A. Power Purchase Agreement (PPA)—Articles 4.4, 5.7 & 14—Delay in Meeting Conditions Precedent and COD—Where the developer failed to meet the Conditions Precedent (CPs) and achieve the Commercial Operation Date (COD), citing delay in evacuation facility readiness by the State Transmission Utility (KPTCL), the Court held that contractual timelines remain binding unless an extension is sought under Article 5.7 or relief is claimed under the Force Majeure clause in Article 14—Since neither course was followed, the appellant’s invocation and encashment of the performance bank guarantee was found to be in accordance with Article 4.4 of the PPA. (Paras 37–44) B. Force Majeure—Article 14 of the PPA—Procedural Prerequisite for Claim—Despite delay caused by the State Transmission Ut...
A. Arbitration and Conciliation Act, 1996—Sections 44 & 45—Validity of Arbitration Agreement—Where a contract containing an arbitration clause was not signed by one party, it was held that an arbitration agreement can nevertheless be established through a series of email communications and the parties' subsequent conduct. A physical signature is not a mandatory requirement under Sections 7(4)(b), 7(4)(c), or 7(5) of the Act. What is essential is that the arbitration clause reflects a meeting of minds (consensus ad idem) between the parties. (Paras 19, 27, 28) B. Arbitration and Conciliation Act, 1996—Section 45—Reference to Arbitration by Judicial Authority—When determining whether to refer parties to arbitration, the court is only required to examine whether a prima facie arbitration agreeme...
A. Specific Relief Act, 1963—Section 16—Suit for Specific Performance—Proof of Valid Agreement—In a suit for specific performance, the plaintiff must establish the existence of a valid agreement of sale, demonstrate breach by the defendant, and prove continuous readiness and willingness to perform contractual obligations—In this case, the respondents failed to establish a valid agreement, relying only on self-serving statements and failing to produce crucial witnesses—The High Court’s findings were set aside. (Paras 15–16) B. Indian Evidence Act, 1872—Burden vs. Onus of Proof—In suits involving enforcement of agreements, the distinction between burden of proof and onus of proof becomes critical—The plaintiff bears the burden to prove the existence and enforceability...
Arbitration and Conciliation Act, 1996, Section 11 — Arbitration Agreement — Interpretation — Prima Facie Satisfaction by Referral Court — Held: The Supreme Court held that before referring parties to arbitration under Section 11 of the Arbitration and Conciliation Act, 1996, the Referral Court must be prima facie satisfied that a valid arbitration agreement exists as per Section 7 of the Act — Only minimal scrutiny of documents is required; the Court should not undertake a detailed examination akin to a trial — An arbitration clause must reflect a binding intention to arbitrate — A clause merely stating that disputes may be settled through arbitration or gives parties an optional mechanism without binding effect, does not constitute an arbitration agreement — In the present case, ...
(A) Transfer of Property Act, 1882—Section 108—Lease and possession—Agreement—No Transfer of Possession—The agreement for conducting business did not amount to a lease nor did it transfer possession of the premises to the plaintiff—The court noted that the arrangement failed to separate ownership from possession—an essential requirement for creating tenancy—The plaintiff was only permitted to run business operations without being granted legal possession or tenancy rights—Therefore, no landlord-tenant relationship existed, and the owner retained possession throughout—The agreement did not confer any interest or exclusive rights in the property. (Paras 23 to 24) (B) Evidence Act, 1872—Sections 91 and 92—Bar on Oral Evidence—The court held that the terms of the...
Arbitration and Conciliation Act 1996, Section 11(6)—Arbitration Agreement—Lex Arbitri—Matters such as filling vacancies on arbitral tribunals and the removal of an arbitrator through the exercise of supervisory jurisdiction, in the absence of a clear mechanism within the arbitration agreement, should be normally governed by the law applicable to the arbitration agreement itself, rather than by the procedural rules that govern the arbitration process—It is, after all, the lex arbitri that governs the arbitration and its associated processes—The mere choice of ‘place’ is not sufficient, in the absence of other relevant factors, to override the presumption in favor of the lex contractus. (Para 11, 31) Interpretation of Contracts—To resolve conflicts between competing or inconsistent clauses...
Arbitration and Conciliation Act, 1996—Section 11(6)—An arbitration agreement stipulating a three-member tribunal—The petitioner contended that appointing a sole arbitrator contradicted the agreement and insisted on a three-member panel—Initially, the respondent consented to a sole arbitrator appointed by the court but later sought a three-member tribunal, leading to inconsistency in their position—The court upheld the appointment of a sole arbitrator, highlighting the respondent's attempts to delay the arbitration process and their prior commitment to a sole arbitrator—The court underscored that a party forfeits its right to appoint an arbitrator if it obstructs the arbitration proceedings—Relying on established precedents, the court reiterated that failure to comply with the arbitration agre...
A writ petition filed for enforcement of lease agreement terms, the court addressed the maintainability of the petition against a nationalized bank for alleged non-payment of rent and corporation tax—The lease, executed under a registered deed on December 13, 2011, was for a 12-year term starting August 1, 2011—Post the original lessor's death, the petitioner, as the new owner, sought redress for dues from January 2015 to August 27, 2018—The bank contested the writ's maintainability, arguing it involved a private contractual dispute and challenged the lease's validity—The court held that despite being a private contract, the bank's role as a public authority performing public functions allowed for writ jurisdiction—It found the bank in breach of the lease terms and ordered it to pay ₹11,56,3...
A lease deed executed for the first floor of a property in New Delhi, disputes arose over unpaid rent and an alleged agreement-to-sell—The respondent filed a counter-claim, arguing it was intrinsically linked to the primary dispute and should be resolved through arbitration—The petitioner contended that the counter-claim fell outside the scope of the arbitration clause in the lease deed, addressing issues not covered by the lease agreement—The court held that the counter-claim was arbitrable under the broad arbitration clause in the lease deed—It ruled that the counter-claim was connected to the primary dispute and its arbitration was necessary to avoid multiplicity of proceedings—The court concluded that the arbitration clause was sufficiently broad to encompass the counter-claim, as the facts of both claims...
Allotment of Land—Penal Interest—Petitioners were allotted a group housing plot but failed to adhere to the payment schedule, leading to a demand for penal interest by the Uttarakhand Avas Evam Vikas Parishad—Whether the petitioners are liable to pay penal interest for delayed payments during a period when the sale of land was banned—Petitioner's Arguments—The ban on land sales prevented timely payments, and thus, penal interest should not apply —Respondent's Arguments—The petitioners were contractually obligated to pay installments on time, regardless of the ban—The court dismissed the petition, upholding the demand for penal interest—The ban on land sales did not excuse the petitioners from their contractual obligations to pay installments on time—The hire purchase agre...
(A) Lease agreement—Arbitration and Conciliation Act, 1996—Sections 34 and 37 (1) (c)—Code of Civil Procedure, 1908—Order XLI—Lease agreement—Executed by MHADA—In favour of society—Dispute began, when respondent, by his letter, alleged default against appellant—Filed petition before High Court under Section 11 of Arbitration Act—Arbitrator appointed—Award made by Arbitral Tribunal in favour of respondent—Award challenged by appellant—Allowed by single Judge—Respondent challenge the judgment of single Judge—Division Bench passed an order of remand to single Judge—On ground that single did not consider several issues—Cross-appeals—Filed by both parties—Determination of—Considering nature of findings recorded by single Judg...
Hindu Religious and Charitable Endowments Act, 1959, Section 78—SLP by encroachers, to prevent eviction—Appreciably, more so on account of the efforts put in by the learned counsel appearing for the respective parties, the lis inter se the parties stand resolved on the following mutually agreeable terms and on the basis of the instructions imparted to the learned counsel for the respective parties, as stated in the Court, these petitions are being disposed of in the following terms—Landlord given permission to evict the Rent defaulters immediately—Other tenants were given a few months to vacate—After that period, Landlord given permission to evict them also—Rent, prior to Covid, in the year 2015, is fixed—These tenants shall file an undertaking before this Court agreeing to the aforesaid terms, wi...
