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Complete Supreme Court Yearly...

Complete Supreme Court Yearly Digest Part-7

LIVELAW NEWS NETWORK

19 Feb 2023 10:19 AM IST

Section 3 (30) - "secured creditor"

Insolvency and Bankruptcy Code, 2016; Section 3(30) - Secured Creditor - A creditor in favour of whom security interest is credited - Such security interest could be created by operation of law. The definition of secured creditor in the IBC does not exclude any Government or Governmental Authority. (Para 57) State Tax Officer v. Rainbow Papers Ltd., 2022 LiveLaw (SC) 743 : AIR 2022 SC 4141

Section 5 (7) & (8) - "financial creditor" & "financial debt"

Insolvency and Bankruptcy Code 2016; Section 5(8), 5(7) - A liability in respect of a claim arising out of a Recovery Certificate would be a “financial debt” - The holder of the Recovery Certificate would be a financial creditor and would be entitled to initiate CIRP, if initiated within a period of three years from the date of issuance of the Recovery Certificate - Affirmed the view taken in Dena Bank (Now Bank of Baroda) vs. C. Shivakumar Reddy (2021) 10 SCC 330. (Para 84-85) Kotak Mahindra Bank ltd. v. A. Balakrishna, 2022 LiveLaw (SC) 534 : AIR 2022 SC 2652 : (2022) 9 SCC 186

Section 5 (13) - "insolvency resolution process costs"

Insolvency and Bankruptcy Code, 2016; Section 5(13), 53(1)(b), 53(1)(c) - Insolvency resolution process costs - Dues towards the wages/salaries of only those workmen/employees who actually worked during the CIRP are to be included in the CIRP costs - The wages and salaries of all other workmen / employees of the Corporate Debtor during the CIRP who actually have not worked and/or performed their duties when the Corporate Debtor was a going concern, shall not be included automatically in the CIRP costs. Such dues will be governed by Section 53(1)(b) and Section 53(1) (c) of the Insolvency and Bankruptcy Code. (Para 9-10) Sunil Kumar Jain v. Sundaresh Bhatt, 2022 LiveLaw (SC) 382 : AIR 2022 SC 1985 : (2022) 7 SCC 540

Section 5 (20) & (21) - "Operational Creditor" & "Operational Debt"

Insolvency and Bankruptcy Code, 2016 – Section 5(20) and 5(21) - Operational Debt - Operational Creditor - A debt which arises out of advance payment made to a corporate debtor for supply of goods or services would be considered as an operational debt - The phrase “in respect of” in Section 5(21) has to be interpreted in a broad and purposive manner in order to include all those who provide or receive operational services from the corporate debtor, which ultimately lead to an operational debt. (Para 43, 45) Consolidated Construction Consortium Ltd. v. Hitro Energy Solutions Pvt. Ltd., 2022 LiveLaw (SC) 129 : (2022) 7 SCC 164

Section 7 - Initiation of corporate insolvency resolution process by financial creditor

Insolvency and Bankruptcy Code 2016; Section 7(5) - No ground to review judgment in Vidarbha Industries Power Ltd. v. Axis Bank Limited which held that adjudicating authority has discretion under Section 7(5) - Apprehension that the judgment will undermine the objectives of IBC is misconceived - Observations were made in the context of the case at hand. Axis Bank Ltd v. Vidarbha Industries Power Ltd; 2022 LiveLaw (SC) 817

Insolvency and Bankruptcy Code, 2016; Section 7 - An application under Section 7 of the IBC would not be barred by limitation, on the ground that it had been filed beyond a period of three years from the date of declaration of the loan account of the Corporate Debtor as NPA, if there were an acknowledgement of the debt by the Corporate Debtor before expiry of the period of limitation of three years, in which case the period of limitation would get extended by a further period of three years. (Para 97) Asset Reconstruction Company (India) Ltd. v. Tulip Star Hotels Ltd., 2022 LiveLaw (SC) 648 : AIR 2022 SC 3559

Insolvency and Bankruptcy Code, 2016; Section 7 - CIRP can be initiated against the Corporate Guarantor without proceeding against the principal borrower - The liability of the guarantor is co-extensive with that of the Principal Borrower. (Para 13-16) K. Paramasivam v. Karur Vysya Bank Ltd., 2022 LiveLaw (SC) 742 : AIR 2022 SC 4127

Insolvency and Bankruptcy Code, 2016; Section 7 - Limitation Act, 1963; Section 18 - Entries in Books of Account/Balance sheet of a company can be treated as acknowledgement of liability in respect of debt payable to a financial creditor. (Para 85) Asset Reconstruction Company (India) Ltd. v. Tulip Star Hotels Ltd., 2022 LiveLaw (SC) 648 : AIR 2022 SC 3559

Insolvency and Bankruptcy Code, 2016; Section 7 - Pleadings - An application under Section 7 in the prescribed form cannot be compared with the plaint in a suit, and cannot be judged by the same standards, as a plaint in a suit, or any other pleadings in a Court of law - There is no scope for elaborate pleadings - Documents filed along with the application, or later, and subsequent affidavits and applications would have to be construed as part of the pleadings. (Para 49,76) Asset Reconstruction Company (India) Ltd. v. Tulip Star Hotels Ltd., 2022 LiveLaw (SC) 648 : AIR 2022 SC 3559

Insolvency and Bankruptcy Code, 2016; Section 7 - The approval of a resolution in respect of one borrower cannot certainly discharge a co-borrower - If there are two borrowers or if two corporate bodies fall within the ambit of corporate debtors, there is no reason why proceedings under Section 7 of the IBC cannot be initiated against both the Corporate Debtors - The same amount cannot be realised from both the Corporate Debtors. If the dues are realised in part from one Corporate Debtor, the balance may be realised from the other Corporate Debtor being the co-borrower. However, once the claim of the Financial Creditor is discharged, there can be no question of recovery of the claim twice over. (Para 36-37) Maitreya Doshi v. Anand Rathi Global Finance Ltd., 2022 LiveLaw (SC) 789 : AIR 2022 SC 4595

Insolvency and Bankruptcy Code, 2016; Section 7 - The period of limitation for making an application under Section 7 or 9 of the IBC is three years from the date of accrual of the right to sue, that is, the date of default. (Para 69) Asset Reconstruction Company (India) Ltd. v. Tulip Star Hotels Ltd., 2022 LiveLaw (SC) 648 : AIR 2022 SC 3559

Insolvency and Bankruptcy Code, 2016; Section 7(5)(a) - Ordinarily, the Adjudicating Authority (NCLT) would have to exercise its discretion to admit an application under Section 7 of the IBC of the IBC and initiate CIRP on satisfaction of the existence of a financial debt and default on the part of the Corporate Debtor in payment of the debt, unless there are good reasons not to admit the petition - It has to consider the grounds made out by the Corporate Debtor against admission, on its own merits. (Para 87 - 88) Vidarbha Industries Power Ltd. v. Axis Bank Ltd., 2022 LiveLaw (SC) 587 : (2022) 8 SCC 352

Insolvency and Bankruptcy Code, 2016; Section 7(5)(a) - The Adjudicating Authority (NCLT) has been conferred the discretion to admit the application of the Financial Creditor. If facts and circumstances so warrant, the Adjudicating Authority can keep the admission in abeyance or even reject the application. Of course, in case of rejection of an application, the Financial Creditor is not denuded of the right to apply afresh for initiation of CIRP, if its dues continue to remain unpaid - The Adjudicating Authority might examine the expedience of initiation of CIRP, taking into account all relevant facts and circumstances, including the overall financial health and viability of the Corporate Debtor. The Adjudicating Authority may in its discretion not admit the application of a Financial Creditor. (Para 77 - 79) Vidarbha Industries Power Ltd. v. Axis Bank Ltd., 2022 LiveLaw (SC) 587 : (2022) 8 SCC 352

