High Court Round UpLegal RoundUp

112 significant Reports from 22 High Courts


 

Allahabad High Court


 Right to Reputation


People using cyberspace to vent out anger and frustration by travestying key-figures holding highest office in country, is abhorrent and violates right to reputation

Sanjay Kumar Singh, J., expressed that,

“The internet and social media has become an important tool through which individuals can exercise their right to freedom of expression but the right to freedom of expression comes with its own set of special responsibilities and duties.”

Read full report here…

Corruption


Corruption is a termite in every system; a root cause of all problems but has to be put to account

While expressing that medical and legal fields are more a service than a profession especially the stream of oncology which deals with life and death, Krishan Pahal, J., held that “Corruption is a termite in every system.”

Read full report here…


Andhra Pradesh High Court


Bail


”…being an educated man and Software Engineer, he is not justified in making such irresponsible comments against the Judiciary and the High Court”, Bail denied

Cheekathi Manavendranath Roy J. dismissed the criminal petition and granted bail to the accused advocates and denied bail to accused software engineer.

Read full report here…

Reckless Driving


In the case of reckless driving, injured party will have to always prove that either side was negligent?

The Division Bench of Dr Kaushal Jayendra Thaker and Ajai Tyagi, JJ., while addressing a case of negligent driving, expressed that,

“…if the injury rather death is caused by something owned or controlled by the negligent party then he is directly liable.”

Read full report here…

Evidence


Prosecution must stand on its own legs basing its findings on the evidence that has been led by it

Siddhartha Varma, J., held that it is the bounden duty of the enquiry officer to have seen whether the charges were proved on the basis of the evidence which was led by it.

Read full report here…


Bombay High Court


Nomination of a Councillor


Can a nominated Councillor be appointed as Leader of the House under Maharashtra Municipal Corporation Act, 1949? 

“The term ‘elected Councillor’ in Section 19-1A would necessarily have to be read as an exclusion and bar to any other Councillor i.e ‘nominated Councillor’ to become the Leader of the House.”

Read full report here…

Negligence


When a person suffers injury without any negligence on his part, but result of combined effect of negligence of two other persons: Is it a case of composite or contributory negligence?

Expressing that, Negligence does not always mean absolute carelessness, but want of such a degree of care as required in particular circumstances, Vinay Joshi, J., held that no absolute standard can be fixed as to what constitutes negligence differs from case to case.

Read full report here…

License


To operate in State of Maharashtra, Uber and other unlicensed aggregators to apply for license before 16th March 2022

The Division Bench of Dipankar Datta, CJ and Vinay Joshi, J., directed UBER and other transport aggregators who have not obtained a license as per Section 93(1) of the Motor Vehicles Act to apply for the license before 16th March 2022 otherwise they shall not be able to operate in the State of Maharashtra.

Read full report here…

State Quota


If an aspirant has not completed her 10th and 12th standard from State of Maharashtra, can she still be covered under State Quota of Maharashtra for M.B.B.S?

The Division Bench of S.V. Gangapurwala and S.G. Dige, JJ., addressed a matter wherein an aspirant of M.B.B.S Course approached the Court praying that the petitioner be considered in State Quota from NRI Quota.

Read full report here…

IBC


Can Additional Sessions Judge or Sessions Judge try offences under Insolvency and Bankruptcy Code, 2016?

Sandeep K. Shinde, J., held that Special Court which is to try offences under the Insolvency and Bankruptcy Code, 2016 is the Special Court established under Section 436(2) (b) of the Companies Act, 2013 which consisted of Metropolitan Magistrate or Judicial Magistrate First Class.

Read full report here…

Parent’s Property


When parents are alive, can a son claim his share in the property of his parents?

The Division Bench of G.S. Patel and Madhav J. Jamdar, JJ., held that Asif i.e. son has no rights in his father’s flats.

Read full report here…

Film ‘83’


No stay on OTT Release of film ‘83’: Bom HC | Netflix and Star India already have antecedent rights, both digital and satellite for 10 years

While refusing to restrain Star India and Netflix from streaming the film ‘83’ on their respective broadcasting portals, R.I. Chagla, J., observed that, prospective owner of copyright in a future work may also assign to any person the copyright in the future work.

Read full report here…

Child in Conflict


When a Child in Conflict with Law is to be tried as an adult, an assessment under S. 15 of the Juvenile Justice (Care and Protection of Children) Act, 2015 is required to be done?

M.G. Sewlikar, J., held that, in terms of Section 15 of the Juvenile Justice (Care and Protection of Children) Act, 2015, Juvenile Justice Board has to make assessment into heinous offences to determine whether CCL is to be tried as an adult.

Read full report here…

Currency Notes


Can Currency Notes in police custody pre-demonetisation, be replaced with current valid tender?

The Division Bench of G.S. Patel and Madhav J. Jamdar, JJ., addressed a matter concerning currency notes pre-demonetisation and their replacement with current valid tender.

Read full report here…

Karta


Daughters and widow of a deceased would inherit properties of deceased as tenants in common or joint tenants?

Mangesh S. Patil, J., expressed that, by virtue of Section 19 it has been explicitly made clear that if two and more heirs succeed together to the property and in the estate, they take the property as tenants in common and not as joint tenants.

Read full report here…


Calcutta High Court


Rape


Penetration even of the slightest degree is necessary to establish the offence of rape; Court modifies order after 8 years of imprisonment

“It is settled law penetration even of the slightest degree is necessary to establish the offence of rape.”

Read full report here…

Tax


No intention of any evasion of tax; Court directs refund of penalty and tax paid on protest

Md. Nizamuddin, J. decided on a petition which was filed challenging the impugned order of the appellate commissioner confirming the original order passed by the adjudicating authority under section 129 of the West Bengal Goods and Services Act, 2017 for detention of the goods in question on the grounds that the e-way bill relating to the consignment in question had expired one day before, i.e. in the midnight of September 8, 2019, and that the goods was detained in the morning of September 9, 2019 on the grounds that the e-way bill has expired which is even less than one day and extension could not be made and petitioner submits that delay of few hours even less than a day of expiry of the validity of the tenure of the e-way bill was not deliberate and willful and was due to break down of the vehicle in question and there was no intention of any evasion of tax on the part of the petitioner.

Read full report here…

Repealed Acts


Whether the orders passed under a repealed Act be executed? Court discusses

Rajasekhar Mantha, J. disposed of a petition observing that the Supreme Court is the only authority to clarify  whether the orders passed under a repealed Act can be executed or not

Read full report here…

Breach of Contract


Parties to agreement of sale consciously changing their relationship cannot seek relief on the basis of previously established relationship

The Division Bench of Soumen Sen and  Ajoy Kumar Mukherjee, JJ., dismissed an appeal concerned with a breach of contract. The appeal arose out of a judgment in a suit for recovery of possession and injunction. Trial Court had decreed the suit on contest and dismissed the counter claim filed by the defendant.

Read full report here…

Detention Order


Detention order quashed due to lack of opportunity of hearing in the matter of S. 129 of the West Bengal Goods and Service Tax Act, 2017

Md. Nizamuddin, J. disposed of a petition which was filed challenging the impugned order passed by the Deputy Commissioner of Revenue on the ground that the said impugned order was bad in law for the reasons that the petitioners being the owner of the goods in question, which had been detained without giving any opportunity of hearing to the petitioners under the relevant provision of Section 129 of the West Bengal Goods and Service Tax Act, 2017.

Read full report here…

GST Act


The interest of revenue has been safeguarded; Order of detention against the State upheld in matter of GST Act

The Division Bench of T. S. Sivagnanam and Hiranmay Bhattacharyya, JJ., dismissed an appeal and connected application which was filed by the State against the order of detention passed by the authority detaining two trucks containing consignment of steel and other products in WPA 17611 of 2021 dated: 07-12-2021 wherein petitioner was the wife of late Mohit Madhogoria, who was a registered dealer under the provisions of the W.B.V.A.T. Act presently under the GST Act.

Read full report here…


Chhattisgarh High Court


Compassionate Appointment


Illegitimate child’s right to be considered for Compassionate appointment

Sanjay K. Agarwal, J., held that an illegitimate son would be entitled to consideration on compassionate ground and cannot be denied consideration on the ground that he is the illegitimate son of the deceased Government servant.

