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Showing posts from August, 2016

Mandatory procedures not followed in acquiring Singur land

The Supreme Court today quashed the acquisition of 1000 acres of land in Singur by West Bengal’s Left Front government in 2006 for Tata’s Nano project concluding that it was “illegal” and proceeded ahead in “violation of law”. Civil rights organizations, several of them backed by present chief minister Mamata Banerjee, had moved the apex court challenging the acquisition. The court was hearing a bunch of petitions challenging the quashing of Singur Land Acquisition Act brought in by the Mamata government by the Calcutta high court. Mamata government also became a petitioner later challenging quashing of the Act. A bench of justice V Gopala Gowda and justice Arun Mishra while pronouncing the judgment directed that the land be given back to farmers in 12 weeks. Though the Judges agreed on conclusion, differed on the question whether the land acquisition was  for public purpose or not . Justice Gowda, held that  the acquisition of land by taking it away from the farmers cultivati...

No alteration of electricity tariff decided by bidding process

In a 498 page judgment on appeals filed by the Adani, Tata, GMR and other groups, the Hon'ble Appellate Tribunal For Electricity clarified various issues including :- a) Definition of "Composite Scheme" b) Jurisdiction of CERC in "Composite Schemes" c) Alteration of tariff by the CERC The Hon'ble Tribunal decided that the supply of power to more than one State from the same generating station of a generating company, ipso facto, qualifies as ‘Composite Scheme’ to attract the jurisdiction of the Central Commission under Section 79 of the said Act. Further the Hon'ble Tribunal quashed the regulatory powers of CERC under Section 79(1)(b) of Act, to alter or modify the tariff which has been determined by way of a competitive bidding process, holding that the CERC may by way of its adjudicatory powers under section 79(1)(f) of the Act, award relief to the power generating companies as per the provisions of the PPA if a case of force majeure is made out.

Regulator can review power tariff in PPA

In The tariff fixed in a power purchase agreement (PPA) is not sacrosanct and it could be reviewed by the State Electricity Regulatory Commission, which is the statutory authority for fixing tariff under the Electricity Act, the Supreme Court ruled last week in its judgment, Gujarat Urja Vikas Nigam Ltd vs Tarini Infrastructure Ltd. The state regulatory commission had declared that it had no such power to review. However, the appellate tribunal decided that the commission did have the power.

Land purchased by builder aware of encumbrance is "Capital Asset"

ACIT vs. M/s Dattani Development S. 50C: Land purchased by a builder with the knowledge that there are encumbrances on it and development is not feasible is a “capital asset” and not “stock-in-trade”. The gains on transfer of such land is assessable as capital gains and not as business profits. S. 50C applies to development agreements if the effect of the development agreement read with the conveyance deed is that the entire land with ownership rights are transferred. Article referred: http://itatonline.org/archives/acit-vs-ms-dattani-development-itat-mumbai-s-50c-land-purchased-by-a-builder-with-the-knowledge-that-there-are-encumbrances-on-it-and-development-is-not-feasible-is-a-capital-asset/

Attached assets to be returned after revival of company

In A. Talukdar & Company (Fertilizer) Private Limited Vs. Respondent: The Official Liquidator, High Court of Calcutta and Ors., the Hon'ble Supreme Court said that If an order to wind up a company is recalled and the company is revived, it is entitled to get back from the official liquidator its entire assets. Tenants who occupied the premises during the proceedings shall go out. The company court can evict them.

Private company fined for environmental issue

The Principal bench of the National Green tribunal (NGT) today directed Delta Marine Shipping Company (Delta Shipping Marine Services SA and sister concerns) and Adani Enterprises Ltd. to pay Rs 100 crore and Rs 5 crore respectively as compensation for causing damage to the marine environment. The bench, headed by Chairperson Swatanter Kumar made the determination on an application made by Mumbai resident, Samir Mehta for environmental pollution caused by the sinking of Delta carrier MV RAK around 20 nautical miles of the coast of Mumbai while carrying over 60054 metric tonnes of coal for Adani in 2011. The vessel also contained around 290 tonnes of fuel oil and 50 tonnes of diesel, on its voyage from Indonesia to Dahej in Gujarat, but sank before reaching its destination causing an oil spill spreading across the Maharashtra coastline from Mumbai to Raigad, affecting both human and maritime life. During the course of the proceedings, Delta took the stand that the damages were lia...

Condonation of delay caused due to human error

The Hon'ble Bombay High Court in Prashanth Projects Ltd vs. DCIT while allowing an appeal for condonation of delay said it is an undisputed position that the appeal from order dated 31st December, 2007 of the Assessing Officer was prepared and filed in the prescribed Proforma viz. Form No.35. It was addressed to CIT(A). However, by mistake the same was tendered to the office of the Assessing Officer and the office of the Assessing Officer also accepted the same.  Human interaction is influenced by human nature. Inherent in human nature is the likelihood of error. Therefore, the adage “to err is human”. Thus, the power to condone delay while applying the law of limitation. This power of condonation is only in view of human fallibility. The laws of nature are not subject to human error, thus beyond human correction. In fact, the Apex Court in State of Madhya Pradesh Vs. Pradip Kumar 2000(7) SCC 372 has observed to the effect that although the law assists the vigilant, an uninten...

