Tag: Supreme Court Judgment

No Arbitration Without Clear Agreement: When Does a Dispute Clause Become Binding? Supreme Court’s Latest Verdict Explained
14Aug By The Legal ChamberNo Comments
Supreme Court

No Arbitration Without Clear Agreement: When Does a Dispute Clause Become Binding? Supreme Court’s Latest Verdict Explained

The Supreme Court held that Clause 13 of the contract, which stated disputes "may be sought through arbitration," did not constitute a binding arbitration agreement under Section 7 of the Arbitration and Conciliation Act, 1996. The use of "may" indicated no mandatory intent to arbitrate, requiring further mutual consent. The Court emphasized that an arbitration agreement must reflect a clear, unequivocal commitment to resolve disputes through arbitration, excluding domestic courts. Mere enabling language without obligation is insufficient. The High Court’s dismissal of the arbitration application was upheld. Facts Of The Case: The dispute arose between BGM & M-RPL-JMCT (JV) (Appellant) and Eastern Coalfields Limited (Respondent) over a contract for transportation/handling of goods. T...
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Landmark Judgment: Supreme Court Upholds LMV License Validity for Commercial Vehicles
14Aug By The Legal ChamberNo Comments
Supreme Court

Landmark Judgment: Supreme Court Upholds LMV License Validity for Commercial Vehicles

The Supreme Court held that a driver with a Light Motor Vehicle (LMV) license can operate a commercial vehicle (gross weight ≤7500 kg) without additional endorsement, affirming Mukund Dewangan. However, the Insurance Company was liable under the "Pay and Recover" principle despite the "Liability Only Policy" excluding gratuitous passengers, citing Baljit Kaur and Pranay Sethi. Compensation was enhanced by 10% under conventional heads. Facts Of The Case: On 27th November 2013, Gokul Prasad, a 32-year-old cloth seller, died in an accident involving a TATA 407 truck (registration No. M.P. 53G/0386) near Kurwaiha Ghati Road. The truck, driven rashly and negligently by Respondent No. 3, was returning from a weekly market. The deceased’s legal representatives (Appellants) filed a claim under S...
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Supreme Court : Key NDPS Ruling Courts Can Impose Harsher Sentences Without Specific Reasons
13Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court : Key NDPS Ruling Courts Can Impose Harsher Sentences Without Specific Reasons

The Supreme Court clarified the interpretation of Section 32-B of the NDPS Act, ruling that courts are not restricted to the factors listed in clauses (a) to (f) for imposing sentences higher than the minimum. The judgment affirmed that judicial discretion allows consideration of additional relevant factors, such as the quantity of contraband, to justify enhanced punishment. It overturned the High Court’s erroneous view that special reasons under Section 32-B were mandatory for exceeding the minimum sentence. The decision reinforces that sentencing flexibility under the NDPS Act remains broad, subject only to reasonableness and relevance of the factors considered. Facts Of The Case: In September 2018, the police in Ambikapur, Chhattisgarh, received information that Narayan Das and anothe...
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How a Missing Detail in a Will Led to Its Rejection by the Supreme Court
13Aug By The Legal ChamberNo Comments
Supreme Court

How a Missing Detail in a Will Led to Its Rejection by the Supreme Court

The Supreme Court ruled that a Will omitting the testator’s wife without justification raises suspicious circumstances, vitiating its validity under Section 63 of the Indian Succession Act, 1925, and Section 68 of the Evidence Act, 1872. The Court emphasized that propounders must explain unnatural exclusions to prove the testator’s free will, failing which the Will becomes invalid. Suspicion arises from non-mention of a natural heir (wife) and lack of reasons for disinheritance, shifting the burden to the propounder to dispel doubts. Registration and signatures alone cannot override such irregularities if the disposition appears coerced or influenced. The judgment reaffirms judicial scrutiny of Wills to ensure genuine voluntary execution. Facts Of The Case: Maya Singh owned agricultural ...
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Supreme Court Clarifies: Limitation Act Applies to MSMED Arbitration But Not Conciliation
13Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies: Limitation Act Applies to MSMED Arbitration But Not Conciliation

The Supreme Court ruled on the applicability of the Limitation Act, 1963, to conciliation and arbitration proceedings under Section 18 of the MSMED Act, 2006. It held that the Limitation Act does not apply to conciliation proceedings, allowing time-barred claims to be referred for settlement. However, the Act applies to arbitration proceedings under Section 18(3), as Section 43 of the Arbitration and Conciliation Act, 1996, incorporates the Limitation Act into such arbitrations. The Court emphasized that the MSMED Act’s provisions override general laws, ensuring a balanced approach to dispute resolution while protecting suppliers' rights. The disclosure of unpaid amounts in financial statements under Section 22 may extend limitation periods, subject to case-specific scrutiny. Facts Of The...
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Supreme Court Clarifies When Electricity Contracts Beat Regulatory Caps
12Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies When Electricity Contracts Beat Regulatory Caps

