi Ridge Case
13Jun By The Legal ChamberNo Comments
Supreme Court

Supreme Court Verdict on Delhi Ridge : DDA Must Pay for Environmental Damage in Delhi Ridge Case

The Supreme Court held the Delhi Development Authority (DDA) in contempt for wilfully disobeying its 1996 order prohibiting tree felling in the Delhi Ridge and for concealing this action from the court. The Court emphasized that such conduct obstructs the administration of justice and undermines the Rule of Law, necessitating remedial measures to purge the contempt. Facts Of The Case: This contempt petition before the Supreme Court of India stems from the Delhi Development Authority's (DDA) alleged wilful disobedience of the Court's 1996 order in M.C. Mehta v. Union of India, which mandated the preservation of the ecologically sensitive Delhi Ridge. The DDA sought approval for constructing approach roads to the Central Armed Police Forces Institute of Medical Sciences (CAPFIMS), entailin...
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SARFAESI Act’s Section 11: Supreme Court Affirms Mandatory Arbitration for Financial Institutions
11Jun By The Legal ChamberNo Comments
Supreme Court

SARFAESI Act’s Section 11: Supreme Court Affirms Mandatory Arbitration for Financial Institutions

The Supreme Court, in Bank of India vs. M/s Sri Nangli Rice Mills Pvt. Ltd., ruled that Section 11 of the SARFAESI Act is mandatory, requiring inter-se disputes between banks and financial institutions concerning secured assets to be resolved through arbitration. No explicit arbitration agreement is needed; the provision legally mandates it, thereby divesting DRT of jurisdiction in such matters. Facts Of The Case: In the case of Bank of India vs. M/s Sri Nangli Rice Mills Pvt. Ltd. & Ors., the core dispute involved the priority of charge over secured assets (stocks of paddy and rice) belonging to a common borrower, M/s Sri Nangli Rice Mills Pvt. Ltd., between two public sector banks: Bank of India (appellant) and Punjab National Bank (respondent). Both banks had extended credit facil...
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Supreme Court : No More Delays! High Court Must Decide Property Dispute in 6 Months
10Jun By The Legal ChamberNo Comments
Supreme Court

Supreme Court : No More Delays! High Court Must Decide Property Dispute in 6 Months

The Supreme Court allowed the appeal, setting aside the High Court's second remand order for de-novo disposal, finding it erroneous given the possibility of deciding the appeal based on the interpretation of existing documents (sale deed, conveyance deed, and settlement deed). The Court directed the High Court to decide the appeal on its merits expeditiously within six months. Facts Of The Case: This appeal challenges a judgment from the High Court of Kerala, which set aside a trial court's dismissal of a suit and remanded the matter for de-novo disposal. The dispute concerns 9 cents of land in Poomthura Village, Ernakulam. The appellant's father executed a sale deed in 1955 for "Verumpattom Rights" over land in Survey No. 1236. Later, in 1964, he executed a conveyance deed for "Jenmam ...
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Legal Heir or Tenant? : Supreme Court Decides on Protracted Property Battle in Kerala
7Jun By The Legal ChamberNo Comments
Supreme Court

Legal Heir or Tenant? : Supreme Court Decides on Protracted Property Battle in Kerala

The Supreme Court dismissed an appeal challenging the impleadment of a party in execution proceedings, holding that the application for deletion was barred by res judicata as objections were not raised earlier. It ruled that a decree for specific performance implicitly includes possession unless contested by a third party. The Court rejected claims of tenancy rights under the Kerala Rent Control Act due to lack of evidence and upheld the lower courts' findings, emphasizing that frivolous pleas cannot delay execution. Costs of ₹25,000 were imposed for protracting litigation. The Executing Court was directed to ensure possession is handed over within two months Facts Of The Case: The case originated from a 1996 agreement to sell between the original plaintiff (Prakasan) and defendant (Jame...
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Supreme Court Rules Customs Duty Drawback Circular Has Retrospective Effect
7Jun By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules Customs Duty Drawback Circular Has Retrospective Effect

