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Posted On: 21-11-2024
2. (SC) (Decided on: 07.11.2024)

A. Arbitration and Conciliation Act, 1996 (26 of 1996), Section 11 – Appointment of Arbitrator – Scope of inquiry u/s 11 of the Act, 1996 is limited to ascertaining the prima facie existence of an arbitration agreement -- High Court exceeded this limited scope by undertaking a detailed examination of the factual matrix -- High Court erroneously proceeded to assess the auditor’s report in detail and dismissed the arbitration application -- Existence of the arbitration agreement not disputed by the respondent –  Question whether there exists a valid dispute to be referred to arbitration can be addressed by the Arbitral Tribunal as a preliminary issue -- Appeal allowed, impugned order passed by the High Court set aside -- Sole arbitrator appointed to adjudicate the disputes between the parties.

(Para 18-23)

B. Arbitration and Conciliation Act, 1996 (26 of 1996), Section 11 – Appointment of Arbitrator – Misue of process -- Limited jurisdiction of the referral Courts u/s 11 must not be misused by parties in order to force other parties to the arbitration agreement to participate in a time-consuming and costly arbitration process -- To balance the limited scope of judicial interference of the referral Courts with the interests of the parties who might be constrained to participate in the arbitration proceedings, the Arbitral Tribunal may direct that the costs of the arbitration shall be borne by the party which the Tribunal ultimately finds to have abused the process of law and caused unnecessary harassment to the other party to the arbitration.

(Para 20)

Posted On: 16-11-2024
14. (Allahabad HC) (Decided on: 25.10.2024)

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Truck hit scooty from back side -- Contributory negligence – Plea of -- No evidence produced in regard to allegation of contributory negligence -- Case pleaded that on being hit by the truck from the back side, the deceased had fallen and came under the front wheel of the truck, which is possible -- Contention of the insurance company that there was contributory negligence of the deceased is liable to be repelled only and accordingly repelled.

(Para 18-21)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Future loss of income -- Future prospects -- Compassionate appointment to dependent – Effect of – Deceased was getting Rs.34,351/- at the time of accident, son of the deceased was appointed on a remuneration of about Rs.12000-13,000/-, therefore, firstly it cannot be said that there was no loss of income to the family – Secondly, compassionate appointment cannot be equated with the future prospect – Contention that the claimants are not entitled for the future prospects on the ground of 58 years of age deceased is misconceived and not tenable because the death of bread earner of family is always loss to the family, who would have contributed to the family in future and his earnings may have increased in any manner.

(Para 22-33)

C. Motor Vehicles Act, 1988 (59 of 1988), Section 134, 149, 166 – Compensation in motor vehicle accident case – Enquiry u/s 134 of MV Act – Ground of -- Grounds of section 134 (c) of the Act of 1988 is not provided u/s 149 (2), ground not available to the appellant/ Insurance Company – Even otherwise, once an enquiry has been held by the tribunal after affording sufficient opportunity to the appellant/ insurance company, the plea of the appellant that since provisions of Section 134 (c) of the Act of 1988 have not been complied, therefore, the insurance company is not liable to make the payment of compensation is misconceived and not tenable because it has no concern with the claim of the dependents and family members of the deceased.

(Para 34-38)

Posted On: 15-11-2024
20. (SC) (Decided on: 12.11.2024)

A. Specific Relief Act, 1963 (47 of 1963), Section 10 -- Suit for specific performance of agreement -- Evidence of attorney -- One of the purchasers and plaintiff in his suit for specific performance throughout present in the transaction held the Power of Attorney from the other plaintiffs – He was examined as PW-1 in each of the suits whether in his capacity as plaintiff or as Power of Attorney from other plaintiffs -- It was not necessary for each of the plaintiffs in separate suits to appear and prove the transaction -- Trial Court had examined this aspect and had found favour with the plaintiffs – Adverse inference drawn by the High Court for the reason that the plaintiffs did not enter the witness box to prove the Agreement to Sell, was completely misplaced.

(Para 28)

B. Specific Relief Act, 1963 (47 of 1963), Section 10 – Limitation Act, 1963 (36 of 1963), Article 54 -- Suit for specific performance of agreement – Limitation -- Agreement to Sell dated 30.08.1990 did not mention any date for the performance, nor did owner refused at any point of time and soon after the death of owner in December 1992, the plaintiffs having come to know of the mutation proceedings by her legal heirs, they proceeded to file the suit, after giving notice in May 1995, which was well within a period of three years -- Second part of Article 54 of the Schedule to the Limitation Act would be applicable once there was no date fixed for performance in the Agreement to Sell.