The Supreme Court ruled that Note 3 of Regulation 55 of the CERC Regulations, 2019, which caps free power supply to states at 13%, is only for tariff calculation and does not override contractual obligations under the Implementation Agreement. The Court held that writ jurisdiction was inappropriate, as disputes involving regulatory interpretation must first be addressed by the specialized CERC. The judgment reaffirms that contractual rights remain enforceable unless expressly prohibited by law. Facts Of The Case: The case involves a dispute between the State of Himachal Pradesh and JSW Hydro Energy Limited over the supply of free power from a hydroelectric project. In 1993, the state allotted the Karcham Wangtoo Hydroelectric Project to a predecessor company of JSW Hydro under a Memorand...
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Supreme Court Acquits Man in Rape Case Due to Lack of Evidence on Victim’s Age
12Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Acquits Man in Rape Case Due to Lack of Evidence on Victim’s Age

The Supreme Court acquitted the accused, holding that the prosecution failed to prove the victim was a minor under Sections 363/376 IPC. The school certificate (Ex.P11) lacked corroborative evidence under Section 35 of the Evidence Act, as the source of birth records was unverified. Additionally, charges of kidnapping (Section 363) and wrongful confinement (Section 342) were unsubstantiated, as the victim’s voluntary companionship and lack of coercion negated criminal intent. The Court emphasized that mere entries in official documents require independent proof to establish age conclusively, and absence of non-consensual sexual intercourse invalidated the rape charge (Section 376). Benefit of doubt was granted due to insufficient evidence. Facts Of The Case: The case involves Birka Shiva...
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Supreme Court Upholds SEBI’s Power to Levy Interest on Unpaid Penalties
11Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Upholds SEBI’s Power to Levy Interest on Unpaid Penalties

The Supreme Court held that under Section 28A of the SEBI Act, interest on unpaid penalties is recoverable as per Section 220 of the Income Tax Act, 1961, and accrues from the date the penalty becomes payable, not from the date of subsequent demand notices. The Court clarified that the adjudication order itself constitutes a valid demand, and interest is compensatory, not penal, in nature. The insertion of Explanation 4 to Section 28A merely clarified the existing legal position and did not introduce a substantive change. The Tribunal's dismissal of the appeals was upheld, affirming SEBI's authority to levy interest from the date of default. Facts Of The Case: The appellants, Jaykishor Chaturvedi and others, were promoter-directors of Brijlaxmi Leasing and Finance Limited, a company list...
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Supreme Court Protects Bank Officer’s Pension Rights: Mandates Board Consultation for Deductions
11Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Protects Bank Officer’s Pension Rights: Mandates Board Consultation for Deductions

The Supreme Court held that under Regulation 33 of the Central Bank of India (Employees’) Pension Regulations, 1995, prior consultation with the Board of Directors is mandatory before reducing the pension of a compulsorily retired employee below the full admissible amount. The Court emphasized that pension is a constitutional right under Article 300A and cannot be curtailed without strict adherence to procedural safeguards. The word "may" in Regulation 33(1) does not grant discretion to reduce pension below two-thirds of the full amount but clarifies eligibility. The judgment clarified that clauses (1) and (2) of Regulation 33 must be read harmoniously, and any reduction in pension requires prior Board consultation, rendering post-facto approval insufficient. The High Court's interpretatio...
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Landmark Ruling: Supreme Court Says Two Companies Are One for EPF Compliance
11Aug By The Legal ChamberNo Comments
Supreme Court

Landmark Ruling: Supreme Court Says Two Companies Are One for EPF Compliance

The Supreme Court upheld the clubbing of two pharmaceutical companies under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, emphasizing the principles of unity of ownership, management, functional integrality, and financial unity. The Court rejected the argument that separate juristic entities preclude clubbing, affirming that the EPF Act, as a beneficial legislation, must be interpreted to prevent evasion. The decision reiterated that multiple factors, including common premises, shared infrastructure, and unified management, cumulatively determine whether entities constitute a single establishment. The judgment reinforced the authorities' discretion to assess dues retrospectively once clubbing is established. Facts Of The Case: The case involved M/s Torino Laborat...
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