A. Arbitration and Conciliation Act, 1996—Sections 36(1) and 36(3)—Enforcement of arbitral award—Deposit of award amount—Interest—Where award-debtor deposits amount in Court, liability to pay interest does not cease merely by reason of such deposit—For cessation of interest, deposit must conform to Order XXI Rule 1 CPC and must be unconditional and available to award-holder for withdrawal—Deposit made only as a condition for stay of award, without notice and subject to restrictions on withdrawal, does not constitute payment in satisfaction of award—Interest continues to accrue on such amount. [Paras 18, 20–28] B. Code of Civil Procedure, 1908—Order XXI Rule 1—Execution of money decree—Deposit in Court—Cessation of interest—Deposit under Order XXI ...
A. Income-tax Act, 1961—Section 263—Revisionary jurisdiction—“Erroneous” and “Prejudicial to interests of Revenue”—Conditions precedent—Both conditions must co-exist for valid exercise of revisional jurisdiction—Every loss of Revenue or every error in assessment does not automatically render assessment order erroneous and prejudicial—Where two views are legally possible and Assessing Officer has adopted one permissible view, Commissioner cannot invoke Section 263 merely because he disagrees with such view—Revision is justified where assessment suffers from incorrect assumption of facts, misapplication of law, violation of natural justice or lack of application of mind. [Paras 12–13] B. Income-tax Act, 1961—Sections 28(iiia) to (iiic), 80HHC and 11...
A. Code of Civil Procedure, 1908—Section 92—Public Charities—Suit—Leave of Court—Institution of Suit—Interlocutory Orders— Obtaining leave of the Court under Section 92 is a mandatory pre-condition to the institution of a suit by persons interested in a public charitable or religious trust—An application seeking leave is only a threshold proceeding and, until leave is granted, no valid suit or lis exists before the Civil Court—Consequently, interlocutory or protective orders cannot ordinarily be passed during pendency of the leave application. [Paras 30–38] B. Code of Civil Procedure, 1908—Sections 92, 94 and 141—Order XL Rule 1—Public Charities—Appointment of Receiver—Leave to Institute Suit— Supplemental proceedings under Section 94 necess...
A. Poisons Act, 1919—Sections 2 and 8—Maharashtra Poisons Rules, 1972—Rules 18A and 18B—Methanol—Regulation of Sale and Possession—Constitutional Validity— State Government is empowered to regulate possession and sale of poisons; however, subordinate legislation must remain within the parent Act and satisfy the requirements of Articles 14 and 19 of the Constitution—Rule 18A(1), requiring verification of Form A licence to ascertain the purchaser’s use of methanol, was disproportionate as it restricted manufacturers and industrial consumers who were not required to possess Form A and rendered the existing Form B permit mechanism nugatory—The restriction was wider than the object sought to be achieved and failed to constitute a reasonable restriction in public interest. [Paras 19&nd...
A. Code of Criminal Procedure, 1973—Section 438—Anticipatory Bail—Custodial Interrogation—Self-Incrimination—Diversion of Funds— Where the State alleged that the appellant had failed to cooperate with investigation by refusing to trace diverted funds, the Court held that constitutional protection against self-incrimination came to the appellant’s rescue—It was for the prosecution to establish its case after undertaking earnest investigation—In the circumstances, no grounds were made out for custodial interrogation at that stage—Denial of anticipatory bail by the High Court set aside and protection from arrest made absolute, subject to appropriate terms and conditions. [Paras 3–9] B. Code of Criminal Procedure, 1973—Section 438—Anticipatory Bail—Cooperat...
A. Criminal Procedure Code, 1973 — Section 438 — Anticipatory Bail — Forgery of Will — Cooperation with Investigation — Grant of Relief — Where appellants apprehended arrest in offences under Sections 420, 404, 406, 381, 468, 471 and 120-B IPC arising out of allegations regarding fabrication of a Will, and had continuously cooperated with the investigation pursuant to interim protection granted by the Supreme Court, denial of anticipatory bail by the High Court held unsustainable — Pendency of civil proceedings challenging validity of the testament and absence of misuse of interim protection justified grant of anticipatory bail — High Court order set aside and anticipatory bail granted subject to conditions. Held: Cooperation with investigation and surrounding circumstances warranted protect...
A. Protection of Children from Sexual Offences Act, 2012 — Sections 29 and 30 — Appeal against conviction — Statutory presumptions of guilt and culpable mental state — Nature and scope of — Sections 29 and 30 do not create an irrebuttable or automatic presumption of guilt — They operate as rules shifting the evidential burden only after the prosecution establishes the basic and foundational facts constituting the alleged offence — The court remains under an obligation to objectively examine the evidence and cannot mechanically accept the prosecution case merely because a statutory presumption operates. (Para 7.1.3 to 7.5.3.) B. Protection of Children from Sexual Offences Act, 2012 — Sections 29 and 30 — Rebuttal of statutory presumption — Manner in which accused may discharge ...
