Legal News & Views

In a landmark verdict that will benefit thousands of land owners in Delhi, the high court on Wednesday allowed registration of properties even if valued below the minimum circle rate of the area. Article referred: http://timesofindia.indiatimes.com/city/delhi/Property-can-be-registered-below-circle-rate-rules-Delhi-HC/articleshow/50304880.cms

The Supreme Court has asked all organisations and companies — private or public — to conclude departmental proceedings against their employees within six months to ward off unnecessary harassment to the staff being probed and to ensure fairness. It said if the delinquent employee has been placed under suspension during the pendency of the inquiry then the employer should ensure that the inquiry is concluded in the shortest possible time. Article referred: http://indianexpress.com/article/india/india-news-india/finish-proceedings-against-employees-in-6-months-says-supreme-court/

If the symbol Rs/Rs is missing on the package of a product for sale, it could invite penalty under the Legal Metrology (Enforcement) Rules, 2011. The offence is compoundable, but the rules are valid, the Delhi High Court stated last week in its judgment, M/s IMS Mercantiles Ltd vs Union of India. In this case, the premises of the firm were inspected by a team of Legal Metrology officials and they found that one of the packets containing rechargeable LED flash lights did not bear the word 'Rs'. The MRP shown on the package merely showed 'MRP 299.00'. The firm was asked to pay Rs 25,000 for the lapse. It challenged the action in the high court and also argued that the rules were against the Legal Metrology Act. The high court dismissed the writ petition. http://www.business-standard.com/article/opinion/duress-to-sign-away-dues-condemned-115122000687_1.html

The Bombay High Court last week differed from the Delhi high court view in the matter of jurisdiction of the Debt Recovery Tribunal when a dispute under the Securitisation Act is involved. In this case, GSL India Ltd vs Asset Reconstruction (India) Ltd, the debt recovery tribunal and the appellate tribunal in Mumbai had rejected the application of GSL India, maintaining the company had no jurisdiction in the matter as the property under proceedings under the Securitisation Act was situated in Gujarat. Their view was that the tribunal in that state will have jurisdiction. The Bombay High Court reversed that position and ruled that the Mumbai tribunal could deal with the matter. Its interpretation of the provisions of the Debt Recovery Act, the Recovery of Debts due to Banks and the Securitisation Act differed from that of a full bench decision of the Delhi High Court, which is applicable in Delhi jurisdiction. The Hon'ble court said - 1) Firstly, we are unable to agree with th...

The Delhi High Court has directed the Insurance Regulatory and Development Authority of India (Irdai) to convene an urgent meeting of insurance companies in Delhi to address the problem of 'duress and coercion' used by them to force a contracting party to abandon legitimate rights under law. The order was passed in the judgment, Worldfa Exports Ltd vs United India Insurance. The conduct of the companies, violating the provisions of the Contract Act and consumer laws, was severely condemned by the court. The firm in this case had taken a fire insurance policy and there was a fire in its premises. It claimed Rs 12 crore, but the surveyor assessed the loss at Rs six crore. The insurer tendered Rs 5.62 crore and asked the firm to send an undated discharge voucher in 'full and final settlement' of the claim. The company which was in distress due to the long delay in settling the claim signed the voucher. The high court pointed out that no law permitted an insurance compa...

Many persons are unaware of life insurance which comes free with their credit/debit cards but the banks that issue them have a responsibility to fulfil their duty towards its customers. If they fail to get the promised amount from the insurance company, the banks will be guilty of deficiency in service. The National Consumer Commission held so in its judgment last week, HDFC Bank vs Pooja Kapoor. The bank had issued a gold card to Pankaj Kapoor and wife Pooja with the benefit of insurance for Rs 5 lakh in case of accidental death. The bank's arrangement was with New India Assurance. Pankaj died in an accident, but the widow did not claim the insurance benefit for a long time, though the condition in the policy prescribed a 30-day limit. She was not aware of the benefit when the bank account was closed due to the death. The bank did not tell her either. Later, she learned about the insurance and she approached the bank. It referred the claim to the insurer, which rejected it on ...

