(1) SUPREME COURT
Hindu Succession
A. Hindu Succession Act, 1956—Section 22—Preferential right to acquire property—Scope and applicability—Held: Section 22 confers a preferential right upon Class I heirs to acquire the interest proposed to be transferred by another Class I heir in property inherited through succession. The provision applies equally to agricultural land and other immovable property inherited under the Act. It imposes a succession-based restriction on the right of a co-heir to alienate his or her interest to an outsider, with the object of preserving inherited property within the family. (Paras 2, 6.2, 17 to 19) B. Constitution of India—Seventh Schedule—List III (Concurrent List), Entry 5—Hindu Succession Act, 1956—Section 22—Legislative competence—Constitutional validity—Held: Parliament i...
(2) SUPREME COURT
Written statement
A. Code of Civil Procedure, 1908—Order VIII Rule 1 Proviso—Commercial Courts Act, 2015—Written statement to counter-claim—Limitation—Held: In a commercial dispute, a plaintiff served with a counter-claim is required to file a written statement thereto ordinarily within 30 days from the date of service of the counter-claim. The Commercial Court may, for reasons to be recorded and on payment of costs, extend the period up to 120 days. Upon expiry of 120 days, the plaintiff forfeits the right to file the written statement to the counter-claim, and the Court has no jurisdiction to receive it thereafter. (Paras 33 to 38) B. Commercial Courts Act, 2015—Section 13(1A)—Maintainability of appeal—Held: An appeal under Section 13(1A) of the Commercial Courts Act is maintainable only against orders s...
(3) SUPREME COURT
Civil Procedure—Mediation—Amicable settlement of dispute—Held: Having regard to the nature of the dispute and the consensus between the parties, the Supreme Court considered it appropriate to refer the matter to mediation with a view to facilitating an amicable settlement. Hon'ble Mr. Justice L. Nageswara Rao (Retd.), former Judge of the Supreme Court of India, was appointed as the Mediator with liberty to regulate the mediation proceedings and submit a report to the Court. Pending mediation, the High Court was requested to defer further proceedings. (Paras 1, 2) ...
(4) SUPREME COURT
A. Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995—Section 47—Employee acquiring disability during service—Protection against termination—Held: Section 47 mandates that no establishment shall dispense with, or reduce in rank, an employee who acquires a disability during service. The employer is under a statutory obligation to shift such employee to another post carrying the same pay scale and service benefits, and where no suitable post is immediately available, to create a supernumerary post until a suitable vacancy arises or the employee attains the age of superannuation. The exemption notification issued in 2002 operates prospectively and does not deprive employees, who were medically invalidated prior to its issuance, of the statutory protection under Secti...
(5) SUPREME COURT
A. Presidency Towns Insolvency Act, 1909—Section 9(2)—Recovery certificate issued by Debt Recovery Tribunal—Whether equivalent to decree or order—Held: Prior to the amendment introduced by the Recovery of Debts Due to Banks and Financial Institutions (Amendment) Act, 2016, a recovery certificate issued by the Debt Recovery Tribunal could not be treated as a decree or order for the purpose of initiating insolvency proceedings under Section 9(2) of the Presidency Towns Insolvency Act, 1909. The 2016 amendment, which expressly deems a recovery certificate to be a decree or order for such purposes, is prospective in operation and does not govern proceedings instituted prior thereto. The rights of the parties are to be determined in accordance with the law prevailing on the date of institution of the proceedings. (Paras...
(6) SUPREME COURT
Circumstantial evidence
A. Indian Penal Code, 1860—Sections 302, 120B and 201—Murder—Criminal conspiracy—Circumstantial evidence—Held: In a case resting entirely on circumstantial evidence, each incriminating circumstance must be proved beyond reasonable doubt and the chain of circumstances must be complete so as to unerringly point to the guilt of the accused. Where the prosecution failed to establish motive, the investigation suffered from serious deficiencies, material evidence was improperly handled, and the testimonies of key witnesses were unreliable, the prosecution failed to prove the charges under Sections 302, 120B and 201 IPC. The High Court rightly acquitted the accused, and the acquittal warranted no interference. (Paras 16 to 39) B. Indian Penal Code, 1860—Section 201 read with Section 34—Causing disappe...
(7) SUPREME COURT
A. Mines and Minerals (Development and Regulation) Act, 1957—Section 15—Revision of royalty and dead rent—Mining leases—Held: Mere silence in the mining lease deed regarding revision of royalty or dead rent does not curtail the statutory power of the State Government to revise such rates under Section 15 of the Mines and Minerals (Development and Regulation) Act, 1957 and the rules framed thereunder. The power of revision constitutes an implied condition of every statutory mining lease, and the lessee is bound to pay the revised royalty and dead rent in accordance with law. (Paras 24 to 30) B. Mines and Minerals (Development and Regulation) Act, 1957—Section 15(3)—Punjab Minor Mineral Concession Rules, 1964—Rules 10 and 21—Mining lease—Applicability of statutory rules—Held: Wh...
(8) SUPREME COURT
A. Juvenile Justice (Care and Protection of Children) Act, 2015—Sections 15, 18(3) and 19(1)—Preliminary assessment—Jurisdiction of Children's Court—Held: Where the Juvenile Justice Board, after conducting a preliminary assessment under Section 15, transfers the case to the Children's Court under Section 18(3), the Children's Court is mandatorily required under Section 19(1) to independently determine whether there is a need for trial of the child in conflict with law as an adult or whether the child should be tried as a child in accordance with the provisions of the Act. Failure to record such a determination strikes at the jurisdiction of the Children's Court and vitiates the entire trial. (Paras 10.1 to 10.8, 12 to 14) B. Juvenile Justice (Care and Protection of Children) Act, 2015—Secti...