Read full report here…

Rape


In view of changed definition of rape under S. 375 (b) of  IPC pari materia to S. 3(b) of POCSO Act, whether sexual intercourse is necessary to attract ingredients of offence of rape or penetrative sexual assault?

Addressing a case wherein a minor girl was subjected to sexual, Deepak Kumar Tiwari, J., held that,

In view of the changed definition of rape under Section 375 (b) of the IPC pari materia to Section 3(b) of the POCSO Act, sexual intercourse is not necessary to attract the ingredients of offence of rape or penetrative sexual assault.

Read full report here…


Delhi High Court


Dishonour of Cheque


To prove that cheque amount was larger than debt due, can defence of Issuer be looked at stage of issuing summons?

While addressing a matter revolving around Section 138 of the Negotiable Instruments Act, 1881, Subramonium Prasad, J., held that Courts should primarily proceed on the averments in the complaint, and the defence of the accused cannot be looked at the stage of issuing summons unless it can be shown on admitted documents which the Supreme Court described as “unimpeachable in nature and sterling in quality” to substantiate that there was no debt due and payable by the person who has issued the cheque or that the cheque amount is large than the debt due.

Read full report here…

If a cheque is not honoured by issuer and even after a legal notice he doesn’t pay, he is bound to face criminal trial

Rajnish Bhatnagar, J., dismissed a matter revolving around the dishonour of cheque under Section 138 of the Negotiable Instruments Act.

Read full report here…

Yes Bank Loan Fraud


Public money under garb of Term loan siphoned off, resulting in generation of ‘proceeds of crime’ as well as its layering and ultimate projection as untainted money: Del HC while denying bail to Gautam Thapar

While addressing a matter wherein bail of Gautam Thapar accused in Yes Bank Loan Fraud case, was sought, Manoj Kumar Ohri, J., expressed that it is well settled that, economic offences constitute a class apart and need to be visited with a different approach, given their severity and magnitude. Albeit these offences are likely to adversely impact the economic fabric of the country, bail shall not be denied to a person accused of an economic offence in a routine manner.

Read full report here…

Jurisdiction


Can partners in dispute of an LLP or any other business entity carrying out business in different parts of country, file suit in any place where business is carried out?

Amit Bansal, J., expressed that an LLP or any other business entity can carry out business in different parts of the country, but that would not mean that a suit with regard to disputes between the partners, could be filed in any place where the business of the firm/LLP is carried out.

Read full report here…

Ownership of YouTube Channel


Who ‘owns’ a YouTube channel?: Del HC passes interim directions in dispute over channel ‘Shabad Kirtan Gurbani – Divine Amrit Bani’

Asha Menon, J., considered a very interesting case where the dispute between the parties is regarding the ownership of a YouTube channel. The Court has found a prima facie case in favour of the plaintiff and issued certain directions.

Read full report here…

Bail


On pretext of removing evil spirit from body of a woman who was bipolar in nature, a man lured woman and committed sexual intercourse, but ADJ granted bail: Will HC cancel his bail? Del HC analyses

Mukta Gupta, J., cancelled the bail of an accused who lured a female on the pretext of removing an evil spirit from her body and further committing sexual intercourse with her.

Read full report here…

Theft


Daughter-in-law thrown out of matrimonial home and accused of removal of letters from possession of matrimonial home: Whether Del HC will find her guilty under S. 380 IPC or not?

Chandra Dhari Singh, J., noted that instant dispute has arisen out of matrimonial discord between two people which had also, led to the filing of more than 50 criminal and civil cases between not only the husband and the wife but also their family members. It was found that for the sole purpose of harassing the other party such cases were filed by persons with no just cause or reason and substantial ground for allegations.

Read full report here…

Right of Residence


Right of residence under DV Act is exclusive to and isolated from any right that may arise under S. 9 of Hindu Marriage Act, 1955

“The existence of the strained relationship between the Petitioner and the Respondent has been well established by the fact that there are more than about 60 criminal and civil cases pending between the parties.”

Read full report here…

Desertion and Cruelty


Wife leaves matrimonial home and never returns after several requests and legal notice under S. 9 of HMA, alleges husband of several cruelties without any evidence: Would it amount to desertion and cruelty by wife?

Noting the separation of 12 years between the husband and wife, the Division Bench of Vipin Sanghi and Jasmeet Singh, JJ., found that the wife had subjected the husband to desertion and cruelty, hence decree of divorce be granted.

Read full report here…

Accusation of extra-marital relationship is a grave assault on character, status, reputation as well as health of spouse against whom such allegations are made: Would this come under ambit of cruelty?

While addressing a matter surrounding the issue of cruelty by wife, the Division Bench of Vipin Sanghi, ACJ and Dinesh Kumar Sharma, J., expressed that,

“It has repeatedly been held that accusations of unchastity or extra marital relationship is a grave assault on character, status, reputation as well as health of the spouse against whom such allegations were made.”

Read full report here…

Arbitration and Conciliation Act


Del HC dismisses appeal filed by Indiabulls Housing Finance in Zee Entertainment – Sony Pictures Scheme of Arrangement

Suresh Kumar Kait, J., addressed an appeal under Section 37(2)(b) of the Arbitration and Conciliation Act, 1996 against the interim order passed by Arbitrator was preferred.

Read full report here…

Mere use of the word ‘Arbitration’ in the heading of an Agreement would mean existence of an arbitration agreement?

Mukta Gupta, J., decided that mere use of word ‘Arbitration’ in the heading of an Agreement would not mean the existence of an arbitration agreement.

Read full report here…

Religious Structure


State obligated to remove unauthorized constructions from public land, but if it is a religious structure, can State still be obligated to do so?

Expressing that, the mere fact that certain encroachments represent religious structure cannot possibly detract State from its obligation, Yashwant Varma, J., held that, State remains duty-bound to remove all unauthorized constructions which may exist on public land.

Read full report here…

Extraordinary Writ Jurisdiction


Extraordinary writ jurisdiction is to be exercised only in rare cases or certain contingencies in the interest of justice, including exceptional cases

Chandra Dhari Singh, J., expressed that it is settled law that the power to issue writ has its own well-defined limitations imposed by the High Courts, one of which was the availability of alternative efficacious remedy.

Read full report here…

Power to Transfer Cases


Can Chairman of CAT on his own motion, without any notice, transfer any case pending before one Bench for disposal to another Bench?

The Division Bench of D.N. Patel, CJ and Jyoti Singh, J., held that the Chairman of Central Administrative Tribunal has been conferred the power to transfer a matter from one Bench to another, on his own motion, without any application from any party.

Read full report here…

Right to Speedy Trial


Incarcerated for 8 years for an offence punishable with minimum 10 years imprisonment: Violation of Right to Personal Liberty and Right to Speedy Trial

Subramonium Prasad, J., remarked that,

“…achievement of universal equality before the law requires the tenets of personal liberty to be applicable to all similarly circumstanced individuals and must not be restricted unless according to procedure established by law.”

Read full report here…

Arms License


If you are found in possession of live ammunition along with a valid arms licence, can an offence under S. 25 of Arms Act still be registered against you?

Deciding a matter of whether an NRI person in possession of two live ammunitions with a valid license can be registered under Section 25 of Arms Act or not, Asha Menon, J., held that, prima facie no malafide intent was found and the licence found was a valid arms licence.

Read full report here…

Right of Putative Father


Right of Putative Father to visit minor child upheld: Del HC

Upholding the rights of the putative fatherV. Kameswar Rao, J., expressed that while determining and granting such rights, more so when the child is of less than 3 years of age, surely his well-being/welfare is of paramount importance

Read full report here…

Issuance of Notice


Section 292BB of Income Tax Act deals with failure of service of notice or failure to issue notice?

The Division Bench of Manmohan and Dinesh Kumar Sharma, JJ., addressed a matter wherein the decision of Income Tax Appellate Tribunal for the Assessment Year 2011-12 was challenged.

Read full report here…

RTI Act


Employees of a security establishment cannot be deprived of their fundamental and legal rights just because they work in an intelligence and security establishment

Expressing that, RTI Act is a tool that facilitates the employees and officers in airing their grievances systematicallythe Division Bench of Manmohan and Sudhir Kumar Jain, JJ., remarked that,

“…both service and RTI laws ‘act like a safety valve in the society’.”

Read full report here…

Maternity Leave


Can maternity leave benefits extend beyond the period when contractual period of an ad hoc employee comes to an end?