Petitioner contested the closure of defendant No.2's evidence due to his failure to conclude it despite multiple opportunities—The petitioner argued that he wasn't cross-examined by the plaintiff after his examination-in-chief and was denied sufficient chances to present witnesses—Seeking another opportunity to conclude evidence and offering to pay costs, the petitioner's revision petition was granted by the High Court—The impugned order was set aside, conditional upon payment of Rs. 20,000/- as costs to the plaintiff—The Court noted potential prejudice to the petitioner without the opportunity for cross-examination and criticized the trial Court for not imposing costs before the drastic step of closing the evidence—The High Court, ensuring fairness, granted the petitioner one effective chance to ...
Maharashtra Value Added Tax Act, 2002—Section 56—Agreement between the parties is primarily a contract for services, not involving the sale of software—The key clause, Clause 4, emphasizes that all materials and products, including any software developed, belong to QAD from inception—Appellant's employees, while providing maintenance and support, do not gain ownership or marketable rights over the software—The consideration is for manpower services at a fixed monthly rate per person—The Tribunal's reliance on certain judgments related to income tax matters is misplaced, as they are not applicable to the VAT context—The pith and substance of the agreement reveal a service contract, not a works or composite contract—The Tribunal's misinterpretation of Clause 4 warrants setting asid...
Arbitration and Conciliation Act, 1996, Section 8, 11(6)—Arbitration agreement—Civil suit—Reference to Arbitration Clause—For a plea of fraud to oust an arbitrator's jurisdiction, it must be serious—The court's focus is on verifying the existence of a valid arbitration agreement during Section 11(6) or Section 8 applications—Non-arbitrability, such as statutory protection for consumers, is considered—Objections can arise, but often they aim to evade the parties' commitment to an arbitration process—Three objections raised by the appellants include the absence of an arbitration clause, the nature of the suit as an action in rem, and a plea of fraud—The court rejects the first objection, emphasizing that suits for cancellation or declaration of rights from a deed are actions ...
Indian Stamp Act, 1899—Section 35—Arbitration and Conciliation Act 1996—Sections 8 and 11—Contract Act 1872—Section 2(g)—Unstamped arbitration agreements are not void; Section 35 of the Stamp Act renders them inadmissible but not unenforceable—The defect of non-stamping or inadequate stamping is curable—Objections related to stamping do not fall under Sections 8 or 11 of the Arbitration Act—The court's role is to assess the prima facie existence of the arbitration agreement, not to rule on stamping issues—Such stamping objections fall within the arbitral tribunal's jurisdiction—Unstamped agreements are not void ab initio or unenforceable; instead, the deficiency is remediable, and the arbitration process can proceed with the tribunal addressing stamping concerns. ...
Settlement Agreement—Hindu Marriage Act, 1955—Section 13-B—Code of Criminal Procedure, 1973—Sections 482 and 125—Indian Penal Code, 1860—Sections 498-A, 323, 504 and 506—Dowry Prohibition Act, 1961—Section 3/4—Charge-sheet—Quashing of—Application for—Legality of—Interim settlement—That parties have decided to take divorce by filing a petition under Section 13-B of H.M. Act before Family Court—It has been agreed between parties that husband shall pay one-time settlement amount of Rs. 22,00,000/-—Which includes permanent alimony and stridhan—Husband has produced a Demand Draft for Rs. 11,00,000/- drawn on State Bank of India in favour of wife—It has been agreed between parties that remaining amount i.e. Rs. 11,00,000/- will be paid by...
Decree for declaration—Settlement agreemente—Registered will—Application seeking the release of money deposited in a suit concerning the temple—The application was filed by legal heirs of a deceased defendant, Mr. Narinder Kumar—The court reviewed past orders and framed issues related to the dispute over temple shares—A settlement agreement was reached among the parties, accepting a registered will and allowing the release of deposited amounts—The court ordered the release of 11 fixed deposit receipts totaling Rs. 1,08,96,045, dividing the sum among legal heirs—Additionally, the court addressed applications related to street hawkers and shopkeepers around the temple premises, granting exemptions and permissions—Further discussions included the constitution of oversight committees, dema...
Transfer of Property Act, 1882—Section 5, 6—Actionable claim—refers to two specific categories: (a) a claim to unsecured debt, excluding debts secured by the mortgage of immovable property, hypothecation, or pledge, and (b) a beneficial interest in movable property—These two categories are recognised as legally enforceable—Claims falling outside of these two categories are not considered "actionable claims" under the law—Agreements constitute an assignment or a security interest—IL&FS sought financial assistance from HDFC, and various agreements were executed—The court examined these agreements to determine if they represented a transfer of ownership or a security arrangement—The dispute revolved around receivables held in an escrow account—The court concluded that ...
Income Tax Act, 1961—Section 90—To give effect to a Double Tax Avoidance Agreement (DTAA) or its protocol altering existing law, a Section 90(1) notification is mandatory. When a nation receives more favorable treatment under a multilateral organization but seeks the same in a DTAA with India, a separate notification is needed to amend the earlier DTAA—The term "is" implies a present meaning, so the relevant date for a "same treatment" claim is when the treaty was entered into with India, not when the other country became an OECD member later. ...
Arbitration and Conciliation Act, 1996, Section 11—No Stamp Duty Is Payable On An Instrument Executed By, Or On Behalf Of, Or In Favour Of The Government, N.N. Global Not Applicable To Such Instrument—Appointment of an arbitrator for disputes arising from a Work Order—The respondent opposed it, claiming no valid arbitration agreement, failure to approach the Dispute Resolution Committee, and the agreement being unstamped—The court found the petitioner entitled to arbitration due to their relationship with the original contracting party—It held the petition was not premature as the petitioner had requested dispute resolution—Moreover, the Work Order was exempt from stamp duty, and thus the arbitration clause was valid. The court appointed an arbitrator for the disputes. ...
Arbitration and Conciliation Act, 1996, Section 11—Arbitration Clause Allowing One Party To Appoint 2/3rd Of Arbitral Tribunal Is Not Enforceable—Pertains to a dispute arising from a lease agreement—Arbitration clause in the agreement specifies a three-member tribunal, with one arbitrator nominated by the petitioner and one by the respondent—The presiding arbitrator is to be appointed by the respondent's vice chairman—The petitioner alleged that the respondent refused to accept its nominee arbitrator and instead offered a list of five individuals from which the petitioner must select its nominee—The petitioner contended that this panel was not broad-based, violating legal precedents—The court agreed, citing prior rulings, and appointed two independent arbitrators—The court clarified that...
Arbitration and Conciliation Act, 1996 Section 34, Section 37—Agreement for earthwork in Iraq was made between Royal Construction Company Private Limited and National Projects Construction Corporation Limited—The agreement did not specify payments in Indian currency (INR) except for a particular amount of Rs. 20 lakhs against the encashment of a bank guarantee—The award and agreement only allowed conversion of the awarded amount to US Dollars. This Court determined that there was no need to set a conversion date for US Dollars to INR. Payment must be made in the foreign currency along with computed interest. Parties were free to accept INR at current or agreed rates, but the Court couldn't alter the agreement's terms.This Court ruled that there was no provision for payments in INR in the agreement, awa...
Arbitration and Conciliation Act, 1996, Section 34, 37—Agreement was made between the appellant and the corporate debtor for a development project. Arbitration awarded in favor of the appellant—Later, the corporate debtor faced insolvency proceedings—The appellant submitted a claim, which was rejected as untimely—The appellant argued for its inclusion, but the National Company Law Appellate Tribunal (NCLAT) disagreed—The Supreme Court upheld the NCLAT's decision, emphasizing the importance of timely claims in the insolvency resolution process—The appeal was dismissed. ...
Rajasthan Sales Tax Act, 1994—Sections 2(38), 28 and 30—Case involves multiple civil appeals arising from various Indian states regarding the taxation of credit notes issued by automobile manufacturers to dealers for replacing defective parts under warranty agreements—The central question is whether such credit notes are subject to sales tax—The reference order raised doubts about the applicability of a previous judgment (Mohd—Ekram Khan & Sons case) and called for a larger bench to consider the matter—This case summary pertains to one specific case involving M/s Marudhar Motors, a dealer of TATA Vehicles, and their dispute over sales tax assessments for warranty-related transactions. ...