The Calcutta High Court has ruled that the power of the provident fund commissioner to impose penalty on employers who delay their contribution is limited by certain considerations. Sections 14A and 32A of the Provident Fund Act grant the authorities the power to recover penalty not exceeding the amount of arrears and specify the rate of penalty. But the authorities have the discretion to reduce it. The argument of the authorities that they cannot reduce the penalty was rejected by the high court in the case, Topcon International Ltd vs RPF Commissioner. The authorities can take into consideration factors like frequency of the delays, the number of days delayed, power cuts, non-realisation of debts by the employer, the delay on the part of the authorities to claim damages and whether the company has been declared sick. The court clarified that though the authorities could reduce the amount of penalty or damages, that discretion could not be used to waive it altogether. Before levying a...

Interest paid by a company on borrowings from banks to advance money to its own subsidiary is 'business expenditure' on which tax deduction can be claimed, the Supreme Court has ruled in its judgment, Hero Cycles Ltd vs CIT. In this case, the company which was the promoter of Hero Fibres Ltd, took loans and paid interest on it. The money was paid to the sister concern due to business expediency in view of an undertaking given to financial institutions that it would provide additional margin to meet working capital for meeting any cash losses. When the company claimed deduction on it as business expenditure, the revenue authorities denied it. The company moved the Punjab and Haryana High Court but it dismissed the appeal maintaining that when loans were taken from banks at which interest was paid for purposes of business, the interest component could not be claimed as business expenditure. The company moved the Supreme Court. Allowing its appeal, the apex court gave a wider mean...

The Supreme Court last week gave thumbs up to settlement of disputes against litigation among business family members when it ended three-decade row in the case, Rajni Sanghi vs Western Indian State Motors Ltd. The court ruled that if the parties settled their differences amicably, their agreement shall prevail though there were other proceedings like arbitration. Even if there is an arbitration award, which has not been made into a decree of the court, the family arrangement will override it. This was a case of partition of business among four branches of a family whose head died in 1961. Differences cropped up in the 1980s and there was litigation in three high courts with complicated questions of fact and law. There was also an arbitration award which was not made decree of the court. Meanwhile, the parties filed settlement deeds before the Bombay and Rajasthan high courts. The disputes continued over technical details. Ultimately, the Supreme Court upheld the settlement arrived at ...

The Supreme Court has ruled that a widow can be a manager of a joint family in some particular circumstances. An apex court bench gave the ruling while deciding a property dispute between cousins of a family in Uttar Pradesh in a suit filed in 1978 in favour of the mother who bought the property. A bench comprising justices Ranjan Gogoi and N V Ramana said, “Such a role (as manager) necessarily has to be distinguished from that of a Karta which position the Hindu widow cannot assume by virtue of her disentitlement to be a coparcener in the Hindu Undivided Family (HUF) of her husband. Regrettably the position remains unaltered even after the amendment of the Hindu Succession Act in 2005.” Article referred: http://www.newindianexpress.com/nation/Hindu-Widow-can-be-Manager-of-Joint-Family-Rules-SC/2015/12/18/article3183105.ece

In two rare verdicts, Central Information Commission has awarded compensation to applicants fighting for information on their provident fund and salary. A senior citizen resident of Dhanbad, who had been seeking information from his employer Bharat Coking Coal Limited on deduction from his salary towards provident fund for two years, has been awarded a compensation of Rs 15,000. Another resident of Brahmpuri, who was employed as a teacher on contract by East Delhi Municipal Corporation, has been awarded a compensation of Rs 8,000 for being wrongfully denied information on his emoluments for three years. Article referred: http://articles.economictimes.indiatimes.com/2015-12-13/news/69006450_1_provident-fund-compensation-rti-act

The Bombay High Court, while quashing the order of the sessions court refusing maintenance to a second wife by the husband, held that it was not required for the woman to prove her marriage through documentary evidence, if the couple lived together. The woman had challenged a 2005 order of the Kolhapur sessions court, which had, while allowing the maintenance of Rs500 to the daughter, turned down that of the woman on the grounds that the husband was already married and his spouse was alive. Article referred: http://www.dnaindia.com/mumbai/report-second-wife-need-not-prove-marriage-for-maintenance-bombay-high-court-2155044