In a claim of maternity benefit by a contractual employee, the Division Bench of Rajiv Shakdher and Talwant Singh, JJ., expressed that, The Maternity Benefit Act, 1961 Act is a social legislation that should be worked in a manner that progresses not only the best interest of the women-employee but also of the child, both at the pre-natal and post-natal stage.

Read full report here…

Unmarried Daughters


Can unmarried daughters claim expenses of marriage from their parents under the Hindu Adoptions and Maintenance Act, 1956?

While stating that, in Indian society, normally expenses are required to be incurred for pre-marriage and also at the time of marriagethe Division Bench of Goutam Bhaduri and Sanjay S. Agrawal, JJ., held that unmarried daughters have a right to claim expenses of marriage from their parents under the Hindu Adoptions & Maintenance Act, 1956.

Read full report here…

SC Collegium December Meeting


 

Newspaper reports are of no evidentiary value and Courts would be transgressing their well settled limitation if cognizance were to be taken of such unsubstantiated and unverified reports

In a matter wherein, details were sought with regard to Supreme Court Collegium meeting held on 12-12-2018, Yashwant Varma, J., expressed that, newspaper reports are of no evidentiary value and Courts would be clearly transgressing their well-settled limitation if cognizance were to be taken of such unsubstantiated and unverified reports.

Read full report here…


Gujarat High Court


Reasoning in Judgment


Providing reasoning is to give it a value of precedent which can help in reduction of frivolous litigation; Court emphasises on recording reasons in judgments

“It is trite that in a delay application, sufficient cause is the paramount consideration and if sufficient cause is shown, the Court should generally condone the delay. However, if the sufficient cause is imbibed with the laxity on the part of the delayer despite due knowledge, then Court should restrain itself from encouraging such practice and condone the delay.”

Read full report here…

GSTR-6 Return


Court allows writ furnishing the GSTR – 6 return for recording and distributing the ISD credit

“Credit was a tax paid by the registered person on input transactions and such tax already paid to the credit of the Central Government was a vested right of the person. Such vested right cannot be defeated on account of any irregularity in the system evolved by the Government.”

Read full report here…

NDPS


No Conscious possession; Court upholds acquittal under NDPS Act

The Division Bench of S.H. Vora and Sandeep N. Bhatt, JJ., dismissed an application for special leave to appeal which was filed feeling aggrieved and dissatisfied with the judgment and order in NDPS Case whereby the trial Court acquitted the respondent 2 herein-original accused 2 of the offences punishable under Sections 8(c), 20(b) and 29 of the Narcotic Drugs and Psychotropic Substances Act, 1985 (“NDPS Act”).

Read full report here…

Detention Order


Simplicitor registration of FIR/s by itself cannot have any nexus with the breach of maintenance of public order; Detention order quashed

Rajendra M. Sareen, J. allowed a petition which was directed against the detention order passed by respondent–detaining authority in exercise of powers conferred under section 3(2) of the Gujarat Prevention of Anti Social Activities Act, 1985 (“the Act”) by detaining the petitioner-detenue as defined under section 2(b) of the Act.

Read full report here…


Gauhati High Court


Sexual offences against minor cannot be compromised by parents; HC rejects application to enforce compromise

Arun Dev Choudhury, J., held that sexual offences against minor cannot be compromised by parents.

Read full report here…


Himachal Pradesh High Court


Rape


Minor girl students raped and subjected to penetrative sexual assault by their teacher: Sanctity of Teacher-Student relationship polluted

Polluting the sanctity of the relationship of the teacher and students, a teacher committed rape and penetrative sexual assault with minor students, the Division Bench of Sabina and Satyen Vaidya, JJ., noting the harrowing incidents expressed that the said is a sad reflection of the present-day society where a most platonic relationship was exploited.

Read full report here…


Jharkhand High Court


Execution of a Will


Testamentary disposition of property is deviation from natural line of inheritance in lesser or greater degree: Can it result in complete disposition in favour of one heir or exclusion of any other heir?

Expressing that the due execution of a Will is to be proved as per the provisions of law as laid down in Evidence Act as well as that if Indian Succession Act,  Gautam Kumar Choudhary, J., remarked that, a probate court being a Court of conscience, the intention of the testator is paramount and it is the bounden duty of the Court to ascertain the real WILL of the testator if any.

Read full report here…


Karnataka High Court


Domestic Violence Act


Whether the maintenance awarded under the Domestic Violence Act can be sought to be enhanced under the CrPC?

“The language employed in Section 127 of the Cr.P.C. is unequivocal as on a proof of change in the circumstances of any person receiving allowance under Section 125 of Cr.P.C. can maintain a petition under Section 127 of the Cr.P.C.”

Read full report here…

Criminal Proceedings


SC-ST Act is prospective or retrospective? Kar HC quashes criminal proceedings for offences committed in the year 1975

Krishna S Dixit J. quashes the criminal proceedings as the SC-ST act is not retrospective in nature.

Read full report here…

Hijab Ban


16 pointer report on why wearing of Hijab is not a part of essential religious practice in Islam

“Dismayed as to how all of a sudden that too in the middle of an academic term the issue of hijab is generated and blown out of proportion, Court remarked that some ‘unseen hands’ are at work to engineer social unrest and disharmony in the way ‘hijab imbroglio’ unfolded.”

Read full report here…

The uniform can exclude any other apparel like bhagwa or blue shawl that may have the visible religious overtones

“The Holy Quran does not mandate wearing of hijab or headgear for Muslim women rather it was traditionally worn as a measure of social security” 

Read full report here…

POCSO


Whether victim under POCSO Act can be permitted to be cross-examined once she turns hostile?

M Nagaprasanna J. allowed the petition and quashed the impugned order and remitted the matter back to Sessions Judge for cross-examination

Read full report here…

Marital Rape


“Wanton lust, vicious appetite, depravity of senses, loathsome beast of passion, unbridled unleashing of carnal desire of demonish perversion” Kar HC discusses protection provided to husband by the institution of marriage

A man is a man; an act is an act; rape is a rape, be it performed by a man the “husband” on the woman “wife”

Read full report here…


Kerala High Court


Cruelty


At odd hours, if wife continues making discreet phone calls with another man even after a warning by husband, would it constitute matrimonial cruelty?

The Division Bench of A. Muhamed Mustaque and Dr Justice Kauser Edappagath, JJ., held that, despite a warning by the husband, if the wife continues to make discreet calls with another man that too at odd hours, it would amount to matrimonial cruelty.

Read full report here…

Medical Negligence


Do District and State Consumer Disputes Redressal Commissions do not have jurisdiction to take cognizance of medical negligence complaints?

Nagaresh, J., decided whether medical service would fall within the ambit of Section 2(42) of the Consumer Protection Act, 2019 unless of course the service is free of charge or is under a contract of personal service.

Read full report here…

Breach


Compensation payable under Ss. 73, 74 and 75 are only for loss or damage caused by breach or inclusive of mere act of breach as well?

The Division Bench of P.B. Suresh Kumar and C.S. Sudha, JJ., expressed that,

“…compensation payable under Sections 73, 74 as also under Section 75 is only for loss or damage caused by the breach and not account of the mere act of breach. If in any case the breach has not resulted in or caused any loss or damage to a party, person concerned cannot claim compensation.”

The words ‘loss or damage’ in the Sections 73 and 74 would necessarily indicate that the party who complains of breach must have really suffered some loss or damage apart from being faced with the mere act of breach of contract. That is because every breach of every contract need not necessarily result in actual loss or damage.

Read full report here…

Internal Complaints Committee


In the film industry, would production units have to constitute Internal Complaints Committee to deal with harassment against women?

While expressing that, any organisations, establishments, private institutions are employing workers whether for wages or not in contemplation of the provisions of the Act, 2013 coming under the definition of employer, employee and workplace, they are duty bound to constitute an Internal Complaints Committee,  the Division Bench of S. Manikumar, CJ and Shaji P. Chaly, J., held that, a production unit of each film industry is an establishment employing Actor Artists and other workers and therefore, such production units have to maintain an Internal Complaints Committee if they are engaging more than 10 workers

Read full report here…

Moral Policing


Man taking a lady from another community in his car, attacked by violent mob: Act of mob moral policing?

Calling it to be ‘moral policing’ K. Haripal, J., addressed a matter wherein a man had taken a lady from another community in his car due to which a mob attacked him with deadly weapons.