Special leave petitions were dismissed with the court providing reasons—The court clarified that the judgment in Vidya Drolia & Ors. vs. Durga Trading Corporation (2021) did not address the effect of unstamped or under-stamped contracts on arbitration agreements, and therefore, it was not a precedent on this issue—They also discussed the distinction between existence and validity of arbitration agreements—The court emphasized the importance of distinguishing between obiter dicta and ratio decidendi in legal judgments and applied these principles to dismiss the petitions. ...
Flat Buyer Agreement—Clause 9(c)—Case involving Parsvnath Developers Limited and the Chandigarh Housing Board, the National Consumer Disputes Redressal Commission passed an order regarding compensation in a property development dispute—The developer appealed the order, arguing that the compensation should be shared with the Housing Board—The Supreme Court modified the order, stating that the developer is liable for 70% of the compensation, with the remaining 30% being the Housing Board's responsibility—The appeals by Parsvnath Developers Limited were partly allowed. ...
Electricity Act, 2003—Section 125—legal case, the court examined whether there had been a change in law that would impact the exemption of customs duties for goods imported for a captive coal mine as part of a power project—The court concluded that there was no change in law, as the government's interpretation of the law remained consistent, and the exemption should continue to apply—The court also extended the benefit of the decision to certain respondents and set aside the orders against them. ...
Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972—Section 30—Deposit of rent in Court—Tenant's appeal related to rent and eviction proceedings in a Small Causes Court—The landlord's eviction suit was allowed, and the tenant's appeals were dismissed—The tenant had been depositing rent in court due to a dispute with the landlord—However, the landlord served a notice demanding rent at a higher rate, and the tenant did not tender the rent to the landlord but continued depositing it in court—The court held that once the landlord expressed willingness to accept the rent, the tenant was obligated to pay the landlord directly—The appeal was dismissed. ...
Central Excise Act, 1944—Section 4(4)(c)—Valuation of excisable goods—Related person—Question revolved around whether the price at which M/s Bilag Industries Ltd—(BIL) sold its products should be treated as a transaction with a 'related person' under Section 4(4)(c) of the Central Excise Act, 1944—BIL had entered into a joint venture agreement with AgrEvo SA and later became a subsidiary—The court held that mere shareholding and common procurement of raw materials did not establish the necessary interdependence and mutual interest in each other's businesses required to deem them as 'related persons' under the Act. ...
Bombay Rents, Hotel and Lodging House Rates (Control) Act, 1947—Section 13(1)(e) and 15(1)—Civil appeals involve a dispute over the eviction of a tenant from leased premises in Pune, India—The tenant was accused of violating lease conditions by assigning the business to another party—Despite some legal complexities, the Supreme Court ultimately found that the tenant's actions constituted a breach of the lease agreement, leading to his eviction—The court set aside the Bombay High Court's decision and upheld the Trial Court's judgment in favor of the landlords, granting them possession of the premises. ...
Civil Law—Execution of decree—Appeals arose from a dispute over an agreement to operate a hospital—The parties disagreed over the inclusion of a loan amount in the agreement—The High Court expanded the agreement in favor of one party, but the Supreme Court held that it couldn't go beyond the decree and overturned the decision. ...
Agreement—Code of Civil Procedure, 1908—Order XXI Rule 90 read with Section 51—L.P.G. gas agreement—Dispute between N.G. Enterprises and ‘G’ Civil suit filed by ‘G’—Trial Court passed a decree by directing judgment debtor to provide L.P.G. gas—Judgment debtor did not fulfill first portion of order—Decree holder filed execution petition—Appellant filed objection—Rejected—Appellant filed civil appeal—Appellate Court allowed said appeal—Subject-matter before High Court—High Court allowed petition—Observing that appellant has failed to plead and establish nature of irregularity or fraud committed in sale and thereof, no fault can be found in order of Executing Court—Appeal against before Supreme Court—Determination of—...
(A) Agreement—Code of Criminal Procedure, 1973 Section 125—Maintenance—Rights of wife—Determination of—Law is well settled that an agreement by which a wife waives her right of maintenance protected under Section 125 of CrPC is an agreement against public policy and same is ab initio void and not enforceable—Claim for allowance of maintenance by wife cannot be disputed or denied—On the basis of a void agreement and wife is entitled to get maintenance ignoring the said void agreement. (Para 13) (B) Maintenance—Muslim Women (Protection of Rights on Divorce) Act, 1986—Section 3—Family Courts Act, 1984—Section 19 (4) —Code of Criminal Procedure, 1973—Section 125—Maintenance—Grant of—Respondent contended that revision petitioner had been runnin...
A. Contract Act, 1872—Sections 2 and 10—Contract Formation—A contract is considered to be concluded when the parties involved are in complete agreement on all the crucial terms of the contract. B. Contract Act, 1872—Sections 2 and 10—Contract Formation—A contract is deemed concluded when the essential terms outlined in the proposals are accepted, and this acceptance is effectively communicated. Furthermore, the contract must satisfy the conditions set forth in Section 2 of the Indian Contract Act, including the presence of consideration, and it must be legally enforceable, as defined in Section 10 of the Act. This combination of factors results in the establishment of a binding contract. ...
Complaint—Negotiable Instruments Act, 1881—Section 138—Code of Criminal Procedure, 1973—Section 482—Agreement—Executed between partners, including petitioner and respondent—Who were running hotel business—Issued a cheque amounting to Rs. 20,83,000/- in favour of respondent/complainant as part payment against transfer of share of respondent/complainant—Said cheque was presented for encashment in Bank—Dishonour—Respondent/complainant filed complaint—Petition preferred petition—For quashing of complaint—Determination of—In the instant case, objection/grounds raised by petitioner, registering the complaint case under Section 138 of N.I. Act against him are grounds of defence—Which are required to be proved by him before trial Court by adducing evid...
——The obligation to pay property tax and surcharge under Section 230 of the Act 1980 and Section 5(8) of the Act 1997 does not necessarily make these amounts part of the rent for a leased property—While tenants are responsible for paying their share of municipal taxes and such amounts can be recovered as arrears of rent, this does not imply that the tax component is included within the rent itself—Whether the tax component is deemed part of the rent depends on the specific terms of the tenancy or lease agreement—If the agreement stipulates a fixed amount that includes taxes, then taxes can be considered part of the rent—Conversely, if the agreement or statutory provisions mandate separate payment of taxes, they are recoverable as arrears but not deemed part of the rent. ...
Arbitration and Conciliation Act, 1996—Section 11(6)—when there's no arbitration agreement between the parties, the High Court's invocation of jurisdiction under this section is not valid for appointing a sole arbitrator. ...
Civil Procedure Code, 1908 (CPC), specifically Order 23 Rule 3A, establishes that when a compromise forms the basis of a decree, Rule 3A applies if that compromise is void or voidable. Parties involved in a consent decree based on such a compromise must challenge its lawfulness in the same court that recorded the compromise; separate suits for this purpose are not allowed. Furthermore, a stranger to the proceedings cannot initiate a separate suit to challenge the compromise decree. Rule 3A was introduced to prevent the proliferation of legal proceedings. In essence, any agreement or compromise that is clearly invalid is not considered lawful under Order 23 Rule 3 and 3A of the CPC. ...
(A) Civil Procedure Code, 1908 (CPC) Order 30 Rule 1—Indian Partnership Act, 1932, S.68, S.68(2)—Appeals in question relate to a case where the plaintiffs, Budh Singh and Kan Singh, sought a mandatory injunction and changes in the dealership record against Bharat Petroleum Corporation Limited (BPCL) and its Senior Divisional Manager. The dispute arose because BPCL's dealership agreement indicated only two partners, Bal Kishan and Ganpat Singh, of the firm "Jaman Singh Pabu Singh," while the plaintiffs claimed to be partners as well. (B) Civil Procedure Code, 1908 (CPC) Order 30 Rule 1—Indian Partnership Act, 1932, S.68, S.68(2)—The trial court and the first appellate court both found in favor of the plaintiffs, concluding that the plaintiffs were indeed partners and entitled to have their...
