A. Insolvency and Bankruptcy Code, 2016—Sections 5(24)(m)(i) and 21(2)—Related party—Financial creditor—Committee of Creditors—HELD—A financial creditor may be excluded from representation, participation and voting in the Committee of Creditors where its contractual rights establish an association with the corporate debtor through participation in policy-making processes. For determining related-party status under Section 5(24)(m)(i), proactive involvement in policy-making and business operations is sufficient; the stricter test of positive control applicable under Section 29A is not required. (Paras 12-17)B. Insolvency and Bankruptcy Code, 2016—Sections 5(7), 5(8) and 21—Corporate guarantee—Financial debt—Invocation of guarantee—HELD—A liability arising from a corporate guarantee may constitute financial debt even...
A. Unlawful Activities (Prevention) Act, 1967—Section 43D(7)—Foreign national—Illegal or unauthorised entry—Restriction on grant of bail—HELD—The statutory bar under Section 43D(7) applies only where the accused is a foreign national, is accused of an offence under the UAP Act, and initially entered India unauthorisedly or illegally. These conditions must be prima facie established by the prosecution. Subsequent expiry or revocation of a valid visa does not retrospectively render the initial entry illegal. (Paras 30-32, 47)B. Unlawful Activities (Prevention) Act, 1967—Sections 43D(2) and 43D(7)—Code of Criminal Procedure, 1973—Section 167(2)—Default bail—HELD—Section 167(2) CrPC applies to offences under the UAP Act through Section 43D(2). The overriding effect of Section 43D(7) extends to Sections 43D(5) and (6), ...
A. Code of Criminal Procedure, 1973—Section 31—Indian Penal Code, 1860—Sections 302, 376 and 342—Multiple sentences of imprisonment for life—Consecutive sentences—HELD—Multiple sentences of imprisonment for life imposed for distinct offences in a single trial cannot be directed to run consecutively, since imprisonment for life ordinarily extends to the remainder of the convict’s natural life. Such sentences must run concurrently or stand superimposed upon each other, and a direction requiring consecutive life imprisonment is impermissible. The Constitution Bench ruling in Muthuramalingam v. State, (2016) 8 SCC 313, governs the issue. (Paras 13-15)B. Code of Criminal Procedure, 1973—Section 31—Section 427(2)—Multiple life sentences—Remission and commutation—HELD—Although a court may award separate sentences of i...
A. Income Tax Act, 1961—Sections 43B and 145A—Unpaid excise duty—Addition to closing stock—HELD—Where the assessee followed the exclusive method of accounting and had neither paid the disputed excise duty nor claimed it as an expenditure in the Profit and Loss Account, the Assessing Officer could not disallow the amount under Section 43B merely on the basis of a remark in the Tax Auditor’s Report. The Revenue was required to establish how the disputed amount had been claimed as a deduction and how it adversely affected the computation of taxable income. The addition of Rs.69,91,983 was held unsustainable. (Paras 14-16)B. Income Tax Act, 1961—Section 43B—Statutory liability—Deduction on actual payment—Unclaimed expenditure—HELD—Section 43B regulates the allowability of specified statutory liabilities as deductions a...
A. Electricity Act, 2003—Sections 126, 135(1A) and 154(5)—Theft of electricity—Assessment of electricity charges—Restoration of supply—HELD—In cases of theft of electricity, the expression “assessed amount” in the third proviso to Section 135(1A), for restoration of disconnected supply, must be determined by adopting the assessment procedure prescribed under Section 126 read with the applicable Supply Code, in the absence of a specific procedure for theft cases—Theft of electricity constitutes unauthorised use, though every instance of unauthorised use does not amount to theft—Assessment under Section 126 may proceed alongside criminal prosecution under Section 135, without displacing the Special Court’s power to determine civil liability under Section 154(5). (Paras 30-36)B. Electricity Act, 2003—Sections 126, 127...
A. Land Acquisition Act, 1894—Section 3(f)(vi)—Acquisition of land for housing scheme of Co-operative Society—Prior Government approval—Public purpose—HELD—Acquisition of privately owned land for implementing a housing scheme sponsored by a Co-operative Society can qualify as a public purpose only where the appropriate Government grants prior approval to the actual housing scheme, including its layout plan, demarcated sites, roads, common areas, eligible membership and proposed mode of development—Mere approval of the extent of land or a general proposal to provide housing sites does not satisfy the statutory requirement—No duly formulated and approved housing scheme being placed before the Government, the acquisition was vitiated. (Paras 39-46, 51-55)B. Land Acquisition Act, 1894—Sections 3(f)(vi), 4(1) and 6(1)—Emine...
A. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002—Section 5—Assignment of financial assets—Recovery of debt—HELD—A bank may assign its financial assets to an asset reconstruction company, and the assignment transfers the debt and underlying securities to the assignee—However, the validity of the impugned assignment and compliance with Section 5 were expressly left open in the peculiar facts of the present case. (Paras 24-25, 40)B. Reserve Bank of India Act, 1934—RBI Master Circular dated 01-07-2015—COVID-19 moratorium circulars dated 27-03-2020, 17-04-2020 and 23-05-2020—Classification of account as Non-Performing Asset—HELD—The borrower challenged retrospective classification of its loan account as NPA with effect from 16-10-2020, contending that the moratorium a...
A. Textiles Committee Act, 1963—Sections 2(g), 2(da), 2(db) and 5A—Textile cess—Exemption of handloom and powerloom textiles—HELD—Section 5A imposes cess on textiles manufactured in India but expressly exempts textiles manufactured by the handloom or powerloom industry—The definitions of “textiles”, “powerloom” and “powerloom industry” must be considered in the context of the Act. (Paras 5.1-5.3, 6.4)B. Textiles Committee Act, 1963—Section 5A—Meaning of “manufacture”—Importing definition from another statute—HELD—Where “manufacture” is not defined in the Act, its meaning cannot be borrowed from Section 2(f) of the Central Excise Act, 1944, in the absence of legislative reference or incorporation—A definition in another statute cannot be bodily imported unless the statutes are in pari materia or ...
A. Code of Civil Procedure, 1908—Order XXI, Rules 97 to 101—Execution proceedings—Resistance by third party claiming independent title—HELD—An application under Order XXI, Rules 97 to 101 is adjudicated like a regular suit, and the executing court must determine the applicant’s right, title and interest—A separate suit for declaration setting aside the decree is barred by Rule 101. (Paras 7, 12)B. Code of Civil Procedure, 1908—Order XXI, Rules 97 to 101—Execution of decree—Legal representatives of objector—HELD—A person claiming independent ownership and possession, who was not impleaded in the original suit, may resist dispossession during execution—Knowledge of the decree cannot be imputed to such person merely because the original suit had proceeded without impleading him. (Paras 11-12)C. Indian Evidence Act, ...
A. Indian Penal Code, 1860—Sections 364, 302 and 201—Circumstantial evidence—Murder and kidnapping—HELD—The prosecution failed to establish the alleged ransom demand, extra-judicial confession, last-seen circumstance and electronic evidence—The accused was acquitted after six years of undertrial custody. (Paras 10-12)B. Indian Evidence Act, 1872—Sections 27 and 65-B—Recovery and electronic evidence—Admissibility and proof—HELD—The CCTV footage and call detail records were unsupported by the mandatory certificate under Section 65-B—Recoveries were not proved to have been made pursuant to any disclosure statement under Section 27, and the recovered bones were not scientifically linked to the deceased. (Paras 8, 12-13)C. Criminal investigation—Circumstantial evidence—Medical and forensic evidence—Defective inves...
A. Bharatiya Nagarik Suraksha Sanhita, 2023—Section 482—Anticipatory bail—Gravity of accusation—HELD—The gravity of the alleged offence, though a relevant consideration, is not by itself sufficient to deny anticipatory bail. The Court must assess the nature of the accusation, the applicant’s role, antecedents, likelihood of absconding or tampering with evidence, and the necessity of custodial interrogation in the light of the entire record. (Paras 9-10, 15-16).B. Bharatiya Nagarik Suraksha Sanhita, 2023—Section 482—Anticipatory bail—Subsequent allegation of rape—Earlier complaints and statements—HELD—The allegation of forcible intercourse first emerged in the victim’s statement under Section 183 of the BNSS, recorded after the anticipatory bail petition was filed, whereas the earlier complaint, FIR and department...
