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Case Laws
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AI Text Quick Glance by AI Headnote
AI TextQuick Glance (AI)Headnote
Foreign award conversion date clarified: unpaid balance uses enforceability date, but withdrawable court deposits use deposit date.
A foreign arbitral award expressed in foreign currency is converted into Indian rupees at the exchange rate prevailing when objections under Section 48 are finally rejected and the award becomes enforceable under Section 49. The Supreme Court held that the Forasol principle applies under the Arbitration and Conciliation Act, 1996, so the unpaid balance is valued on the finality date, not by reference to an earlier point. Amounts deposited in court during pendency, however, are treated differently if the award holder was permitted to withdraw them: that sum is converted on the date of deposit because the holder obtained practical access to it. A later exchange rate cannot be applied again to that withdrawable amount.
AI TextQuick Glance (AI)Headnote
Contractor's five-year debarment order overturned due to lack of rigorous scrutiny in blacklisting decision
The SC set aside a five-year debarment order imposed by a Corporation on the appellant contractor. The appellant argued the Corporation could only impose penalties for late payments under clause 9, not blacklisting. The SC held that blacklisting is a drastic remedy requiring rigorous scrutiny and objective satisfaction by authorities. Despite the appellant owing Rs. 14,63,24,727/- while having paid Rs. 3,71,96,265/-, the Court found reciprocal obligation disputes existed between parties from inception, with both sides blaming each other for non-performance. The appeal was allowed and impugned judgment set aside.
AI TextQuick Glance (AI)Headnote
Cheque dishonour presumptions are rebuttable on probabilities, and concurrent acquittal stands absent perversity or manifest illegality.
In a cheque dishonour prosecution, once execution of the cheque is admitted, the statutory presumption under the Negotiable Instruments Act operates in favour of the holder, but it remains rebuttable on a preponderance of probabilities. The accused may rebut it through the complainant's own materials and surrounding circumstances, and the complainant must still establish a legally enforceable debt or liability. On the facts discussed, contradictions in the complainant's version, the absence of supporting financial material, and inconsistencies with income-tax returns created serious doubt about the alleged loan transaction and rebutted the presumption. Concurrent acquittal is ordinarily not disturbed unless perversity, manifest illegality, or miscarriage of justice is shown.
AI TextQuick Glance (AI)Headnote
Interest on interest under arbitration award rejected; post-award interest confined to principal sum adjudged.
Post-award interest under an arbitration award and decree was confined to the principal sum adjudged and did not extend to pre-award interest, because Section 29 of the Indian Arbitration Act, 1940 and Section 34 of the Code of Civil Procedure limit interest to the principal sum, and Section 3(3) of the Interest Act, 1978 bars interest on interest unless statute or contract expressly permits it. In the absence of any express stipulation in the award, decree, statute, or contract authorising compounding of pre-award interest, the higher post-award rate could not be applied to the combined amount. The view that a wider phraseology could support interest on the whole award was distinguished as arising under different statutory language.
AI TextQuick Glance (AI)Headnote
Anticipatory bail and police remand: court treats routine custody request as impermissible and continues protection till case ends.
A subsisting anticipatory bail order requiring release on arrest was held not to carry any implied routine liberty to seek or grant police custody remand; if custodial interrogation was genuinely needed, the investigating agency had to approach the court that granted protection. Seeking remand on misstatements, and continuing detention through fresh bail-bond demands after the remand period, amounted to wilful disobedience and contempt against the investigating officer and the Magistrate. On the remaining respondents, no direct role in the remand or non-compliance was shown, so the contempt notices were discharged. The Court also directed that the ad-interim anticipatory bail continue until the criminal proceedings arising from the FIR conclude.
AI TextQuick Glance (AI)Headnote
Judicial Hierarchy Upheld: Single Judge Remarks Expunged for Undermining Constitutional Respect and Institutional Integrity
SC addressed critical issues of judicial discipline involving a HC Single Judge's inappropriate observations about a SC order. The Court expunged the judge's gratuitous remarks, emphasizing constitutional obligations of lower courts to respect hierarchical judicial authority. While refraining from punitive action, the SC cautioned against undermining judicial dignity, particularly in the era of live-streamed proceedings, and stressed the mandatory nature of compliance with apex court orders.