Income Tax Act, 1961, compensation for terminating the management of CDBL was considered a capital receipt until the Assessment Year 2003-2004—Only with the Finance Act of 2002, effective from 1-4-2003, did it become taxable as a revenue receipt under Section 28(v-a)—This legislative change cannot be applied retrospectively—Compensation under the non-competition agreement became taxable as a capital receipt, not revenue, specifically due to Section 28(v-a) and only from 1-4-2003—Therefore, Section 28(v-a) is amendatory, not clarificatory—When a contract results in the ordinary course of business, compensation for its termination is a revenue receipt—Here, the Tribunal and CIT(A) both deemed the payment by Ranbaxy to be a capital receipt due to the agreement's loss of business source—Parliament...
Penal Code, 1860 (IPC) -Section 323 ,Section 34 ,Section 406 ,Section 498A ,Section 506 —criminal case, counsel for the appellant and the State informed that the husband and wife, involved in the matter, had amicably settled, leading to the quashing of the FIR against the appellant, a distant relative—The appeal was thus resolved in accordance with this agreement. ...
Transfer of Property Act, 1882 S.105 A—Under the Transfer of Property Act, 1882, for an agreement to be classified as a lease, it's crucial that there's an actual transfer of the property on the agreement's date. B—The Transfer of Property Act distinguishes between a lease and an agreement to lease in India—An agreement to lease can result in an actual transfer, making it a lease—Alternatively, it can be an executory agreement binding both parties to grant and accept a lease in the future—In England, the law differs from India regarding such executory agreements—An executory agreement to lease, not creating an immediate transfer, doesn't require writing or registration—Initially, it was believed that a prospective lessee who took possession under an agreement to lease, su...
Arbitration and Conciliation Act, 1996—Section 11 and 11(6)—A agreement designates specific arbitrators, their appointment must adhere to the agreement's terms.—The High Court's appointment of an independent arbitrator, contrary to the contract's Clause 64, was incorrect.—The appeal was granted. ...
Penal Code, 1860 (IPC)—Sections 406 and 420—Criminal Procedure Code, 1973 (CrPC)—Section 482—Breach of contract and for damages—Complaint alleged that the respondent had not paid the full amount due under an agreement for intellectual services—The High Court of Kerala quashed the criminal proceedings, stating that the dispute was of a civil nature and did not satisfy the elements of the IPC sections—The Supreme Court upheld the High Court's decision, finding no criminality and that the dispute was being improperly turned into a criminal matter. ...
Arbitration and Conciliation Act, 1996—Section 8—Consumer Protection Act, 1986—Section 3—Arbitration agreement between the parties—The choice to pursue additional special remedies provided under statutes or arbitration is with the aggrieved party—However, if an aggrieved party opts for specific/special remedies provided in a statute, then judicial authorities may refuse to relegate the parties to arbitration. ...
Civil Procedure Code, 1908 (CPC)—Order 22 Rule 4—Property partition case, all three courts concluded that both wills were proved, and the reasons and conclusions regarding the proof of both wills were just and proper—The appellants were found not to have the right to question the agreement of sale, as this plea was not raised before the trial court and could not be raised for the first time before the appellate courts—Mere escalation of price was not a sufficient ground for interference at this stage, and the appellants did not have the standing to challenge the judgment of the Division Bench since they were not owners of the property—Therefore, their appeals were dismissed—Regarding the abatement of an appeal due to the non-substitution of legal representatives of a deceased defendant, it was clarified...
Consumer Protection Act, 1986—Section 23—Housing—Flat Buyers Agreement—Court found that the delay in the completion of the project was due to mandatory requirements to resubmit plans and obtain fresh NOC (No Objection Certificate) for fire safety permission—The court also noted that transfers had occurred within the same family where members had been living together—Additionally, there was no complete ban on sand mining—As a result, the appellant (developer) was ordered to pay a lump sum compensation of Rs. 5 lakhs to the respondents (buyers) in each case. ...
Settlement through mediation, resolving their ancestral property dispute. The settlement entails the allocation of property rights among parties, withdrawal of pending cases, and the sale of a floor to a third party. Specific financial arrangements are detailed. The settlement includes agreements on construction, power of attorney, and dispute resolution. All disputes between the parties are considered abated after the settlement, and they pledge not to initiate further legal action. The court appreciates the mediator's efforts and directs adherence to the settlement terms. ...
Civil Procedure Code, 1908 (CPC)—Order 6 Rule 17—Plaintiff initially sought a declaration and permanent injunction but did not include a specific prayer for the specific performance of the agreement—An application to amend the plaint to seek specific performance was dismissed and became final—The High Court rightly reversed the first Appellate Court's decision to grant specific performance, stating that the plaintiff was not entitled to the reliefs sought, including on grounds of limitation—The appeal was dismissed, emphasizing the necessity of a specific prayer for specific performance in the plaint. ...
Arbitration and Conciliation Act, 1996—Section 44, Section 46, Section 47, Section 48—Enforcement of the award—Enforcement of an arbitral award—In a case, the appellant argued that they did not sign the Charter Party and therefore were not bound by the arbitration agreement—However, it was determined that under English law, the Charter Party did not require signatures to be binding—Both the arbitrator and the High Court found a valid arbitration agreement based on the Charter Party and correspondence between the parties—The term "agreement in writing" is broad, encompassing arbitration clauses in contracts, agreements, or even correspondence—The High Court's judgment was upheld, and the appeal was dismissed. ...
Mediation before the Supreme Court on July 20, 2018—They have now amicably settled their disputes through mediation, and a Settlement Agreement dated August 8, 2018, has been accepted by the Court—The appeal is disposed of according to the Settlement Agreement, and the Court appreciates the efforts of the mediator and the cooperation of the parties and their counsel—The parties are directed to take further steps as per the settlement, and any pending applications are also disposed of. ...
Criminal Procedure Code, 1973 (CrPC)—Section 357, Section 428—Penal Code, 1860 (IPC)—Section 120A, Section 120B, Section 120B(1), Section 120B(2), Section 148, Section 302, Section 332—Individuals were tried for various offenses in Coimbatore, India—The prosecution alleged they were involved in a conspiracy and murder on September 5, 1991—The Sessions Judge convicted them, but the High Court acquitted one and upheld the conviction of another (A-6) under Section 120-B IPC—A-6 appealed, arguing that he was not part of the conspiracy and not involved in the murder—The central issue is whether A-6 should be held guilty—The appellant's counsel argued that the evidence against A-6 was unreliable. ...
Agreement—granted leave in a dispute regarding the share of a deceased mother's property—The parties reached an amicable settlement, and the appeals were disposed of accordingly. ...
Specific performance of a property purchase agreement—The lower courts granted the request, but the Supreme Court held that the buyer failed to prove readiness and willingness to pay the balance—The court ordered the return of earnest money with interest and permitted the withdrawal of the deposited amount—The appeal was allowed. ...
Competition Act, 2002—Section 18, Section 19, Section 19(3), Section 2(c), Section 27, Section 3, Section 3(1), Section 3(3), Section 3(3)(a), Section 3(3)(b), Section 3(3)(c), Section 3(3)(d)—Constitution of India, 1950—Article 19(1)(c)(g)—Agreement—Bid rigging—Allegations of bid rigging in a tender for the procurement of 14.2 kg LPG cylinders by IOCL—The appellants argue that the unique circumstances of the market, where there are only three buyers, including IOCL, and government regulation of LPG distribution and pricing under the LPG (Regulation and Distribution) Order, 2000, make collusion unlikely—The government controls essential aspects of LPG distribution, including price, and mandates that LPG cylinders be supplied in 14.2 kg size—Parallel marketeers can only supply cylinders...
