Tag: Supreme Court of India

Supreme Court Judgment: When a “Security Bond” is Actually a Mortgage: A Landmark Stamp Duty Ruling
23Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Judgment: When a “Security Bond” is Actually a Mortgage: A Landmark Stamp Duty Ruling

In this judgment, the Supreme Court clarified the distinction between a mortgage deed and a security bond for stamp duty under the Indian Stamp Act, 1899. The Court held that the substance of an instrument, not its nomenclature, determines its character. For Article 57 (security bond) to apply, a third-party surety distinct from the principal debtor must be involved. Since the deeds were executed by the principal debtors themselves to secure their own obligations, they were rightly classified as mortgage deeds chargeable under Article 40. Facts Of The Case: In Civil Appeal No. 7661 of 2014, M/s Godwin Construction Pvt. Ltd. executed a "Security Bond cum Mortgage Deed" on 19.12.2006 in favour of the Meerut Development Authority (MDA). This was done to secure performance of its oblig...
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Supreme Court Judgment: Family Gifts & Registered Deeds Matter More Than Authority Claims
23Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Judgment: Family Gifts & Registered Deeds Matter More Than Authority Claims

The Supreme Court upheld the exemption from Open Space Reservation charges under Annexure XX of the Development Regulations, applicable to holdings below 3000 square metres. It affirmed that a lawful pre-1975 subdivision, evidenced by registered deeds and revenue records, created a separate holding, preventing the authority from notionally recombining it with a larger parent estate to levy charges. Facts Of The Case: The property originated from the estate of Haji Syed Ali Akbar Ispahani. Following a 1949 partition, 21 grounds in Nunganbakkam were allotted to his son, Syed Jawad Ispahani. In 1972 and 1973, Syed Jawad gifted 11 grounds to his own son, Syed Ali Ispahani, via registered deeds, and separate pattas were issued for this holding. In 1984, Syed Ali gifted a small portion (125 sq...
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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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Supreme Court Acquits Man in POCSO Death Penalty Case Citing Procedural Flaws
23Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Acquits Man in POCSO Death Penalty Case Citing Procedural Flaws

This Supreme Court judgment sets aside the appellant's conviction and death sentence, holding that the trial was vitiated due to a denial of fair trial rights, including inadequate legal representation and failure to provide documents. The prosecution's circumstantial evidence—last seen, CCTV footage, disclosure statements, and DNA reports—was found unreliable and unproven beyond reasonable doubt. Facts Of The Case: A seven-year-old girl went missing on February 5, 2017, from her residence in Chengalpet, Tamil Nadu, while her parents were out shopping. After an unsuccessful search, a missing persons report was filed. Investigations, including reviewing CCTV footage from a nearby temple, led the police to suspect the appellant, Dashwanth, a neighbour residing in the same building. He was ...
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Supreme Court Clarifies: Licensee Must Pay Arrears, Not Liquidated Damages, at Interim Stage
4Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies: Licensee Must Pay Arrears, Not Liquidated Damages, at Interim Stage

In a suit for eviction under a lapsed license agreement, the Supreme Court ruled that the trial court cannot grant liquidated damages as an interim measure under Order XXXIX Rules 1 & 2 CPC. However, it upheld the application of Order XV-A CPC (Bombay Amendment), directing the licensee to pay ascertained arrears and ongoing license fees with annual increments, failing which the defense can be struck off. Facts Of The Case: The case originated from a Leave and License Agreement executed on 08.10.2013 between the appellant licensors and the respondent licensee for 36 months, from 01.11.2013 to 31.10.2016, with a 7% annual increase in license fee. Clause 19 stipulated liquidated damages of Rs. 10,000 per day if the licensee failed to vacate upon expiry. After the license period lapsed, ...
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Specific Performance Suit Fails: Supreme Court Explains Why Buyer Must Vacate Despite Long Possession
4Dec By The Legal ChamberNo Comments
Supreme Court

Specific Performance Suit Fails: Supreme Court Explains Why Buyer Must Vacate Despite Long Possession