A. Assistant Director (Official Language) Recruitment Rules,2002 and 2005—Promotion—Officiating Appointment—Vested Right— An employee working only on officiating basis against a higher post does not acquire a vested right to promotion under the earlier Recruitment Rules merely because such post was occupied before the subsequent Rules came into force—where the employee was never regularly or provisionally promoted,the later change in the mode of recruitment cannot be invalidated on the ground of an accrued right to promotion under the earlier Rules. [Paras 8–10] B. Recruitment Rules,2002 and 2005—Promotion—Officiating Basis—Provisional Promotion—Distinction—Vested Rights— The distinction between an employee appointed on mere officiating basis and one provisionally ...
A. Code of Criminal Procedure, 1973—Section 438—Anticipatory Bail—Alleged Cheating—Civil Dispute—Sharing of Profits—Criminal Antecedent—Cooperation with Investigation— Allegation that appellant and his associates induced informant to provide ₹60 lakhs for obtaining lease of sand mahal and thereafter earned substantial profits without repaying the amount—Appellant contended that dispute essentially related to sharing of profits and was civil in nature, whereas State and informant alleged ingredients of cheating and excessive mining—Appellant had cooperated with investigation pursuant to interim protection granted by Supreme Court—Having regard to the nature of allegations and counter-allegations, interim protection held liable to be made absolute. [Paras 5–11] B. ...
A. Code of Criminal Procedure, 1973—Sections 432 and 473, Bharatiya Nagarik Suraksha Sanhita, 2023—Section 473—Permanent Remission—Premature Release—Remission Policy—Duty of Appropriate Government— Where the applicable Government has a policy prescribing guidelines for premature release, the appropriate Government is obligated to consider the cases of convicts for permanent remission as and when they become eligible under the policy, without requiring the convict or his relatives to make a specific application—District Legal Services Authorities are required to maintain relevant dates of convicts and facilitate transmission of remission papers to the Government for consideration—Accordingly, State of Maharashtra directed to consider petitioner’s case for permanent remission in ac...
A. Motor Vehicles Act, 1988—Section 173(1)—Compensation—Permanent physical disability—Loss of future earning capacity—Permanent physical disability cannot mechanically be treated as equivalent to loss of earning capacity; Tribunal must consider the nature of injury, affected body part, occupation, duties performed and actual functional impact of disability upon earning capacity; where claimant resumed employment and no permanent functional disability or loss of income was established, no compensation for loss of future earning capacity was warranted. [Paras 16-19] B. Motor Vehicles Act, 1988—Section 173(1)—Compensation—Injured claimant—Loss of income—Where claimant remained away from employment due to accident-related injuries from 1-5-2014 to 15-6-2015, documentary and oral e...
A. Indian Penal Code, 1860—Sections 376(2)(i), 361—Rape of Minor—Kidnapping from Lawful Guardianship—Child Victim—Proof— The testimony of a child victim, if consistent and trustworthy on the essential features of the occurrence, can form the basis of conviction without mandatory corroboration—Minor variations regarding time, subsequent state of consciousness or persons accompanying the victim to hospital do not discredit the prosecution case when the core version remains intact—Conviction under Sections 376(2)(i) and 6 POCSO Act upheld. [Paras 5.2–5.9, 8–9] B. Protection of Children from Sexual Offences Act, 2012—Section 6—Penetrative Sexual Assault—Medical Evidence—Absence of Spermatozoa—Effect— Absence of spermatozoa in the vaginal swab do...
A. Code of Civil Procedure, 1908—Order I Rule 10—Order XXII Rules 3 and 9—Death of Plaintiff—Legal Representatives—Substitution—Impleadment— Legal representatives of a deceased plaintiff cannot ordinarily be brought on record as party-defendants under Order I Rule 10 by circumventing the specific mechanism of substitution prescribed under Order XXII—Where the legal heirs do not seek substitution in place of the deceased plaintiff, the consequences are governed by Order XXII, including abatement where applicable—The general power of impleadment under Order I Rule 10 cannot be employed as an alternative route to the statutory procedure under Order XXII. [Paras 13–15, 19–22] B. Code of Civil Procedure, 1908—Order VIII Rule 6A—Counter-Claim—Claim Against Co...