Arbitration and Conciliation Act, 1996—Section 16, Section 37—Constitution of India, 1950—Article 136—Contract Act, 1872—Section 7—Dispute arising from a tender for a container terminal project—The appellant and Respondent No.2 formed a consortium to bid for the project—The documents related to the tender emphasized that they did not constitute a binding agreement—The Letter of Award was given but later withdrawn due to issues, leading to arbitration proceedings—The arbitration clause's applicability was contested, and the Arbitrator initially ruled against it—However, the High Court held that there was a concluded contract and the arbitration clause applied—The appellant argued that the clause was inappropriate. ...
Payment of Gratuity Act, 1972—Section 4, Section 4(5), Section 4(6), Section 4(6)(a), Section 4(6)(b)—Supreme Court of India addressed the issue of whether the forfeiture of gratuity under—The Payment of Gratuity Act, 1972 is automatic upon dismissal from service—The court ruled that forfeiture is not automatic and is subject to specific provisions outlined in sub-sections (5) and (6) of Section 4 of the Act—It clarified that forfeiture of gratuity can only occur in cases involving specific misconduct, such as offenses involving moral turpitude, and when established through a court conviction—The court also emphasized that the Act supersedes any rules or agreements made by the employer. ...
Criminal Procedure Code, 1973 (CrPC)—Section 409, Section 420, Section 438—Penal Code, 1860 (IPC)—Section 409, Section 420—Supreme Court of India addressed cases involving millers who were accused of misappropriating paddy and rice from the Bihar State Food and Civil Supplies Corporation—The millers were required to furnish bank guarantees or pledge property as security—The Court clarified that the requirement for a bank guarantee was related to the terms of the agreement and not the "defalcated sum." It upheld the cancellation of bail for millers who failed to meet their obligations under the agreements and allowed the Corporation to secure its interests by invoking bank guarantees or auctioning pledged properties. ...
Calcutta Municipal Corporation Act, 1980—Section 230—West Bengal Premises Tenancy Act, 1997—Section 20, Section 5(8)—landlord appealed against a High Court order that upheld the dismissal of an eviction application against a tenant for non-payment of municipal taxes—The tenant's obligation to pay municipal taxes, as per the Kolkata Municipal Corporation Act, was separate from rent—The court ruled that the tenant's default in paying municipal taxes constituted a valid ground for eviction, and there was no need for formal rent enhancement orders—The landlord's application for eviction was allowed, overturning the High Court's decision. ...
Evidence Act, 1872 - Section 114—Case involves two separate suits for specific performance of land sale agreements in India—One was filed by a society, and the other by an individual—Both suits were dismissed in lower courts, and appeals were filed—The higher court upheld the dismissal of the society's suit but questioned the appeal by the individual—The court stated that it could intervene when there is a manifest injustice and proceeded to analyze the evidence, ultimately affirming the lower court's decision to dismiss the society's suit. ...
Arbitration and Conciliation Act, 1996—Sections 8 and 45—Reference to arbitration—Arbitration agreements are enforceable in law, and the jurisdiction of an arbitrator is based on such agreements—However, if parties claim that the agreement is tainted by fraud, a court may decline arbitration—Simple fraud allegations concerning internal matters don't nullify arbitration, but serious fraud issues can warrant a refusal. ...
Criminal Procedure Code, 1973 (CrPC) - Section 482—Penal Code, 1860 (IPC) - Section 120(b), Section 294(A), Section 420—Accused Nos.2 and 3, sought to quash a criminal case (Crime No—304 of 2012) filed against them in Chennai—The case stemmed from the discovery of a large sum of cash at the residence of the main accused, Nagarajan, suspected to be from illegal lottery ticket activities—The accused claimed an unregistered sale agreement as a source of the cash—The High Court of Madras, while the investigation was ongoing, quashed the case—However, the Supreme Court overturned this decision, stating that the investigation should continue based on the significant cash recovery and questions surrounding the sale agreement's authenticity. ...
Transfer of Property Act, 1882 Section 53A.Appellant and respondent entered into an agreement to sell a property—The respondent failed to perform their contractual obligations, leading to a lawsuit by the appellant for possession and mesne profits—The trial court decreed possession and mesne profits, but the Division Bench set aside the mesne profit award due to a lack of evidence—The Supreme Court ordered the respondent to pay Rs—5 lakhs as compensation to the appellant, which the appellant refused, allowing them to withdraw the amount—The cross-appeal by the respondent was dismissed as withdrawn. ...
Dispute over a property sale agreement—The trial and appellate courts found in favor of the defendant, stating that the plaintiff failed to prove the payment and authenticity of the agreement—However, the High Court reversed this decision based on the pleadings in the case without proper scrutiny of evidence—The Supreme Court allowed the appeal, reinstated the trial court's decree, and disposed of pending applications. ...
Civil Procedure Code, 1908 (CPC)—Order 41 Rule 31—This appeal concerns a civil suit for specific performance of an agreement.—The trial court decreed the suit in favor of the appellants, but the single judge of the high court overturned this decision.—The Division Bench of the High Court subsequently dismissed the appellants' appeal without providing reasoned findings.—The Supreme Court allowed the appeal, set aside the High Court's order, and remanded the case for a fresh decision with a clear, reasoned judgment.—No observations on the merits were made. ...
Competition Act, 2002 Section 3, Section 4, Section 4(2)(c) —Dispute between a broadcaster and multi-system operators (MSOs) over the termination of a broadcast agreement The Competition Commission of India found that the MSOs, in a dominant position in the market, had abused their position by denying market access to the broadcaster—However, the Supreme Court ultimately ruled that while there was an abuse of a dominant position, no penalty should be imposed due to the broadcaster's low ratings, justifying the termination. ...
Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 - Section 13(2)—long-standing dispute over the development and rehabilitation of a slum in Mumbai—Over several decades, various agreements were made and terminated between the slum dwellers' society, developers, and authorities—Litigations, delays, and changes in developers have resulted in the slum dwellers' continued poor living conditions—The matter has seen numerous legal battles, including disputes over development agreements and the termination of developers. ...
Constitution of India, 1950—Article 133—Settlement agreement—It is submitted by the learned counsel appearing on both sides that they have settled their disputes outside the Court and the settlement agreement has been filed before this Court by way of I.A. in C.A. - Appeal stands disposed of ...
Stock Exchange—Case involves the Revenue challenging a High Court judgment regarding income from the use of "Maersk Net" in the shipping business—The Court ruled that this income is not a fee for technical services but a reimbursement of expenses, not taxable in India—The judgment was based on established principles and upheld the Double Taxation Avoidance Agreement between India and Denmark—The court dismissed the appeals. ...
Constitution of India, 1950—Article 133—Payment of misuse charges—Respondent filed a suit contesting a demand for misuse charges of Rs. 42,11,604 due to non-residential use of a residential property by a sub-tenant—However, the Court determined that the respondent could not backtrack on their prior agreement regarding misuse charges, making it unclear that this was an alternative argument—The respondent's position was that the amount should not exceed Rs. 10,31,630. ...
Mines and Minerals (Development and Regulation) Amendment Act, 2015—Section 10A(1)—Grant of mining lease—The petitioner is eligible to be considered as its application falls in the category carved out and further that since no approval of the Central Government is required, the State Government could itself grant the lease—It is argued that failure of the State Government amounts to contempt of the orders of the Court—In order to enable the State Government to enter into any lease agreement/contract with the prospecting licensee, 'previous approval' of the Central Government was essential—Unless such approval came, the State Government could not communicate to the prospecting licensee/lessee its intention to enter into any contract as the pre-requisite prior approval would be lacking—There...
Civil Procedure Code, 1908—Order 41, Rule 31 read with Order 14, Rule 1—Points for determination—First appellate Court shall state points for determination, decision thereon and reasons for decision—However, mere omission to frame point/points for determination does not vitiate judgment of first appellate Court provided that first appellate Court records its reasons based on evidence adduced by both parties—An appellate Court is final Court of facts—Judgment of appellate Court must reflect Court’s application of mind and record its findings supported by reasons—Points which arise for determination by a Court of first appeal must cover all important questions involved in case and they should not be general and vague—Even though appellate Court would be justified in taking a different vi...