Insolvency and Bankruptcy Code, 2016; Section 7(5)(b) - when the Adjudicating Authority is satisfied that default has not occurred or the application is incomplete or any disciplinary proceeding is pending against the proposed resolution professional, it may, by order, reject such application - provided it shall, before rejecting the application, give a notice to the applicant to rectify the defect in his application within seven days of receipt of such notice from the Adjudicating Authority - the provision would extent to appeals - appeal is the continuation of original proceedings. (Para 70) Kotak Mahindra Bank Limited v. Kew Precision Parts Pvt. Ltd., 2022 LiveLaw (SC) 673 : (2022) 9 SCC 364

Insolvency and Bankruptcy Code, 2016; Section 7-9 - Noticeable differences in the IBC between the procedure of initiation of CIRP by a financial creditor and by an operational creditor -The NCLT is not a debt collection forum. (Para 31-32) SS Engineers v. Hindustan Petroleum Corporation Ltd; 2022 LiveLaw (SC) 617

Section 8 - Insolvency resolution by operational creditor

Insolvency and Bankruptcy Code, 2016; Sections 8 & 9 - If the claim is undisputed and the operational debt remains unpaid, CIRP must commence- IBC does not countenance dishonesty or deliberate failure to repay the dues of an Operational Creditor. (Para 31-32) SS Engineers v. Hindustan Petroleum Corporation Ltd; 2022 LiveLaw (SC) 617

Insolvency and Bankruptcy Code, 2016; Sections 8 & 9 - if the debt is disputed, the application of the Operational Creditor for initiation of CIRP must be dismissed - CIRP should be initiated to penalize solvent companies for non-payment of disputed dues claimed by an operational creditor. (Para 31-32) SS Engineers v. Hindustan Petroleum Corporation Ltd; 2022 LiveLaw (SC) 617

Section 9 - Application for initiation of corporate insolvency resolution process by operational creditor

Insolvency and Bankruptcy Code, 2016; Sections 9 - Section 9(5)(a) mandatory - An application of an Operational Creditor for initiation of CIRP under Section 9(2) of the IBC is mandatorily required to be admitted if the application is complete in all respects and in compliance of the 28 requisites of the IBC and the rules and regulations thereunder, there is no payment of the unpaid operational debt, if notices for payment or the invoice has been delivered to the Corporate Debtor by the Operational Creditor and no notice of dispute has been received by the Operational Creditor. The IBC does not countenance dishonesty or deliberate failure to repay the dues of an operational creditor. (Para 76) Vidarbha Industries Power Ltd. v. Axis Bank Ltd., 2022 LiveLaw (SC) 587 : (2022) 8 SCC 352

Insolvency and Bankruptcy Code, 2016 - Section 9 – Limitation Act, 1963 – Article 137 – Limitation Act would apply to applications filed under Sections 7 and 9 of the IBC. Consolidated Construction Consortium Ltd. v. Hitro Energy Solutions Pvt. Ltd., 2022 LiveLaw (SC) 129 : (2022) 7 SCC 164

Insolvency and Bankruptcy Code, 2016 – Section 9 – Limitation Act, 1963 – Article 137 – Limitation does not commence when the debt becomes due but only when a default occurs. As noted earlier in the judgment, default is defined under Section 3(12) of the IBC as the non -payment of the debt by the corporate debtor when it has become due. (Para 59) Consolidated Construction Consortium Ltd. v. Hitro Energy Solutions Pvt. Ltd., 2022 LiveLaw (SC) 129 : (2022) 7 SCC 164

Section 12A - Withdrawal of application admitted under section 7, 9 or 10

Insolvency and Bankruptcy Code, 2016; Section 12A - At any stage before a COC is constituted, a party can approach NCLT/Adjudicating Authority directly and the Tribunal may in exercise of its powers under Rule 11 of the NCLT Rules, allow or disallow an application for withdrawal or settlement - In an appropriate case and where the case is being made out and the NCLT is satisfied about the settlement, may permit/allow an application for withdrawal or settlement. Amit Katyal v. Meera Ahuja, 2022 LiveLaw (SC) 259 : AIR 2022 SC 1433 : (2022) 8 SCC 320

Insolvency and Bankruptcy Code, 2016; Section 12A - National Company Law Tribunal Rules, 2016; Rule 11 - Section 12A clearly permits withdrawal of an application under Section 7 IBC that has been admitted - The question of approval of the Committee of Creditors by the requisite percentage of votes, can only arise after the Committee of Creditors is constituted - Before the Committee of Creditors is constituted, there is no bar to withdrawal by the applicant of an application admitted under Section 7 IBC - The settlement cannot be stifled before the constitution of the Committee of Creditors in anticipation of claims against the Corporate Debtor from third persons. The withdrawal of an application for CIRP by the applicant would not prevent any other financial creditor from taking recourse to a proceeding under IBC. The urgency to abide by the timelines for completion of the resolution process is not a reason to stifle the settlement - Rule 11 of the NCLT Rules enables the NCLT to pass orders for the ends of justice including order permitting an applicant for CIRP to withdraw its application and to enable a corporate body to carry on business with ease, free of any impediment. (Para 23-30) Ashok G. Rajani v. Beacon Trusteeship Ltd., 2022 LiveLaw (SC) 790 : AIR 2022 SC 4863

Insolvency and Bankruptcy Code, 2016; Section 12A - Regulation 30A of the CIRP Regulations, 2016 - This provision is held to be directory depending on fact of case. Amit Katyal v. Meera Ahuja, 2022 LiveLaw (SC) 259 : AIR 2022 SC 1433 : (2022) 8 SCC 320

Insolvency and Bankruptcy Code, 2016; Section 12A - When 90% and more of the creditors, in their wisdom after due deliberations, find that it will be in the interest of all the stakeholders to permit settlement and withdraw CIRP, in our view, the adjudicating authority or the appellate authority cannot sit in an appeal over the commercial wisdom of CoC. The interference would be warranted only when the adjudicating authority or the appellate authority finds the decision of the CoC to be wholly capricious, arbitrary, irrational and de hors the provisions of the statute or the Rules. (Para 24) Vallal Rck v. M/s. Siva Industries and Holdings Ltd; 2022 LiveLaw (SC) 541 : AIR 2022 SC 2636 : (2022) 9 SCC 803

Section 13 - Declaration of moratorium and public announcement

Insolvency and Bankruptcy Code, 2016 - Sections 13, 15 and 31 - The claim in respect of the demand was not lodged after public announcements were issued under Sections 13 and 15 of the IBC - On the date on which the Resolution Plan was approved by the NCLT, all claims stood frozen - No claim, which is not a part of the Resolution Plan, would survive. Ruchi Soya Industries Ltd. v. Union of India, 2022 LiveLaw (SC) 207

Section 14 - Moratorium

Insolvency and Bankruptcy Code, 2016; Section 14 - Moratorium on the initiation of CIRP proceedings and its effects - One of the purposes of the moratorium is to keep the assets of the Corporate Debtor together during the insolvency resolution process and to facilitate orderly completion of the processes envisaged under the statute. Such measures ensure the curtailing of parallel proceedings and reduce the possibility of conflicting outcomes in the process - one of the motivations of imposing a moratorium is for Section 14(1)(a), (b), and (c) of the IBC to form a shield that protects pecuniary attacks against the Corporate Debtor. This is done in order to provide the Corporate Debtor with breathing space, to allow it to continue as a going concern and rehabilitate itself. (Para 36) Sundaresh Bhatt, Liquidator of ABG Shipyard v. Central Board of Indirect Taxes and Customs, 2022 LiveLaw (SC) 715 : 2022 (13) SCALE 275