A. Specific Relief Act, 1963—Section 16(c)—Specific performance—Readiness and willingness—HELD—The plaintiff seeking specific performance must prove continuous readiness and willingness to perform the essential terms of the contract, including financial capacity and conduct demonstrating intention to complete the transaction. Failure to apply for mandatory purchase permission within the stipulated period, pay the balance consideration or obtain the agreed power of attorney disentitles the purchaser to specific performance. (Paras 17-19, 24-27).B. Specific Relief Act, 1963—Specific performance—Time as essence of contract—Agreement to sell immovable property—HELD—The general principle that time is not ordinarily the essence of contracts relating to immovable property cannot be applied mechanically, particularly where the...
A. Code of Criminal Procedure, 1973—Section 82—Proclamation—Proclaimed Offender—Absconding—HELD—An unexecuted warrant does not, by itself, establish abscondence or justify a proclamation without material showing deliberate evasion. Where the charge-sheet records an identifiable overseas address, failure to pursue recognised channels of service undermines the statutory satisfaction required under Section 82(1). The proclamation declaring the petitioner a Proclaimed Offender was set aside. (Paras 23-32, 37).B. Code of Criminal Procedure, 1973—Section 82(4)—Proclaimed Offender—Specified offences—HELD—A person may be declared a Proclaimed Offender under Section 82(4) only where the proclamation concerns an offence enumerated in that provision. As the offences alleged against the petitioner were not included in the statut...
A. Code of Criminal Procedure, 1973—Section 482—Quashing of criminal proceedings—Abuse of process of Court—Mala fide prosecution—HELD—The High Court may exercise its inherent jurisdiction where the allegations and attending circumstances, considered cumulatively, indicate that criminal proceedings have been instituted for an ulterior purpose or that the allegations do not prima facie constitute the offences alleged. Although the Court cannot conduct a mini-trial or meticulously assess the evidence at this stage, it may examine the surrounding circumstances and preliminary materials to prevent abuse of process and secure the ends of justice. The criminal proceedings against the surviving petitioners were quashed. (Paras 15-21, 23-24, 32-36).B. Indian Penal Code, 1860—Sections 323, 341, 504, 506 and 379—Essential ingredients...
A. Code of Civil Procedure, 1908—Order VII Rule 11(a)—Rejection of plaint—Cause of action—Defamation—HELD—For rejection of a plaint, the Court must meaningfully read the plaint as a whole and determine whether its averments, taken to be correct, disclose a legally sustainable cause of action. In a defamation suit, the plaint must plead the essential ingredients of a defamatory imputation, including its making or publication by the defendant and communication to a third person. Mere assertion of reputational harm, without pleading these essential elements, does not disclose a cause of action. (Paras 12-15, 17-19, 31-35).B. Indian Penal Code, 1860—Section 499—Defamation—Essential ingredients—Publication of imputation—HELD—Defamation requires an imputation concerning a person, made with the requisite intention or know...
A. Code of Criminal Procedure, 1973—Sections 190(1)(b), 482—Rejection of final report—Summoning of accused—HELD—Where the statements of the complainant, other witnesses and the injured witness, supported by medical evidence showing a fracture of the frontal bone, disclose sufficient material, the Magistrate is justified in rejecting the final report and summoning the accused to face trial—No interference under Section 482 CrPC is warranted in the absence of a ground demonstrating illegality or abuse of process. (Paras 12-15)B. Indian Penal Code, 1860—Sections 308, 323, 504, 506—Assault causing grievous head injury—Medical evidence—HELD—The injured sustained multiple head injuries, and X-ray examination revealed a fracture of the frontal bone, resulting in the addition of Section 308 IPC during investigation—The med...
A. Code of Criminal Procedure, 1973—Section 482—Quashing of criminal proceedings—Matrimonial dispute—Settlement between spouses—HELD—Where the spouses have amicably settled their matrimonial dispute, dissolved their marriage by mutual consent and the complainant has expressed her unwillingness to pursue the criminal prosecution, continuation of proceedings against the husband’s relatives may amount to an abuse of the process of the Court—The High Court may exercise its inherent jurisdiction to secure the ends of justice in the facts and circumstances of the case. (Paras 1-8)B. Indian Penal Code, 1860—Sections 498-A, 323—Dowry Prohibition Act, 1961—Sections 3, 4—Allegations of dowry demand and cruelty—Complainant’s statement—HELD—The complainant categorically stated that neither her husband nor his relatives...