Read full report here…

Pre-arrest Bail


Trespassed in house, committed rape, misappropriated money, threatened: Kerala HC denied pre-arrest bail in view of such allegations

Shircy V. J., dismissed a bail application wherein a man committed rape with a woman and misappropriated her money after putting her under threat.

Read full report here…

Strikes


Bar on Government servants to engage in strikes?

While expressing that, it is the duty of the welfare Government to protect not only the citizens, but to continue with, all the Government work as expected, the Division Bench of S. Manikumar, CJ and Shaji P. Chaly, J., directed that Government servants should be prevented from engaging in a strike.

Read full report here…


Madras High Court


Central Information Commission


High Court cannot act as a post office to collect and exchange information

While stating that Central Information Commission has only made recommendations, which cannot by any stretch of imagination be taken as a statute so as to give effect, the Division Bench of Munishwar Nath Bhandari, CJ and D. Bharatha Chakravarthy, J., dismissed the petition.

Read full report here…

Promotion


Can an employee claim promotion as a matter of right?

S.M. Subramaniam, J., expressed that employees cannot seek any direction to fill up the post or claim a promotional post.

Read full report here…

Bribe


Every Advocate is a Court officer and part & parcel of justice delivery system: Madras HC found a Govt. Advocate demanding bribes at the cost of justice

The Division Bench of K. Kalyanasundaram and R. Hemalatha, JJ., expressed that, the Government advocate being the representative of the Government has to act in an honest manner. If he/she goes around with the intention to make money at the cost of justice, only chaos will prevail.

Read full report here…


Manipur High Court


Appointment/Promotion of High School Teachers


All resolutions passed at the emergency meeting will be subject to confirmation or revision at the next ordinary meeting; Court allows petition

“Rule 14 (b) of the Rules of 1975 provides that all resolutions passed at the emergency meeting will be subject to confirmation or revision at the next ordinary meeting, none of the respondents, either the State or the respondent 3 to 10 has brought on record that the resolution passed in the emergency meeting held on 21-02-2015 was confirmed or revised in the next ordinary meeting.”

Read full report here…


Madhya Pradesh High Court


Writ of Mandamus


A writ for mandamus cannot lie to direct the State to enact a law; Petition dismissed

The Division Bench of Ravi Malimath, CJ. and Dinesh Kumar Paliwal, J.dismissed a petition which was filed in public interest praying for a writ of mandamus to incorporate certain provisions in the law, namely, Section 14-A of the Madhya Pradesh Municipal Corporation Act, 1956 and Section 32-A of the Madhya Pradesh Municipalities Act, 1961.

Read full report here…

Election Dispute


Registrar exercising power of the election tribunal cannot pass interim directions of any nature; Court allows appeal

“…Registrar who was trying the election dispute was exercising the power of the election tribunal. Therefore, he could not have passed orders even though it was in the interest of society.”

Read full report here…

Custody


Technical objections cannot come in way of custody; Court allows 16-year-old to choose to live with father

The Division Bench of Subodh Abhyankar and Satyendra Kumar Singh, JJ., dismissed an appeal which was filed being aggrieved of the order passed by Single Judge wherein he quashed the earlier impugned order passed by the Sub-Divisional Magistrate whereby custody of the children of the appellant was given to her husband (respondent 4). The Single Judge had only partly granted relief by not giving any express direction restoring the custody of the children in favour of the appellant.

Read full report here…

Appointment Order


Cancellation of candidature on the ground of typographical error arbitrary and grossly disproportionate; Court allows petition

Pranay Verma, J., allowed a petition which was filed praying for a direction to consider petitioner’s candidature for the post of Office Assistant (Multi purpose) and to issue appointment order in her favour in light of offer letter.

Read full report here…


Meghalaya High Court


Family Pension


Court decides on eligibility of family pension under Rule 48 of Meghalaya Civil Services Pension Rules of 1983

“Rule 48, provides that an unmarried/widowed/divorced daughter, would be entitled to family pension and that a person would be entitled for family pension, only after other eligible family members in the first category have ceased to be eligible to receive it.”

Read full report here…

Companies Act


If an advertisement for petition filed under S. 433 of Companies Act, 1956 is not published, will entire matter be transferred to NCLT?

Sanjib Banerjee, CJ, addressed a petition wherein a creditor’s winding-up petition was instituted under Section 433 of the Companies Act, 1956 and the same was not yet advertised.

Read full report here…

Testimony


Court affirms trial court’s conviction on the basis of victim’s testimony in POCSO matter

The Division Bench of  Sanjib Banerjee and W. Diengdoh, JJ., while hearing an appeal which challenged the judgment of conviction of December 21, 2018, which convicted the appellant under Section 3(a) R/W Section 4 of the Protection of Children from Sexual Offences Act, 2012, upheld the same and stated that there was no good reason to interfere with the judgement of the trial court.

Read full report here…

Compromise Deed


Lower Courts to deal with entire process expeditiously after receipt of the application under S. 151 read with Or. 20 R. 6-A CPC

H.S. Thangkhiew, J. while hearing a revision application allowed the same and directed the lower court to deal with the entire process expeditiously immediately on receipt of the application under Section 151 read with Order 20 Rule 6-A CPC.

Read full report here…

Inherent Power


fraus et jus nunquam cohabitant; Ori HC analyses how does prohibition under S. 362 CrPC operate viz-a- viz the inherent power of the High Court

It is the oft-repeated and a salutary principle of law that fraud and justice never dwell together (fraus et jus nunquam cohabitant)

Read full report here…

Rape


If a man rubs his organ on vagina over victim’s underpants, would that amount to rape?

The Division Bench of Sanjib Banerjee, CJ and W. Diengdoh, J., addressed that, if the victim’s underwear was not taken down and the man merely rubbed himself on the victim’s crotch while she still wore her underpants, would that amount to commission of rape.

Read full report here…

POCSO


FIR and proceedings in Special POCSO Case quashed; Minor ‘victim’ gave birth to child while living with accused as his wife

Diengdoh, J. allowed a petition which was filed praying to quash the criminal proceedings pending in the Court of the Special Judge (POCSO) under Section 5(j)(ii)/6 POCSO Act, 2012.

Read full report here…


Punjab and Haryana High Court


Live-in Relationship


In ever-evolving society, evolving law with it, time to shift perspective from didactics of orthodox society, shackled with strong strings of morality to one that values an individual’s life

While dealing with a matter regarding protection to live-in relationship, Anoop Chitkara, J., held that, every person in the territory of India has an inherent and indefeasible fundamental right to life flowing from Article 21 of the Constitution of India and the State is duty-bound to protect life.

Read full report here…

Laws governing ‘Live-in-relationships’ is need of the hour; Court directs State to file response on the social predicament

‘Live-in-relationships’ has always been a debatable issue because of the absence of any law on the said practice. The Legislation has not yet consolidated any Act in this regard; on the other hand the Judiciary, through several decisions has made a clear stand to protect the various rights of such couples. Supreme Court in Lata Singh v. State of U.P., (2006) 5 SCC 475S. Khushbhoo v. Kanniammal(2010) 5 SCC 600, and Indra Sarma v. V.K.V. Sarma(2013) 15 SCC 755, has upheld the status of live-in-relationships and issued certain direction to protect life and liberty of the individuals.

Read full report here…

MBBS Course


Whether Court can issue directions for filling up the vacant seat for the MBBS Course?

S. Thangkhiew, J. allowed a petition in which he had to consider whether this Court can direct the respondents to consider the petitioner for filling up the vacant seat for the MBBS Course.

Read full report here…

Recission of Contract


Application for rescission of contract ‘mandatory’ to avail the relief, as S. 28, Specific Relief Act, 1963 doesn’t confer indefeasible right

Sudhir Mittal, J. dismissed the revision petition filed by the petitioners (in this case the judgment-debtors) against the action of the Executing Court for refusing to recall the impugned order. According to the petitioners, the execution order was passed, ex parte hence, the fundamental principle of natural justice was violated.

Read full report here…

Carnal Intercourse


Use of phrase “carnal intercourse” considered as a conscious act of the legislature reflecting the clear intent to engraft an offence under S. 377 IPC, conviction upheld

Vinod S. Bhardwaj, J. contemplated the revision petition filed by the accused/ children in conflict with the law, challenging the dismissal of appeal by Additional District and Sessions Judge along with the order of conviction and sentence passed by the Juvenile Justice Board, for the commission of offence punishable under Section 377 of Penal Code, 1860 and Section 10 Protection of Children from Sexual Offences Act, 2012.