(9) SUPREME COURT
Sales Tax
A. Karnataka Sales Tax Act, 1957—Fifth Schedule—Karnataka Act No. 5 of 2001—Retrospective amendment—Exemption on sugar—Held: Prior to the amendment introduced by Karnataka Act No. 5 of 2001, the exemption under the Fifth Schedule extended to both indigenous and imported sugar. The insertion of the words "produced or manufactured in India" was not merely clarificatory but brought about a substantive restriction by excluding imported sugar from the ambit of exemption. Though the Legislature was competent to enact the amendment retrospectively, such retrospectivity remains subject to constitutional limitations against imposing oppressive or penal consequences. (Paras 53 to 71) B. Constitution of India, 1950—Retrospective taxation—Withdrawal of exemption—Penalty and interest—H...
(10) SUPREME COURT
A. Constitution of India, 1950—Articles 14 and 19(1)(g)—Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016—Rule 38—Mineral Conservation and Development Rules, 2017—Rule 45(8)(a)—Constitutional validity—Held: The provisions requiring inclusion of royalty, District Mineral Foundation (DMF) contribution and National Mineral Exploration Trust (NMET) contribution in the computation of sale value for determination of the average sale price are neither arbitrary nor violative of Articles 14 and 19(1)(g) of the Constitution. The measure has been validly adopted to prevent manipulation of sale prices and to ensure fair, transparent and uniform determination of the average sale price for levy of royalty. (Paras 94, 95, 98 to 103) B. Mines and Minerals (Development and R...
(4) MADHYA PRADESH
Maintenance, Jurisdiction
A. Code of Criminal Procedure, 1973—Section 125—Hindu Adoptions and Maintenance Act, 1956—Section 20(3)—Maintenance—Major unmarried daughter—Merely because an application for maintenance by a major unmarried daughter was filed under Section 125 CrPC instead of Section 20(3) of the Hindu Adoptions and Maintenance Act, 1956, relief cannot be denied where the Court otherwise possesses the jurisdiction to grant such relief—The Family Court, being competent to entertain proceedings under both enactments, rightly awarded interim maintenance, and no interference was called for. (Paras 6, 8, 9 and 15) B. Hindu Adoptions and Maintenance Act, 1956—Section 20(3)—Maintenance of major unmarried daughter—The statutory requirement for claiming maintenance under Section 20(3) is that the majo...
(6) DELHI
A. Arbitration and Conciliation Act, 1996—Section 9—Interim measures—Dispute arising out of licence agreement—Where the petitioner challenged a demand notice raising concession fee on the ground that the respondent had unilaterally increased the number of train coaches contrary to the terms of the licence agreement, the Court held that an arbitrable dispute existed between the parties and directed that the disputes be resolved through arbitration. (Paras 3, 5 to 8, 11 and 13) B. Arbitration and Conciliation Act, 1996—Sections 9 and 11—Arbitration agreement—Appointment of Arbitrator—In view of the arbitration clause contained in the licence agreement and the existence of disputes relating to the validity of the demand notice and enhancement of concession fee, the Court appointed a Sole Arb...
(7) DELHI
Dishonour of cheque, Demand notice, Statutory notice
A. Negotiable Instruments Act, 1881—Section 138—Dishonour of cheque—Statutory demand notice—Validity—A statutory notice under Section 138 must relate to a legally enforceable debt or liability—Mere demand of an amount less than the aggregate cheque amount on account of admitted part-payments does not, by itself, render the notice invalid, where the notice discloses the basis of computation—Whether the amount demanded represents the legally enforceable debt is a matter to be determined on evidence during trial and not in revisional jurisdiction. (Paras 25, 35, 37 and 40) B. Negotiable Instruments Act, 1881—Section 138—Dishonour of cheque—Demand notice—Validity—The Sessions Court erred in holding the statutory notice invalid solely because the amount demanded was low...
(8) DELHI
Bail Application
A. Narcotic Drugs and Psychotropic Substances Act, 1985—Section 37—Bail—Commercial quantity—In offences involving commercial quantity of narcotic drugs, bail can be granted only after the Court is satisfied that there are reasonable grounds for believing that the accused is not guilty of the alleged offence and is not likely to commit any offence while on bail, after affording an opportunity of hearing to the Public Prosecutor. B. Criminal Procedure Code, 1973—Section 50—Constitution of India, 1950—Article 22(1)—Grounds of arrest—The arrested person must be informed of the grounds of arrest to enable an effective defence—No particular format is prescribed, and substantial compliance with the statutory and constitutional requirement is sufficient unless prejudice is demonstrate...
(10) DELHI
A. Specific Relief Act, 1963—Specific performance—Readiness and willingness—In a suit for specific performance, the plaintiff must establish continuous readiness and willingness to perform the essential terms of the contract from the date of its execution till the date of hearing—Financial capacity to perform the contract must be proved by cogent evidence, and mere pleadings or bald assertions are insufficient to satisfy the statutory requirement. (Paras 85 to 87, 92 and 99) B. Limitation Act, 1963—Section 3—Specific performance—Limitation—A suit for specific performance must be instituted within the prescribed period of limitation—Where the cause of action is dependent upon the conclusion of pending litigation, limitation commences upon the expiry of the stipulated period after dis...