Constitution of India, 1950—Article 133—Income Tax Act, 1961—Section 4—Capital or revenue receipt—Whether subvention payments received by the Assessee (an Indian company) from its parent company in Germany should be treated as capital or revenue receipts for taxation purposes—The Assessing Officer initially treated them as revenue receipts—However, the court found that these payments could be viewed as efforts to protect the capital investment of the Assessee Company, and therefore, they should not be considered as revenue receipts—As a result, the court allowed the appeals, setting aside the High Court's order. ...
Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993—Section 1—Execution of contracts—Issue of whether the provisions of the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 would apply to contracts that were entered into and fully executed before September 23, 1992, the date when the Act came into force—The court found that in this particular case, where both the agreement dates and supply dates were prior to the Act coming into force, the Act's provisions would not apply—The court upheld the order for the principal amount along with interest as per the contract, which needed to be paid to the respondents by the appellants within three months if not already paid. ...
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002—Section 34—Multiple appeals arising from a dispute between EIH Ltd—(a company operating luxury hotels) and Robust Hotels (P.) Ltd—The dispute centers around agreements related to the operation and financing of a hotel—EIH filed a lawsuit seeking declarations and injunctions—Robust Hotels, having acquired the hotel assets under the SARFAESI Act, argued that the Civil Court lacked jurisdiction to hear the matter—The High Court issued an interim order in favor of EIH, which led to appeals—The key issue revolves around the jurisdiction of the Civil Court in SARFAESI Act matters. ...
Finance Act, 1994—Section 65—Service of show cause notice—Appeals are filed by the appellants which are two Public Sector Undertakings of the State of Gujarat—They were served with show cause notice alleging therein that the appellant no. 1 was collecting 'incineration charges' from M/s. Gujarat Alkalies & Chemical Ltd. and the amount charged by GSFC from GACL amounted to providing 'Storage and Warehousing Services' falling under clause (zza) of Sub-Section (105) of Section 65 of the Finance Act, 1994 — The second ingredient has not been established in the present case and the question of service tax does not arise—In view thereof, it is not necessary to go into the question as to whether receiving of HCN through the common pipeline in the tank which is setup by the GFSC and GACL amo...
Constitution of India, 1950—Article 143(1)—Inter State Water Disputes Act, 1956—Section 14—Termination of the agreement—State of Punjab had the legal authority to validly terminate the agreement and any other related agreements regarding the Ravi-Beas waters—The key conclusion is that when one state is involved in a legal dispute or agreement, it cannot unilaterally terminate that agreement or disregard a decree issued by the highest court in the country—In this specific case, the State of Punjab is unable to free itself from its obligations stemming from a court judgment and decree, as well as an order from the highest court—Essentially, once a legal commitment is established through court decisions or agreements involving states, it cannot be unilaterally nullified by one party. ...
Liability to pay liquidated damages—Power Purchase Agreement (PPA) that outlined the payment of liquidated damages. Both the State Commission and the Appellate Tribunal concluded that the first respondent's liability for these damages should cover the period from May 29, 2011 (the Schedule Commercial Operation Date) to September 30, 2011. The appellant has filed these appeals, contending that neither the State Commission nor the Appellate Tribunal had the authority to go beyond the terms and conditions of the PPA to determine the first respondent's liability for liquidated damages or the duration thereof. ...
Arbitration Act, 1940—Section 20(4)—Arbitration and Conciliation Act, 1996—Section 8—Resolution of disputes—Arisen between parties based on a partnership deed that they have entered into—The key point to note is that even if one party may have engaged in fraudulent activities such as misrepresenting the quality of their goods, services, or financial status, this does not automatically invalidate the agreed-upon dispute resolution mechanism, which in this case is arbitration—As a general rule, fraud or fraudulent inducement must be specifically directed at the agreement to arbitrate in order to undermine that agreement as a substantive matter—Such circumstances where fraud is directly related to the arbitration agreement are relatively uncommon—In practical terms, it is not usual for a ...
Securities and Exchange Board of India Act, 1992—Section 11(3), Section 154, Section 15U—Supreme Court Rules, 1966—Order 13 Rule 6—Order of attachment—Out of eight properties offered for sale, six had already been attached by the Income-tax Department—There is some confusion regarding the total amount owed by the Saharas and the amount they have deposited so far—To resolve this, the Court has directed the Saharas to reconcile the figures with SEBI (Securities and Exchange Board of India) and submit a joint statement indicating the amount already deposited—Considering the circumstances and the agreement between SEBI and the Amicus (a legal advisor appointed by the court), the Court has extended the existing interim arrangement until October 26, 2016—However, this extension is conditiona...
Telecom Regulatory Authority of India Act, 1997—Section 18—Telegraph Act, 1885—Section 4(1)—Grant of license—The competent authority had granted a license to M/s. Fascel Limited under Section 4(1) of the Telegraph Act, 1885—The appellant, BSNL, acknowledges that the non-CLI (Calling Line Identification) calls transmitted by Tata Tele Services Limited to the BSNL network exceeded 0.5%—As a result, Clause 6.4.6 of the Interconnect agreement became applicable—Given this situation, the demand made by BSNL for the period from May 2003 to November 2003 lacks legal authority because Clause 6.4.6 was retroactively included in the Interconnect agreement between the parties—The order of the learned Tribunal has been partially set aside, indicating that there might be some revision or modificatio...
Negotiable Instruments Act, 1881 (NI)—Section 138, Section 139—Dishonour of a post-dated cheque—Issued for the repayment of a loan installment, which was also referred to as "security" in the loan agreement—The Court ruled that when the issuance of a cheque and the accused's signature on it are admitted, a presumption of a legally enforceable debt in favor of the cheque holder is established—It becomes the responsibility of the accused to counter this presumption, although they are not required to provide their own evidence and can rely on materials submitted by the complainant—However, a mere statement by the accused may not be enough to rebut the presumption—As a result, the appeal has been dismissed. ...
Contract Act, 1872—Section 28—Been determined that a void agreement, as described in Section 28 of the law, is subject to certain principles—First, it is noted that substantive changes in the law, particularly those of a remedial nature, cannot apply retrospectively—In other words, they do not affect past situations or agreements—Section 28 is considered a part of substantive law, and its language does not clearly indicate retrospective application—Therefore, it operates prospectively, affecting future situations rather than those that have already occurred—Furthermore, the changes introduced by Section 28 are considered remedial, meaning they aim to correct or improve the law—However, they are not clarificatory or declaratory in nature—This is important because when remedial changes a...
Electricity Act, 2003—Section 125—Agreement to generate and supply the power—Appellant had entered into an agreement to generate and supply power to Respondent No.1—The appellant raised 34 questions in the appeal, which were actually grounds for attacking the appellate order—However, under Section 125 of the Electricity Act, 2003, an appeal to the Court lies only when there is a substantial question of law, similar to the requirement for a second appeal under Section 100 of the Code of Civil Procedure, 1908—Upon reviewing the correspondence between the parties during the existence of the agreement, both the Commission and the Appellate Tribunal had ruled against the appellant—The Court found that there was no substantial question of law warranting its intervention under Section 125 of the Electric...
Constitution of India, 1950—Article 133—Property partition dispute case, the parties came to court seeking a resolution—Instead of proceeding with a traditional legal process, the court referred them to mediation in order to reach an amicable settlement—The parties successfully reached an agreement through mediation, facilitated by a mediator appointed by the Supreme Court Mediation Centre—They formally documented this settlement in a Deed of Settlement, which has been accepted and recorded by the court—As a result, the appeal in this case has been resolved and is considered closed. ...
Arbitration and Conciliation Act, 1996—Section 45—Contract Act, 1872—Section 28—Terms of the agreement—An American company agreed to provide consultancy and onsite services for a mine in India operated by the appellant—The High Court erroneously rejected the appellant's argument that two Indian companies can agree to arbitration for their dispute to be seated outside India, as there was no evidence that such a submission was made before the High Court—The court determined that the agreement in question was legally valid and enforceable, and as such, the court had no discretion but to order that the parties should resolve their dispute through arbitration in accordance with the agreement. ...
