A. Insolvency and Bankruptcy Code, 2016—Section 9—Operational debt arising from EPC contract—Suspension of EPC contract, in absence of express termination, does not amount to termination or frustration; however, claims for suspension, idling or demobilisation charges arising from alleged breach constitute damages and cannot be treated as operational debt unless adjudicated and crystallised by a competent court. [Paras 37–54] B. Insolvency and Bankruptcy Code, 2016—Section 9—Limitation—Article 137 of the Limitation Act, 1963—Section 18—Application under Section 9 must be filed within three years from the date of default; mere subsistence of a suspended contract or issuance of legal notices does not extend limitation in absence of acknowledgment of liability; Insolvency and Bankruptcy...
A. Civil Procedure Code, 1908—Order VIII Rules 6A to 6D, Order XX Rule 19 and Order XLI Rule 1—Suit and counterclaim—Composite appeal—Held, where the suit and counterclaim are adjudicated by a single common judgment, the aggrieved party may challenge both in one composite appeal; the fact that one or two decrees are drawn up does not mandate filing of separate appeals, as the counterclaim is treated as a cross-suit and the proceedings are intended to culminate in a common adjudication, thereby avoiding procedural technicalities, multiplicity of litigation and defeat of substantive rights. [Paras 18-22, 30-31] B. Civil Procedure Code, 1908—Order VIII Rules 6A to 6D and Order XLI Rule 33—Counterclaim—Nature and effect—Held, a counterclaim has the character of a cross-suit but remains part o...
A. Indian Penal Code, 1860—Sections 302 and 498A—Murder—Circumstantial evidence—Benefit of doubt—Held, where homicidal death itself is not conclusively established, the alleged motive of marital discord remains unproved, close relatives do not implicate the accused, and the prosecution fails to establish any incriminating circumstance connecting the accused with the burning incident, conviction for murder cannot be sustained; mere presence of the accused at the scene and an alleged quarrel are insufficient to prove guilt beyond reasonable doubt. [Paras 5–9, 13–14] B. Indian Evidence Act, 1872—Section 32—Dying declaration—Evidentiary value—Held, dying declarations require careful scrutiny where material discrepancies exist regarding the motive and timing of thei...
A. Indian Penal Code, 1860—Section 376—Rape—Appreciation of evidence—Medical and forensic evidence—Held, where the prosecution version regarding sexual assault and bloodstains is materially contradicted by medical examination conducted within twelve hours, which disclosed no injury, intact hymen and no evidence of penetration, and FSL examination detected neither blood nor semen on the victim’s clothes, serious doubt arises regarding the prosecution case and conviction cannot be sustained beyond reasonable doubt. [Paras 17, 39-43, 47-49] B. Indian Penal Code, 1860—Section 376—Appreciation of evidence—Material contradictions regarding place of occurrence—Held, inconsistency between the victim’s version that the incident occurred on a cot and the Investigating Officer&rsqu...
A. Arbitration and Conciliation Act, 1996—S. 9—Interim relief after arbitral award—Application by unsuccessful party—Maintainability—Held, an award-debtor may invoke S. 9 even after an adverse arbitral award, but only in rare and compelling circumstances where denial of interim protection would cause irreparable prejudice or render the S. 34 challenge ineffective; relief must satisfy the settled tests of prima facie case, balance of convenience and irreparable injury. [Paras 18-24] B. Arbitration and Conciliation Act, 1996—S. 9—Deposit as interim protection—Prevention of unjust enrichment—Held, direction to deposit Rs. 3.5 crores in Court was justified to preserve the disputed amount and balance equities pending S. 34 proceedings, particularly where there was no counterclaim and the...
A. Criminal Procedure Code, 1973—Section 482—Quashing of Criminal Proceedings—Unimpeachable Alibi—Where undisputed official records maintained in the ordinary course of duty conclusively establish that the accused was not present at the place of occurrence and thereby render the prosecution case inherently improbable, such unimpeachable documentary evidence may be considered at the threshold under Section 482 Cr.P.C.; continuation of proceedings in such circumstances would amount to abuse of the process of the Court. (Paras 25–35) B. Indian Penal Code, 1860—Section 304B—Dowry Death—Essential Ingredients—Mere absence of an accused from the scene of occurrence is not, by itself, sufficient to exonerate him where there is credible evidence of dowry-related cruelty or harassment “...