Insolvency and Bankruptcy Code, 2016; Section 14 - Negotiable Instruments Act, 1881; Section 138 and 141 - Moratorium - Liability of natural persons like a Director of the Company - The moratorium provisions contained in Section 14 of the Insolvency and Bankruptcy Code, 2016 would apply only to the corporate debtor and that the natural persons mentioned in Section 141 of the Act would continue to be statutorily liable under the provisions of the Act. Narinder Garg v. Kotak Mahindra Bank, 2022 LiveLaw (SC) 428 : 2022 (7) SCALE 162

Insolvency and Bankruptcy Code, 2016; Section 14, 238 - Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - After the CIRP is initiated, all actions including any action under the SARFAESI Act to foreclose, recover or enforce any security interest are prohibited. (Para 24, 35) Indian Overseas Bank v. RCM Infrastructure Ltd; 2022 LiveLaw (SC) 496 : AIR 2022 SC 2687 : (2022) 8 SCC 516

Insolvency and Bankruptcy Code, 2016; Section 14, 60(6) - Section 60(6) does contemplate exclusion of the entire period during which the moratorium was in force in respect of corporate debtor in regard to a proceeding as contemplated therein at the hands of the corporate debtor - Present an order of Moratorium under Section 14, the entire period of the Moratorium is liable to be excluded in computing the period of limitation even in a suit or an application by a corporate debtor. (Para 25-28) New Delhi Municipal Council v. Minosha India Ltd., 2022 LiveLaw (SC) 469 : (2022) 8 SCC 384

Insolvency and Bankruptcy Code, 2016; Sections 14, 33(5) - Customs Act, 1961 - IBC would prevail over Customs Act, to the extent that once moratorium is imposed in terms of Sections 14 or 33(5) of the IBC as the case may be, the respondent authority only has a limited jurisdiction to assess/determine the quantum of customs duty and other levies. The customs authority does not have the power to initiate recovery of dues by means of sale/confiscation, as provided under the Customs Act - Once moratorium is imposed in terms of Sections 14 or 33(5) of the IBC as the case may be, the respondent authority only has a limited jurisdiction to assess/determine the quantum of customs duty and other levies. The respondent authority does not have the power to initiate recovery of dues by means of sale/confiscation, as provided under the Customs Act - After such assessment, the respondent authority has to submit its claims (concerning customs dues/operational debt) in terms of the procedure laid down, in strict compliance of the time periods prescribed under the IBC, before the adjudicating authority - In any case, the IRP/RP/liquidator can immediately secure goods from the respondent authority to be dealt with appropriately, in terms of the IBC. (Para 53) Sundaresh Bhatt, Liquidator of ABG Shipyard v. Central Board of Indirect Taxes and Customs, 2022 LiveLaw (SC) 715 : 2022 (13) SCALE 275

Section 20 - Management of operations of corporate debtor as going concern

Insolvency and Bankruptcy Code, 2016; Section 20 - Even if it is found that the Corporate Debtor was not a going concern during the CIRP despite best efforts by the resolution professional, it cannot be presumed that still the Corporate Debtor was a going concern during the CIRP period. It depends on the facts of each case. (Para 12) Sunil Kumar Jain v. Sundaresh Bhatt, 2022 LiveLaw (SC) 382 : AIR 2022 SC 1985 : (2022) 7 SCC 540

Section 29A - Persons not eligible to be resolution applicant

Insolvency and Bankruptcy Code, 2016; Section 29A(h) - The word “such creditor” in Section 29A(h) has to be interpreted to mean similarly placed creditors after the application for insolvency application is admitted by the adjudicating authority - What is required to earn a disqualification under the said provision is a mere existence of a personal guarantee that stands invoked by a single creditor, notwithstanding the application being filed by any other creditor seeking initiation of insolvency resolution process. This is subject to further compliance of invocation of the said personal guarantee by any other creditor. (Para 53) Bank of Baroda v. MBL Infrastructures, 2022 LiveLaw (SC) 62 : (2022) 5 SCC 661

Section 30 - Submission of resolution plan

Insolvency and Bankruptcy Code, 2016; Section 30(2) - A resolution plan which does not meet the requirements of Sub Section (2) of Section 30 of the IBC, would be invalid and not binding on the Central Government, any State Government, any statutory or other authority, any financial creditor, or other creditor to whom a debt in respect of dues arising under any law for the time being in force is owed. Such a resolution plan would not bind the State when there are outstanding statutory dues of a Corporate Debtor. (Para 48) State Tax Officer v. Rainbow Papers Ltd., 2022 LiveLaw (SC) 743 : AIR 2022 SC 4141

Section 31 - Approval of resolution plan

Insolvency and Bankruptcy Code, 2016; Section 31(2) - If a Resolution Plan is ex facie not in conformity with law and/or the provisions of IBC and/or the Rules and Regulations framed thereunder, the Resolution would have to be rejected - Even if Section 31(2) is construed to confer discretionary power on the Adjudicating Authority to reject a Resolution Plan, it has to be kept in mind that discretionary power cannot be exercised arbitrarily, whimsically or without proper application of mind to the facts and circumstances which require discretion to be exercised one way or the other. (Para 50-51) State Tax Officer v. Rainbow Papers Ltd., 2022 LiveLaw (SC) 743 : AIR 2022 SC 4141

Section 36 – Liquidation Estate

Insolvency and Bankruptcy Code, 2016; Section 36(4), 53(1) - Section 53(1) of the IB Code shall not be applicable to dues of the workmen/employees on account of provident fund, gratuity and pension - They are to be treated outside the liquidation process and liquidation estate assets under the IB Code. (Para 13) Sunil Kumar Jain v. Sundaresh Bhatt, 2022 LiveLaw (SC) 382 : AIR 2022 SC 1985 : (2022) 7 SCC 540

Section 53 - Distribution of Assets

Insolvency and Bankruptcy Code, 2016; Section 53 - Gujarat Value Added Tax, 2003; Section 48 - Section 48 of the GVAT Act is not contrary to or inconsistent with Section 53 or any other provisions of the IBC- Under Section 53(1)(b)(ii), the debts owed to a secured creditor, which would include the State under the GVAT Act, are to rank equally with other specified debts including debts on account of workman's dues for a period of 24 months preceding the liquidation commencement date. (Para 56) State Tax Officer v. Rainbow Papers Ltd., 2022 LiveLaw (SC) 743 : AIR 2022 SC 4141

Section 61 - Appeals and Appellate Authority

Insolvency and Bankruptcy Code, 2016; Section 61 - An appeal against the order of NCLT shall be preferred within a period of 30 days from the date on which the order was passed by the NCLT. The Appellate Tribunal has the power to extend the period of limitation by another 15 days. Safire Technologies Pvt. Ltd. V. Regional Provident Fund Commissioner, 2022 LiveLaw (SC) 472

Section 238 - Provisions of this Code to override other laws

Insolvency and Bankruptcy Code, 2016; Section 238 - IBC is a complete Code in itself - The provisions of the IBC would prevail notwithstanding anything inconsistent therewith contained in any other law for the time being in force. (Para 25-27) Indian Overseas Bank v. RCM Infrastructure Ltd; 2022 LiveLaw (SC) 496 : AIR 2022 SC 2687 : (2022) 8 SCC 516