A. Code of Criminal Procedure, 1973—Section 438/ Bharatiya Nagarik Suraksha Sanhita, 2023—Section 482—Anticipatory bail—Extraordinary power—The power to grant anticipatory bail is extraordinary and must be exercised sparingly and cautiously; mere applicability of the general principle that bail is the rule does not make anticipatory bail a matter of right; Court must consider the nature and gravity of accusation, role of applicant, possibility of fleeing justice, tampering with evidence and impact on investigation; protection from arrest is warranted only in exceptional and fit cases. [Paras 6-9, 11] B. Code of Criminal Procedure, 1973—Section 438—Anticipatory bail—Investigation—Custodial interrogation—Arrest—Arrest ordinarily forms part of investigation for securing pre...
A. Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act, 1989 — Section 14-A(1) — Appeal against order rejecting final report, treating protest petition as complaint and taking cognizance — Maintainability of — An order which, though not final in form, effectively sets the criminal proceedings in motion and, if set aside, terminates the proceedings against the accused, is an intermediate order and not a purely interlocutory order — Consequently, an appeal U/s 14-A(1) is maintainable against such order. (Para 13 to 21) B. Code of Criminal Procedure, 1973 — Sections 190, 200 & 202 — Protest petition against final report — Rejection of Final Report and treatment of protest petition as complaint — Distinction between the two courses — On receipt o...
A. Negotiable Instruments Act, 1881—Sections 118(a) & 139—Presumption as to consideration and legally enforceable debt or liability—Admission of execution—Once the execution of a cheque is admitted or proved, the statutory presumptions under Sections 118(a) and 139 arise in favour of the holder—The burden shifts upon the accused to rebut the presumptions by leading direct or circumstantial evidence showing that no consideration or legally enforceable debt existed, or that its non-existence was so probable that a prudent person would act upon that supposition—A mere denial of the transaction or liability does not discharge the evidentiary burden. [Paras 13–16] B. Negotiable Instruments Act, 1881—Section 139—Security cheque—Defence of repayment—A plea that the cheque w...
A. Indian Penal Code,1860—Sections 147,148,149—Unlawful Assembly—Five or More Persons—Common Object—Proof— To attract Section 149 IPC,the prosecution must establish the existence of an unlawful assembly consisting of five or more persons at the place of occurrence—the mere fact that five persons were charge-sheeted is insufficient where the evidence does not establish their presence at the spot—where the prosecution evidence itself creates doubt regarding the presence of some accused,conviction with the aid of Section 149 cannot be sustained. [Paras 15–18] B. Indian Penal Code,1860—Sections 323,149—Assault—Injured Witness—Eye-Witness—Contradictory Attribution of Knife Blow—Benefit of Doubt— Though the testimony of an injured witness ordinari...
A. Narcotic Drugs and Psychotropic Substances Act,1985—Sections 20,29,37—Pre-Arrest Bail—Disclosure Statement of Co-accused—Financial Transaction—Prima Facie Material— Mere reliance upon a disclosure statement of a co-accused may not by itself justify denial of bail, but where the investigation discloses independent corroborative material such as a financial transaction through UPI connecting the applicant with the co-accused, the plea that the applicant is implicated solely on the basis of the disclosure statement cannot be accepted—the Court must consider the totality of the material collected during investigation. [Paras 13–18] B. Narcotic Drugs and Psychotropic Substances Act,1985—Section 37—Pre-Arrest Bail—Anticipatory Bail—Commercial Quantity—Co-accused...
A. Bombay Rents,Hotel and Lodging House Rates Control Act,1947—Section 12(3)(b)—Arrears of Rent—Regular Payment—Tender/Deposit—Mandatory Compliance— The requirement of payment or tender of rent “regularly” under Section 12(3)(b) is mandatory—the tenant seeking protection against eviction must pay or tender rent with reasonable punctuality at the intervals when it falls due—clock-like precision is not required,but persistent defaults for intervals of 2,3 or 4 months cannot be treated as substantial compliance—even subsequent clearance of all arrears does not confer discretionary power upon the Court to relieve the tenant from the statutory consequence. [Paras 8–8.1] B. Bombay Rents,Hotel and Lodging House Rates Control Act,1947—Section 12(3)(b)—Arrears o...
A. Payment of Gratuity Act,1972—Section 2(e)—Employee—State Government Employee—Exclusion—Other Act or Rules— An employee holding a post under the State Government is excluded from the definition of “employee” under the Payment of Gratuity Act where he is governed by another Act or Rules providing for payment of gratuity—the exclusion operates where the employee is already governed by a distinct statutory or rule-based gratuity regime—mere denial of a claim under the Government Rules does not by itself make Section 14 applicable. [Paras 14–20] B. Payment of Gratuity Act,1972—Sections 2(e),14—Overriding Effect—Applicability—State Government Employees—Gratuity under Government Orders— Section 14 of the Act gives overriding effect to the ...