A. Securities and Exchange Board of India Act, 1992—Sections 12A(d), 15G, 15HB & 11B—Insider Trading—Trading while in Possession of UPSI—Presumption—Where a person trades in securities while in possession of unpublished price sensitive information, Regulation 4(1) of the PIT Regulations raises a presumption that the trades were motivated by such UPSI; the purpose or subsequent use of the sale proceeds is immaterial, and the finding of insider trading and consequential disgorgement is sustainable. (Paras 11, 13, 16) B. SEBI (Prohibition of Insider Trading) Regulations, 2015—Regulations 4(1) & 9(1)—Defences to Insider Trading—Scope—The defences contemplated under Regulation 4(1) are not exhaustive, but any additional defence must be of a nature similar to those specifically re...
A. Service Law—Suppression of Criminal Antecedents—Termination of Employment—Two-Pronged Enquiry—Mere non-disclosure of criminal antecedents does not automatically justify termination; the employer must first determine whether the candidate knowingly suppressed the antecedent and, secondly, objectively assess the nature and gravity of the offence, nature of post, duties, circumstances of suppression and outcome of the criminal case before deciding whether termination is warranted. (Paras 20–24) B. Service Law—Suppression of Criminal Antecedents—Knowledge of Criminal Case—Burden on Employee—Where the employee establishes by cogent documentary evidence that he had no knowledge of the pending criminal case, non-disclosure cannot amount to deliberate suppression or false information; ho...
A. Civil Procedure Code, 1908—Order XXXII Rule 15—Persons of Unsound Mind—Mental Capacity in Judicial Proceedings—Mere allegation of mental illness does not render a party incapable of participating in judicial proceedings; where such capacity is questioned, the Court must conduct a time-bound expert enquiry to determine whether the person is actually incapable of protecting his/her interests. (Paras 12, 21–22) B. Mental Healthcare Act, 2017—Section 105—Question of Mental Illness in Judicial Process—Expert Examination—Where mental illness is produced and challenged in judicial proceedings, the issue must be referred to the concerned Mental Health Board for expert examination and opinion; the Court must ensure that the person's dignity, rights and interests are protected. (Paras ...
A. Hindu Marriage Act, 1955—Sections 24 & 26—Interim Maintenance—Determination of Quantum—Voluntary Deductions—While determining the husband's income for fixing maintenance of minor children, voluntary deductions such as Provident Fund contributions and Employee Stock Purchase Schemes (ESPPs), which ultimately accrue as benefits to the earning spouse, cannot be treated at par with compulsory deductions like income tax and professional tax for reducing his effective income; maintenance must be assessed on the basis of the parties' actual financial capacity and the children's reasonable needs. (Paras 19–20) B. Hindu Marriage Act, 1955—Section 26—Maintenance of Minor Children—Standard of Living and Medical Circumstances—The maintenance payable for minor children m...
A. Trusts and Trustees — Rendition of Accounts — Maintainability — Co-trustee against Co-trustee — A suit by one trustee against a co-trustee for rendition of accounts is maintainable, as every trustee has the right to know the financial position of the trust and to demand accounts from a co-trustee entrusted with collection and expenditure of trust income — such accountability is necessary for proper supervision of trust affairs and to protect trustees from liability arising from misappropriation — (Para 6). B. Civil Procedure Code, 1908 — Section 92 — Rendition of Accounts — Legal Representatives — Survivability — A suit by co-trustees for rendition of accounts to enforce their individual right of supervision does not fall within Section 92 CPC, which concerns represen...
A. Civil Procedure Code, 1908 — Order V Rule 1, Order VIII Rules 1 & 10, Section 151 — Karnataka Amendment Act, 2024 — Written Statement — 120-day limit — Held, the 120-day period is ordinarily mandatory and the right to file written statement stands forfeited thereafter; however, the amendment cannot be construed as completely extinguishing the limited judicial discretion preserved under Rule 10 and Section 151 CPC, as recognized in Salem Advocate Bar Association (2005) — In exceptional and compelling circumstances, where refusal to accept the written statement would result in grave miscarriage of justice or manifest injustice, the Court may exercise narrowly confined discretion, for reasons to be recorded and ordinarily upon realistic costs; such discretion is not to be exercised routinely or mech...
A. Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021—Sections 35 & 39—Court Fees Act, 1870—Court fee on appeal—Held: A memorandum of appeal against a composite decree for eviction, arrears of rent and mesne profits is required to be valued on the subject matter in dispute in appeal—Where the appellant challenges the entire decree, court fee is payable on the entire decretal liability, including accrued or ascertainable mesne profits—Court fee paid on the original application does not determine the court fee payable in appeal. (Paras 44 to 76) B. Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021—Section 39—Court Fees Act, 1870—Statutory fiction—Scope—Held: Section 39(2) deems an application before the Rent Authority and an appeal before the Rent ...
