Search By Topic: Constitution of India

301. (SC) 05-01-2023

A. Constitution of India, Article 226, 227 -- Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (54 of 2002), Section 13(2)(4), 17, 18 -- SARFAESI proceedings – Challenge to order of DRT – Alternative remedy of appeal -- Writ jurisdiction -- By entertaining the writ petition straightway under Article 226/227 of the Constitution of India challenging the order passed by the DRT-I, the High Court has allowed / permitted the borrower to circumvent the provision of appeal before the DRAT under the provisions of the SARFAESI Act – In view of alternative statutory remedy available by way of appeal before the DRAT, the High Court ought not to have entertained the writ petition.

(Para 6)

B. Constitution of India, Article 226, 227 -- Security Interest (Enforcement) Rules, 2002, Rule 8(1)(2) – Possession of secured assets -- Possession Notices were published in two leading newspapers having sufficient circulation in the locality -- Even the Possession Notices were served upon the borrowers also -- Therefore, the High Court has materially erred in holding that there was a breach of Rules 8(1) & (2) of the Rules, 2002 -- Impugned judgment and order passed by the High Court quashed and set aside.

(Para 6.2, 8)

C. Constitution of India, Article 226, 227 -- Security Interest (Enforcement) Rules, 2002, Rule 9(3)(4) -- Auction of secured assets -- Deposit of 25 % of auction price on next day – Deposit of 75% amount on 15th day from communication by Bank – Permissibility of – High Court observed and held that there was non-compliance of the Rule 9(3) inter alia on the ground that 25% of the amount of sale price and thereafter 75% of the balance sale price was not deposited within the time stipulated under Rule 9 – Held, findings are just contrary to Rules 9(3) and (4) of the Rules, 2002.

-- Purchaser was required to deposit 25% of the amount of the sale price on the same day of sale or not later than the next working day -- Auction was held on 17.02.2017 -- Entire 25% of the sale price came to be deposited by 18.02.2017.

-- By communication / letter dated 08.03.2017, the secured creditor/ Bank directed the auction purchaser to deposit the balance 75% of the bid amount within 15 days and the auction purchaser deposited the balance 75% of the sale price on 23.03.2017, i.e., on the 15th day from the date of communication by the secured creditor/ Bank -- As per Rule 9(4) of the Rules, 2002, the balance amount of purchase price payable shall be paid by the purchaser to the Authorized Officer on or before 15th day of confirmation of sale of the immovable property or such extended period, in any case not exceeding three months -- Therefore, the communication dated 08.03.2017 can be said to be the extended period by the secured creditor/ Bank.

Held, it can be said that the entire sale price was deposited within the time prescribed under Rules 9(3) and (4) of the Rules, 2002 -- Therefore, the High Court has committed an error in holding that there was a breach of Rules 9(3) & (4) of the Rules, 2002 -- Impugned judgment and order passed by the High Court quashed and set aside.

(Para 2.3, 6.3, 6.4, 8)

D. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (54 of 2002), Section 13(2)(4), 31(i) -- Agricultural property – Exemption from the provisions of the SARFAESI Act -- Once the secured property is put as a security by way of mortgage etc. meaning thereby the same was not treated as agricultural land, such properties cannot be said to be exempted from the provisions of the SARFAESI Act under Section 31(i) -- No evidence was led at all on behalf of the borrowers that the secured properties in question were actually put to use as agricultural land and/or any agricultural activity was going on -- High Court has committed an error in applying Section 31(i) of the SARFAESI Act and quashing and setting aside the entire Possession Notice, Auction Notice as well as Sale etc. -- Impugned judgment and order passed by the High Court quashed and set aside.

(Para 7.2, 8)

E. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (54 of 2002), Section 13(2)(4), 31(i) -- Agricultural property – Exemption from the provisions of the SARFAESI Act – Onus of proof -- When it was the case on behalf of the borrowers that in view of Section 31(i) of the SARFAESI Act, the properties were agricultural lands, the same were being exempted from the provisions of the SARFAESI Act, the burden was upon the borrower to prove that the secured properties were agricultural lands and actually being used as agricultural lands and/or agricultural activities were going on.