Insurance Law

Insurance - Insurance companies refusing claim on flimsy grounds and/or technical grounds - While settling the claims, the insurance company should not be too technical and ask for the documents, which the insured is not in a position to produce due to circumstances beyond his control. (Para 4.1) Gurmel Singh v. National Insurance Co. Ltd., 2022 LiveLaw (SC) 506 : AIR 2022 SC 2486

Insurance Law - Burden is on the insurer to show case falls within the purview of exclusion clause- In case of ambiguity, benefit goes to the insured. (Para 12) Narsingh Ispat Ltd. v. Oriental Insurance Company Ltd., 2022 LiveLaw (SC) 443 : AIR 2022 SC 2148 : (2022) 6 SCC 654

Insurance Law - Exclusion of liability in insurance policies - as a matter of general principle, it is well established that if one party, otherwise liable, wishes to exclude or limit his liability to the other party, he must do so in clear words; and that the contract should be given the meaning it would convey to a reasonable person having all the background knowledge which is reasonably available to the person or class of persons to whom the document is addressed. (Para 19) United India Insurance Co. Ltd. v. Levis Strauss (India) Pvt. Ltd., 2022 LiveLaw (SC) 487 : (2022) 6 SCC 1

Insurance Law - The vehicle of the complainant (the insured) which was insured with Insurance Company was robbed. The next day, an FIR was registered by him. Accused were arrested and challan filed. Thereafter, the complainant lodged the insurance claim. The same was repudiated on the ground that there was a delay in intimating the Insurance Company about the occurrence of the theft. Though District Forum and State Consumer Commission allowed the complaint - NCDRC dismissed it by allowing insurer's revision petition. Allowing the appeal, the Supreme Court set aside the NCDRC order and upheld the State Commission order. Jaina Construction Company v. Oriental Insurance Company Ltd., 2022 LiveLaw (SC) 154 : (2022) 4 SCC 527

Insurance Law - When the policy itself defines the acts of terrorism in the Exclusion Clause, the terms of the policy being a concluded contract will govern the rights and liabilities of the parties. Therefore, the parties cannot rely upon the definitions of 'terrorism' in various penal statutes since the Exclusion Clause contains an exhaustive definition of acts of terrorism. (Para 13) Narsingh Ispat Ltd. v. Oriental Insurance Company Ltd., 2022 LiveLaw (SC) 443 : AIR 2022 SC 2148 : (2022) 6 SCC 654

Insurance Act, 1938

Insurance Act, 1938 - Duty of insurer to disclose exclusion clause - When an exclusion clause is introduced making the contract unenforceable on the date on which it is executed, much to the knowledge of the insurer, non-disclosure and a failure to furnish a copy of the said contract by following the procedure required by statute, would make the said clause redundant and non-existent. [Para 15] Texco Marketing Pvt. Ltd. v. TATA AIG General Insurance Company Ltd., 2022 LiveLaw (SC) 937

Insurance Act, 1938 - An exclusion clause in a contract of insurance has to be interpreted differently. Not only the onus but also the burden lies with the insurer when reliance is made on such a clause. This is for the reason that insurance contracts are special contracts premised on the notion of good faith. It is not a leverage or a safeguard for the insurer, but is meant to be pressed into service on a contingency, being a contract of speculation. An insurance contract by its very nature mandates disclosure of all material facts by both parties. [Para 11] Texco Marketing Pvt. Ltd. v. TATA AIG General Insurance Company Ltd., 2022 LiveLaw (SC) 937

Insurance Act, 1938 - Any non-compliance of IRDA Regulations, obviously would lead to the irresistible conclusion that the offending clause, be it an exclusion clause, cannot be pressed into service by the insurer against the insured as he may not be in knowhow of the same. [Para 21] Texco Marketing Pvt. Ltd. v. TATA AIG General Insurance Company Ltd., 2022 LiveLaw (SC) 937

Insurance Contract

Insurance Contract - Interpreting ambiguous terms in an insurance contract - first harmoniously by reading the contract in its entirety - if still vague then the term must be interpreted in favour of the insured, i.e., against the drafter of the policy. Haris Marine Products v. Export Credit Guarantee Corporation (ECGC), 2022 LiveLaw (SC) 432 : AIR 2022 SC 3036

Double Insurance

Insurance Law - Double Insurance - where an entity seeks to cover risks for the same or similar incidents through two different - overlapping policies - two or more insurers must have insured the same assured in respect of the same risk on the same interest in the same subject-matter - once the first insurer has paid a complete indemnity to the assured, the second insurer would be entitled to decline liability - in the case of specific risks, such as those arising from loss due to fire, etc., the insured cannot profit and take advantage by double insurance. (Para 46, 47) United India Insurance Co. Ltd. v. Levis Strauss (India) Pvt. Ltd., 2022 LiveLaw (SC) 487 : (2022) 6 SCC 1

Theft of Vehicle

Insurance Law - Theft of Vehicle - Repudiation of Claim - The Insurance Company cannot repudiate claim merely on the ground that there was a delay in intimating the Insurance Company about the occurrence of the theft, when the insured had lodged the FIR immediately after the theft of the vehicle. Jaina Construction Company v. Oriental Insurance Company Ltd., 2022 LiveLaw (SC) 154 : (2022) 4 SCC 527

Interim Directions

Interim Directions - Appeal against Punjab and Haryana HC interim directions issued against OLX - Allowed -There was no occasion for the High Court to pass these directions; and more particularly, without hearing the appellant. OLX India BV v. State of Haryana, 2022 LiveLaw (SC) 269 : (2022) 4 SCC 390

Interim Order

Interim Order - A party who is in enjoyment of an interim order, is bound to lose the benefit of such interim order when the ultimate outcome of the case goes against him. (Para 20) Fertilizer Corporation of India Ltd. v. Rajesh Chandra Shrivastava, 2022 LiveLaw (SC) 351 : AIR 2022 SC 1707

Interim Orders - A stayed order is not wiped out from the existence, unless it is quashed - Once the proceedings, wherein a stay was granted, are dismissed, any interim order granted earlier merges with the final order. In other words, the interim order comes to an end with the dismissal of the proceedings - It is the duty of the Court to put the parties in the same position they would have been but for the interim order of the court, unless the order granting interim stay or final order dismissing the proceedings specifies otherwise. (Para 24) State of U.P. v. Prem Chopra, 2022 LiveLaw (SC) 378

Interim Orders - Appeal against Allahabad HC order holding that the writ petitioner was not liable to pay interest as he was under the protection of the interim order (though the writ petition was dismissed for non-prosecution and the notice demanding interest was issued after it) - Allowed - On the dismissal of the proceedings or vacation of the interim order, the beneficiary of the interim order shall have to pay interest on the amount withheld or not paid by virtue of the interim order. State of U.P. v. Prem Chopra, 2022 LiveLaw (SC) 378

Interim Relief

Interim Relief - The court has to consider the prima facie case made out by the applicant for interim relief, both on the question of locus standi to sue, if questioned and on the merits of the prayer for interim relief. The Court also has to consider the balance of convenience. (Para 21) Shri Babuji Rawji Shah v. S. Hussain Zaidi, 2022 LiveLaw (SC) 213 : 2022 (4) SCALE 440

Interpretation of Contract

Interpretation of Contract - Contract between FCI and transport contractors - Whether the demurrages imposed on the Corporation by the Railways can be, in turn, recovered by the Corporation from the contractors as "charges" recoverable under this clause? The Corporation in the present contract has chosen not to include the power to recover demurrages and as such the expression "charges" cannot be interpreted to include demurrages - Demurrage is undoubtedly a charge, however, such a textual understanding would not help us decipher the true and correct intention of the parties to the present contract. Food Corporation of India v. Abhijith Paul, 2022 LiveLaw (SC) 975