The Supreme Court affirmed the executability of a warrant of possession, ruling that a party who receives substantial monetary compensation in lieu of specific performance cannot retain possession of the property. The Court held that equity prevents unjust enrichment and that execution proceedings exist to enforce judgments, not to facilitate windfalls for unscrupulous litigants. Facts Of The Case: On 12.06.1989, the defendants agreed to sell a property to the plaintiff for ₹14,50,000, with ₹25,000 paid as earnest money. Possession of the vacant ground floor was handed over to the plaintiff. In 1990, the plaintiff first filed and withdrew a suit for permanent injunction. Subsequently, in June 1990, the plaintiff filed a suit for specific performance, which was decreed by the Trial Court ...
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Supreme Court Upholds Conviction in Karnataka Murder Case: Why Witness Testimony Beat Medical Evidence
4Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Upholds Conviction in Karnataka Murder Case: Why Witness Testimony Beat Medical Evidence

In an appeal against acquittal, the Supreme Court reiterated that ocular evidence prevails over medical opinion unless irreconcilable. It held that the Trial Court’s view was perverse for discarding the injured eyewitness's consistent testimony based on speculative defenses and minor contradictions, thus rightly upholding the High Court's conviction. Facts Of The Case: On March 16, 2003, at around 6:00 a.m., Mohan Kumar was assaulted by a group of sixteen accused persons when he was leaving his house in the village to deliver milk. The attackers, armed with dangerous weapons, inflicted fatal injuries on him. His wife, Smt. Annapurna (PW-1), who intervened to save him, also sustained grievous injuries. The accused fled upon the arrival of other villagers. The injured were first take...
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Supreme Court Explains “Sufficient Cause”: Key Tests for Granting Stay on a Money Decree
4Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Explains “Sufficient Cause”: Key Tests for Granting Stay on a Money Decree

The Supreme Court upheld the High Court's grant of unconditional stay on a money decree's execution under Order XLI Rule 5, CPC, ruling that deposit of the decretal amount is not mandatory. An unconditional stay can be granted in exceptional cases where the decree is egregiously perverse, patently illegal, or facially untenable, upon establishing "sufficient cause." Facts Of The Case: The petitioners, Lifestyle Equities C.V. & Anr., proprietors of the "Beverly Hills Polo Club" (BHPC) trademark, filed a suit for infringement and damages against Amazon Technologies Inc. and others before the Delhi High Court. The suit claimed damages of approximately Rs. 2 crore. Amazon was proceeded against ex parte in April 2022. The learned Single Judge, after an ex parte trial, decreed the suit...
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Why a Poorly Drafted Plaint Can Derail Your Case: Lessons from a Recent Supreme Court Judgment
1Dec By The Legal ChamberNo Comments
Supreme Court

Why a Poorly Drafted Plaint Can Derail Your Case: Lessons from a Recent Supreme Court Judgment

The Supreme Court held that even if a Will is proved, a prayer for mere injunction without seeking declaration of title is unsustainable when the plaintiff admits the defendant is in possession. The Court clarified that injunction against alienation is maintainable, but injunction against interference with possession requires a declaration of title and a prayer for recovery. Facts Of The Case: The dispute centered on a property originally owned by Rangaswamy Naidu. His daughter, Rajammal (respondent-plaintiff), filed a suit against her brother, Munuswamy (original defendant), seeking an injunction to restrain him from alienating the property and from interfering with her peaceful possession. She claimed absolute title under a Will dated 30.09.1985, by which her father had allegedly beque...
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How a Defective Arbitration Clause & the Pandemic Shaped a Landmark Supreme Court Ruling on Limitation
1Dec By The Legal ChamberNo Comments
Supreme Court

How a Defective Arbitration Clause & the Pandemic Shaped a Landmark Supreme Court Ruling on Limitation

The Supreme Court held that an arbitration clause is not rendered invalid merely because the named arbitrator becomes statutorily ineligible; courts retain authority under Section 11(6) of the Arbitration Act to appoint a neutral arbitrator. Additionally, the limitation period for filing the application was extended by excluding the COVID-19 period from 15 March 2020 to 28 February 2022. Facts Of The Case: The appellant, Offshore Infrastructures Limited, was awarded a contract by the respondent, Bharat Petroleum Corporation Limited (formerly Bharat Oman Refineries Limited), for composite works at the Bina Refinery. The work, accepted on 31 December 2016, was to be completed by 30 May 2017 but was ultimately finished on 31 January 2018. The appellant raised its final bill on 20 Ma...
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