(Para 27, 30)

C. Agreement to sell – Possession with original title deed – Effect of -- A purchaser who has paid the full consideration and received the original title deeds from the seller would have taken possession under normal circumstances -- Any possession taken by any other party thereafter would be unauthorised and illegal.

(Para 32)

D. Violation of Injunction order – Alienation of the property in violation of the injunction order -- Sale deed would be a void document.

(Para 33)

Posted On: 10-11-2024
26. (SC) (Decided on: 08.11.2024)

Constitution of India, Article 30(1) – Minority educational Institution – Legislative/ Administrative Power to change -- Article 30(1) can be classified as both an anti-discrimination provision and a special rights provision -- A legislation or an executive action which discriminates against religious or linguistic minorities in establishing or administering educational institutions is ultra vires Article 30(1).

-- Religious or linguistic minorities must prove that they established  the educational institution for the community to be a minority educational institution for the purposes of Article 30(1);

-- The right guaranteed by Article 30(1) is applicable to universities established before the commencement of the Constitution;

-- The right under Article 30(1) is guaranteed to minorities as defined upon the commencement of the Constitution. A different right-bearing group cannot be identified for institutions established before the adoption of the Constitution;

-- The incorporation of the University would not ipso facto lead to surrendering of the minority character of the institution. The circumstances surrounding the conversion of a teaching college to a teaching university must be viewed to identify if the minority character of the institution was surrendered upon the conversion. The Court may on a holistic reading of the statutory provisions relating to the administrative set-up of the educational institution deduce if the minority character or the purpose of establishment was relinquished upon incorporation; and

The following are the factors which must be used to determine if a minority ‘established’ an educational institution:

i. The indicia of ideation, purpose and implementation must be satisfied. First, the idea for establishing an educational institution must have stemmed from a person or group belonging to the minority community; second, the educational institution must be established predominantly for the benefit of the minority community; and third, steps for the implementation of the idea must have been taken by the member(s) of the minority community; and

ii. The administrative-set up of the educational institution must elucidate and affirm (I) the minority character of the educational institution; and (II) that it was established to protect and promote the interests of the minority community.

The view taken in Azeez Basha’ case AIR 1968 SC 662 that an educational institution is not established by a minority if it derives its legal character through a statute, is overruled -- The question of whether AMU is a minority educational institution must be decided based on the principles laid down in the judgment.

(Para 160, 161)

Reference answered with majority opinion

Posted On: 09-11-2024
29. (SC) (Decided on: 08.11.2024)

A. Specific Relief Act, 1963 (47 of 1963), Section 10, 16 -- Limitation Act, 1963 (36 of 1963), Article 54 – Suit for specific performance – Limitation -- Limitation prescribed by Article 54 sets in from the date when the petitioner received the reply refusing performance.

(Para 31)

B. Specific Relief Act, 1963 (47 of 1963), Section 10, 16(c) – Specific performance of agreement – Readiness and willingness – Purchaser paid a sum of Rs.11,30,00 as earnest money and paid Rs.13,00,000 on the same day by cheque and paid another Rs. 5,00,000 by Demand Draft -- If the petitioner was unwilling to perform the contract, he would not have paid nearly 75 percent of the sale consideration -- Petitioner with the payment of the additional sum above the earnest money, has proved his readiness and willingness to perform the contract -- Fit case for to exercise discretion to direct specific performance.

(Para 42)

C. Transfer of Property Act, 1882 (4 of 1882), Section 52 – Lis panders -- Doctrine of lis pendens that Section 52 of the Transfer of Property Act encapsulates, bars the transfer of a suit property during the pendency of litigation -- The only exception to the principle is when it is transferred under the authority of the court and on terms imposed by it -- Where one of the parties to the suit transfers the suit property (or a part of it) to a third-party, the latter is bound by the result of the proceedings even if he did not have notice of the suit or proceeding.

(Para 47)

D. Transfer of Property Act, 1882 (4 of 1882), Section 52 – Object of doctrine of lis pendens -- Purpose of lis pendens is to ensure that the process of the court is not subverted and rendered infructuous --  In the absence of the doctrine of lis pendens, a defendant could defeat the purpose of the suit by alienating the suit property.