(Para 7.3)

319. (P&H HC) 12-12-2022

Constitution of India, Article 21 – Bank loan Defaulter -- Right to travel abroad – Look Out Notice (LOC) – Fundamental right to travel abroad guaranteed by Article 21 of the Constitution of India cannot be curtailed by seeking issuance of an LOC – Since the right to travel abroad flows from Article 21 of the Constitution of India, a very high threshold is mandated to deny such a right to an Indian citizen -- At the time the LOC was issued against the petitioner, he is not an accused of having committed a cognizable offence in India -- Originating agency can only request that they be informed about the arrival/departure of the subject in such cases -- Since in the instant case, petitioner is admittedly having ‘permanent residency certificate’ of USA and has business interests in the USA, the petitioner cannot be prevented from travelling abroad -- However in view of declaration of loan account as fraud and declaration of petitioner as a “willful defaulter” and filing of a police complaint, though after filing of the Writ Petition, subject to certain conditions, he can be permitted to travel abroad – Writ Petition allowed, subject to depositing an FDR/TDR for Rs. 10 lakhs with the Registrar General within 2 weeks, the LOC issued against the petitioner set aside -- In the event of petitioner returning to India and producing his passport before the Registrar (General) within the time of 2 months as aforesaid, the FDR/TDR deposited by him shall be returned otherwise it shall be forfeited.

(Para 34-51)

320. (SC) 09-12-2022

Hindu Succession Act, 1956 (30 of 1956), Section 2(2), 7, 8 – Constitution of India, Article 14, 21 -- Scheduled Tribe daughter’s right of survivorship -- Whether the appellant/petitioner being the daughter is entitled to the share in the compensation with respect to the land acquired, on survivorship basis under the provisions of Hindu Succession Act? -- As per Section 2(2) of the Hindu Succession Act, the Hindu Succession Act will not be applicable to the members of the Scheduled Tribe.

-- If the claim of the appellant on the basis of the survivorship under the Hindu Succession Act is accepted in that case it would tantamount to amend the law. It is for the legislature to amend the law and not the Court.

-- To deny the equal right to the daughter belonging to the tribal even after a period of 70 years of the Constitution of India under which right to equality is guaranteed, it is high time for the Central Government to look into the matter and if required, to amend the provisions of the Hindu Succession Act by which the Hindu Succession Act is not made applicable to the members of the Scheduled Tribe.

-- Direction given to Central Government to consider it just and necessary to withdraw the exemptions provided to the Scheduled Tribes and whether to bring a suitable amendment or not – Court shown hope and trust that the Central Government will look into the matter and take an appropriate decision taking into consideration the right to equality guaranteed under Articles 14 and 21 of the Constitution of India.

(Para 6-7.2)

325. (SC) 29-11-2022

Constitution of India, Article 21, 136, 226 – Pharmacy Act, 1948 (8 of 1948), Section 10, 18 -- Pharmacy Practice Regulations, 2015 -- Public Interest Litigation – Fake pharmacist – Registered pharmacist in hospitals -- Serious allegations made against the Bihar State Pharmacy Council and the State of Bihar for not taking any action with respect to fake pharmacist and/or running the Government’s hospitals and/or other hospitals without registered pharmacist and the in-action on the part of the Bihar State Pharmacy Council/State Government has resulted into the affected health of the citizen – Held, State Government and the Bihar State Pharmacy Council cannot be permitted to play with the health and life of the citizen – Under the provisions of the Pharmacy Act, 1948 as well as the Pharmacy Practice Regulations, 2015, it is the duty cast upon the Pharmacy Council and the State Government to see that the hospitals/medical stores, etc., are not run by the fake pharmacist and are run by the registered pharmacist only – Appeal allowed, matter remanded to the High Court to consider the writ petition afresh after calling the detailed report/counter from the State of Bihar and Bihar State Pharmacy Council on: -