Read full report here…

Cooling Off Period


Cooling off period under S. 13-B (2) HMA directory and not mandatory, court must waive off statutory period where marriage is irreconcilable

Rajbir Sehrawat, J., allowed the instant revision petition, filed against the order of Family Court, where the joint application for waving off the statutory period of 6 months for cooling off, had been dismissed.

Read full report here…

CBSE


Schools succeeded in hoodwinking CBSE, however, no fault can be attributed to the students; direction for issuance of class 12th result

Sudhir Mittal, J. allowed the writ petitions filed against the action of the Central Board of Secondary Education (CBSE) declaring petitioners ineligible for evaluation of class 12th and to issue the final result.

Read full report here…

Fundamental Rights vis a vis Judicial Review


Answer to the question on ‘fundamental rights vis-a-vis judicial review’ considered as ‘National Confusion’ as different interpretation possible

Rajbir Sehrawat. J., contemplated and answered the interesting question asked in the recruitment test on which the dispute of the petitioner revolves around. Thorough interpretation of judgments starting from Sankari Prasad to I.R. Coelho was analysed by the Court to formulate the correct answer asked in the recruitment test.

73. Which of the following schedule of the Constitution is immune from judicial review on the grounds of violation of fundamental rights?

  1. A) Seventh Schedule B) Ninth Schedule C) Tenth Schedule D) None of the above”

Read full report here…

Material Fact


Suppression of a ‘material fact’ of non-disclosure of pendency of bail application considered, subservient to the right of liberty granted to the petitioners; Guidelines issued

Three petitions are clubbed together where the petitioners intended to withdraw their bail applications as bail was already granted by the different trial courts. The main issue before Jasgurpreet Singh Puri, J. was effect of filing bail applications and passing of bail orders by the trial courts during the pendency of bail application before High Court by the same accused without disclosing such pendency and what safeguards should be adopted by the trial courts in this regard.

Read full report here…

Compensation


Entitlement to compensation on general principles for inordinate delay in receiving monies due; Interest on refund of excise duty granted

The Division Bench of Ajay Tewari and Pankaj Jain, JJ., contemplated the appeal where the interest on refund of excise duty was rejected by the authorities. The main question before the Court was whether the assessee was entitled to interest.

Read full report here…

Departmental Punishment


Departmental punishment of government servant is not a necessary and automatic consequence of conviction on a criminal charge

Jaishree Thakur, J. set aside and quashed the dismissal of the petitioner and remanded back the matter to the punishing authority for reconsideration. The Court directed that punishing authority to apply its mind and to form an opinion as to whether the conviction of the petitioner deserves the penalty of dismissal, removal or reduction in rank or any other lesser penalty.

Read full report here…


Patna High Court


Economic Offence


Entire community is aggrieved if economic offenders, who ruin economy of the State are not brought to book

Expressing that the entire community is aggrieved if the economic offenders, who ruin the economy of the State are not brought to bookAnjani Kumar Sharan, J., held that economic offence is committed with cool calculation and deliberate design with an eye on personal profit regardless of the consequence to the community.

Read full report here…


Rajasthan High Court


Whenever there is a conflict between substantial justice and hyper-technicality then substantial justice should be preferred to avoid defeat for the ends of justice: Raj HC observes in a case where candidature was rejected on a hyper-technical approach

A Division Bench of Anoop Kumar Dhand and Pankaj Bharadwaj, JJ., disposed of the petition and directed the Department to appoint the respondent.

Read full report here…

Cause Title


“..use of salutation and titles is prohibited in terms of Arts. 14 18 and 363A of the Constitution of India in public documents and public offices”; Raj HC observes in a case where hereditary title was mentioned in a cause title

“…any title awarded to the citizen of India by a Foreign State cannot be accepted nor used and no such title, other than the military or academic distinctions, can be conferred other than by the State. In terms of Article 363A of the Constitution of India, the heredity titles of nobility being in conflict with the principles of equality and contrary to Article 14 of the Constitution of India cannot be used as prefixes or suffixes.”

Read full report here…

Provisional Attachment


Order of provisional attachment cannot survive beyond a period of one year in terms of S. 83 (2) CGST Act; Provisional attachment order stayed

“Section 83 of the CGST Act pertains to provisional attachment to protect the revenue in certain cases. In sub-section (1) of Section 83 the commissioner is empowered to order provisional attachment of the property of the assessee including bank account where proceedings under Chapters XII, XIV and XV are pending and the commissioner is of the opinion that for the purpose of protecting the interest of government revenue it is necessary so to do.”

Read full report here…

Public Interest Litigation


“Citizen approaching Court in a public interest jurisdiction holds greater duty to make full research” PIL dismissed due to lack of necessary evidence presented

A Division Bench of Akil Kureshi, CJ and Rekha Borana, J. dismissed the petition and kept it open for the petitioners to file a fresh public interest petition.

Read full report here…

Private Entity


In absence of any factual foundation to show whether a particular entity is State or not, writ jurisdiction not maintainable

Mahendar Kumar Goyal J. dismissed the petition being not maintainable against a private entity. 

Read full report here…

Interim Maintenance


Raj HC dealt with whether husband can be absolved from his duty to pay interim maintenance if there is delay of 30+ years in filing application

“…an order under Section 125 of CrPC is in the nature of interim maintenance and husband, who admittedly earns Rs 40, 000/- per month cannot be absolved of his obligation to pay interim maintenance, merely because the respondent – wife has chosen to file the application after 36 years of marriage.”

Read full report here…

Transfer Petition


Transfer petition for trial of Salman Khan’s deer hunting case allowed; High Court to take charge

Pushpendra Singh Bhati, J., allowed a transfer petition in the infamous deer hunting case of actor Salman Khan.

Read full report here…

Bail


Economic offender should not be dealt as general offender because economic offenders run parallel economy; bail rejected

Narendra Singh Dhaddha rejected bail and dismissed the petition being devoid of merits.

Read full report here…

Sikkim High Court


Compromise


Handing out punishment is not the sole form of delivering justice; Court allows compromise

Bhaskar Raj Pradhan, J. allowed the compromise to bury the difference between parties and gives them their lives as good citizens.

Read full report here…

Tripura High Court


Disposal of Garbage


Court directs AMC to set up proper slaughterhouses and ensure garbage disposal in scientific manner

Court issued directions to the Corporation to prepare a long-term plan for not only setting up the abattoir/slaughter house but also for ensuring disposal of garbage in an appropriate scientific manner, rendering all authorities including the local police authorities for enforcing/assisting in carrying out its duties, considering application for licenses and disposing of at an early date so that people are not deprived of essential needs, maintaining hygienic conditions and carrying out inspection of all the license premises.

Read full report here…

Divorce


Unable to approve this kind of matrimonial conduct or filing a suit for divorce on such coloured narrative; Court dismisses appeal in matter of divorce

The Division Bench of S. Talapatra and S.G. Chattopadhyay, JJ. dismissed an appeal which was filed under Section 28 of the Hindu Marriage Act, 1955 from the judgment by the Additional District Judge declining to grant the divorce and consequently dismissing the suit. It was observed that case did not reflect any such situation which can demand the dissolution of marriage between the petitioner [the appellant and the respondent].

Read full report here…

Uttaranchal High Court


Personal Rights


Irrespective of the personal rights of a person or a community, it can under no set of circumstances, override the rights or need of the defence of the country; Petition dismissed

Sharad Kumar Sharma, J. dismissed a writ petition which involved the issue pertaining to regulating the frontier borders of the country, adjoining to the ‘Line of Actual Control’, which adjoins and shares the boundary lines of our neighbouring country, China, which is approximately about 20 to 25 Kms. only away from the land, in dispute, which is proposed to be acquired for the purposes of meeting out the defence need of the ITBPF, i.e. ITBP.

Read full report here…

Judgment of Acquittal


There have to be very substantial and compelling reasons for setting aside a judgment of acquittal; petition dismissed

The Division Bench of S.K. Mishra and A.K. Verma, JJ., dismissed the appeal for acquittal considering it to be devoid of substantial and compelling reasons.