Interpretation of Contract - Scope of contractual expressions must be understood as intended by the parties to the contract - The process of interpretation, though the exclusive domain of the Court, inheres the duty to decipher the meaning attributed to contractual terms by the parties to the contract - Words and expressions used in the contract are principal tools to ascertain such intention. While interpreting the words, courts look at the expressions falling for interpretation in the context of other provisions of the contract and also in the context of the contract as a whole. These are intrinsic tools for interpreting a contract. As a principle of interpretation, courts do not resort to materials external to the contract for construing the intention of the parties. There are, however, certain exceptions to the rule excluding reference or reliance on external sources to interpret a contract. One such exception is in the case of a latent ambiguity, which cannot be resolved without reference to extrinsic evidence. Latent ambiguity exists when words in a contract appear to be free from ambiguity; however, when they are sought to be applied to a particular context or question, they are amenable to multiple outcomes - Extrinsic evidence, in cases of latent ambiguity, is admissible both to ascertain where necessary, the meaning of the words used, and to identify the objects to which they are to be applied. (Para 17, 27) Food Corporation of India v. Abhijith Paul, 2022 LiveLaw (SC) 975

Interpretation of Contract - The rights and duties of the parties to the contract subsist or perish in terms of the contract itself. Even if a party to the contract is a governmental authority, there is no place for discretion vested in the officers administering the contract. Discretion, a principle within the province of administrative law, has no place in contractual matters unless, of course, the parties have expressly incorporated it as a part of the contract. It is the bounden duty of the court while interpreting the terms of the contracts, to reject the exercise of any such discretion that is entirely outside the realm of the contract. (Para 22 - 24) State of Madhya Pradesh v. SEW Construction Ltd., 2022 LiveLaw (SC) 977

Interpretation of Statute

Interpretation of Statute - Difference and distinction between a charging provision in a fiscal statute and an exemption notification - The principle that in the event of ambiguity in a provision in a fiscal statute, a construction favourable to the assessee should be adopted is concerned, shall not be applicable to construction of an exemption notification, when it is clear and not ambiguous - It will be for the assessee to show that he comes within the purview of the notification. Eligibility clause in relation to exemption notification must be given effect to as per the language and not to expand its scope deviating from its language. (Para 8.4) Krishi Upaj Mandi Samiti v. Commissioner, 2022 LiveLaw (SC) 203 : AIR 2022 SC 1234 : (2022) 5 SCC 62

Interpretation of Statute - Taxation Statutes - Exemption Notifications - The exemption notification should not be liberally construed and beneficiary must fall within the ambit of the exemption and fulfill the conditions thereof. In case such conditions are not fulfilled, the issue of application of the notification does not arise at all by implication - The notification has to be read as a whole. An exception and/or an exempting provision in a taxing statute should be construed strictly and given a meaning according to legislative intendment - It is not open to the court to ignore the conditions prescribed in the relevant policy and the exemption notifications issued in that regard.The Statutory provisions providing for exemption have to be interpreted in light of the words employed in them and there cannot be any addition or subtraction from the statutory provisions. (Para 8.1 - 8.3) Krishi Upaj Mandi Samiti v. Commissioner, 2022 LiveLaw (SC) 203 : AIR 2022 SC 1234 : (2022) 5 SCC 62

Interpretation of Statutes - “Ut Res Magis Valeat Quam Pereat” - A liberal construction should be put up on written instruments, so as to uphold them, if possible, and carry into effect, the intention of the parties - Interpretation of a provision of law that will defeat the very intention of the legislature must be shunned in favour of an interpretation that will promote the object sought to be achieved through the legislation. (Para 13) State of Madhya Pradesh v. Jogendra, 2022 LiveLaw (SC) 37 : AIR 2022 SC 933 : (2022) 5 SCC 401

Interpretation of Statutes - A government cannot misuse the "removal of difficulty clause" to remove all obstacles in its path which arise due to statutory restrictions. Allowing such actions would be antithetical to the rule of law. Misusing the limited power granted to make minor adaptations and peripheral adjustments in a statute for making its implementation effective, to side-step the provisions of the statute altogether would defeat the purpose of the legislation - Where there is a specific provision, it is not open to the State government to conjure up a lacunae or omission and purportedly exercise the power to remove difficulties. (Para 48- 49) State of West Bengal v. Anindya Sundar Das, 2022 LiveLaw (SC) 831 : AIR 2022 SC 4902

Interpretation of Statutes - A rule made under a statute could not override or supersede a provision of the parent statute itself. (Para 7) Union of India v. Alapan Bandyopadhyay, 2022 LiveLaw (SC) 12 : AIR 2022 SC 499 : (2022) 3 SCC 133

Interpretation of Statutes - A statute must be read to avoid a construction which would make certain provisions or terms meaningless or redundant. (Para 41) State of West Bengal v. Anindya Sundar Das, 2022 LiveLaw (SC) 831 : AIR 2022 SC 4902

Interpretation of Statutes - All interpretations must subserve and help implementation of the intention of the Act - This is applicable while interpreting any provision in any statute especially when the power under that provision is conferred to pass orders that may be just or proper. (Para 18) Bhola Kumhar v. State of Chhattisgarh, 2022 LiveLaw (SC) 589

Interpretation of Statutes - All the provisions in the Statute have to be construed in context with each other and no provision can be read in isolation - The provisions of a statue ought to be interpreted in such a manner which would advance the object and purpose of the enactment. (Para 39-41) Kotak Mahindra Bank ltd. v. A. Balakrishna, 2022 LiveLaw (SC) 534 : AIR 2022 SC 2652 : (2022) 9 SCC 186

Interpretation of Statutes - Courts would not indulge in interpretation of a report of a body and when there is better material in the form of the Act itself available for interpretation. (Para 18) New Delhi Municipal Council v. Minosha India Ltd., 2022 LiveLaw (SC) 469 : (2022) 8 SCC 384

Interpretation of Statutes - Each and every word and each and every phrase mentioned in the provision will have to be given effect to. Statutes have to be construed so that every word has a place and everything is in its place. (Para 21) Delhi Airport Metro Express Pvt. Ltd. v. Delhi Metro Rail Corporation, 2022 LiveLaw (SC) 452 : AIR 2022 SC 2165 : (2022) 9 SCC 286

Interpretation of Statutes - Environment and Forest Laws - The approach of the court in interpreting the laws relating to forests and the environment discussed (Para 25) Narinder Singh v. Divesh Bhutani, 2022 LiveLaw (SC) 620 : AIR 2022 SC 3479

Interpretation of Statutes - First and foremost principle of interpretation of a statute is the rule of literal interpretation - Purposive interpretation can only be resorted to when the plain words of a statute are ambiguous or if construed literally, the provision would nullify the object of the statute or otherwise lead to an absurd result. (Para 65 - 69) Vidarbha Industries Power Ltd. v. Axis Bank Ltd., 2022 LiveLaw (SC) 587 : (2022) 8 SCC 352

Interpretation of Statutes - Golden rule of interpretation discussed - If the words of a statute are not ambiguous, the scope of interpretation dwindles. (Para 19-23) New Delhi Municipal Council v. Minosha India Ltd., 2022 LiveLaw (SC) 469 : (2022) 8 SCC 384

Interpretation of Statutes - Heydon's/Mischief Rule. (Para 53) State of Himachal Pradesh v. Nirmal Kaur @ Nimmo, 2022 LiveLaw (SC) 866