(i) how many Governments’ hospitals/hospitals/medical stores/private hospitals are being run either by fake pharmacist or without registered pharmacist;

(ii) whether any action is taken by the State Government on the fact-finding committee report submitted by the Bihar State Pharmacy Council which was reported to be forwarded to the State Government;

(iii) whether there are any fake pharmacists as alleged in the writ petition;

(iv) any action is taken by the State Government or by the Bihar State Pharmacy Council against such fake pharmacist;

(v) whether the Pharmacy Practice Regulations, 2015 are being followed in the entire State of Bihar or not.

While considering the writ petition the High Court should bear in mind the public interest and the health of the citizen.

330. (P&H HC) 24-11-2022

A. Constitution of India, Article 19(1), 21 – Life and liberty – Arrest of accused -- Object of arrest is neither punitive nor preventive -- It has become very common to put criminal law in motion even though dispute involved is purely contractual or civil in nature -- Many times arrest entails deprivation of source of income of entire family besides forever stigma in a closely knit society like ours -- There is neither mechanism to compensate a man who is later on found innocent nor acquittal can return valuable time, energy, status, future of family members especially children which is lost on account of incarceration of bread earner of the family -- Detention or arrest not only deprives a person from his fundamental right of personal liberty guaranteed by Article 21 but also freedom guaranteed by Article 19(1) of our Constitution --  Life of every human being is most precious gift of God and everyone has very limited span of life which cannot be spoiled on account of incompetence, personal grudge, vengeance of someone; or brutal, illegal, unethical action of the State machinery.

(Para 5)

B. Indian Penal Code, 1860 (45 of 1860), Section 365, 302, 328, 201, 34 -- Code of Criminal Procedure, 1973 (2 of 1974), Section 82, 446, 482 -- Constitution of India,  Section 21 – Murder trial -- Jump of bail – Quashing of Non-bailable warrants/ Cancellation of bail bond. Held,

i) The object of cancellation of bond or declaration of anyone as proclaimed offender/person is to secure his presence. The petitioner has come forward to face trial and undertakes to appear before trial court on each and every date, thus, his presence would meet ends of justice;

ii) The Petitioner for wasting valuable time and energy of courts as well prosecution is willing to pay costs of Rs. 10,000/-;

iii) The Petitioner is ready to furnish bond/surety to the satisfaction of the trial court;

iv) The petitioner is resident of Jagraon and trial is pending at Ludhiana, thus jurisdictional court and police authorities have direct access over the activities of the petitioner.

v) The petitioner was initially granted regular bail by this Hon'ble High Court;

vi) Trial is pending since 2017 and petitioner is ready to face trial, thus, no prejudice is going to cause to prosecution or complainant;

Petition allowed, petitioner directed to appear before Trial Court on 09.12.2022 and furnish fresh bail bond/surety bond to its satisfaction.

(Para 1-5)

337. (SC) 01-11-2022

Indian Penal Code, 1860 (45 of 1860), Section 375 -- Indian Penal Code, 1860 (45 of 1860), Section 375 -- Code of Criminal Procedure, 1973 (2 of 1974), Section 164, 164-A, 173 – Constitution of India, Article 142 -- Rape case Guidelines -- Supreme Court in case of State of Karnataka by Nonavinakere Police vs. Shivanna alias Tarkari Shivanna, (2014) 8 SCC 913 exercising powers under Article 142 of the Constitution issued interim directions in the form of mandamus to all the Police Stations-in-Charge in the entire country to follow:

“10.1. Upon receipt of information relating to the commission of offence of rape, the investigating officer shall make immediate steps to take the victim to any Metropolitan/preferably Judicial Magistrate for the purpose of recording her statement under Section 164 CrPC. A copy of the statement under Section 164 CrPC should be handed over to the investigating officer immediately with a specific direction that the contents of such statement under Section 164 CrPC should not be disclosed to any person till charge-sheet/report under Section 173 CrPC is filed.