Read full report here…

Hate Speech


Right to freedom, as granted under the Constitution is not an absolute right; Court rejects bail in Hate Speech matter

Ravindra Maithani, J., rejected a bail application which was filed by the applicant who was in judicial custody under Sections 153A, 298 Penal code, 1860.

Read full report here…

Public Service Commission


Public Service Commission directed to declare result of candidate who submitted late fees

The Division Bench of Sanjaya Kumar Mishra, CJ. and Ramesh Chandra Khulbe, J. allowed a petition which was filed by an aspirant seeking a direction to respondents to allow the petitioner to appear for the mains examination of the Assistant Conservator of Forest.

Read full report here…

Registration of Sikh Marriages


State directed to take steps to frame and notify Rules for Registration of Sikh Marriages

The Division Bench of Sanjaya Kumar Mishra, ACJ. and Ramesh Chandra Khulbe, J. took up a PIL filed by the petitioner commanding the respondent State to notify the Rules under Anand Marriage Act, 1909 and also to issue guidelines to register the marriage of people of Sikh Community under the Anand Marriage Act, 1909.

Read full report here…

Bail


Society has a vital interest in grant or refusal of bail because criminal offence is the offence against the society; Bail applications rejected in fraud case under Epidemic Diseases Act

Alok Kumar Verma, J. rejected three bail applications of the applicants who were in custody for the offence under Sections 188, 269, 270, 420, 467, 468, 471, 120B of IPC, Section 3 of the Epidemic Diseases Act, 1897 and Section 53 of the Disaster Management Act, 2005.

Read full report here…



Weekly Roundups from March


Stories of sexual assault of a minor, woman travelling in public transport experiencing inappropriate touch and how children below 12 years of age are ‘asexual’ | Read 7 Legal Stories of the week

9 Legal Stories of the Week | Unlicensed transport aggregators to Spanking back of a woman without her consent, read more such stories in this weekly roundup

From Hijab Ban to Bloomberg Privacy Case and more | 7 Legal Stories of the Week

Patna High Court
Case BriefsHigh Courts

Patna High Court: Expressing that the entire community is aggrieved if the economic offenders, who ruin the economy of the State are not brought to book, Anjani Kumar Sharan, J., held that economic offence is committed with cool calculation and deliberate design with an eye on personal profit regardless of the consequence to the community.

What is the Prosecution case?

Shashi Kumar and Rajesh Kumar had lodged a case under Sections 419, 420 467, 468, 469, 471 and 120B of the Penal Code, 1860 against the Chief Manager and other officials of Bank of India. Further, it was revealed that the bank account in their names and in the firm’s name and their family members held with the Bank of India were misutilized in connivance with the bank officials and huge amount of cash was deposited and transferred to other bank accounts without their knowledge and consent.

Petitioner during the investigation had revealed that a cash of Rs 50 lakhs was deposited in the account of the firm which was transferred on the same day to bank account of Radha Trading Company and out of the said amount, Rs 10 lakhs was transferred to the account of Sanjog Steels (P) Ltd.

Similarly, cash of Rs 25 lakhs was deposited in the account in the name of M.T.I. Cotton Mills Pvt. Ltd. and on the same day it was transferred to the account of Radha Trading Company, Delhi and out of this an amount of Rs 10 lakhs was transferred in the account of Sanjog Steels Pvt. Ltd., Jaipur.

Thus, proceeds of crime amounting to Rs 25 lakhs originated from a bank account held with Bank of India, G.B. Road Branch, Gaya have merged in the bank account of Sanjog Steels Pvt. Ltd., Jaipur after being layered through the bank account of fake and non-existent firms.

Further, it was alleged that the petitioner who claimed to have received sale proceeds of sale of the product of his factory but either the petitioner or his representative failed to produce documents justifying the transactions of sale and purchase documents justifying the transactions of sale and purchase between the petitioner and Radha Trading Company. He also could not produce any documents in support of the claim that he received Rs 20 lakhs against the supply of the goods.

Analysis, Law and Decision

Whether the applicant would qualify to get bail?

There was no doubt about the complicity of the applicant and there are no reasonable grounds to believe that he is not guilty.

Though the Bench added that it should be considered whether there was a likelihood of the applicant committing any offence while on bail?

High Court noted that during investigation it was found that the firms namely, M/s Radha Trading Company, Delhi, M/s Shree Ram Overseas, M/s Shree Ganesh Overseas, M/s Sandeep Traders, M/s Rajesh Trading Company, M/s Sunil Trading Company and M/s Azad Singh and Manoj Kumar were fake and fictitious firms and had not been operating from the addresses as mentioned in their bank accounts or the sales invoices.

In the above manner, Rs 20 lakhs cash after deposit in the accounts was transferred to the bank accounts of M/s Sanjog Steel (P) Ltd. after being layered through the bank accounts of fake and non-existent firms. Hence, the transactions, through the said firms were involved in money laundering in terms of Section 23 of the PMLA.

High Court expressed that,

A disregard for the interest of the community can be manifested only at the cost of forfeiting the trust and faith of the community in the system to administer justice in an even handed manner without fear of criticism from the quarters which view white collar crimes with a permissive eye unmindful of the damage done to the National Economy and National Interest.

In view of the above discussion, the anticipatory bail was rejected.[Pankaj Goel v. Union of India, 2022 SCC OnLine Pat 643, decided on 11-3-2022]


Advocates before the Court:

For the Petitioner/s : Mr. S.D. Sanjay, Senior Advocate Mr. Mohit Agarwal, Advocate

For the Opposite Party/s : Mr. K.N.Singh, A.D.S.G. Mr. Tuhin Shankar, Advocate

Case BriefsSupreme Court

Supreme Court: While addressing a case related to systematic fraud by creating the false/forged documents and/or misusing the PAN Cards, Aadhar Cards and KYCs of the employees and showing them as Directors of the fake and shell companies and siphoning of Rs. 25 crores, the Division Bench of M.R. Shah* and Sanjiv Khanna, JJ., held that mere non-misuse of liberty cannot be a ground to confirm the bail order otherwise not sustainable in law.

Background

The genesis of the case relates back to the FIR filed by the appellant, a non-banking financial company in PS Economic Offences Wing against the company, Sri Aranath Logistics Limited (formerly known as M/s LMJ Logistics Limited)-Respondent 2, Jayant Kumar Jain–Managing Director and others for the offences under Sections 409, 420, 467, 468, 471 and 120B Penal Code, 1860 alleging that the amount of 25 crores was siphoned off and transferred to other shell companies and the said amount was used by the Respondent 2 for other companies.

The appellant had preferred the instant appeal against the impugned judgment and order of the Delhi High Court by which the High Court had granted bail to the respondent 2. Noticeably, a detailed status report was filed pointing out how a sum of Rs.25 crores to be used by M/s LMJ Logistic Ltd. was transferred to shell and other companies such as M/s LMJ Logistic Limited and how a systematic fraud was committed.

The grievance of the appellant was that despite the said status report, by the impugned judgment and order, the High Court had directed to release Respondent 2 on bail merely on the ground that the case arose out of a commercial transaction and was based on documents already seized.

Observations and Analysis

on bail the High Court has not at all adverted to and/or considered the nature of accusation and the material found/collected during the course of investigation and the serious allegations of siphoning off the huge amount through various shell companies. Even the High Court has not at all taken note of the reasoning given by the learned Sessions Court while rejecting the bail application of Respondent No.2. and has released Respondent No.2 on bail by simply observing that case arises out of a commercial transaction and the dispute is of a civil nature.

Applying the law laid down by the Supreme Court in Prasanta Kumar Sarkar v. Ashis Chatterjee, (2010) 14 SCC 496, Anil Kumar v. State (NCT of Delhi), (2018) 12 SCC 129 and Prahlad Singh Bhati v. (State) NCT of Delhi, (2001) 4 SCC 280, the Bench held that the High Court had not at all considered the modus operandi adopted by the accused in commission of serious offence of siphoning and/or transferring the huge sum to another company through shell companies. The High Court had also not taken into consideration the status report filed by the I.O. in which it had been pointed out in detail how systematically the accused had committed the offence and misappropriated/siphoned off the huge sum through shell companies.