Interpretation of Statutes - If a statute prescribes a method or modality for exercise of power, by necessary implication, the other methods of performance are not acceptable. (Para 13) Noor Mohammed v. Khurram Pasha, 2022 LiveLaw (SC) 652 : AIR 2022 SC 3592 : (2022) 9 SCC 23

Interpretation of Statutes - If the language is unambiguous and capable of one meaning, that alone should be applied and not any other, based under surmise that the Parliament or the legislature intended it to be so. In other words, it is only in cases of ambiguity that the court can use other aids to discern the true meaning. Where the statute is clear and the words plain, the legislation has to be given effect in its own terms - It is only when the application of literal interpretation gives rise to an absurdity, should the interpretation be expansive. (Para 52-54) New Noble Educational Society v. Chief Commissioner of Income Tax 1,2022 LiveLaw (SC) 859 : 2022 (15) Scale 302

Interpretation of Statutes - If the plain meaning of the provision does not admit of any ambiguity no other external aid will be necessary to interpret the provision except to give it the plain meaning. (Para 9) Delhi Airtech Services Pvt. Ltd v. State of U.P., 2022 LiveLaw (SC) 888

Interpretation of Statutes - Intention of legislature - Legislative intent in the enactment of a statute is to be gathered from the express words used in the statue unless the plain words literally construed give rise to absurd results. This Court has to go by the plain words of the statute to construe the legislative. (Para 11) State of Rajasthan v. Tejmal Choudhary, 2022 LiveLaw (SC) 158

Interpretation of Statutes - Interpretation of law has two essential purposes: one is to clarify to the people governed by it, the meaning of the letter of the law; the other is to shed light and give shape to the intent of the law maker. And, in this process the courts' responsibility lies in discerning the social purpose which the specific provision subserves. (Para 34) Apex Laboratories Pvt. Ltd. v. Deputy Commissioner, 2022 LiveLaw (SC) 195 : (2022) 7 SCC 98

Interpretation of Statutes - It is a settled principle of law that all the provisions in the statute have to be read harmoniously. It is presumed that each and every provision has been brought by the legislature into the statute book with some purpose. A particular provision cannot be read in isolation and has to be read in context to each other. An attempt has to be made to reconcile all the provisions of the statute together, unless it is impossible. (Para 40) Ardhendu Kumar Das v. State of Odisha, 2022 LiveLaw (SC) 539 : AIR 2022 SC 2695

Interpretation of Statutes - it is the duty of the court to avoid a head-on clash between two sections of the Act and to construe the provisions which appear to be in conflict with each other in such a manner so as to harmonise them - when two conflicting provisions in an Act cannot be reconciled with each other, they should be so interpreted that, if possible, effect should be given to both - if the court has a choice between two interpretations, the narrower of which would fail to achieve the manifest purpose of the legislation, such an interpretation will have to be avoided - an interpretation, which will result in anomaly or absurdity, should be avoided - the statute has to be interpreted in such a manner that it preserves its workability. Kalyan Dombivali Municipal Corporation v. Sanjay Gajanan Gharat, 2022 LiveLaw (SC) 337 : AIR 2022 SC 1618

Interpretation of Statutes - Legal Fiction - Legal fiction presupposes the existence of the State of facts which may not exist and then works out the consequences which flow from that state of facts. (Para 26) Gujarat State Civil Supplies Corporation v. Mahakali Foods Pvt. Ltd., 2022 LiveLaw (SC) 893 : AIR 2022 SC 5545

Interpretation of Statutes - Legal Fiction - When a legal fiction is employed by the legislature, it becomes a duty of the Court to interpret it and to give it meaning. In gleaning its meaning, the Court is duty bound to ascertain the purpose of this legislative device. The Court cannot allow its mind to be boggled in the matter of carrying the legal fiction to its logical end. But this is not the same as holding that the Court will not look to the object of the Act and, in particular, the fiction in question. (Para 36) New Okhla Industrial Development Authority (Noida) v. Yunus, 2022 LiveLaw (SC) 123 : AIR 2022 SC 847 : (2022) 9 SCC 516

Interpretation of Statutes - Maharashtra Control of Organised Crime Act, 1999 - the provisions of MCOCA need to be strictly construed and for their application, an unlawful activity has to fall within the periphery of organised crime. (Para 12-12.3) Abhishek v. State of Maharashtra, 2022 LiveLaw (SC) 516 : AIR 2022 SC 2488 : (2022) 8 SCC 282

Interpretation of Statutes - May and Shall - The expression "may", if circumstances so demand can be construed as "Shall". (Para 51) State Tax Officer v. Rainbow Papers Ltd., 2022 LiveLaw (SC) 743 : AIR 2022 SC 4141

Interpretation of Statutes - Meaning and intention of a statute must be collected from the plain and unambiguous expression used therein rather than from any notions which may be entertained by the court as to what is just and expedient - While interpretating a statute, if two interpretations are possible, the one which enhances the object of the Act should be preferred than the one which would frustrate the object of the Act. (Para 27) Gujarat State Civil Supplies Corporation v. Mahakali Foods Pvt. Ltd., 2022 LiveLaw (SC) 893 : AIR 2022 SC 5545

Interpretation of Statutes - Municipal laws giving effect to International Conventions - Courts of law must endeavor to maintain a uniformity of interpretation with courts of other jurisdictions while interpreting international treaties and conventions. (Para 29) Bhagwandas B. Ramchandani v. British Airways, 2022 LiveLaw (SC) 645

Interpretation of Statutes - Penal Statutes - The rule of strict construction of a penal statute or a special penal statute is not intended to put all the provisions in such a tight iron cast that they become practically unworkable, and thereby, the entire purpose of the law is defeated. (Para 12.4-12.6) Abhishek v. State of Maharashtra, 2022 LiveLaw (SC) 516 : AIR 2022 SC 2488 : (2022) 8 SCC 282

Interpretation of Statutes - Principles that govern the interpretation to be given to proviso in the context of main provision discussed. (Para 50) Prabha Tyagi v. Kamlesh Devi, 2022 LiveLaw (SC) 474 : AIR 2022 SC 2331

Interpretation of Statutes - Purposive Construction - A statute has to be construed according to the intent that makes it and it is always the duty of the Court to act upon the true intention of the legislature. If a statutory provision is open to more than one interpretation, it is always desirable of the Court to choose the interpretation which represents the true intention of the legislature. (Para 43-46) Securities and Exchange Board of India v. National Stock Exchange Members Association, 2022 LiveLaw (SC) 840 : AIR 2022 SC 5213

Interpretation of Statutes - Purposive Interpretation - While interpreting the provisions of the statute, the court has to prefer an interpretation which advances the purpose of the statute - Even in relation to a penal statute, any narrow and pedantic, literal and lexical construction may not always be given direct effect and the interpretation has to be preferred with regard to the subject matter of the offence and the object of law it seeks to achieve. (Para 66-80) State of Himachal Pradesh v. Nirmal Kaur @ Nimmo, 2022 LiveLaw (SC) 866

Interpretation of Statutes - Retrospectivity - A statute which affect substantive rights is presumed to be prospective in operation unless made retrospective and unless textually impossible a statute which merely affects procedure is presumed to be retrospective. However, a statute which not only changes the procedure but also creates new rights or liabilities is to be construed to be prospective in operation, unless otherwise provided either expressly or by necessary implication. State of Rajasthan v. Tejmal Choudhary, 2022 LiveLaw (SC) 158

Interpretation of Statutes - Retrospectivity - Every statute is prospective, unless it is expressly or by necessary implication made to have retrospective operation. There is a presumption against retrospectivity. An express provision should ordinarily be made to make a statute retrospective. The presumption against retrospectivity may also be rebutted by necessary implication. (Para 7) State of Rajasthan v. Tejmal Choudhary, 2022 LiveLaw (SC) 158