VRS: It is not open for the Employees to withdraw the Application after the stipulated last date

The Supreme Court in Madhya Pradesh State Road Transportation Corporation vs. Manoj Kumar & Anr. held that Voluntary Retirement Schemes (VRS) are contractual in nature and the option to opt for them constituted as an ‘invitation to offer’ and not an ‘offer’ themselves. The Bench of Justices AK Sikri and RK Agrawal also held that it is not open to the applicants to withdraw their applications after the stipulated last date Article referred: http://www.livelaw.in/vrs-not-open-employees-withdraw-application-stipulated-last-date-sc-read-judgment/

Partial deposit before DRAT under Section 18 of SARFAESI Act refundable

Reiterating the dictum laid down in in Axis bank vs. SBS Organics Private Limited, the Supreme Court in KUMAR ALUMINIUM LTD. VS. ASSET RECONSTRUCTION COMPANY INDIA has set aside a Delhi High Court Judgment which had refused to interfere with DRAT order which turned down the prayer for refund of the amount deposited in compliance of the requirement of the second proviso to section 18(1) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, for maintaining an appeal. Article referred: http://www.livelaw.in/partial-deposit-drat-section-18-sarfaesi-act-refundable-reiterates-sc/

‘Illness of Counsel/Accused in Custody’ not valid grounds to recall witnesses

The Supreme Court in State of Haryana vs. Ram Mehar & Others has held that, recalling of witnesses as envisaged under Section 311 of the Code of Criminal Procedure on the grounds that accused persons are in custody, the prosecution was allowed to recall some of its witnesses earlier, the counsel was ill and magnanimity commands fairness should be shown, is not acceptable. Apex Court Bench comprising of Justices Dipak Misra and U.U. Lalit set aside a Judgment of High Court which had allowed the accused to recall the witnesses on the aforementioned grounds. Article referred: http://www.livelaw.in/illness-counselaccused-custody-not-valid-grounds-recall-witnesses-section-311-crpc-sc/

Students have fundamental and legal right of having access to answer sheets under RTI

The Supreme Court has ordered the Central Board of Secondary Education (CBSE) to “scrupulously” follow its 2011 judgment which had ruled that students have fundamental and legal right of having access to answer sheets under Right to Information Act, 2005. The Court was hearing an application under Section 12 of the Contempt of Court Act, filed by two law students, Mr. Kumar Shanu and Mr. Paras Jain, demanding that contempt proceedings be initiated against CBSE Chairman, Mr. YSK Seshu Kumar for “wilfully and deliberately disobeying” Court directions. Article referred: http://www.livelaw.in/follow-judgment-said-access-answer-sheets-rti-right-sc-cbse/

NCDRC asked Swiss airline to compensate for wrong meal on flight

The apex consumer commission has directed a foreign airline to pay a compensation of Rs 20,000 to a customer and upgrade his economy class ticket to business class if he travelled in future, as a penalty for serving him non-vegetarian food instead of a Jain meal he had opted for. The National Consumer Disputes Redressal Commission (NCDRC) upheld the district forum's order also directing Swiss International Airlines, to pay Rs 10,000 towards litigation cost and dismissed the revision petition filed by Mumbai resident Amit Jay Kumar Jain to enhance the compensation.

All Tribunals are not required in law to defends its own order

The Supreme Court in M. S. KAZI VS. MUSLIM EDUCATION SOCIETY has held that all Tribunals are not necessary parties in a Special Civil Applications under Articles 226 and 227 of the Constitution, when they are not required to defend its orders when they are challenged before the High Court. Three Judge Bench comprising of Chief Justice of India T S Thakur, Justices A M Khanwilkar and Dr D Y Chandrachud made this observation while setting aside Gujarat High Court judgment which had dismissed Letters Patent Appeal against a Single Bench order for the reason that the Gujarat Higher Secondary Education Tribunal was not impleaded in the Special Civil Application. Article referred: http://www.livelaw.in/tribunals-not-necessary-parties-proceedings-legality-orders-challenged-sc/

Impotency allegations against hubby amounts to cruelty

Dismissing wife's plea for restitution of conjugal rights, Nagpur bench of Bombay High Court ruled that allegations of impotency against husband amounts to cruelty and he is entitled for divorce. "No husband would like to hear that he was impotent for about six to seven months after the marriage. If that was not true, allegations would surely hurt a man's ego. Before levelling them against the husband, the wife should have given some thought," a division bench comprising Justice Vasanti Naik and Justice Swapna Joshi stated. Article referred: http://timesofindia.indiatimes.com/city/nagpur/Impotency-allegations-against-hubby-amounts-to-cruelty-HC/articleshow/53890424.cms