The Supreme Court held that Circular No. 35/2010-Cus. dated 17.09.2010, which clarified the entitlement of merchant exporters to claim 1% All Industry Rate (AIR) customs duty drawback irrespective of availing CENVAT benefits, was clarificatory and declaratory in nature. Consequently, the Court ruled that the Circular must be applied retrospectively, ensuring uniform benefits from 2008 onwards. The judgment emphasized that clarificatory circulars, which resolve ambiguities in existing notifications without creating new rights, operate retrospectively to align with the legislative intent. The High Court's order denying retrospective application was set aside. Facts Of The Case: The appellant, M/s Suraj Impex (India) Pvt. Ltd., a merchant exporter of Soyabean Meal (SBM), claimed All Industr...
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Cheque Bounce Case: Supreme Court Reinstates Case Against Director in ₹6 Crore Cheque Dishonour Case
7Jun By The Legal ChamberNo Comments
Supreme Court

Cheque Bounce Case: Supreme Court Reinstates Case Against Director in ₹6 Crore Cheque Dishonour Case

The Supreme Court clarified that for vicarious liability under Section 141 of the Negotiable Instruments Act, complaints need not reproduce statutory language verbatim. Substantive allegations demonstrating a director's responsibility for company affairs suffice. The Court emphasized substance over form, ruling that technical pleading deficiencies don't invalidate proceedings if the complaint, read holistically, establishes the director's operational role. The judgment reinstated criminal proceedings against the director, overturning the High Court's quashing order. Facts Of The Case: The case involved a complaint filed by HDFC Bank against M/s R Square Shri Sai Baba Abhikaran Pvt. Ltd. and its directors, including Mrs. Ranjana Sharma (Respondent No. 2), for dishonor of a cheque worth ₹6...
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Breaking Down the Supreme Court Judgment on DTH Services & Tax Dispute
7Jun By The Legal ChamberNo Comments
Supreme Court

Breaking Down the Supreme Court Judgment on DTH Services & Tax Dispute

The Supreme Court ruled that states have the legislative competence to levy entertainment tax on DTH services under Entry 62, List II (State List) of the Constitution, as the tax is on the "entertainment" aspect, not the broadcasting service. The Court upheld the "aspect doctrine", allowing simultaneous taxation by states (on entertainment) and the Centre (on broadcasting services under Entry 97, List I), provided the levies target distinct aspects of the same transaction. It rejected arguments of legislative overlap, emphasizing the pith and substance of state laws as valid exercises of taxing power. Facts Of The Case: The case involved multiple civil appeals and writ petitions challenging the constitutional validity of state laws imposing entertainment tax on Direct-to-Home (DTH) broad...
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Supreme Court Directs Madhya Pradesh to Follow Central Rules for Forest Officers Performance Reports
4Jun By The Legal ChamberNo Comments
Supreme Court

Supreme Court Directs Madhya Pradesh to Follow Central Rules for Forest Officers Performance Reports

The Supreme Court quashed the Madhya Pradesh Government Order (G.O.) dated 29th June 2024, which allowed IAS officers to evaluate Indian Forest Service (IFS) officers' Performance Appraisal Reports (PAR). Reaffirming its 2000 ruling, the Court held that IFS officers up to the rank of Additional Principal Chief Conservator must be assessed by their departmental superiors, not IAS officers, to maintain service hierarchy and accountability under the All-India Services (Confidential Rolls) Rules, 1970. The State was directed to amend its rules within one month to comply with this mandate. Facts Of The Case: The case arose from a challenge to the Madhya Pradesh Government Order (G.O.) dated 29th June 2024, which mandated that Indian Administrative Service (IAS) officers – specifically Distric...
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Big Win for Judges: Supreme Court Reduces Experience Needed for Higher Judicial Posts
4Jun By The Legal ChamberNo Comments
Supreme Court

Big Win for Judges: Supreme Court Reduces Experience Needed for Higher Judicial Posts

The Supreme Court modified judicial service rules, increasing the Limited Departmental Competitive Examination (LDCE) quota for District Judge promotions from 10% to 25%. It reduced the required experience for LDCE eligibility to 3 years as Civil Judge (Senior Division) and mandated 10% accelerated promotions for Civil Judges (Junior Division). The Court also reinstated a 3-year minimum Bar practice requirement for Civil Judge (Junior Division) aspirants, counting from provisional enrollment. Vacancies under LDCE will be filled via regular promotion if unfilled. States must amend rules within three months to comply. The judgment aims to incentivize merit while ensuring judicial efficiency. Facts Of The Case: The case originated from a series of interlocutory applications (IAs) filed in t...
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