Interpretation of Statutes - Retrospectivity - The device of a legal fiction can also be used to introduce retrospective operation. Generally, it is considered that every statute dealing with substantive rights is prima facie prospective unless it is expressly or by necessary implication made retrospective. State of Rajasthan v. Tejmal Choudhary, 2022 LiveLaw (SC) 158

Interpretation of Statutes - Rule of Contra proferentem - The rule of contra proferentem thus protects the insured from the vagaries of an unfavourable interpretation of an ambiguous term to which it did not agree - The rule assumes special significance in standard form insurance policies, called contract d' adhesion or boilerplate contracts, in which the insured has little to no countervailing bargaining power. Haris Marine Products v. Export Credit Guarantee Corporation (ECGC), 2022 LiveLaw (SC) 432 : AIR 2022 SC 3036

Interpretation of Statutes - Same expression appearing at different places in a statute - it is the context which must determine whether the same expression occurring at two different places must be considered differently or in the same light. (Para 49- 50) State of Uttar Pradesh v. Atul Kumar Dwivedi, 2022 LiveLaw (SC) 20 : AIR 2022 SC 973

Interpretation of Statutes - Service Law - When the rules are specific and clear, there is no need for interpretation which may lead to a case of judicial legislation. (Para 13) Union of India v. Manpreet Singh Poonam, 2022 LiveLaw (SC) 254 : (2022) 6 SCC 105

Interpretation of Statutes - Strict Interpretation - Substantive law should be construed strictly so as to give effect and protection to the substantive rights unless the statute otherwise intends. Strict construction is one which limits the application of the statute by the words used - The basic rule of strict construction of a penal statute is that a person cannot be penalised without a clear letter of the law. Presumptions or assumptions have no role in the interpretation of penal statutes - They are to be construed strictly in accordance with the provisions of law. Nothing can be implied. In such cases, the courts are not so much concerned with what might possibly have been intended. Instead, they are concerned with what has actually been said. (Para 46-47) State of Gujarat v. Sandip Omprakash Gupta, 2022 LiveLaw (SC) 1031

Interpretation of Statutes - Subordinate Legislation - A subordinate legislation must be interpreted to effectuate the statutory purpose and objective. (Para 21.1) Regional Transport Authority v. Shaju, 2022 LiveLaw (SC) 174 : 2022 (3) SCALE 554

Interpretation of Statutes - Taxation - Exemption Entry - When the exemption Entry is clear and unambiguous, no external aid for interpretation is called for, whether in the form of Budget speech or any other notification under any other enactment. (Para 11) Authority for Clarification and Advance Ruling v. Aakavi Spinning Mills (P) Ltd., 2022 LiveLaw (SC) 191

Interpretation of Statutes - Taxation Laws - In a taxing statute the provisions are to be read as they are and they are to be literally construed, more particularly in a case of exemption sought by an assessee - An assessee claiming exemption has to strictly and literally comply with the exemption provisions. (Para 8, 11) Principal Commissioner of Income Tax-III Bangalore v. Wipro Ltd., 2022 LiveLaw (SC) 583 : AIR 2022 SC 3466

Interpretation of Statutes - Taxation Statutes - In the taxing statute, it is the plain language of the provision that has to be preferred, where language is plain and is capable of determining defined meaning. Strict interpretation to the provision is to be accorded to each case on hand. Purposive interpretation can be given only when there is an ambiguity in the statutory provision or it alleges to absurd results. (Para 14.3) State of Gujarat v. ArcelorMittal Nippon Steel, 2022 LiveLaw (SC) 79 : (2022) 6 SCC 459

Interpretation of Statutes - Taxation Statutes - The exemption notification should be strictly construed and given meaning according to legislative intendment. The Statutory provisions providing for exemption have to be interpreted in the light of the words employed in them and there cannot be any addition or subtraction from the statutory provisions. (Para 14.3) State of Gujarat v. ArcelorMittal Nippon Steel, 2022 LiveLaw (SC) 79 : (2022) 6 SCC 459

Interpretation of Statutes - Taxation Statutes - The notification has to be read as a whole. If any of the conditions laid down in the notification is not fulfilled, the party is not entitled to the benefit of that notification. An exception and/or an exempting provision in a taxing statute should be construed strictly and it is not open to the court to ignore the conditions prescribed in industrial policy and the exemption notifications. (Para 14.2) State of Gujarat v. ArcelorMittal Nippon Steel, 2022 LiveLaw (SC) 79 : (2022) 6 SCC 459

Interpretation of Statutes - Taxation Statutes - The principle that construction favourable to the assessee should be adopted shall not be applicable to construction of an exemption notification, if it is clear and not ambiguous. Thus, it will be for the assessee to show that he comes within the purview of the notification. Eligibility clause in relation to exemption notification must be given effect to as per the language and not to expand the scope deviating from the language. (Para 14.6) State of Gujarat v. ArcelorMittal Nippon Steel, 2022 LiveLaw (SC) 79 : (2022) 6 SCC 459

Interpretation of Statutes - Taxation Statutes - There is a vast difference and distinction between a charging provision in a fiscal statute and an exemption notification. (Para 14.6) State of Gujarat v. ArcelorMittal Nippon Steel, 2022 LiveLaw (SC) 79 : (2022) 6 SCC 459

Interpretation of Statutes - Taxation Statutes - While the exemption notification should be liberally construed, beneficiary must fall within the ambit of the exemption and fulfill the conditions thereof. In case such conditions are not fulfilled, the issue of application of the notification does not arise. (Para 14.1) State of Gujarat v. ArcelorMittal Nippon Steel, 2022 LiveLaw (SC) 79 : (2022) 6 SCC 459

Interpretation of Statutes - Taxing Statutes - Principle of interpretation of taxing statutes – that they need to be interpreted strictly – cannot sustain when it results in an absurdity contrary to the intentions of the Parliament. (Para 33) Apex Laboratories Pvt. Ltd. v. Deputy Commissioner, 2022 LiveLaw (SC) 195 : (2022) 7 SCC 98

Interpretation of Statutes - The construct of the provision must depend on the context of the legislative intent and the purpose for which such dispensation has been envisaged. The setting in which the expression has been used in the concerned section of the Act would assume significance. (Para 16) NKGSB Cooperative Bank Ltd. v. Subir Chakravarty, 2022 LiveLaw (SC) 212 : AIR 2022 SC 1325 : (2022) 10 SCC 286

Interpretation of Statutes - The Courts should refrain itself from expressing value judgments and policy views in order to interpret statutes. Statutes are to be read in their plain language and not otherwise. (Para 45) M.S.P.L. Ltd. v. State of Karnataka, 2022 LiveLaw (SC) 886

Interpretation of Statutes - The interpretation is to be in the manner which will subserve and promote the object and intention behind the legislation. If it is not interpreted in the manner as aforesaid it would defeat the very intention of the legislation (Para 14.3) Kerala State Beverages Manufacturing & Marketing Corporation Ltd. v. Assistant Commissioner of Income Tax Circle 1(1), 2022 LiveLaw (SC) 4 : AIR 2022 SC 309 : (2022) 4 SCC 240

Interpretation of Statutes - The interpretation which advances the object and purpose of the Act, has to be preferred. (Para 24) Chhattisgarh State Power Distribution Company Ltd. v. Chhattisgarh State Electricity Regulatory Commission, 2022 LiveLaw (SC) 478 : AIR 2022 SC 2904