Heinous Offences cannot be settled between parties

A crime of ‘serious nature’ should be treated as a crime against the society and not an individual and such a case cannot be quashed even if the offender and victim reach an amicable settlement, the Bombay high court has said. A division bench of justices N.H. Patil and P.D. Naik on 25 August refused to quash a case lodged against 12 people on charges of attempt to murder and various other sections of the IPC. The accused had petitioned the high court seeking to quash the FIR lodged against them on the ground that they have amicably settled the dispute with the complainants. Article referred: http://www.livemint.com/Politics/2lQJtDz8UnXS6HMy9ehjtI/Bombay-HC-says-heinous-crime-should-be-treated-as-crime-agai.html

Plea against detention has to be given immediate attention

The Supreme Court has said that a habeas corpus plea, relating to legality of arrest, detention or imprisonment of a person, has to be given “immediate attention” and steps should be taken to decide it forthwith. The apex court said this while asking the Lucknow bench of Allahabad high court to decide within four weeks the plea by a man, who is the working president of Akhil Bharat Hindu Mahasabha and has been “detained” for allegedly issuing a press release containing inflammatory language against the Prophet. Article referred: http://www.hindustantimes.com/india-news/plea-against-detention-has-to-be-given-immediate-attention-sc/story-2KyzMMLp2TUU36QlVqWhdO.html

Outstation lawyers can only appear with local lawyers

The Supreme Court in JAMSHED ANSARI VS. HIGH COURT OF JUDICATURE AT ALLAHABAD & ORS has held that right of Advocates to appear and conduct cases in the court is a matter on which the court must and does have major supervisory and controlling power and it cannot be and are not divested of control or supervision of conduct in court merely because it may involve the right of an Advocate. Dismissing an appeal against Allahabad High Court Judgment preferred by a lawyer, Jamshed Ansari, the Apex Court Bench comprising of Justices AK Sikri and N V Ramana held that Rules 3 and 3A of the Allahabad High Court Rules, 1952 and perfectly valid, legal and do not violate the right of the appellant under Article 19(1) (g) of the Constitution of India. Article referred: http://www.livelaw.in/breakingsc-upholds-allahabad-hc-rule-mandates-lawyer-outside-state-cannot-appear-court-without-local-lawyers-appointment/

Legality and Validity of substantive contract cannot be enquired under Arbitration Act

The Supreme Court has upheld a Madhya Pradesh High Court decision holding that two Indian firms, Sasan Power Ltd and North American Coal Corporation India Pvt Ltd, may conduct arbitration outside India and under a foreign law if there was an agreement to that effect. “We see no reason to interfere with the conclusions recorded by the courts (HC) below. The appeal is, therefore, dismissed with costs,” a bench of Justices J Chelameswar and A M Sapre said while dismissing the plea of Reliance Power-owned Sasan Power Ltd which operates Ultra Mega Power Project (UMPP) at Singrauli district in Madhya Pradesh. The court held that as the assignment in its truest sense did not take place between the American and the Indian company, the liability of the American company still exists. Note: Also refer to the judgment of Hon'ble High Court where both parties are Indian. http://gmbalegal.blogspot.in/2015/08/arbitration-foreign-seat-indian-party.html

Injury while leaning out of train not self-inflicted

In an order with wide ramification, the Punjab and Haryana high court has held that getting injured while leaning out from a train door couldn't be termed as self-inflicted injury as such kind of negligence was not uncommon in the country. HC passed these orders while setting aside the decision of the Railway Claims Tribunal that had denied compensation to the kin of a passenger who died after falling from a train.

Can’t demolish a building without cancelling approved plan

The High Court of Karnataka on Tuesday directed the Bruhat Bengaluru Mahangara Palike (BBMP) not to demolish a multi-storey building which has been built abutting a storm-water drain as per the plan approved by the authorities, without cancelling the plan as per the law. Justice Anand Byrareddy passed the order while disposing of a petition filed by S.N. Builders and Developers and its managing director Shah Sanjay. The court restrained the authorities from taking any coercive action against the petitioner or the multi-storeyed apartment complex as long as the sanctioned plan stood valid.

Vicarious liability and Writ for for compensation for death on electrocution

Orissa High Court has recently held that a writ application for payment of compensation for the death of a person in electrocution is maintainable when the undisputed facts clearly reveal the same. Petitioners, the unfortunate parents of Mr. Madhusudan Das, who died in electrocution, approached the High Court with a writ petition under Article 226 of the Constitution of India, praying, inter alia, for a direction to the opposite parties to pay an amount of Rs.3,00,000/- towards compensation for the death of their only son. The Petitioners stated in the Petition that, on 12.7.1997 evening while their son, Madhusudan Das was driving the cattle, who were damaging the standing paddy crops, from the field by holding a lathi, the said lathi touched the electric live line of the pump house, as a result of which, he got the electric shock, fell down and became senseless. Thereafter he was shifted to headquarter Hospital, Jajpur for treatment. On the way he expired. Article referred: http://w...