Arbitration and Conciliation Act, 1996—Section 11(6)—Agreement for cargo handling services—The petitioner sought the appointment of a sole arbitrator under the Arbitration and Conciliation Act, 1996—The respondent argued for the dismissal of the petition on grounds of limitation—The court found that there was a valid arbitration agreement in the agreement and that the disputes were arbitrable—The court appointed Justice N.K. Sodhi, a former Chief Justice of the Karnataka High Court, as the sole arbitrator to adjudicate the disputes—The parties were directed to appear before the arbitrator on a specified date. ...
Evidence Act, 1872—Section 91, Section 92—Consumer Protection Act, 1986—Sections 12 and 14—Agreement for the sale and purchase of an office room, where the buyer alleged non-delivery of possession. A written agreement governed the relationship, establishing the payment of Rs. 5 lakhs through a cheque out of the total purchase price of Rs. 7,75,000/-. The District Forum granted the complainant the option to pay a specified sum along with interest to obtain possession. Alternatively, the complainant could demand a refund of Rs. 5 lakhs with interest. The court ruled that when the terms of a transaction are documented in writing, it is impermissible to introduce evidence contradicting those terms, citing Sections 91 and 92 of the Evidence Act. The absence of a receipt for part payment in cash, not recorded in the regi...
Constitution of India, 1950—Article 12—Contract Act, 1872—Section 182, Section 185,—Salary Saving Scheme with a tripartite agreement among the employer, employee, and insurer (Life Insurance Corporation)—The Corporation approached employers to participate in the scheme, where the employers agreed to deduct premiums from employees' salaries and remit them to the Corporation—The employers, in response to the Corporation's proposal, accepted the responsibility of acting as agents for their employees—Disputes arose due to the employer's default in remitting premiums—The court held that although the employers were not agents in the regulatory sense, they functioned as ordinary agents in facilitating the scheme—The tripartite arrangement established the employers as intermediarie...
Contract Act, 1872—Section 182, Section 186, Section 187,—Appeal pertains to a suit seeking specific performance of an oral agreement for the sale of a plot—The plaintiff claimed that defendant No.2, acting as an agent of defendant No.1, entered into the agreement, supported by partial payments and a receipt—The trial court and the Single Judge of the High Court concurred on the existence of the oral agreement and granted a decree for specific performance—The defendants, appellant herein, appealed to the High Court's Division Bench, which affirmed the decision—The appellant argued that defendant No.2 had no authority to act as an agent—The Supreme Court dismissed the appeal, noting that the issue of agency was not specifically raised at trial, and defendant No.1 failed to deny or contest it&md...
Civil Procedure Code, 1908 (CPC)—Section 100—Appellants filed a suit for specific performance against Pritam Kaur, alleging an oral agreement of sale with her and Dayal Kaur—While Dayal Kaur executed the sale deed for half of the property, Pritam Kaur did not, subsequently selling it to respondents—The trial court granted specific performance, but the first Appellate Court reversed the decision, finding the oral agreement unproven—The High Court, in a second appeal, upheld the decision, deeming the first Appellate Court's findings as factual and not warranting interference—The Supreme Court affirmed the High Court's stance, dismissing the appeal, as the findings were factual and did not raise substantial legal questions—No costs were awarded. ...
Specific Relief Act, 1877—Section 15—Performance of a land sale agreement—Balwant Singh, the owner, entered an agreement to sell land, but due to various reasons, no sale deed was executed—Balwant Singh died, and his son, the appellant, entered into a subsequent agreement for sale in 1968—The trial court dismissed the suit for specific performance, stating that the appellant lacked authority to represent his sister in the agreement—The High Court allowed a Letters Patent Appeal, granting specific performance for the appellant's share and reducing the sale consideration by 50%—The appellant challenged this decision—The appellant argued against the application of Section 12(3) of the Specific Relief Act, contending that the respondents failed to comply with its requirements—However, ...
Karnataka Rent Control Act, 1961—Section 21(1)—Involves a dispute over the specific performance of an agreement to sell a property—Defendant 1 (D1) failed to fulfill the agreement's obligations and allegedly sold the property to Defendant 2 (D2), who claimed to be a bona fide purchaser for value without notice—However, evidence revealed disparities in D1's signatures on the sale agreement (Ex—D4) and the subsequent conveyance (Ex—P17), suggesting Ex—D4 was a fabricated document—The Trial Court dismissed the suit, but the High Court set aside the decree—The appellate court upheld the High Court's decision, emphasizing that D2 failed to prove being a bona fide purchaser—The Court also rejected the application of Section 20(2)(b) of the Specific Relief Act, stating D2 wa...
Civil Procedure Code, 1908 (CPC)—Order 6 Rule 1, Order 6 Rule 17—Agreement to sell executed by the original inamdar in 1968, filed a suit for perpetual injunction against respondent No. 1, Netha Spinning Mills, who acquired the land through liquidation of Hyderabad Deccan Weaving & Spinning Mills Limited—The trial court decreed in favor of the appellants, but the High Court allowed respondent's appeals, dismissing the appellants' suit and decreeing respondent's suit—The appellants contended that non-payment of annual rent/tax by the lessee resulted in forfeiture and reversion of the land to the original inamdar—The court found no such issue raised or evidence presented on this matter, and the plea was not raised earlier—Another argument regarding the liquidator's failure to obtain pe...
Transfer of Property Act, 1882—Section 41—ZEvidence Act, 1872—Section 114—Punjab and Haryana High Court, favoring Letters Patent Appeal No.335 of 1983—The deceased plaintiff, Sarwan Singh, represented by legal heirs, sought specific performance of a land sale agreement—Allegations included breach by defendant No.1, Kankar Singh, who sold to defendants No.2 and 3—Plaintiff claimed prior notice to defendants about the agreement—Single Judge decreed the suit, but a subsequent Single Judge reversed it—On appeal, the Letters Patent Bench upheld the Trial Court's decree—Supreme Court remanded, emphasizing the alleged notice—Division Bench, post-remand, emphasized plaintiff's claim, dismissing Single Judge's findings—This appeal reinstates Single Judge's decr...
Specific Relief Act, 1963—Section—12(3)—Dispute involves an agreement for the sale of land initiated by the defendant-appellant's father in 1964—Following the father's demise, the defendant-appellant entered into a new agreement in 1968 for the same land jointly owned with his sister, in favor of the plaintiff-respondents—The suit was decreed for the defendant's half-share, subject to payment of half the agreed consideration—The court ruled that as the properties were distinctly identified by the shares of the vendors, the agreement could be enforced against the signing vendor with identifiable property—However, since the plaintiff sought enforcement of part of the entire contract, they were required to plead readiness and willingness to perform their part of the whole contract—T...
Civil Procedure Code, 1908 (CPC)—Section 100—Specific Performance of Repurchase Agreement—The Supreme Court addressed the distinction between an option to repurchase and an ordinary agreement for sale in a case involving a suit for specific performance of a contract regarding an agreement to repurchase property—The Court emphasized that every agreement of sale, where the original owner agrees to buy back the property, is not necessarily a privilege or concession granted to the owner—The nature of the agreement depends on the interpretation of its provisions, and the mere labeling of the agreement as a re-conveyance does not alter its substance—The Court rejected a new plea raised in the second appeal related to a claimed variation in the sale consideration, holding that such a plea could not be raised a...
Electricity Act, 1910—Section 22B—Contract Act, 1872—Section 56—Consumer's obligation to pay minimum charges under a high tension supply agreement is contingent upon the State Electricity Board's duty to provide energy—If the contracted supply falls short of 40% of the contract load, the Board can only charge for the reduced energy supplied—The obligation to guarantee a minimum monthly consumption of 40% load factor implies a corresponding duty for the Board to provide the necessary supply—Failure to provide adequate supply renders the consumer exempt from paying minimum charges—This interpretation aligns with the Electricity (Supply) Act, 1948, and relevant provisions of the Electricity Act, 1910. ...