AI TextQuick Glance (AI)Headnote
SC quashes disciplinary penalty for desertion after wife withdraws complaint citing mistaken filing
SC allowed appeal in disciplinary proceedings case where appellant faced penalty of stoppage of one increment with cumulative effect for allegedly deserting wife and children. Wife initially complained but later withdrew complaint through affidavit, stating it was filed under mistaken notion. Despite withdrawal and wife's non-appearance as witness, Inquiry Officer proceeded and found appellant guilty of desertion charge while exonerating him of cohabitation charge. SC held that 425-day delay in filing application was sufficiently explained and Tribunal/HC erred in not adopting liberal approach to condone delay. Court found penalty unjustified due to lack of evidence and complaint withdrawal. Matter remanded to disciplinary authority for reconsideration.
AI TextQuick Glance (AI)Headnote
NEET-UG 2024 upheld as valid; no systemic malpractice found, isolated leaks investigable; NTA and Ministry to act
SC held NEET-UG 2024 valid, finding no evidence of systemic or mass malpractice and noting IIT Madras analysis showed no abnormal indications in results; isolated paper leaks appear confined to specific locations and are investigable. The SC directed NTA to address identified concerns, extended the Government committee's report deadline to 30 Sept 2024 with the Ministry to decide on recommendations within one month and to implement and report compliance promptly. Transfer petitions challenging NEET's validity were allowed and disposed of subject to these directions; remaining individual grievances may be pursued in the appropriate HC.
AI TextQuick Glance (AI)Headnote
Mandatory MSME revival framework must be followed before NPA classification and SARFAESI enforcement
The Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises notified on 29 May 2015 was mandatory and had to be followed before an MSME account was classified as a non-performing asset. The instructions under the MSMED Act and the Reserve Bank's directions under the Banking Regulation Act were stated to have statutory force, requiring banks to identify incipient stress and undertake the prescribed revival process at the pre-NPA stage. The availability of SARFAESI enforcement did not override these prior obligations, because the Framework operated before recovery action could begin. The contrary view of the High Court was stated to be incorrect.
AI TextQuick Glance (AI)Headnote
Vicarious liability in company offences requires specific averments that directors controlled business at the time of the offence.
For fastening vicarious liability on directors for an offence by a company under Section 50 of the National Housing Bank Act, 1987, the complaint must specifically aver that they were in charge of and responsible for the company's business at the time of the offence; general assertions that they managed affairs or were jointly responsible are insufficient. On the pleaded facts, those requisite averments were absent against the directors, so the complaint could not proceed against them. A Managing Director stands on a different footing and is ordinarily treated as being in charge of and responsible for the company's business, and the company itself remained liable because no ground was shown to quash the complaint against it.
AI TextQuick Glance (AI)Headnote
Statutory enrolment fee ceilings bar compulsory additional charges that restrict access to the legal profession.
Section 24(1)(f) of the Advocates Act fixes the enrolment fee payable for admission to the State roll, and delegated rule-making powers cannot increase that statutory ceiling. State Bar Councils cannot make administrative, welfare, building, identity, processing or similar compulsory charges a condition of enrolment where they cumulatively exceed the prescribed amount; verification and enrolment-process charges may be incidental only within that limit. Excessive enrolment-linked exactions create barriers to entering the legal profession, particularly for economically weaker and marginalised graduates, and are inconsistent with substantive equality and the right to practise a profession under Articles 14 and 19(1)(g). The position operates prospectively, without refunds of earlier collections.
AI TextQuick Glance (AI)Headnote
Developer must refund entire amount to flat buyers for project delay and failure to deliver possession within stipulated time
SC upheld NCDRC's direction for developer to refund entire amount deposited by flat buyers due to inordinate project delay and failure to deliver possession within stipulated time. Developer's force majeure defense regarding layout plan sanctioning delay was rejected, citing precedent. However, SC modified interest rate from 9% to 12% per annum as per agreement clause, noting buyers suffered without fault while making full payment but being deprived of timely possession. Appeal allowed partially.
AI TextQuick Glance (AI)Headnote
Royalty and mineral-bearing land taxation clarified under constitutional entries on land and mineral rights.
Royalty under the MMDR Act was treated by the majority as a statutory impost with the character of tax, not a mere contractual payment; Parliament's scheme was held to limit State taxation of mineral rights under Entry 50 of List II, and the phrase "any limitations" was read broadly to include restrictions and prohibition. Mineral-bearing land was held to fall within Entry 49 of List II, and mineral yield or royalty may be used as the measure of a land tax if the levy remains, in substance, a tax on land. Entries 49 and 50 were held to operate in distinct fields. The dissent would have rejected Entry 49 taxation by reference to royalty or mineral value.
AI TextQuick Glance (AI)Headnote
Authorised signatory is not a drawer under Section 143-A, so interim compensation cannot be imposed on the signatory alone.