No insurance claim for theft in the absence violence or force

In M/s. INDUSTRIAL PROMOTION & INVESTMENT CORPORATION OF ORISSA LTD. Versus NEW INDIA ASSURANCE COMPANY LTD. & ANR., the Supreme Court has ruled that a person or an entity can't seek compensation on insured goods if theft happened without violence. Citing a 2004 SC judgment, Justice Rao said, "In the absence of violence or force, the insured cannot claim indemnification against the insurance company. The terms of the policy have to be construed as it is and we cannot add or subtract something. Howsoever liberally we may construe the policy, we cannot take liberalism to the extent of substituting the words which are not intended. "...in common parlance, the term 'burglary' would mean theft but it has to be preceded with force or violence. If the element of force or violence is not present, then the insured cannot claim compensation."

Difference between “Power of Attorney of a Landlord” and “Landlord through Power of Attorney”

The Allahabad High Court in Rashmi Bhatiya vs. Geeta Sharma has held that, Release application cannot be filed by Power of Attorney on the ground of his bonafide need, but there is no express prohibition under the Rent Act debarring the owner-landlord from applying for release through Power of Attorney holder. Difference between filing of a Release application by a “Power of Attorney of a Landlord” and that by a “Landlord through Power of Attorney” is explained in this Judgment rendered by Justice Pankaj Mithal for Allahabad High Court. Through a writ petition, the tenants had challenged the judgment of Rent control Authority, contending that Release application was filed by the power of attorney holder of the landlady and, as such, was not maintainable. Article referred: http://www.livelaw.in/rent-act-power-attorney-cannot-file-release-application-bonafide-need-allahabad-hc-read-judgment/

11 Factors to be considered by the Court while awarding interim Maintenance

Delhi High Court has recently re-iterated the factors to be considered by the Court while deciding an application for interim Maintenance. A Division Bench of Justices Pradeep Nandrajog and Pratibha Rani has observed that the object behind Section 24 of the Hindu Marriage Act, 1955 is to provide for maintenance, pendente-lite, to a spouse in matrimonial proceedings so that during the pendency of the proceedings the spouse can maintain herself/himself and also have sufficient funds to carry on the litigation so that the spouse does not unduly suffer in the conduct of the case for want of fund. The Bench has also re-iterated the following factors to be considered by the Court, while awarding the amount, as held by High Court in Sh.Bharat Hegde Vs. Smt.Saroj Hegde 1. Status of the parties. 2. Reasonable wants of the claimant. 3. The independent income and property of the claimant. 4. The number of persons, the non applicant has to maintain. 5. The amount should aid the applicant t...

Cannot re-call witness for Cross Examination merely on change of counsel

Delhi High Court has recently held that if cross examination of a witness is concluded by a counsel upto best of his capability, subsequent change of counsel by a party would not confer any right on him/her to recall the witness for further cross examination or to fill up the lacuna, if any, left. The Bench comprising Justices Pratibha Rani and Pradeep Nandrajog also held that the witnesses cannot be harassed by a party by making them to reappear for cross examination just because the new counsel wants to further cross examine them. Recalling of a witness after the trial has concluded has the direct effect on expeditious conclusion of the trial. Article referred: http://www.livelaw.in/change-counsel-not-confer-right-party-re-call-witness-cross-examination-delhi-hc/

Distinction between “Loss to the Estate” and “Loss of Estate”

A subtle but fundamental distinction between “Loss of Estate” and “Loss to the Estate” was discussed in Omana P.K. and others v. Francis Edwin and others (2011 (4) KLT 952). This Judgment was challenged before the Apex Court, which has now dismissed the Appeal. The question raised in this case, was whether a certain sum which the dependants received as compensation for untimely death of Judgment debtor in a motor accident is attachable in Execution Proceedings. In this case, Justice Thomas P. Joseph speaking for the Kerala High Court had held the following (relying on The Chairman, A.P.S.R.T.C, Hyderabad vs. Smt. Shafiya Khatoon and Others) * Capitalized value of the income spent on the dependents, subject to relevant deductions, is the pecuniary loss sustained by the members of his family through his death. The capitalized value of his income, subject to relevant deductions, would be the loss caused to the estate by his death. In other words, what amount the dependents would have ...

Seven non-arbitrable disputes

In Booz Allen & Hamilton Inc. vs. SBI Home Finance Ltd. & Ors. (2011) 5 SCC 532 the Supreme Court carved out six categories of cases which are not capable for being decided by private arbitration under the Arbitration Act even though parties agreed for their settlement through private arbitration. (i) disputes relating to rights and liabilities which give rise to or arise out of criminal offences; (ii) matrimonial disputes relating to divorce, judicial separation, restitution of conjugal råights, child custody; (iii) guardianship matters; (iv) insolvency and winding up matters; (v) testamentary matters (grant of probate, letters of administration and succession certificate); and  (vi) eviction or tenancy matters governed by special statutes where the tenant enjoys statutory protection against eviction. Supreme Court of India in Shri Vimal Kishor Shah Vs Jayesh Dinesh Shah & Ors has added one more category in the list (vii), namely, cases arising out of Trust Deed...

