Tag: Supreme Court Judgment

Mere Use of Word “Arbitration” Doesn’t Bind Parties: Key Business Contract Lesson from Supreme Court
20Jan By The Legal ChamberNo Comments
Supreme Court

Mere Use of Word “Arbitration” Doesn’t Bind Parties: Key Business Contract Lesson from Supreme Court

The Supreme Court held that Clause 8.28 did not constitute a valid arbitration agreement under Section 7 of the Arbitration and Conciliation Act, 1996. The clause lacked essential attributes, such as finality and a binding decision by a neutral tribunal, as it ultimately permitted parties to seek remedies in civil courts if unresolved. Facts Of The Case: The appellant, M/s Alchemist Hospitals Ltd., entered into a Software Implementation Agreement with the respondent, M/s ICT Health Technology Services India Pvt. Ltd., on 1st November 2018 for upgrading its hospital-information software. Following implementation, the appellant alleged persistent technical failures and operational issues with the respondent's "HINAI Web Software," leading to the system being rolled back i...
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Supreme Court Ruling: Drug Disposal Committee Cannot Overtake Court’s Power to Release Seized Vehicles
4Jan By The Legal ChamberNo Comments
Supreme Court

Supreme Court Ruling: Drug Disposal Committee Cannot Overtake Court’s Power to Release Seized Vehicles

The Supreme Court held that the Narcotic Drugs and Psychotropic Substances (Seizure, Storage, Sampling and Disposal) Rules, 2022 do not oust the jurisdiction of Special Courts to grant interim custody of vehicles seized under the NDPS Act. The statutory power of courts under Sections 60(3) and 63 of the NDPS Act, read with relevant CrPC/BNSS provisions for interim release, remains operative independently of the administrative disposal mechanism under the 2022 Rules. Facts Of The Case: The appellant, Denash, is the owner of a lorry (TN 52 Q 0315) which was lawfully hired to transport iron sheets from Chhattisgarh to Tamil Nadu. On 14th July 2024, during transit, police intercepted the vehicle and recovered a total of 6 kilograms of Ganja. The contraband was found concealed benea...
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Supreme Court Directs Independent Officer to Verify Arrears, Stop Illegal Recoveries from Workers
28Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Directs Independent Officer to Verify Arrears, Stop Illegal Recoveries from Workers

This Supreme Court judgment addresses contempt proceedings for non-compliance with a prior Supreme Court order modifying an industrial tribunal award. The Court appoints an auditor to resolve wage calculation discrepancies, assess excess payment recoveries, and determine statutory gratuity interest. It refrains from intervening in a separate High Court matter concerning provident fund dues, affirming the High Court's competence on that issue. Facts Of The Case: The contempt petition arose from the Brihanmumbai Municipal Corporation's (BMC) non-compliance with a Supreme Court judgment dated April 7, 2017. That judgment had modified an Industrial Tribunal award, which originally directed the BMC to grant permanent status and retrospective benefits to approximately 2,700 sanitation workers ...
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Merely Producing a Licence is Not Collusion, Rules Supreme Court, Protecting Owners from Insurer’s Recovery
24Dec By The Legal ChamberNo Comments
Supreme Court

Merely Producing a Licence is Not Collusion, Rules Supreme Court, Protecting Owners from Insurer’s Recovery

The Supreme Court held that merely proving a driver’s licence is fake does not absolve the insurer unless it is established that the vehicle owner knowingly breached the duty of due diligence in employing the driver. Absent proof of such breach, the insurer remains liable to third parties and cannot recover from the owner under a “pay and recover” order. Facts Of The Case: The accident occurred on January 26, 1993, at 2:00 AM at an intersection, involving a collision between a truck and a Matador van. The Matador van was carrying ten passengers, including the driver. Tragically, nine persons lost their lives in the accident, while two sustained injuries. Claims were filed before the Motor Accident Claims Tribunal by the injured and the legal heirs of the deceased passengers, as wel...
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Supreme Court Halts Transfer of Investigation to CBI, Calls High Court’s Order Illegal
23Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Halts Transfer of Investigation to CBI, Calls High Court’s Order Illegal

The Supreme Court held that a High Court cannot review or recall its own order under the inherent powers of Section 482 CrPC (Section 528 BNSS) once it has attained finality. Such power is barred by Section 362 CrPC, which only permits the correction of clerical errors. The Court quashed the impugned orders directing transfer of investigation to the CBI as they amounted to an impermissible review. Facts Of The Case: The complainant, Parmeshwar Ramlal Joshi, a granite mining businessman, alleged criminal intimidation, theft, and criminal conspiracy by accused individuals, including a former Revenue Minister. Following his complaint, FIRs were registered. Dissatisfied with the local police investigation, which filed a negative report in one case, he approached the Rajasthan High Court seek...
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The “Unlawful Assembly” Test: Supreme Court Explains When Mere Presence at a Crime Scene Isn’t Enough
4Dec By The Legal ChamberNo Comments
Supreme Court