On the argument of the respondent that as there were no allegations of misusing liberty, the bail may not be cancelled, the Bench noted that the order passed by the High Court releasing the accused on bail had been passed mechanically and without adverting to the relevant facts and without considering the nature of accusation and allegations and the nature of the gravity of the accusation. Therefore, the Bench opined,

“There is no absolute proposition of law that once the bail is granted by the High Court, though the High Court could not have granted the bail, in absence of any allegation of misuse of liberty and/or breach of any of the conditions of the bail, the bail cannot be set aside when grant of bail is itself subject matter of challenge in appeal/revision.”

Difference between Rejection and Cancellation of Bail

Opining that the rejection of bail in a non-bailable case at an initial stage and cancellation of bail so granted has to be dealt with and considered on different basis, the Bench stated that very cogent and overwhelming circumstances are necessary for an order directing the cancellation of the bail already granted. Reliance, in this regard was placed by the Court on Mahipal v. Rajesh Kumar, (2020) 2 SCC 118, wherein after drawing the distinction between the power of an appellate court in assessing the correctness of an order granting bail and an application for the cancellation of the bail, the Court had observed,

“The correctness of an order granting bail is tested on the anvil of whether there was an improper or arbitrary exercise of the discretion in the grant of bail…on the other hand, an application for cancellation of bail is generally examined on the anvil of the existence of supervening circumstances or violations of the conditions of bail by a person to whom bail has been granted.”

Hence, the Bench held that where a Court while considering an application for bail fails to consider the relevant factors, an Appellate Court may justifiably set aside the order granting bail. The Appellate Court is thus required to consider whether the order granting bail suffers from a non-application of mind or a prima facie view from the evidence available on record.

Conclusion

In the light of above, the Bench concluded that the High Court releasing Respondent 2 on bail was unsustainable as the High Court had not exercised the jurisdiction judiciously and had not considered the relevant factors while granting bail. Consequently, the impugned order was quashed and the accused was directed to surrender before the Court/Jail Authority concerned.

[Centrum Financial Services Ltd. v. State (NCT of Delhi), 2022 SCC OnLine SC 100, decided on 28-01-2022]


*Judgment by: Justice M.R. Shah


Appearance by:

For the Respondent 2: Mukul Rohatgi, Senior Advocate


Kamini Sharma, Editorial Assistant has put this report together

Case BriefsHigh Courts

Orissa High Court: S. K. Sahoo, J. rejected bail being devoid of merits.

The facts of the case are such that one Roop Lal Meena, Deputy General Manager, Union Bank of India, Bhubaneswar lodged a written complaint before the Superintendent of Police, CBI, Bhubaneswar stating therein that the accused bank officials of Union Bank of India, entered into a criminal conspiracy with three private builders, seven borrowers of housing loan and some unknown bank officials in the year 2017 and by abusing their respective official positions, housing loans were sanctioned in favour of the borrowers on the basis of false/ fictitious documents by violating the guidelines of the Bank. The petitioner along with other accused Bank officials without obtaining approved plan released the entire loan amounts which were allegedly diverted by the accused builders for other purposes which caused undue wrongful loss to the Bank. On receipt of the written complaint and prima facie finding the petitioner was charged for offences punishable under Sections 120-B, 420, 467, 468 and 471 of Penal Code, 1860 i.e. IPC  and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988 i.e. PCA. In course of investigation, the investigating officer recorded the statements and arrested the petitioner for the commission of offences under Sections 409, 420 and 471 read with section 120-B IPC Section 13(2) read with Section 13(1)(d) PCA. The instant petition was filed under Section 439 of Criminal Procedure Code i.e. CrPC for grant of bail.

Counsel for the petitioners Mr. Devashis Panda submitted that the petitioner is in judicial custody since December 2020 and he being the then Assistant Marketing Manager of the Bank has never misused the public money in any manner.

Counsel for the respondents Mr. Sarthak Nayak vehemently opposed the prayer for bail and argued that the petitioner had sourced, processed and recommended the housing loan accounts in the names of ten borrowers on the basis of fake documents being in conspiracy with other co-accused persons.

The Court relied on judgment Y.S. Jagan Mohan Reddy v. C.B.I., (2013) 7 SCC 439 wherein it was held

“34. Economic offences constitute a class apart and need to be visited with a different approach in the matter of bail. The economic offence having deeprooted conspiracies and involving huge loss of public funds need to be viewed seriously and considered as grave offences affecting the economy of the country as a whole and thereby posing serious threat to the financial health of the country.

  1. While granting bail, the Court has to keep in mind the nature of accusations, the nature of evidence in support thereof, the severity of the punishment which conviction will entail, the character of the accused, circumstances which are peculiar to the accused, reasonable possibility of securing the presence of the accused at the trial, reasonable apprehension of the witnesses being tampered with, the larger interests of public/State and other similar considerations.”

The Court observed that the accusation against the petitioner relates to commission of economic offences which are considered to be grave offences and are to be viewed seriously. Such offences affect the economy of the country as a whole and it involves deep-rooted conspiracy and huge loss of public fund. It was further observed that in such type of offences, while granting bail, the Court has to keep in mind, inter alia, the larger interest of public and State.

The Court relied on judgment Sanjay Chandra v. CBI, (2012) 1 SCC 40 wherein it was held that

“25………It is, no doubt, true that the nature of the charge may be relevant, but at the same time, the punishment to which the party may be liable, if convicted, also bears upon the issue. Therefore, in determining whether to grant bail, both the seriousness of the charge and the severity of the punishment should be taken into consideration. The grant or refusal to grant bail lies within the discretion of the Court. The grant or denial is regulated, to a large extent, by the facts and circumstances of each particular case. But at the same time, right to bail is not to be denied merely because of the sentiments of the community against the accused. The primary purposes of bail in a criminal case are to relieve the accused of imprisonment, to relieve the State of the burden of keeping him, pending the trial, and at the same time, to keep the accused constructively in the custody of the Court, whether before or after conviction, to assure that he will submit to the jurisdiction of the Court and be in attendance thereon whenever his presence is required”.

The Court observed that it appears that the crime was committed in a cool, calculated and organized manner causing wrongful loss of crores to the Bank. There are prima facie materials showing involvement of the petitioner in the deep-rooted conspiracy with other co-accused persons to cause such a huge loss to the Bank.

The Court thus held “granting bail to the petitioner in economic offences of this nature would be against the larger interest of public and State as it involves criminal misappropriation and cheating of huge amount of public money and there is also reasonable apprehension of tampering with the witnesses.”

 In view of the above, bail was rejected and petition was dismissed.[Ashwini Kumar Patra v. Republic of India, 2021 SCC OnLine Ori 438, decided on 26-04-2021]


Arunima Bose, Editorial Assistant has reported this brief.

Case BriefsTribunals/Commissions/Regulatory Bodies

Securities and Exchange Board of India (SEBI): K Saravanan, Adjudicating authority, imposed a penalty of Rs 2 crore on Reliance Industries Ltd. (RIL), while making the noticees responsible not only on their own behalf but also on behalf of the minor noticees, being their natural guardians.

The issue herein was that, 12 crore equity shares of Rs 10/- each were allotted by RIL to 38 allottee entities on January 07, 2000. The allotment was made consequent to the exercise of the option on warrants attached with 6,00,00,000 – 14% NCD of Rs. 50/- each aggregating to Rs. 300,00,00,000 (PPD IV) issued in the year 1994.  Therefore, the allegation against the Noticees was to the effect that 6.83% shares that were acquired by RIL promoters together with Persons Acting in Concert (PACs) in exercise of option on warrants attached with Non-Convertible Secured Redeemable Debentures (NCD), which was in excess of ceiling of 5% prescribed in Regulation 11(1) of Takeover Regulations, without making any public announcement for acquiring shares.  Moreover, since the promoters and PACs did not make any public announcement for acquiring shares, it was alleged that they had violated the provisions of regulation 11(1) of Takeover Regulations. Resultantly, adjudication proceedings were initiated under Section 15H of the SEBI Act, 1992 against 36 promoters and PACs, which includes the 34 Noticees and 2 other entities.

Subsequently, certain preliminary issues were made pertaining to the jurisdiction, power of SEBI, which the Noticees believed should be adjudicated upon. And the adjudicating authority dealt with all the preliminary issues substantively one by one. While dealing with one of the preliminary issue to initiate proceedings after an inordinate delay, it was of the opinion “…In any event, even the delay, as argued, is not relevant to the present proceeding as the violation is a substantive violation in the nature of an “economic offence”…”.