Old age and long distance travel not valid grounds for transfer of Case

Whether old age of the accused and long distance travel difficulty, can be a ground to transfer a criminal case? Madras High Court, in a recent order, observed that such concerns are not a valid ground for transferring a case. The accused, in a corruption case, had sought transfer of Trial from a Court situated 1000 kilometres away from his place of residence, on the ground of his inconvenience on account of his age as well as his present place of residence. The Prosecution contested his plea on the ground that case has become part-heard and some witnesses have already been examined. Justice P.Devadass observed: “it is quite natural in the present set up, he has to undergo some inconvenience. But, the Court has to see whether by this his defence is prejudiced. He has engaged a counsel to defend himself. Except the stated inconvenience, there is no bottleneck for defending himself as against the charges levelled against him. On account of the said inconvenience, we cannot transfer the c...

Calcutta High Court proposes "pragmatic approach" to provide justice

The Calcutta High Court has adopted a “pragmatic” approach towards condonation of delay on the part of state observing that deliberate lapses and inaction on the part of the officers of the State cannot be a ground to sacrifice justice. The Court observed that Corporation as such is not responsible for the delay but its officers/agents. The First Bench presided by the then Chief Justice of Calcutta High Court Dr. Manjula Chellur (Presently Chief Justice of Bombay High Court), in Calcutta Municipal Corporation & Anr. Vs. The Cricket Association of Bengal, imposed a cost of one lakh and directed corporation to take action against those erring officials and also to recover the costs from those officers who are responsible for the delay. A delay of 299 days had occurred on the part of Corporation in filing appeal in the matter of demand of advertisement tax imposed by Calcutta Municipal Corporation so far as the advertisements undertaken within the Eden Garden grounds by the Cricket As...

‘Delay’ not to be condoned merely because the applicant is the State

The Government, being the largest litigant, has to be a model and ideal litigant, a division bench of the Bombay High Court comprising of Justices S.C. Dharmadhikari and Dr. Shalini Phansalkar Joshi has observed while refusing to condone the delay by the Government in preferring Appeals.  The Bench also observed that merely because applicant is a State, delay in filing appeals cannot be condoned without a proper explanation as Section 5 of the Limitation Act is equally applicable to the State as well. Article referred: http://www.livelaw.in/govt-model-ideal-litigant-delay-not-condoned-merely-applicant-state-bombay-hc/

Employment cannot be denied for petty crimes

The Delhi High Court reversing an order of disqualification from Central Armed Police Force on the basis of a history of brush with the penal law ruled that honourable acquittals and petty misdemeanours should not be negatively considered in appraising a candidate’s capabilities for a job. The judgement delivers important insights on how nature and motive of criminality is important to determine the gravity of the offence and the degree of moral turpitude and thereby legitimacy of the candidature. The court also observed that societal pressures occur upon an individual to leads him/her astray, minor offences committed out of ignorance should not be unjustifiably used to disregards their constitutional right to public employment. Article referred: http://www.livelaw.in/conviction-minor-offences-not-used-disregard-ones-right-public-employment-delhi-hc/

We must strictly adhere to the terms of a contract

The Supreme Court in Central Coalfields Limited & Anr vs. SLL – SML (Joint Venture Consortium) & Ors. has held that, decision taken by the employer about essentiality of a term of the Notice Inviting Tender should be respected and lawfulness of that can be questioned on very limited grounds. The Bench comprising of Justices Madan B. Lokur and R.K. Agrawal set aside a Judgment by Jharkhand High Court wherein it had set aside the rejection of the bid of SLL-SML by Central Coalfields Limited. In this case, the bid given by JVC was cancelled as the bank guarantee submitted was not in the format given in the NIT read with the GTC. The Court also, referring to principle enunciated in Nazir Ahmad v. King Emperor, observed: “There is a wholesome principle that the Courts have been following for a very long time and which was articulated in Nazir Ahmad v. King Emperor namely “Where a power is given to do a certain thing in a certain way the thing must be done in that way or not at a...

HC denies bail to bank lawyer for ‘defrauding’ money

The Madras High Court Bench here on Tuesday refused to grant anticipatory bail to M.P. Venkatakrishnan, Assistant Manager (Legal) of HDFC Bank in Tirunelveli district, in two cases registered against him for defrauding the bank to the tune of several lakh of rupees and cancelled the advance bail granted by the Tirunelveli Principal Sessions Court in the third case. Justice V.M. Velumani dismissed the two anticipatory bail applications filed by the lawyer and allowed a cancellation of advance bail application moved by the bank on the ground that the accused had not even complied with the condition laid down by the Sessions Court on April 28 to report before the Inspector of Tirunelveli City Crime Branch (CCB) every day for a month. Article referred: http://www.thehindu.com/news/cities/Madurai/hc-denies-bail-to-bank-lawyer-for-defrauding-money/article8965082.ece

‘Dying declaration’ no basis for conviction unless trustworthy

Observing that unless a dying declaration is trustworthy, it cannot be made the basis for conviction, particularly if the person making it was not conscious and well-oriented while making the statement, the Bombay High Court recently granted bail to a man accused of allegedly murdering his wife by setting her on fire. His wife had left several dying declarations, oral as well as written, inconsistent with one another. In one version, she claimed her husband had set her on fire. The incident occurred on January 7, 2016, at her matrimonial house. She died due to burn injuries at the Civil Hospital, Nashik. Article referred: http://indianexpress.com/article/india/india-news-india/bombay-high-court-dying-declaration-no-basis-for-conviction-unless-trustworthy-2987983/