The SC held that for Section 143-A of the Negotiable Instruments Act, the drawer remains the person who issues the cheque, and that meaning is not expanded by the vicarious liability scheme in Section 141. An authorised signatory signs on behalf of the company but does not become the company or the drawer for interim compensation purposes. Because Section 143-A is a penal and coercive provision, it must be applied strictly to its text, and interim compensation cannot be fastened on the signatory when the company has not been proceeded against as drawer.
AI TextQuick Glance (AI)Headnote
Employee cannot claim retrospective promotion from vacancy date, promotion effective only from grant date
The SC held that promotion is effective from the date granted, not from when a vacancy occurs or post is created. The respondent employee could not claim retrospective promotion to Joint Secretary from July 1997 instead of March 2003 merely by completing Kal Awadhi requirements. The Board's resolution fixing Kal Awadhi was directory, not statutory, creating no entitlement to backdated promotion. Retrospective seniority cannot be granted from dates when employee was not in cadre, as it may adversely affect others. The Division Bench incorrectly interfered with Single Judge's findings. Appeal allowed, impugned order set aside.
AI TextQuick Glance (AI)Headnote
Builder loses right to file defense but can argue legal issues in delayed flat delivery case
The SC partially allowed the appeal in a construction deficiency case involving delayed flat delivery. The builder had forfeited its right to file a written statement under Annexure P-18 order but could still participate in proceedings within legal limits. The court held that Consumer Protection Act proceedings don't automatically apply CPC provisions except under Section 38(9), but CPC principles guide consequences of forfeited pleading rights. The builder could only argue legal questions and procedural lapses without introducing new factual contentions. The court modified NCDRC's compensation formula, ordering the developer to pay 6% annual interest from September 2014 until possession is offered to buyers.
AI TextQuick Glance (AI)Headnote
Breach of agreement to sell is not cheating or criminal breach of trust absent dishonest inducement or entrustment.
A mere breach of an agreement to sell does not by itself constitute cheating unless dishonest inducement or intention to deceive existed at the inception; refusal to execute the sale deed after part-payment is insufficient. Criminal breach of trust also requires entrustment of property and dishonest misappropriation or conversion, which is not shown where the advance is only contractual consideration. On these principles, the dispute remains civil in nature and is ordinarily remediable through specific performance rather than criminal prosecution. A civil claim cannot be recast as offences under the Penal Code simply to pressure performance of a sale contract.
AI TextQuick Glance (AI)Headnote
BOT lease stamp duty: statutory amendment upheld, but duty limited to the lessee's actual expenditure share.
The 2002 amendment fixing stamp duty for BOT lease deeds under the Indian Stamp Act was upheld because it did not alter the substantive law of lease, and neither legitimate expectation nor promissory estoppel can prevent a statutory change made in public interest. A BOT concession agreement was treated as a lease for stamp purposes because the Stamp Act uses a wider definition than the Transfer of Property Act and includes instruments letting tolls. However, stamp duty under the proviso is chargeable only on the amount likely to be spent by the lessee, so duty cannot be levied on the entire project cost and must be recomputed to reflect the lessee's actual share.
AI TextQuick Glance (AI)Headnote
Arbitration clauses survive disputed discharge vouchers; accord and satisfaction is usually for the arbitral tribunal at Section 11 stage.
A discharge voucher or no-claim certificate does not by itself extinguish the arbitration agreement, because the arbitration clause survives separability even if the underlying contract is said to have been discharged by accord and satisfaction. A disputed challenge to the voluntariness of the discharge, including allegations of coercion or undue influence, is ordinarily for the arbitral tribunal. At the Section 11 stage, the referral court's scrutiny is limited to the prima facie existence of an arbitration agreement and may refuse appointment only where the case is manifestly ex facie meritless or non-arbitrable. The cited stamp duty decision reinforces this narrow pre-reference inquiry and minimal judicial intervention.
AI TextQuick Glance (AI)Headnote
Long pre-trial detention can justify bail despite UAPA restrictions when speedy trial rights are being infringed.
Long pre-trial incarceration can justify bail even in serious IPC and UAPA matters where the trial has made little progress and is unlikely to finish soon. The Supreme Court held that the statutory restrictions on bail under the UAPA do not wholly exclude constitutional courts' power to grant bail when continued detention infringes Article 21 rights to speedy trial and personal liberty. Because the accused had spent more than nine years in custody while only a small part of the evidence had been recorded, bail was granted and the High Court's refusal was set aside, subject to conditions on travel, attendance, passport custody, and non-interference with evidence.

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