Issues

  1. Whether the Noticees have violated the provisions of Regulation 11(1) of Takeover Regulations?
  1. Does the violations, if established, attract monetary penalty under Section 15H of SEBI Act, 1992? If yes, then what would be the monetary penalty that can be imposed upon the Noticees, taking into consideration the factors mentioned in Section 15J of the SEBI Act, 1992 read with Rule 5(2) of the Rules?

 The adjudicating authority while acting in affirmation stated, “Noticees have acquired 6.83% shares of RIL consequent to exercise of option on warrants attached with Non-Convertible Secured Redeemable Debentures (NCD), which was in excess of ceiling of 5% prescribed in Regulation 11(1) of Takeover Regulations, without making any public announcement for acquiring shares and, thus, have violated the provisions of Regulation 11(1) of Takeover Regulations. Further remarked, “…In the instant case, the violation was not one which was committed once and for all but that which continues till date. The violation is a disobedience…”.

The adjudicating authority while holding the RIL in default stated, “…I note that the Hon’ble Supreme Court of India in the matter of SEBI v. Shri Ram Mutual Fund (2006) 68 SCL 216 held thatonce the violation of statutory regulations is established, imposition of penalty becomes sine qua non of violation and the intention of parties committing such violation becomes totally irrelevant. Once the contravention is established, then the penalty is to follow.“…It is an admitted fact that the Noticees did not make the public announcement as per the mandatory requirement of Regulation 11 of the Takeover Regulations and the open offer being a consequential and necessary part thereof, which was absolute in nature. Such a failure is a continuing violation till discharge…”.

“…the warrants were issued in the year 1994 much before their coming into existence of the Takeover Regulations. At the same time, I note that the entire scheme of Takeover Regulations rest on the pedestal of ‘control’.  “…In effect, I note that the Noticees have neither complied with in obtaining the approval of shareholders supplying them with the prescribed details nor have they come out with a public announcement till date. Thus, I note that the Noticees have been enjoying all rights attached to the impugned acquisition without complying with the relevant law…”.

Thus, the violation of Regulations 11(1) of the Takeover Regulations made the Noticees liable for penalty under Section 15H of the SEBI Act, 1992.

While deciding on the penalty, the adjudicating authority was of the opinion that, “…With regard to the above factors to be considered while determining the quantum of penalty, I note that no quantifiable figures or data are available on record to assess the disproportionate gain or unfair advantage and amount of loss caused to an investor or group of investors as a result of the default committed by the Noticee. However, the fact remains that the Noticees by their failure to make public announcement, deprived the shareholders of their statutory rights/ opportunity to exit from the company…”

Therefore imposed Rs 25,00,00,000 penalty, to be paid jointly and severally, under Section 15H of SEBI Act, 1992 for violation of Regulation 11(1) of Takeover Regulations.[Reliance Industries Ltd., In re, Order/KS/AE/2021-22/11266-11299, decided on 07-04-2021]

Case BriefsHigh Courts

Punjab and Haryana High Court: Sudhir Mittal, J., while addressing an issue with regard to the dishonour of cheque held that,

“Offence under Section 138 NI Act is quasi-criminal in nature and it is not an offence against society, hence an accused can escape punishment by settling with the complainant.”

Revision petitioner issued a cheque to the complainant–respondent 1 which was dishonored. 

On the dishonour of cheque, the complainant sent a notice demanding payment of the cheque amount but no response was received.

In view of the above, he filed a complaint under Section 138 of the Negotiable Instruments Act, 1881.

Revision petitioner was acquitted and later he filed an appeal against the said Judgment and the case was remanded for a fresh decision.

Appeal against the aforementioned judgment of conviction was dismissed which lead to the filing of the present revision petition.

In the present appeal, the revision petitioner prayed for a reduction in the quantum of sentence.

Question for adjudication is — Whether the petitioner is entitled to reduction of his sentence?

When can a Revisional Court exercise its powers to alter the nature or the extent or the nature and extent of the sentence?

Do sympathetic consideration have any role to play in the matter of sentencing?

Sentencing is primarily a matter of discretion as there are no statutory provisions governing the matter.

Bench citing the decision of the Supreme Court in State of Himachal Pardesh v. Nirmala Devi, 2017 (2) RCR (Criminal) 613, stated that the sentence imposed must be commensurate with the crime committed and in accordance with jurisprudential justification such as deterrence, retribution or restoration. Mitigating and aggravating circumstances, both should be kept in mind.

Court added that the provisions inserted for inculcating greater faith in banking transactions needed more teeth so that cases involving dishonour of cheques reduced.

Therefore, it is apparent that deterrence and restoration are the principles to be kept in mind for sentencing.

In the present matter, the order of sentence for 2 years has been imposed on the grounds that the offence is a socio-economic offence.

Award of compensation is also justified and reflects a judicious exercise of mind.

In view of the above, the revision petition was dismissed and maintained. [Rakesh Kumar v. Jasbir Singh, 2020 SCC OnLine P&H 1197, decided on 11-08-2020]


Also Read:

Dishonour of Cheque [S. 138 NI Act and allied sections]

Patna High Court
Case BriefsHigh Courts

Patna High Court: The Division Bench comprising of A. P. Sahi, CJ and Anjana Mishra, J. allowed a civil writ petition seeking direction for release of gratuity to an employee who was accused of an economic offence.

Petitioner was accused of acquiring of assets disproportionate to his income. In a departmental proceeding initiated against him, a final order was passed whereby it was ordered that ten per cent of his pension amount shall be permanently deducted and he would be paid only subsistence allowance during the period of suspension. Even after three and a half years from lodging of the criminal case, neither any sanction was accorded by the department against him nor was any chargesheet submitted by the prosecution – Economic Offence Unit. Thus, the petitioner filed an instant petition seeking the release of full amount of gratuity payable to him and a direction for release of the full amount due to him by way of unutilized leave.

The Court noted that despite the fact that charges of disproportionate income were not established against the petitioner in the departmental enquiry, ten percent of his pension was withheld as per Bihar Pension Rules, 1950. It was opined that no order of punishment had been imposed in relation to gratuity, and therefore withholding of gratuity had no rationale. Relying on Rule 43(b) of the Pension Rules and Full Bench judgment of the Patna High Court in Arvind Kumar Singh v. State of Bihar, 2018 SCC OnLine Pat 749, the present Court directed the amount of gratuity payable to the petitioner to be released forthwith along with interest on the same from the date that amount became payable till the date of payment. [Lakshmi Kant Patel v. State of Bihar, 2018 SCC OnLine Pat 2250, decided on 17-12-2018]

Case BriefsHigh Courts

Delhi High Court: A Single Judge Bench comprising of R.K. Gauba, J. dismissed a petition filed under Section 482 CrPC invoking the inherent powers of the Court, seeking the quashing of FIR filed against the petitioner, on the ground of compromise entered into between the parties.

The petitioner was facing prosecution for offences punishable under Section 420 read with Section 511, and Sections 471, 474, 419 and 381 IPC. The allegation against the petitioner was that he was an employee of Kundan Edible Oil Mills. It was stated that the petitioner, in his capacity as the said employee, dishonestly removed a cheque leaf of the said entity against its bank account with HDFC bank. The said cheque was forged and fabricated purporting it to be a cheque issued for the sum of Rs 6 lakhs and was presented to the bank for obtaining payment thereagainst. The cheque, on scrutiny by the Bank, was found to be forged and fabricated. Consequently, an FIR was registered. The petitioner prayed for quashing of FIR and consequent proceedings on the basis of compromise entered into between the petitioner and the respondents.

The High Court noted that during the investigation, the petitioner was unable to account for possession of the cheque which was forged, grave suspicion arising that he knew fully well that it was a forged instrument. Even then, he attempted to use it to commit the offence of cheating by presenting it dishonestly. The Court relied on the Supreme Court decision in Parbatbhai Aahir v. State of Gujarat, (2017) 9 SCC 641 and held that the facts of the case rendered it beyond a dispute that is private in nature. It involved serious economic offence which concerns not only the entity against the account of which the forged cheque was attempted to be encashed but also the bank where the account was maintained. The Court was of the view that this was not a case meriting exercise of inherent powers to bring an end to the prosecution. The petition was, thus, dismissed. [Pawan Gupta v. State (NCT of Delhi), 2018 SCC OnLine Del 11121, dated 23-08-2018]