Admission to Class XI not automatic if school switches affiliation

Students who pass the class X Board examination in a CBSE school cannot claim automatic admission to class XI in the same school if the institution switches its affiliation to the State Board for higher secondary classes, the Madras High Court (Madurai Bench) has ruled. Allowing a writ appeal preferred by a private school based in Thoothukudi district, Justices Nooty Ramamohana Rao and S.S. Sundar said the schooling facility offered by such institutions must be considered to have come to an end when students pass out of Class X. “It is for the student concerned to exercise the option of either continuing in CBSE pattern in Class XI and XII or switching over to State Board syllabus. If a student decides to continue his studies in Standard XI and under the CBSE pattern, he has to obviously seek admission in some other educational institution where such facilities are available,” the Bench said. “On the other hand, if he [the student] opts to switch over to State Board of education, t...

SC upholds bar on automatic arrests in dowry cases

A Curative Bench, led by Chief Justice of India T.S. Thakur, has upheld a 2014 Supreme Court verdict that men cannot be “automatically” arrested on dowry harassment complaints filed by their wives. The four-judge Bench found no fault with the verdict that the dowry harassment law had become a “menace”, more often used as “weapons rather than shields by disgruntled wives”. Justices Anil R. Dave, J.S. Khehar and P.C. Ghose were in the Bench. Days before his retirement in 2014, Justice Chandramauli Kumar Prasad led a Bench that lamented that courts were filled with mothers-in-law, sisters-in-law and fathers-in-law and husbands facing prosecution under Section 498 A (dowry harassment) of the Indian Penal Code. Article referred: http://www.thehindu.com/news/national/sc-upholds-bar-on-automatic-arrests-in-dowry-cases/article9014976.ece

HC asks man to pay 50,000 to quash FIR against minor son

Sending out a tough message against under-age driving, the Bombay High Court has directed a Lokhandwala resident to shell out Rs 50,000 as costs, if he wants an FIR against his minor son for rash driving quashed. A division bench of Justice Naresh Patil and Justice Prakash Naik directed Mahesh Chavan to pay the money to Tata Memorial Hospital and Cancer Research Institute, and submit the receipt in order for the criminal proceedings to be dropped. Article referred: http://timesofindia.indiatimes.com/city/mumbai/HC-asks-man-to-pay-50000-to-quash-FIR-against-minor-son/articleshow/53777792.cms

Nothing wrong if alimony is for maintaining lifestyle

There is nothing wrong in a woman expecting to maintain the same lifestyle in the society in which she lived with her estranged husband, the Bombay high court said, and in a partial relief to a man from a royal family, ordered him to deposit 75% of the Rs11-crore permanent alimony. A division bench of Justice Naresh Patil and Justice Prakash Naik asked Ranjeet Nabha to deposit with the high court registry within three months 75% of the permanent alimony awarded by the Bandra family court — Rs6 crore for his former wife Udita and Rs5 crore for their minor daughter. Article referred: http://www.hindustantimes.com/mumbai-news/nothing-wrong-if-alimony-is-for-maintaining-lifestyle-bombay-hc/story-3KJaaHWROkYNlBnbv9Gs5M.html

Upbringing to decide child’s caste

The Hyderabad High Court on Wednesday made it clear that it is a person's upbringing that must be taken into account while determining his/her caste if they are born to inter-caste parents. It also said that officials from the revenue department are the competent authorities to ascertain the community where the child has been brought up. Once they certify the child's caste after verification process, it is not open for officials of universities and the social welfare department to question it while according seats in educational institutions, a bench of Justice V Ramasubramanian and Justice Anis said. Article referred: http://timesofindia.indiatimes.com/city/hyderabad/Upbringing-to-decide-childs-caste-says-High-Court/articleshow/53531372.cms

Disputes arising out of Trust Deed and the Trust Act cannot be decided by Arbitration

Supreme Court of India in Shri Vimal Kishor Shah Vs Jayesh Dinesh Shah & Ors held that the disputes relating to Trust, trustees and beneficiaries arising out of the Trust Deed and the Trust Act are not capable of being decided by the arbitrator despite existence of arbitration agreement to that effect between the parties. Article referred: http://www.livelaw.in/disputes-arising-trust-deed-trust-act-cannot-decided-arbitration-sc/

Income from rent when engaged in the business of letting is assessable as "business profits"

Rayala Corporation Pvt. Ltd vs. ACIT S. 28: Income from letting of property on rent by an assessee engaged in the business of letting is assessable as "business profits" u/s 28 and not as "Income from house property" u/s 22 Article referred: http://itatonline.org/archives/rayala-corporation-pvt-ltd-vs-acit-supreme-court-s-28-income-from-letting-of-property-on-rent-by-an-assessee-engaged-in-the-business-of-letting-is-assessable-as-business-profits-us-28-and-not-a/