The Allahabad high court has issued a notice to the Noida Authority chairman on Tuesday stating that no builder should be allowed to change the floor area ratio of their apartments without prior consent of the home buyers. The court has asked the Noida Authority to submit an affidavit with the court within a month, with details off all those projects which have been sanctioned changes in floor area ratio so far, by deviating from the original layout plans. Article referred: http://realty.economictimes.indiatimes.com/news/regulatory/cant-change-far-without-buyers-consent-allahabad-high-court-to-noida-authority/50227210

Rajasthan High Court on Friday directed that no registration of flats in multi-storey buildings will be allowed in the state without issuance of completion certificate by the competent authority. Article referred: http://realty.economictimes.indiatimes.com/news/regulatory/rajasthan-hc-no-sale-of-flats-without-completion-certificate/50157793

The Punjab and Haryana High Court has made it clear that a deceased victim’s family cannot strike a compromise with the accused on behalf of the dead. “Legal heirs of the deceased have entered into a compromise with the accused. It is inexplicable how they can be allowed to do so on behalf of a dead person. Possibility that they have acted under pressure or for some consideration cannot be ruled out,” Justice Rajan Gupta has asserted. Article referred: http://www.tribuneindia.com/news/punjab/family-can-t-compromise-on-behalf-of-dead-victim-hc/169363.html

In what will help speed up decisions in consumer cases, Supreme Court has ruled that a party will not get more than 45 days for replying to a complaint in a consumer forum.  The court said this period cannot be extended under any circumstances. Underlining that Consumer Protection Act, 1986, aims at providing expeditious relief to consumers against unfair trade practices and deficiency in services, a three-judge bench led by Justice Anil R Dave held that no party shall henceforth be given more than 45 days to adduce explanation to a complaint. If a party fails to do so, the right to submit a written statement shall be closed and the case may be decided straightaway in the complainant’s favour.  Article referred: http://indianexpress.com/article/india/india-news-india/cant-give-beyond-45-days-for-replying-to-complaint-in-consumer-cases-supreme-court/

While dismissing the petition challenging the validity of Section 7-A of the Hindu Marriage Act, 1955, the Division Bench of S.K. Kaul, C.J. and T.S. Sivagananam, J. relying on the decision of S.Nagalingam v. Sivagami, (2001) 7 SCC 487, upheld the validity of Section 7-A [as inserted by the Hindu Marriage (Tamil Nadu Amendment) Act, 1967] as the provision applies to any marriage between two Hindus solemnized in the presence of relatives, friends or other persons and that the presence of a Priest is not mandatory for the performance of a valid marriage. Article referred: http://blog.scconline.com/post/2015/11/26/validity-of-s-7-a-of-the-hindu-marriage-act-1955-upheld/

In the case where the Court was deciding the question regarding the exhibition of Compact Discs filed in defence by the accused and to get the same proved from Forensic Science Laboratory, the bench of Dipak Misra and P.C. Pantt, JJ held that the courts below erred in law in rejecting the application to play the compact disc in question to enable the public prosecutor to admit or deny. In the case where a female child aged nine years was alleged to be sexually abused by his uncle, considering the fact that the compact disc in question had the conversation between the father of the victim and son and wife of the appellant regarding alleged property dispute, the Court referred to various judgments of this court where it was held that tape recorded conversation is admissible provided first the conversation is relevant to the matters in issue; secondly, there is identification of the voice; and, thirdly, the accuracy of the tape recorded conversation is proved by eliminating the possibili...