10.2. The investigating officer shall as far as possible take the victim to the nearest Lady Metropolitan/preferably Lady Judicial Magistrate.

10.3. The investigating officer shall record specifically the date and the time at which he learnt about the commission of the offence of rape and the date and time at which he took the victim to the Metropolitan/preferably Lady Judicial Magistrate as aforesaid.

10.4. If there is any delay exceeding 24 hours in taking the victim to the Magistrate, the investigating officer should record the reasons for the same in the case diary and hand over a copy of the same to the Magistrate.

10.5. Medical examination of the victim : Section 164-A CrPC inserted by Act 25 of 2005 in CrPC imposes an obligation on the part of investigating officer to get the victim of the rape immediately medically examined. A copy of the report of such medical examination should be immediately handed over to the Magistrate who records the statement of the victim under Section 164 CrPC.”

Supreme Court gave suggestion to every High Court that the appropriate modifications/amendments be made to the Criminal Practice/Trial Rules incorporating provisions consistent with the directions issued in the decisions in Shivanna’s case (2014) 8 SCC 913.

(Para 1-7)

341. (SC) 30-09-2022

A. Circumstantial evidence -- In a case of circumstantial evidence, the Court has to scrutinize each and every circumstantial possibility, which is placed before it in the form of an evidence and the evidence must point towards only one conclusion, which is the guilt of the accused – A very heavy duty is cast upon the prosecution to prove its case, beyond reasonable doubt.

(Para 12)

B. Indian Penal Code, 1860 (45 of 1860), Section 302, 34 -- Code of Criminal Procedure, 1973 (2 of 1974), Section 161 – Indian Evidence Act, 1872 (1 of 1872), Section 25 – Constitution of India, Article 20(3) – Murder -- Confession before police – Videography of statement by police – Recovery therefrom -- Evidential value – Conviction by Session Court affirmed by High Court – Setting aside of -- Entire case of the prosecution is built upon the confessional/voluntary statements made by the accused persons before the police and the recovery of the alleged weapon of murder recovered at the pointing out of the accused and the recovery of alleged stolen gold material from a jewelry shop, again, on pointing out of the accused – They confessed to as many as 24 crimes committed by them -- Their confessions of how they planned and executed the murders has been captured on a video, which was also exhibited before the court – Session Court and High Court taken this evidence of voluntary statements made by the accused and hence admitted it as evidence -- Held, both the Trial Court and the Appellate Court went completely wrong in placing reliance on the voluntary statements of the accused and their videography statements -- Under Article 20(3) of the Constitution of India, an accused cannot be compelled to be a witness against himself -- Again, under Section 25 of the Indian Evidence Act, 1872, a confessional statement given by an accused before a Police officer is inadmissible as evidence -- Appeals allowed, the order of the Sessions Judge and the High Court set aside, the appellants ordered to be released from jail.

(Para 13, 17)

342. (SC) 30-09-2022

A. Constitution of India, Article 14, 16 -- Compassionate appointment – Concession not a right -- Appointment on compassionate ground, for all the government vacancies equal opportunity should be provided to all aspirants as mandated under Articles 14 and 16 of the Constitution -- However, appointment on compassionate ground offered to a dependent of a deceased employee is an exception to the said norms -- Compassionate ground is a concession and not a right.

(Para 6)

B. Compassionate appointment -- Object of -- Compassionate appointment is an exception to the general rule of appointment in the public services and is in favour of the dependents of a deceased dying in harness and leaving his family in penury and without any means of livelihood, and in such cases, out of pure humanitarian consideration taking into consideration the fact that unless some source of livelihood is provided, the family would not be able to make both ends meet, a provision is made in the rules to provide gainful employment to one of the dependants of the deceased who may be eligible for such employment -- Whole object of granting compassionate employment is, thus, to enable the family to tide over the sudden crisis -- Object is not to give such family a post much less a post held by the deceased.