(Para 49)

E. Transfer of Property Act, 1882 (4 of 1882), Section 52 – Lis pendens – Review -- Pendency means -- Review proceedings were “instituted” within the period of limitation of thirty days –  Doctrine of lis pendens kicks in at the stage of “institution” and not at the stage when notice is issued by this Court -- Argument of the respondents that the doctrine of lis pendens does not apply because the petition for review was lying in the registry in a defective state cannot be accepted.

(Para 49)

Posted On: 06-11-2024
35. (HP HC) (Decided on: 21.10.2024)

A. Constitution of India, Article 226 -- Promotion of employee – Departmental proceedings – Effect of -- Departmental proceedings can be said to have been initiated only upon issuance of the charge-memo/ charge-sheet and not prior thereto -- In case of initiation of departmental proceedings against an employee as on date of consideration of his case for promotion by the DPC, the sealed covered procedure is required to be adopted -- Said sealed cover is to be opened after culmination of the departmental proceedings.

(Para 4(ii))

B. Constitution of India, Article 226 -- Departmental proceedings – Withdrawal of promotion – Permissibility of -- Charge-memo issued to the petitioner on 01.04.2023, whereas, the DPC had already recommended petitioner’s name for promotion to the post of Sub-Inspector on 21.03.2023 -- Formal order promoting the petitioner on accrual of vacancies was passed on 02.08.2023 – Order dated 24.08.2023, withdrawing petitioner’s promotion to the post of Sub-Inspector is not in consonance with law.

(Para 4(iii))

C. Central Civil Services (Classification, Control, and Appeal) Rules, 1965, Rule 11, 14, 16 – Departmental proceedings for minor punishment – Withholding of promotion – Permissibility of -- Charge-memo was not issued to the petitioner for imposition of major penalties under Rule 14 -- Promotion cannot be withheld on account of employer’s intention to initiate departmental proceedings for imposition of minor penalty upon an employee.

(Para 4(iv))

Posted On: 28-10-2024
43. (P&H HC) (Reserved on: 02.08.2024 Decided on: 02.09.2024)

Haryana Good Conduct Prisoners (Temporary Release) Act, 2022 (15 of 2022), Section 3, 4 -- Punjab Good Conduct Prisoners’ (Temporary Release) Act, 1962 (11 of 1962), Section 3, 4 -- Prisons Act, 1894 (9 of 1894), Section 45 -- Punjab Jail Manual, Para 607 – Constitution of India, Article 21 -- Unauthorised possession of mobile phone in jail – Denial of Parole – Ground of:

– It is oppressive, till an accused is declared guilty, through a verdict becoming passed by the court of competent jurisdiction, thus thereupto rather he is presumed to be innocent

– It would create an unreasonable classification against inmated prisoners, who merely unauthorizedly possess mobile phones.

– Principle of fair trial, quartered within the domain of Article 21 of the Constitution of India -- Said constitutional norm cannot be breached even in respect of a prisoner.

-- Home Secretaries of the State of Haryana and Punjab to forthwith install STD facilities in the jails concerned, so that therebys the inmates prisoners can communicate with their friends and relatives, but, on payment of relevant charges.

Parole is not to be denied in a mechanical manner, without application of mind -- District Magistrates/ competent authority directed to apply their mind objectively to the relevant material furnished by the police, local Panchayats and only in cases where they receive cogent, tangible and concrete evidence indicating that the inmated prisoner, if released on parole, would be an imminent threat to the security and peace of the area concerned, thus thereupon they may well consider to, on good reasons, reject his/ her application for parole -- In the event of the competent authorities not objectively applying their mind they would be liable for censure/ disciplinary action for theirs prompting frivolous and avoidable litigation.

(Para 25-30, 43, 45)

Posted On: 28-10-2024
47. (P&H HC) (Reserved on: 17.09.2024 Decided on: 14.10.2024)

A. Specific Relief Act, 1963 (47 of 1963), Section 16 -- Suit for specific performance -- Agreement to sell/ Document -- Onus to prove -- When the question before the court is as to "whether the transaction in question was a bona fide and genuine one", it is for the party/plaintiff relying on the transaction, who has to first of all prove its genuineness and only thereafter would the defendant be required to discharge the burden in order to dislodge such proof and establish that the transaction was sham and fictitious.

(Para 21)

B. Specific Relief Act, 1963 (47 of 1963), Section 16 -- Suit for specific performance -- Agreement to sell – Proof of -- Readiness and Willingness – Non-reply to legal notice by defendant – Effect of -- Question of readiness and willingness on the part of plaintiffs will arise only in case the valid execution of agreement to sell is proved on record -- Once the agreement to sell is not proved to be validly executed any readiness and willingness on the part of the plaintiff loses its significance -- Simply because defendants did not respond to the legal notice will not mean that they admitted the agreement to sell or they were bound to execute the sale deed.