Declaring the Karnataka Religious Institutions and Charitable Endowments (Amendment) Act, 2011 and the Karnataka Religious Institutions and Charitable Endowments (Amendment) Act, 2012 discriminatory and violative of Constitutional Rights, the High Court held that if the law passed by a legislature is struck down by the Courts as being invalid for one or the other reason, it would be competent for the appropriate Legislature to cure the  said infirmity and pass a validating law so as to make the provisions of the said earlier law effective from the date when it was passed. But the changed or altered conditions should be such that the previous decision would not have been rendered by the Court if those conditions had existed at the time of declaring the law as invalid. Article referred: http://blog.scconline.com/post/2015/12/04/legislature-cannot-directly-overrule-a-decision-or-make-a-direction-as-not-binding-on-it-but-has-power-to-make-the-decision-ineffective/

The Supreme Court has held that a landholder’s right to be fairly compensated for his land acquired by the government cannot be compromised as right to property has long been recognised a human right. A bench of Justices V Gopala Gowda and Amitava Roy said the government cannot undermine the land owner’s right by not granting fair compensation to them. The court said it is constitutional obligation to ensure that a land loser is adequately compensated. “The right to property having been elevated to the status of human rights, it is inherent in every individual, and thus has to be venerably acknowledged and can, by no means, be belittled or trivialised by adopting an unconcerned and nonchalant disposition by anyone, far less the state, after compulsorily acquiring his land by invoking an expropriatory legislative mechanism,” the bench said. Article referred: http://www.deccanherald.com/content/515900/sc-landholders-right-fair-share.html

A Two Judge Bench of the Supreme Court comprising of Justices J.S.Khehar and R.Banumati has held that, in view of the Amended Section 142(2) of Negotiable Instruments (Amendment) Second Ordinance 2015, the place where a cheque is delivered for collection i.e., the branch of the bank of the payee or holder in due course, where the drawee maintains an account, would be the determinative of the place of territorial jurisdiction for filing Complaint under the NI Act. The Bench was hearing an Appeal from an order dated 5.5. 2011 of Madhya Pradesh High Court in which it is held that the Jurisdiction to file a Complaint under NI Act lay only before the Court where-in the original drawee bank was located. The High Court relied on the Three Judge Bench Judgment of the Supreme Court in Dashrath Rupsingh Rathod vs. State of Maharashtra. Article referred: http://www.livelaw.in/breaking-ni-act-ordinance-2015-is-retrospective-dashrath-rathods-judgment-have-no-effect-in-view-of-the-amendment-sc...

A married daughter is eligible to get government job of her deceased's father on compassionate grounds, the Chhattisgarh High Court has observed. Justice Sanjay K Agrawal made the observation on Tuesday while hearing a petition filed by Sarojani Bhoi (28) who had challenged the state government on the ground that she was not given the job of her father who passed away in 2011. Article referred: http://www.dnaindia.com/india/report-married-daughter-eligible-for-deceased-father-s-govt-job-on-compassionate-grounds-chhattisgarh-hc-2151213

In a judgment that will shield parents against unruly and unsupportive children, the Punjab and Haryana High Court has given a new meaning to their relationship. The High Court has asserted that a son is a mere licensee putting up on the premises owned by his father. The District Magistrate is competent to order his eviction. The judgment by Justice Hemant Gupta and Justice Sneh Prashar came on a petition by Gurpreet Singh against his father and other respondents. The Bench said: “The petitioner is a licensee living on the premises on the basis of concession given by his father to live in the property owned by him. As a licensee, the petitioner is only permitted to enjoy the possession of the property licensed, but without creating any interest in the property. A licence stands terminated the moment the licensor conveys a notice of termination of the licence. There is no vested right of any kind in the licensee to remain in possession of the property licensed,” it said. Arti...

A Savings Bank account maintained primarily for the purpose of depositing monthly pension amount could not be attached by a bank just because the account holder had defaulted repayment of a loan availed from the same institution, the Madras High Court Bench here has held. Justice K. Ravichandra Baabu passed the order while allowing a writ petition filed by A. Muthuiruvakkal of Nagercoil in Kanyakumari district. She had challenged an order passed by a nationalised bank on August 13 preventing her from operating the pension account for recovering the outstanding loan amount. Article referred: http://www.thehindu.com/news/cities/Madurai/banks-cannot-attach-pension-account-to-recover-loan-dues-hc/article7943078.ece