A. Bhartiya Nagrik Suraksha Sanhita, 2023—Section 147 (Corresponding to Section 128 Cr.P.C.)—Enforcement of Maintenance Order—Limitation period for recovery warrant—Continuing Liability in nature—A maintenance order passed U/s 125 Cr.P.C. continues to remain operative until modified or set aside by a competent court, and the husband's obligation to pay monthly maintenance is a continuing statutory liability—Every monthly default in payment of maintenance gives rise to a recurring and continuing cause of action for enforcement of the subsisting maintenance order—The one-year limitation prescribed in the first proviso restricts only the issuance of a recovery warrant and does not extinguish the claimant's substantive right to recover maintenance arrears. (Para 16, 17, 18 21, 22) B. Bharti...
A. Negotiable Instruments Act, 1881—Section 138—Code of Criminal Procedure, 1973—Section 372 Proviso—Bharatiya Nagarik Suraksha Sanhita, 2023—Section 413—Appeal against acquittal—Complainant as victim—Held: In prosecutions under Section 138 of the Negotiable Instruments Act, the complainant, being the payee or holder in due course of the dishonoured cheque, is also the "victim" of the offence and, therefore, possesses an independent statutory right to challenge an order of acquittal under the proviso to Section 372 of the Code of Criminal Procedure, 1973/Section 413 of the Bharatiya Nagarik Suraksha Sanhita, 2023 before the Court immediately superior to the Trial Court, namely the Sessions Court. Consequently, appeals erroneously instituted before the High Court under Section 378 o...
A. Negotiable Instruments Act, 1881—Section 138—Code of Criminal Procedure, 1973—Section 372 Proviso—Bharatiya Nagarik Suraksha Sanhita, 2023—Section 413—Appeal against acquittal—Complainant as victim—Held: In a prosecution under Section 138 of the Negotiable Instruments Act, the complainant, being the payee or holder of the dishonoured cheque, is also a "victim" of the offence and is entitled to prefer an appeal against an order of acquittal under the proviso to Section 372 of the Code of Criminal Procedure, 1973/Section 413 of the Bharatiya Nagarik Suraksha Sanhita, 2023 before the Court immediately superior to the Trial Court, namely the Sessions Court. Such remedy is independent of the procedure under Section 378 of the Code, and pending appeals presented before the High Court ...
A. Negotiable Instruments Act, 1881—Sections 138, 118(a) and 139—Dishonour of cheque—Statutory presumptions—Rebuttal—Service of notice—Held: In a prosecution under Section 138, once the drawer admits or the complainant proves execution of the cheque and the signature thereon, the statutory presumptions under Sections 118(a) and 139 arise that the cheque was issued for valid consideration and in discharge of a legally enforceable debt or liability. The burden then shifts to the accused to rebut the presumptions by leading cogent and probable evidence. A mere denial of liability or an explanation offered in the statement under Section 313 of the Code of Criminal Procedure, without supporting evidence, does not rebut the statutory presumptions. Further, where the statutory demand notice is dispatched to th...
A. Criminal Procedure Code, 1973—Section 125—Maintenance claim—Revisionist claiming maintenance as legally wedded wife—Trial Court rejecting claim due to existence of prior marriage of opposite party and lack of evidence of solemnization of marriage—Held, revisionist cannot claim maintenance under Section 125 CrPC as legally wedded wife when marriage is not established and no live-in relationship is pleaded or proven—Presumption of valid marriage under Section 125 CrPC can arise only where parties have lived together as husband and wife for a considerable period or in a live-in relationship, and mere assertion of being legally wedded wife without evidence of marriage or live-in relationship is insufficient to sustain a maintenance claim. [Paras 7, 9, 12, 13] B. Criminal Procedure Code, 1973—Se...
Criminal Procedure Code, 1973 — Section 482 — Quashing of FIR — FIR registered under Sections 420 and 120B IPC — Parties entered into a settlement and implemented the terms of compromise — Respondent No.2 derived benefits from the compromise but failed to support the verification proceedings before the Magistrate — Held, once a compromise is acted upon and benefits derived thereunder, the complainant cannot back out from the settlement, and continuation of criminal proceedings in such circumstances amounts to harassment and abuse of the process of law — FIR and all consequential proceedings quashed. [Paras 9 to 12] ...
A. Indian Penal Code, 1860—Sections 120B, 420 and 406—Negotiable Instruments Act, 1881—Section 138—Criminal Procedure Code, 1973—Section 482—Quashing of cognizance—Held: Where the allegations against the petitioner merely disclosed that the disputed transaction took place at his residence and no material indicated his participation in the alleged conspiracy, cheating, criminal breach of trust or issuance of the dishonoured cheque, the essential ingredients of the alleged offences were absent. A cognizance order passed without assigning reasons or demonstrating due application of judicial mind cannot be sustained. In the absence of a prima facie case, continuation of the criminal proceedings would amount to abuse of the process of Court and the cognizance order together with all consequential proce...