Jammu & Kashmir And Ladakh High Court Weekly Roundup : October 16 - October 22, 2023

Nominal Index:

Nikhat Nabi v M/s Fancy Fabrics & Ors (J&K Bank Ltd) 2023 LiveLaw (JKL) 265

G. M. Bhat v State of JK 2023 LiveLaw (JKL) 266

Chief Engineer PWD Kashmir Vs Fahmeeda Begum 2023 LiveLaw (JKL) 267

Shakeel Ahmad Kuchay Vs. Manmohan Lal 2023 LiveLaw (JKL) 268

Naveen Bhatnagar vs M/s Sudarsham Consolidated Limited 2023 LiveLaw (JKL) 269

Judgments/Orders:

Order 23 Rule 3(A) - Bar On Filing New Suits Only Applicable To Parties Involved In Compromise Decrees, Not To Strangers: J&K High Court

Case Title: Nikhat Nabi v M/s Fancy Fabrics & Ors (J&K Bank Ltd)

Citation: 2023 LiveLaw (JKL) 265

The Jammu and Kashmir and Ladakh High Court held that although Order 23, Rule 3-A of the Civil Procedure Code bars new suits from setting aside a decree based on a lawful compromise, the bar only applies to parties involved in the compromise and does not preclude strangers to the suit from filing independent suits to challenge the compromise decree.

Justice Javed Iqbal Wani also added that while the law allows strangers to the compromise to file independent suits, the supervisory jurisdiction of the High Court was not appropriate for the issues raised in this case.

UAPA | Appellant Authority Cannot Remand Case Back To Designated Authority Beyond Time Limit Prescribed U/S 25: J&K High Court

Case Title: G. M. Bhat v State of JK

Citation: 2023 LiveLaw (JKL) 266

The Jammu and Kashmir and Ladakh High Court observed that once the appellate authority recognises the lack of reasoning in the designated authority’s order, it is imperative for the appellate body to either confirm or revoke the order under Section 25(6) of the Unlawful Activities (Prevention) Act within the time limit specified therein.

Justice Wasim Sadiq Nargal clarified that the appellate authority cannot remand the case potentially extending the statutory time limit beyond the prescribed 60 days for the designated authority to confirm or revoke the order.

Lok Adalat Awards Deemed Decrees, Further Appeals U/S 96 CPC Not Allowed: Jammu & Kashmir High Court

Case Title: Chief Engineer PWD Kashmir Vs Fahmeeda Begum

Citation: 2023 LiveLaw (JKL) 267

The Jammu and Kashmir and Ladakh High Court observed that every award issued by the Lok Adalat is deemed to be a decree of a Civil Court and is final and binding, hence closing the door to further appeals under Section 96 of the CPC.

Justice Wasim Sadiq Nargal noted that an award of the Lok Adalat can only be challenged if there is an allegation of fraud or if the agreement forming the basis of the decree is invalid.

Order 2 Rule 2 CPC | No Bar On Subsequent Suit If Cause Of Action In Both Suits Not Same: J&K High Court

Case Title: Shakeel Ahmad Kuchay Vs. Manmohan Lal

Citation: 2023 LiveLaw (JKL) 268

The Jammu and Kashmir and Ladakh High Court observed that a subsequent suit is barred only if the first suit and the second suit are based on the same cause of action under Order 2 Rule 2 of the CPC.

Justice Javed Iqbal Wani added that the court should not prematurely dismiss a suit or an application for an interim injunction if there are triable issues and that issues regarding the cause of action should be fully examined during the trial rather than at the threshold of the case.

Director's Resignation Has Immediate Effect Only In Absence Of Explicit Provision In Articles Of Association: J&K High Court

Case Title: Naveen Bhatnagar vs M/s Sudarsham Consolidated Limited

Citation: 2023 LiveLaw (JKL) 269

The Jammu and Kashmir and Ladakh High Court clarified that a Director's resignation is deemed to take immediate effect only in cases where the Articles of Association do not specify the resignation's effect.

Justice Sanjay Dhar observed,

".. if the Articles of Association of a company make a provision for resignation, the same has to be resorted to in accordance with the provisions contained in the Articles of Association. As to when a resignation is to take effect on acceptance, the same would be governed by the Articles of Association. In the absence of any indication as regards the effect of resignation in the Articles of Association, a resignation would take effect immediately."