The “Unlawful Assembly” Test: Supreme Court Explains When Mere Presence at a Crime Scene Isn’t Enough

This Supreme Court judgment clarifies that mere presence in a crowd does not automatically constitute membership in an unlawful assembly under Section 149 IPC. To establish constructive liability, the prosecution must prove, beyond reasonable doubt, that each accused shared the common object of the assembly, distinguishing active participants from passive bystanders. Conviction requires cogent and consistent evidence linking the individual to the assembly's objective. Facts Of The Case: On 20 November 1988, at around 8:00 AM, informant Jagdish Mahato (PW-20) and his brother Meghu Mahato went to inspect their settled agricultural land in Baharkhal, Bihar. They allegedly found a large mob of 400-500 persons from the neighboring village of Mahila, many armed with weapons like guns, spears, ...
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Supreme Court Rules: Ink and Chemicals Used in Printing are Taxable in Works Contracts
29Nov By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules: Ink and Chemicals Used in Printing are Taxable in Works Contracts

This Supreme Court judgment clarifies the levy of tax on goods involved in a works contract under Article 366(29-A)(b) of the Constitution. The Court held that tax is leviable on the transfer of property in goods, even if consumed, provided the transfer occurs upon their incorporation into the works. The taxable event is the deemed sale at the moment of incorporation, not the subsequent consumption or tangible presence in the final product. Facts Of The Case: The appellant, M/s. Aristo Printers Pvt. Ltd., was engaged in the business of printing lottery tickets on paper supplied by its clients, while it procured the ink and processing materials, including chemicals, itself. The Assessing Authority levied trade tax on the value of these materials under Section 3F of the Uttar Pradesh T...
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Use of Blunt Side of Weapons Key: Supreme Court Converts 302 IPC to 304 in Land Dispute Killing
27Nov By The Legal ChamberNo Comments
Supreme Court

Use of Blunt Side of Weapons Key: Supreme Court Converts 302 IPC to 304 in Land Dispute Killing

The Supreme Court upheld the concurrent findings of the courts below on the appellants' involvement in causing the deaths. However, it altered the conviction from Section 302 IPC to Section 304 Part I IPC, finding that the act was done with the knowledge that it was likely to cause death, but without the intention to kill. The sentence already undergone was deemed sufficient. Facts Of The Case: On the morning of August 6, 1986, complainant Ram Gopal (PW-1) went with his father and two uncles to a river ghat to measure agricultural land for partition. There, they encountered the four accused appellants, including the owner of the adjacent land, Raghav Prashad. The accused, who were hiding, suddenly emerged and a dispute over the measurement ensued. This altercation quickly turned vi...
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Fraud in Insurance Policy: Supreme Court’s Balanced Approach in Accident Compensation Case
25Nov By The Legal ChamberNo Comments
Supreme Court

Fraud in Insurance Policy: Supreme Court’s Balanced Approach in Accident Compensation Case

The Supreme Court upheld the liability of the Insurance Company to pay compensation to the accident claimants. However, upon finding the insurance policy was fraudulently manipulated and not valid on the accident date, the Court granted the insurer the right to recover 50% of the compensation amount from the vehicle owner and driver. Facts Of The Case: The case arose from a fatal road accident on June 21, 2006, which resulted in the death of a 21-year-old security guard, Hem Singh Mehta. The accident occurred when a truck, driven rashly and negligently, hit the deceased while he was waiting for a bus. The legal heirs of the deceased filed a claim before the Motor Accident Claims Tribunal in Haldwani. The Tribunal, after establishing that the accident was caused by the truck driver's negl...
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Landmark Ruling: Supreme Court Backs Creditors & JSW, Shuts Door on Promoter Interference
22Nov By The Legal ChamberNo Comments
Supreme Court

Landmark Ruling: Supreme Court Backs Creditors & JSW, Shuts Door on Promoter Interference

This Supreme Court judgment reinforces the finality and binding nature of an approved resolution plan under the IBC. It held that claims not part of the Request for Resolution Plan (RfRP) or the final plan are extinguished, preventing "hydra-headed" post-approval claims. The commercial wisdom of the Committee of Creditors (CoC) in approving the plan is paramount and not open to judicial review on merits. Facts Of The Case: The case originated from the Corporate Insolvency Resolution Process (CIRP) of Bhushan Power and Steel Limited (BPSL), initiated in 2017. JSW Steel Limited was selected as the Successful Resolution Applicant (SRA), and its resolution plan was approved by the Committee of Creditors (CoC) and later by the National Company Law Tribunal (NCLT) in September 2019. However,...
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