Electricity (Supply) Act, 1948 - Section 49 - Supreme Court overturns a High Court decision dismissing an appeal in a dispute over an electricity supply agreement. The appellant supplied electricity to the respondent under a 3-year agreement. The respondent sought to terminate the contract prematurely, leading to disconnection of supply. However, the appellant continued to demand payment for minimum charges until the agreement's expiry. The High Court erred in considering disconnection as termination and disregarded contractual provisions for termination. The Supreme Court rules that the agreement subsisted until its lawful termination and orders the respondent to pay minimum charges until the agreement's expiry. The respondent is directed to repay the amount already withdrawn with interest in six monthly installments starting fro...
Civil Procedure Code, 1908 (CPC)—Order 6 Rule 17, Order 7 Rule 1—Application against the order of the High Court, allowing an amendment to the respondent's application under Section 20 of the Arbitration Act, 1940—The respondent sought to convert the application into a suit for the recovery of a sum from the appellant—The trial court had rejected this amendment, citing a change in the nature of the suit and the claim being barred by limitation—The High Court, relying on inherent jurisdiction, allowed the amendment—The Supreme Court held that Section 20 of the Arbitration Act deals with a stage prior to the institution of a suit and does not convert the application into a plaint—The amendment introducing a new cause of action and changing the nature of the suit would cause prejudice to the appe...
Arbitration Act, 1940—Section 30, Section 33—Present case involves the interpretation of Sections 16 and 34 of the Arbitration and Conciliation Act, 1996—Section 16(2) and (3) delineate when pleas challenging the jurisdiction of an arbitral tribunal should be raised during proceedings—Sub-clause (2) mandates raising jurisdictional issues not later than the submission of the statement of defence—Sub-clause (3) requires objections about the tribunal exceeding its authority to be raised promptly during the arbitral proceedings—Section 34 of the Act allows the setting aside of an award but has a narrower scope than its predecessor, the Arbitration Act, 1940—The court clarifies that disputes related to specific performance of a contract, including those concerning immovable property, are not non-arbitr...
Constitution of India, 1950—Article 14—Electricity Supply Agreement: Kerala High Court ruling on validity of Section 49(5) of the Electricity Supply Act, 1948, challenged in appeals—The court held that the statutory amendment rescinded concessional rates for electricity supply to the Indian Aluminium Company Ltd—The State of Kerala appeals against the quashing of a duty demand, while the company challenges the validity of Section 49(5)—The appellant-company contends that the entire agreement was not annulled but only the concessional rates—The court agrees, citing a similar precedent—Moreover, the State's demand for higher duty rates is set aside, as the company retains statutory exemption—The court rejects discrimination claims, stating the amendment does not bar future special agreemen...
Civil Procedure Code, 1908—Order 39 Rule 1, Order 39 Rule 2—Partition Act, 1893 - Section 4—Transfer of Property Act, 1882—Section 44(2)—Co-owners and lessees—The plaintiffs and defendants are co-owners and lessees of a land parcel in Mumbai, containing 3349.53 Sq.meters—The property includes a main bungalow, outhouse, servant quarters, and garages—The defendants are brothers of the plaintiffs and defendants—The company, a private limited company, entered into an agreement of monthly tenancy with defendant No—4 and an assignment for defendant No.2—The property was originally granted to the grand father and great-grand father of the plaintiffs—The property was divided among the plaintiffs and defendants as tenants-in-common—For the last 60 years, all transactions...
Civil Procedure Code, 1908 (CPC)—Section 100—Gujarat High Court, which upheld the trial court's decision declaring that Bihari Lal, the father of the respondents, was the owner of certain trees on the suit lands—The trial court directed the State to grant permission to the respondents to cut and remove those trees—The lands were originally part of villages Kel and Babda, purchased by Chandubhai and subsequently sold to different individuals—Bihari Lal entered into an agreement with the occupants regarding the trees on the lands—The Divisional Forest Officer initially refused permission to cut the trees, but later, permission was granted for a short duration—Bihari Lal's application for fresh permission was denied, leading to the civil suit—The trial court decreed the suit in part, an...
Penal Code, 1860 (IPC)—Section 415, Section 420—Agreement to sell property, the appellant argued against accusations of cheating and breach of contract due to non-payment of full consideration—The court found no evidence of dishonest intent as part of the consideration had been paid and possession of the property was transferred to the complainants—As the dispute pertained to contractual obligations, it was deemed a civil matter rather than criminal—Consequently, the court allowed the appeal, overturning the High Court's orders and quashing the pending proceedings before the Magistrate—The appellant was awarded compensatory costs for the vexatious nature of the proceedings—This case highlights the distinction between civil and criminal liabilities in contractual disputes, affirming that non-pe...
Civil Procedure Code, 1908 (CPC)—Section 20—Constitution of India, 1950—Article 136—An agreement between the appellant and respondent for vial filling services, terminated by the appellant with effect from 1.4.1984—Dispute arose regarding defective workmanship, prompting arbitration invocation by the appellant under Clause 19 of the agreement—Respondent challenged arbitration clause's applicability and jurisdiction of Coimbatore Court, raising limitation issue—The court upheld the survival of the arbitration clause post-termination, finding it applicable to the dispute—It determined Coimbatore Court lacked jurisdiction and rejected the limitation plea due to timely initiation of action—The appointed arbitrator was deemed competent to resolve the dispute—Consequently, the appe...
Constitution of India, 1950—Article 136—Contract Law—Agreement for sale of land—Suit for specific performance of agreement and alternative relief for recovery of money—High Court confirms decree for specific performance—Appellant unable to pay debt, agrees to sell land as collateral—Appellant's primary intention for recovery of debt—Court modifies decree, grants alternative relief for recovery of money with interest—Decree for Rs. 21,000 with interest at 12% per annum from date of suit till recovery—Appellant given six months to pay amount, default results in confirmation of decree for specific performance. ...
Arbitration Act, 1940—Section 20—Evidence Act, 1872 — Section 115—Appointment of an arbitrator in an arbitration agreement—Despite objections, an arbitrator was appointed in 1983—The respondents challenged this in 1985 after participating in arbitration proceedings—The court cites precedents emphasizing that participation without protest amounts to acquiescence, precluding later challenges—It rejects the respondents' argument that the challenge was made before the award, affirming the principle of waiver and estoppel—The appeal is allowed, restoring the original arbitrator's appointment, and extending the time for the award—The court emphasizes the need for parties to abide by arbitration proceedings in which they participate, barring subsequent challenges. ...
Penal Code, 1860 (IPC)—Section 107, Section 120—Arbitration Act, 1940—Sections 2(a)—An agreement where private parties undertake to withdraw criminal prosecution initiated against others is invalid due to being contrary to public policy—Under Section 23 of the Indian Contract Act, 1872, agreements with unlawful considerations, including those aimed at stifling criminal prosecution, are deemed void—This principle is supported by Section 2(a) of the Arbitration Act, 1940, which aligns with the notion that such contracts undermine the integrity of the legal process—The use of criminal proceedings as leverage for contractual agreements, especially when dealing with non-compoundable offenses, is impermissible—The law mandates that allegations of non-compoundable crimes must be addressed solely by...
Civil Procedure Code, 1908 (CPC) - Order 1 Rule 1, Order 1 Rule 10, Order 1 Rule 10(2), Order 1 Rule 3, Section 11, Section 115— Evidence Act, 1872 - Section 41, Section 58—Specific Relief Act, 1877 - Section 42, Section 43—Considerations for adding parties under Rule 10 of Order 1 of the Code of Civil Procedure involve the exercise of judicial discretion rather than an issue of initial jurisdiction—The following principles guide the court in such matters: The addition of parties is a matter of judicial discretion, not initial jurisdiction, and may involve controversies regarding the court's power versus inherent jurisdiction, as contemplated in Section 115 of the Code—In property-related suits, a person should have a direct interest (as opposed to a commercial interest) in the subject matter to be added as a party—In case...