(Para 7)

C. Compassionate appointment to married daughter – Right of – Effect of delay -- Claim rejected on 18.08.2011/ 23.4.2013 – Respondent-daughter cannot be said to be dependent on the deceased employee, i.e., her mother -- Even otherwise, she shall not be entitled to appointment on compassionate ground after a number of years from the death of the deceased employee.

(Para 2.1-2.3, 7.1)

345. (SC) 28-09-2022

A. Code of Civil Procedure, 1908 (V of 1908), Order 1 Rule 9 -- Necessary party -- Necessary party is a person in whose absence no effective decree could be passed by the Court -- if a “necessary party” is not impleaded, the suit itself is liable to be dismissed.

(Para 9)

B. Constitution of India, Article 226 – Cancellation of Fair Price Dealer – Subsequent allottee – Writ petition -- Necessary party -- Even if a subsequent allottee does not have an independent right, he/she still has a right to be heard and to make submissions defending the order of cancellation -- Appellant had been selected by the Tehsil Level Selection Committee in its meeting and thereafter, he was appointed as Fair Price Dealer vide order of the Competent Authority, on a regular basis – Held, appellant was a necessary party to the proceedings before the High Court.

(Para 13-15)

C. Constitution of India, Article 226 – Cancellation of Fair Price Dealer – Concealment of facts – High Court allowed the writ -- Respondent No. 9/ writ petitioner was very well aware that during the pendency of the proceedings, the appellant was appointed as a Fair Price Dealer -- Respondent No.9 has not only suppressed the fact about the subsequent allotment of the fair price shop to the appellant but has also tried to mislead the High Court that the fair price shop of respondent No.9 was attached to another fair price shop holder -- Impugned order of the High Court quashed and set aside – Order cancelling the Fair Price Shop licence of respondent No. 9 and order dismissing the appeal of respondent No.9 affirmed.

(Para 16-22)

347. (SC) 19-09-2022

A. Constitution of India, Article 14, 16 – Arbitrariness violates Article 14, 16 -- State is bound by the fundamental rights of its employees under Articles 14 to 16 of the Constitution of India -- Arbitrariness violates the right to equality under Articles 14 to 16 of the Constitution of India.

(Para 12)

B. Constitution of India, Article 14, 16 – Rajasthan Civil Services (Pension) Rules, 1996, Rule 25(2) – Resignation/ appointment after seeking permission -- Resignation from service may entail forfeiture of past service -- However, sub-rule (2) of Rule 25 of the Rules carves out an exception, clarifies that a resignation with proper permission to take up another appointment, whether temporary or permanent, under the Government shall not entail forfeiture of past service -- Respondent was selected through Rajasthan Public Service Commission on the Assistant Director (Agro-Industries), while he was still in service of the Rajasthan State Agro Industry Corporation, which is also an entity fully controlled by the State of Rajasthan -- Respondent having retired after working for about 26 years, the Petitioner-State cannot raise the question of proof of prior permission before resignation, more so when the appointment had been made through the RPSC to a Government post -- It is to be deemed that there has been disclosure of past service and the application has been made through proper channel by obtaining the requisite approvals -- It is to be presumed that prior permission had been taken unless the contrary could be established by the State.

(Para 23-26)

C. Constitution of India, Article 226 – Delay of six years in filing the Writ Petition – Limitation -- Laws of limitation do not apply to exercise of jurisdiction under Article 226 of the Constitution of India -- Relief being discretionary, the Courts might in their discretion refuse to entertain the Writ Petition, where there is gross delay on the part of the Writ Petitioner, particularly, where the relief sought would, if granted, unsettle things, which are already settled – Pension is a lifelong benefit, denial of pension is a continuing wrong -- Court cannot also be oblivious to the difficulties of a retired employee in approaching the Court, which could include financial constraints.

(Para 26-27)

D. Interpretation of pension rules – It is settled law that when financial rules framed by the Government such as Pension Rules are capable of more interpretations than one, the Courts should lean towards that interpretation which goes in favour of the employee.

(Para 28)