Agent not personally liable under Consumer Act also

The Supreme Court Virender Khullar vs. American Consolidation Services Ltd., has reiterated that defence under Section 230 of Indian Contract Act, 1872 is available in the cases under Consumer Protection Act, 1986 by the agents of the principal with whom the complainant had the agreement. Article referred: http://www.livelaw.in/principle-agent-cannot-personally-liable-applicable-proceedings-consumer-protection-act-also-sc/

Delhi HC rules central tax on short-term accommodation in hotels 'unconstitutional'

The Delhi high court on Saturday has struck down a central tax on shortterm accommodation of less than three months in a hotel, inn, guest house, club or campsite as "unconstitutional and invalid". A bench of Justice S Muralidhar and Justice Najmi Waziri said a seperate "luxury tax" is already being levied by states on such accomodations and central government can't encroach on the preseve of states in this regard.

Property co-ownership doesn’t mean joint I-T liability

If the spouse has not invested in a property and is merely a co-holder, then on sale of such property, she cannot be liable for tax on capital gains, the Mumbai Income-Tax Appellate Tribunal (ITAT) has recently ruled. Article referred: http://timesofindia.indiatimes.com/city/mumbai/Property-co-ownership-doesnt-mean-joint-I-T-liability-rules-Mumbai-Income-Tax-Appellate-Tribunal/articleshow/53659866.cms

"Date of purchase" of a new residential house defined

Bastimal K Jain vs. ITO (ITAT Mumbai) S. 54: The date of "purchase" of the new residential house is the date when the assessee receives possession and not the date of the agreement of purchase. Note: The contrary view in ACIT vs. Sagar Nitin Parikh (ITAT Mumbai) was rendered without considering CIT vs. Smt. Beena K Jain 217 ITR 363 (Bom) Article referred: http://itatonline.org/archives/bastimal-k-jain-vs-ito-itat-mumbai-s-54-the-date-of-purchase-of-the-new-residential-house-is-the-date-when-the-assessee-receives-possession-and-not-the-date-of-the-agreement/

Long term capital gain cannot be denied if full payment made

Rajeev B. Shah vs. ITO (ITAT Mumbai) S. 54F: If the assessee has made full payment to the builder for purchase/ construction of a new residential house but is not able to get the title of the flat registered in his name or is unable to get the possession of the flat within the prescribed period due to fault of the builder, the assessee cannot be denied deduction u/s 54F

Supreme Court uphold's LICs plea of 'financial hardship'

The Supreme Court had in its judgment rendered in March, last year, directed the Life Insurance Corporation of India to absorb the some temporary workmen in the permanent posts. It was further held that the Corporation would be liable to pay all consequential benefits including monetary benefits taking into consideration the revised pay scale in the cases of those workmen who had attained the age of superannuation. On a Review plea by LIC, which contended that implementing the order would increase in its financial burden and that the same will be contrary to the interests of the policyholders, the Supreme Court has modified the Judgment only with regard to payment of back wages and held that only 50% of the back wages with consequential benefits will be payable. Article referred: http://www.livelaw.in/sc-modifies-judgment-lics-financial-hardship-plea-read-order/

If couple wants divorce, courts cannot ask for reasons

If a married couple wants divorce by mutual consent, it is not a court's business to deny them judicial separation by insisting on knowing the reason for their decision, the Madras high court has said. Noting that a court could not act like a fact-finding authority, a division of Justice K K Sasidharan and Justice N Gokuldas said: "In case the marriage is a failure and the parties wanted to put an end to the marital bond, the court should respect the sentiments and grant divorce+ . It is not the intention of the legislature to deny divorce in spite of the parties taking a conscious decision to part ways." Article referred: http://timesofindia.indiatimes.com/If-couple-wants-divorce-courts-cannot-ask-for-reasons-says-HC/articleshow/53644037.cmsZ

Right to peaceful protest is a fundamental right

Supreme Court of India Today has held that the right to peaceful protest is a fundamental right guaranteed in the Constitution and the aforesaid right is subject to reasonable restrictions in the interest of the sovereignty and integrity of India, as well as public order Article referred: http://www.livelaw.in/right-peaceful-protest-fundamental-right-sc/

Being called to police station not defamation

The Punjab and Haryana high court has held that merely being called to the police station in relation to a complaint does not amount to criminal defamation. The HC passed these orders while dismissing an application filed by a retired colonel from Rewari district, who had sought directions to prosecute a person for criminal defamation because he had to go to the police station after a false complaint was filed against him. The plea by Col Ranbir Singh Yadav (retd) had earlier been dismissed by a court in Rewari on May 2, 2015. In his plea, Col Yadav had sought registration of a case under sections 499 (defamation) and 500 (punishment for defamation) of the IPC against one Chet Ram. Article referred: http://timesofindia.indiatimes.com/city/chandigarh/Calling-to-police-station-not-defamation-says-HC/articleshow/53590187.cms