(Para 49)

C. Punjab Courts Act, 1918 (6 of 1918), Section 41 – Code of Civil Procedure, 1908 (V of 1908), Section 100 – Regular Second Appeal -- Concurrent finding of facts of two courts -- Scope to interfere by the High Court – High Court is not to interfere with the concurrent findings of the Courts below but it is not an absolute rule -- There are some exceptions for interference by the High Court, when it is found that:

-- When finding of fact by the Courts below is vitiated by non-consideration of material evidence or erroneous approach.

-- The Courts have drawn wrong inferences from the proved facts by applying the law erroneously.

-- The Courts have wrongly cast the burden of proof.

-- When decision is based upon no evidence, which would mean that not only there is total dearth of evidence but also, where is the evidence taken as a whole, is not reasonably capable of supporting the finding.

-- When the judgment of the final Court of fact is based on misinterpretation of documentary evidence or on consideration of inadmissible evidence or ignoring material evidence.

(Para 60)

D. Specific Relief Act, 1963 (47 of 1963), Section 16 – Code of Civil Procedure, 1908 (V of 1908), Order 9 Rule 1 -- Suit for specific performance -- Non-joinder of necessary party -- Effect of -- Co-owners in the suit property to the extent of 1/25th share each at the time of filing of the suit were necessary party to the suit -- Legal heirs of one of the executants of the agreement to sell, were not brought on record -- Suit is bad for non-joinder of necessary parties and on this ground alone, the suit was liable to be dismissed.

(Para 64-69)

E. Specific Relief Act, 1963 (47 of 1963), Section 12, 16 – Capital of Punjab (Development and Regulation) Act, 1952 (27 of 1952), Section 5, 22 -- Chandigarh (Sale of Sites and Buildings) Rules 1960, Rule 14 – Agreement to sell -- Part performance of contract – Fragmentation, division, bifurcation and apart-mentalization of residential unit in Phase-I of Chandigarh are prohibited -- Suit property falls in this category – By permitting part performance of the contract, fragmentation cannot be allowed by Court, as it will be in clear violation of law.

(Para 74, 75)

F. Specific Relief Act, 1963 (47 of 1963), Section 16 – Suit for specific performance -- Absence of clause in the agreement for seeking specific performance -- Contract provides for the alternative in case of default – It cannot be a reason to decline the relief of specific performance.

(Para 79)

G. Specific Relief Act, 1963 (47 of 1963), Section 16 – Suit for specific performance -- Escalation of price – Effect of -- Escalation in prices cannot be a ground to decline the relief of specific performance nor the hardship on the part of vendors be a ground but still the Court is required to look into all the facts and circumstances in order to see as to whether the equity lies in favour of the plaintiff to grant the relief of specific performance -- Discretion is to be exercised based upon the sound judicial principles.

(Para 81, 82)

Posted On: 26-10-2024
48. (HP HC) (Reserved on: 05.08.2024 Decided on: 12.09.2024)

A. Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act, 1989 (33 of 1989), Section 3(1)(r)(s) – Code of Criminal Procedure, 1973 (2 of 1974), Section 482 -- Offence under SC/ST Act – Quashing of FIR -- Conversation on telephone -- Utterance of word in public view -- No offence is made out by a conversation on a telephone as the telephone is not a public place – FIR show that when the words were used by the petitioner, the informant had heard them over the phone and the incident does not satisfy the requirement of using the words in a public place within the public view -- Hence, even if the allegations in the FIR are assumed to be correct, no case for the commission of offences punishable under Section 3(1)(r) and 3(1)(s) of the SC&ST Act is made out against the petitioner.

(Para 21-23)

B. Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act, 1989 (33 of 1989), Section 3(1)(r)(s) – Code of Criminal Procedure, 1973 (2 of 1974), Section 482 -- Section 3(1)(r)(s) – Offence under SC/ST Act – Quashing of FIR -- Conversation on telephone -- FIR does not state that the words were used to humiliate the informant -- It was only said that the words used by the petitioner over the phone call amounted to insulting a member of a scheduled caste community in a public place -- Police had also not found any material to file the charge sheet against the petitioner and had prepared a cancellation report -- Thus, in these circumstances, the continuation of the proceedings would be an abuse of the process of the Court – FIR and consequential proceedings arising out of the same quashed.

(Para 26-28)