Tag: Supreme Court of India

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...
Read More
Supreme Court: Civil Courts Can Hear Cases If Land is Declared Non-Agricultural During Trial
20Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Civil Courts Can Hear Cases If Land is Declared Non-Agricultural During Trial

The Supreme Court held that jurisdiction is determined by the nature of the land at the time of adjudication, not filing. A subsequent declaration of land as non-agricultural under the UPZALR Act during pending proceedings validates a civil court's jurisdiction, and appeals are a continuation of the original suit. Facts Of The Case: In 1970, the appellant-landlord and the predecessor of respondents 1-3 entered a registered tenancy agreement for a piece of land to establish an Indian Oil petrol pump at a monthly rent of ₹150. The tenant defaulted on rent payments from July 1972, prompting the landlord to file a suit for eviction and arrears of rent in 1974 in the Civil Court. The tenants contested the Civil Court's jurisdiction, claiming the land was agricultural and thus only the Revenue...
Read More
What Qualifies as ‘Goods’? Supreme Court Explains Why a Power Plant Isn’t Eligible for Export Benefits
20Sep By The Legal ChamberNo Comments
Supreme Court

What Qualifies as ‘Goods’? Supreme Court Explains Why a Power Plant Isn’t Eligible for Export Benefits

The Supreme Court held that a press release announcing a policy change does not constitute a "Change in Law" under a Power Purchase Agreement, as only duly promulgated notifications have legal force. It further ruled that deemed export benefits under the Foreign Trade Policy are inapplicable to immovable, integrated power plants, as the policy is designed for movable "goods" and requires strict adherence to defined supply and procurement conditions. Facts Of The Case: The case involved appeals by Nabha Power Limited and Talwandi Sabo Power Limited against the Punjab State Power Corporation Limited (PSPCL). The dispute arose from a Power Purchase Agreement (PPA) executed following a tariff-based competitive bidding process. The appellants claimed that post-bid notifications from the...
Read More
Supreme Court Says Export Incentives Can’t Be Rejected on Technicalities :Substance Over Form
19Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Says Export Incentives Can’t Be Rejected on Technicalities :Substance Over Form

The Supreme Court held that an inadvertent procedural error in shipping bills, duly corrected under Section 149 of the Customs Act, cannot extinguish an exporter's substantive right to claim benefits under the MEIS scheme. The Court emphasized that beneficial export promotion policies must be construed liberally, and administrative rigidity cannot override statutory entitlements. Facts Of The Case: The appellant, an exporter of corn starch, filed 54 shipping bills electronically through a customs broker for exports made between July and October 2017. The broker inadvertently failed to change the default declaration for claiming incentives under the Merchandise Exports from India Scheme (MEIS) from “No” to “Yes”. This clerical error prevented the automatic transmission of the bill...
Read More
Mens Rea is Must: Supreme Court Rules Accused Must Intend to Drive Victim to Suicide for Abetment Charge
19Sep By The Legal ChamberNo Comments
Supreme Court

Mens Rea is Must: Supreme Court Rules Accused Must Intend to Drive Victim to Suicide for Abetment Charge

The Supreme Court reiterated that to establish abetment of suicide under Section 306 IPC, there must be clear evidence of mens rea and a proximate act of instigation by the accused, which directly led the deceased to commit suicide. Mere allegations of harassment, without positive action intended to push the victim toward suicide, are insufficient to sustain the charge. The absence of a live link between the alleged acts and the suicide warranted quashing of the FIR. Facts Of The Case: A seven-term independent Member of Parliament committed suicide on 22 February 2021, leaving behind a suicide note. In the note, he named several officials from the administration and police of Dadra and Nagar Haveli, accusing them of conspiring to defame, degrade, and demean him to end his political caree...
Read More
Supreme Court Strikes Down Unilateral Arbitration Clauses, Upholds Neutral Appointments
19Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Strikes Down Unilateral Arbitration Clauses, Upholds Neutral Appointments

This Supreme Court judgment affirms that a unilateral arbitration clause granting one party the sole power to appoint an arbitrator is invalid. Following the Constitution Bench in CORE, the Court held that an ineligible person (such as a Managing Director) cannot nominate a sole arbitrator, as it raises justifiable doubts regarding impartiality under Section 12(5) of the Arbitration and Conciliation Act, 1996. Facts Of The Case: The appellant, Bhayana Builders Pvt. Ltd., filed petitions before the Delhi High Court under Section 14(2) of the Arbitration and Conciliation Act, 1996, seeking to terminate the mandate of a sole arbitrator. This arbitrator had been unilaterally appointed by the Managing Director of the respondent, Oriental Structural Engineers Pvt. Ltd., pursuant to Clause 9.03...
Read More
Divorce Final, But Alimony Increased: Supreme Court Orders Doctor to Pay Engineer-Turned-Lawyer ₹50 Lakhs
18Sep By The Legal ChamberNo Comments
Supreme Court

Divorce Final, But Alimony Increased: Supreme Court Orders Doctor to Pay Engineer-Turned-Lawyer ₹50 Lakhs

The Supreme Court enhanced permanent alimony from ₹15 to ₹50 lakhs, balancing the husband's capacity to pay against the wife's qualifications and potential to earn. The ruling underscores that alimony is not merely sustenance but must provide financial security commensurate with the marital standard of living. Facts Of The Case: The case involves an appeal by the wife, M.V. Leelavathi, against a Karnataka High Court order that upheld the dissolution of her marriage to Dr. C.R. Swamy on grounds of cruelty and confirmed a permanent alimony award of ₹15,00,000. The couple married in February 2009 and the marriage remained childless. The husband, a doctor, filed for divorce in 2011 alleging mental cruelty. The wife contested the petition and filed a counterclaim for restitution of conjugal r...
Read More
Supreme Court Rules: Consent Decree Based on Arbitration Must Be Honored, Estoppel Applies
18Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Rules: Consent Decree Based on Arbitration Must Be Honored, Estoppel Applies

The Supreme Court held that a party cannot raise a plea of estoppel against law after its own conduct induced the other party to alter its position to its detriment. The doctrine of election and estoppel by conduct precludes a party from approbating and reprobating, thereby preventing it from challenging the validity of a compromise decree it had previously accepted. Facts Of The Case: The respondents, claiming the appellants had been removed as trustees, filed a suit for a perpetual injunction to restrain them from entering a school run by Guru Tegh Bahadur Charitable Trust. The Trial Court rejected the plaint under Order VII Rule 11 CPC, holding the suit was barred by Section 92 CPC. During the pendency of the respondents' appeal against this order, the parties mutually appointed a sol...
Read More
When Can an Election Be Overturned? Supreme Court Explains the Difference Between Major and Minor Non-Disclosure
18Sep By The Legal ChamberNo Comments
Supreme Court

When Can an Election Be Overturned? Supreme Court Explains the Difference Between Major and Minor Non-Disclosure

The Supreme Court ruled that non-disclosure of income details in an election affidavit is not automatically a 'substantial defect' voiding an election under Section 100 of the Representation of the People Act, 1951. The defect must be of a consequential nature to constitute a corrupt practice or improper nomination acceptance. The people's mandate cannot be invalidated on mere technicalities. Facts Of The Case: The appellant, Ajmera Shyam, an Indian National Congress candidate, challenged the election of respondent Smt. Kova Laxmi (BRS party) to the Telangana Legislative Assembly from the Asifabad (ST) constituency. The election was declared on December 3, 2023, with Laxmi winning by a margin of 22,798 votes. The challenge was based on the alleged improper acceptance of her nomination pa...
Read More