Limitation when no date for performance of contract fixed

The Supreme Court of India in Madina Begum & Anr. Vs. Shiv Murti Prasad Pandey has observed that it is unfortunate that the Parties have to undergo another round of litigation because of non-consideration of settled legal priciples by High Court. The apex Court has reiterated that, in the absence of a specified date for the performance of the agreement,the limitation period of three years,prescribed in Article 54 of the Limitation Act, for filing Suit for Specific Performance of Contract would begin when the plaintiff has notice that the defendant has refused the performance of the agreement. Article referred: http://www.livelaw.in/unfortunate-parties-undergo-another-round-litigation-non-consideration-settled-legal-principles-hc-sc/

Rule stayed by HC cannot be used selectively in other States

ONCE a High Court strikes down the provisions of a Central Act, the same cannot be selectively applied in other States. Thus there is no question of applicability of the provisions struck down by the High Court as of now until and unless the Supreme Court sets aside the judgment or stays the operation of the judgment, the first Bench of the Madras High Court has asserted. Article referred: http://www.newindianexpress.com/states/tamil_nadu/Rule-stayed-by-HC-cannot-be-used-selectively-in-other-States/2016/08/04/article3562318.ece

Domestic Violence Act does not override personal laws

Observing that the ‘Protection of Women from Domestic Violence (PWDV) Act does not override personal laws completely’, a Delhi court has reduced the interim relief granted to a Muslim widow from Rs.30,000 to 15,000 per month. Additional Sessions Judge Sanjay Bansal reduced the relief amount saying payment of the previous amount would amount to payment of maintenance, which is not permissible under the law. The widow had sought interim monetary relief from her father-in-law and brother-in-law ( jeth ) alleging that they tortured her and her three children physically and mentally, besides taking over her husband’s shop after his death. A Metropolitan Magistrate had earlier asked her in-laws to pay Rs. 30,000 per month to her as expenses for her children and herself. Article referred: http://www.thehindu.com/todays-paper/tp-national/tp-newdelhi/domestic-violence-act-does-not-override-personal-laws/article8940351.ece

States duty to maintain law and order and protect citizens

Asserting that it was state government's duty to maintain law and order and protect its citizens during hartals or bandhs, the Madras High Court has directed it to pay Rs 10 lakh compensation with interest to a bank employee, who lost an eye in a stone-pelting incident on the eve of a DMK bandh to protest party chief M Karunanidhi's arrest in 2001. Article referred: http://timesofindia.indiatimes.com/city/chennai/HC-directs-TN-to-pay-compensation-to-man-hurt-during-bandh/articleshow/53525977.cms

If condition warrants, women can be denied certain jobs

Women can be denied employment if the appointing authority is of the view that local conditions in a place where they are to be posted make male candidates more suitable to hold the post, the Madras High Court Bench here has held. Justice S.S. Sundar passed the order while dismissing a writ petition filed by R. Nadiya, who was not appointed as Village Assistant at Kallarathinipatti in Sivaganga district since a Tahsildar felt only a male candidate would be suitable for the post in view of grave law and order situation in the village. Article referred: http://www.thehindu.com/news/cities/Madurai/if-condition-warrants-women-can-be-denied-certain-jobs-hc/article8931262.ece

Injury need not be physical only

Clarifying that an injury does not always need to be physical, the Madras High Court has held that the parents of a minor girl who was allegedly abducted and married by her cousin which led to the suicide of the girl’s 12-year-old brother is entitled to compensation under the Tamil Nadu Victim Compensation Scheme. A Division Bench of Justices S. Nagamuthu and V. Bharathidasan made the clarification while hearing a habeas corpus plea moved by the minor girl’s parents alleging inaction on the part of police on the missing person complaint filed by them. According to the petitioner, his nephew had allegedly abducted his minor daughter last year and married her. Following this, his minor son allegedly committed suicide. He had filed a police complaint on November 18, 2015. Claiming inaction on part of the police he approached the High Court. Article referred: http://www.thehindu.com/news/cities/chennai/injury-need-not-be-physical-high-court/article8923612.ece

Compensation when contract prohibited by law

The law says that a contract to do an act, which turns out to be impossible of performance after the agreement, becomes void and the person who suffers must be compensated. If environment restrictions not contemplated in the contract frustrate a project and it becomes impossible or impracticable to implement it, the contractor deserves compensation, according to the Supreme Court. The contractor who could not undertake a housing project because of environment curbs not contemplated by the government at the time of signing the agreement was compensated in the judgment,

Time frame for completing arbitration

Though the law sets a time limit for the arbitrator to pass an award, the period could be extended in one exceptional case, - when both parties consent to do so, the Supreme Court stated in its judgment in Electrical Manufacturing Co vs Power Grid Corporation. If there is no consensus, the arbitrator must complete the proceedings within the time frame. In this case, the time was not kept after disputes arose between Electrical Manufacturing and NTPC over payment for a contract to execute the Rihand-Kanpur transmission line. The Hon'ble court said "In the circumstances, if the Arbitral Tribunal insisted upon appropriate consent to extend the time, no fault could be found with. At the same time, if respondent No.1 was not willing to give such consent, the Arbitral Tribunal had to go on with the matter and make the award within the statutory period."