Interpretation of Statutes - The object of a proviso is to except from the main provision something enacted in the substantive clause. It cannot however, by itself be read as a substantive provision - The scope of a proviso. (Para 55-58) New Noble Educational Society v. Chief Commissioner of Income Tax 1,2022 LiveLaw (SC) 859 : 2022 (15) Scale 302

Interpretation of Statutes - The words used in a particular statute cannot be used to interpret the same word in a different statute especially when the two statues are not pari materia with each other and have a wholly different scheme from one another. (Para 11) Board of Control for Cricket in India v. Regional Director Employees' State Insurance Corporation, 2022 LiveLaw (SC) 725

Interpretation of Statutes - To examine whether a provision is directory or mandatory, one of the tests is that the court is required to ascertain the real intention of the legislature by carefully attending to the whole scheme of the statute. (Para 29) Manickam @ Thandapani v. Vasantha, 2022 LiveLaw (SC) 395

Interpretation of Statutes - When a provision of a statute is made subject to another provision by the legislature, this evinces an intent that where the latter provision is attracted, the former would give way. (Para 43) State of Sikkim v. Jasbir Singh, 2022 LiveLaw (SC) 116 : (2022) 7 SCC 287

Interpretation of Statutes - When Statutes provide more than one judicial fora for effectuating a right or to enforce a duty-obligation, it is a feature of remedial choices offered by the State for an effective access to justice. Therefore, while interpreting statutes provisioning plurality of remedies, it is necessary for Courts to harmonise the provisions in a constructive manner. (Para 14.1-14.2) Experion Developers Pvt. Ltd. v. Sushma Ashok Shiroor, 2022 LiveLaw (SC) 352 : AIR 2022 SC 1824

Interpretation of Statutes - When the language of a statutory provision is plain and unambiguous, it is not permissible for the Court to add or subtract words to a statute or read something into it which is not there. It cannot rewrite or recast legislation. (Para 75) Kotak Mahindra Bank ltd. v. A. Balakrishna, 2022 LiveLaw (SC) 534 : AIR 2022 SC 2652 : (2022) 9 SCC 186

Interpretation of Statutes - When two or more enactments operating in the same field contain a non obstante clause stating that its provisions will have effect notwithstanding anything inconsistent therewith contained in any other law, the conflict has to be resolved upon consideration of the purpose and policy underlying the enactments - The rule that a non-obstante clause in a later statute prevails over the non-obstante clause in an earlier statute is not an absolute rule. The question of which provision prevails, would necessarily depend on the object of the enactment and, in particular, the object of giving overriding effect to the enactment or any specific provision thereof. (Para 68-70) Owners and Parties Interested in the Vessel M.V. Polaris Galaxy v. Banque Cantonale De Geneve, 2022 LiveLaw (SC) 793

Interpretation of Statutes - Where a statute contains both general provision as well as specific provision, the later must prevail. (Para 8) K.C. Laxmana v. K.C. Chandrappa Gowda, 2022 LiveLaw (SC) 381 : 2022 (6) SCALE 315

Interpretation of Statutes - Where the definition of a word is inclusive, as presaged by the adoption of the expression 'includes', it is prima facie extensive. (Para 32) State of Maharashtra v. 63 Moons Technologies Ltd; 2022 LiveLaw (SC) 400 : (2022) 9 SCC 457

Interpretation of Statutes - Where the same Statute uses different terms and expressions, then it is clear that Legislature is referring to distinct and different things. (Para 14.5) Kerala State Beverages Manufacturing & Marketing Corporation Ltd. v. Assistant Commissioner of Income Tax Circle 1(1), 2022 LiveLaw (SC) 4 : AIR 2022 SC 309 : (2022) 4 SCC 240

Interpretation of Statutes - While dealing with a welfare legislation, a purposive interpretation giving the benefit to the needy person being the intendment is the role required to be played by the court. (Para 57) Satender Kumar Antil v. Central Bureau of Investigation, 2022 LiveLaw (SC) 577 : AIR 2022 SC 3386 : (2022) 10 SCC 51

Interpretation of Statutes - While interpreting the provisions of a statute, it is necessary that the textual interpretation should be matched with the contextual one. The Act must be looked at as a whole and it must be discovered what each section, each clause, each phrase and each word is meant and designed to say as to fit into the scheme of the entire Act. No part of a statute and no word of a statute can be construed in isolation. Statutes have to be construed so that every word has a place and everything is in its place. (Para 61) Renaissance Hotel Holding Inc v. B. Vijaya Sai, 2022 LiveLaw (SC) 65 : (2022) 5 SCC 1

Interpretation of Statutes - Words of a taxing statute should be read in their ordinary, natural, and grammatical meaning - In construing the words in a constitutional enactment that confers legislative power, a liberal construction should be placed upon the words so that they may have effect in their widest amplitude. (Para 47) OCL India Ltd. v. State of Orissa, 2022 LiveLaw (SC) 911 : AIR 2022 SC 5609

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Judicial Infrastructure

Judicial Infrastructure - Supreme Court directs the Law Secretaries of all State Governments to file affidavits relating to budget allocation and utilization. Imtiaz Ahmad v State of Uttar Pradesh, 2022 LiveLaw (SC) 636

Judgment & Order

Judgment & Order - Reasoning is the life blood of the judicial system. That every order must be reasoned is one of the fundamental tenets of our system. An unreasoned order suffers the vice of arbitrariness. (Para 18) Ms. Y v. State of Rajasthan, 2022 LiveLaw (SC) 384 : AIR 2022 SC 1910 : (2022) 9 SCC 269

Judgment and Order - An order is in the given factual scenario. The judgment lays down the principles of law. The scenario is that any order or judgment passed by this Court becomes a reportable exercise to create more volumes of reported cases! This thus has a possibility at times of causing some confusion on the legal principles prevalent. State of Punjab v. Jasbir Singh, 2022 LiveLaw (SC) 776

Judgment and Order - Judgment or decree btained by fraud is to be treated as a nullity - Non-disclosure of the relevant and material documents with a view to obtain an undue advantage would amount to fraud. (Para 21) Ram Kumar v. State of Uttar Pradesh, 2022 LiveLaw (SC) 806 : AIR 2022 SC 4705

Judgments - Accessibility - Judgments to carry paragraph numbers and a table of contents in a longer version - Judgments should be accessible to persons from all sections of society including persons with disability - They should not have improperly placed watermarks and should be signed using digital signatures - They should not be scanned versions of printed copies. The practice of printing and scanning documents is a futile and time-consuming process which does not serve any purpose. The practice should be eradicated from the litigation process as it tends to make documents as well as the process inaccessible for an entire gamut of citizens. (Para 20-21) State Bank of India v. Ajay Kumar Sood, 2022 LiveLaw (SC) 710

Judgments - Broad guidelines on judgment writing - While judges may have their own style of judgment writing, they must ensure lucidity in writing across these styles - Incoherent judgments have a serious impact upon the dignity of our institutions - "IRAC‟ method of judgment writing - The judge must write to provide an easy-to-understand analysis of the issues of law and fact which arise for decision. (Para 10-28) State Bank of India v. Ajay Kumar Sood, 2022 LiveLaw (SC) 710

Judgments - High Court dictated operative portion of the order on 06.11.2019 but the final order was dictated only on 15.03.2020 i.e. after 4 months and it typed out and corrected on 15.04.2020 - Supreme Court observed that it has repeatedly frowned upon the aspect of the oral orders being passed. Surendra Pratap Singh v. Vishwaraj Singh, 2022 LiveLaw (SC) 335

Judgments - It is well settled that judgments and observations in judgments are not to be read as provisions of statute. Judicial utterances and/or pronouncements are in the setting of the facts of a particular case - To interpret words and provisions of a statute, it may become necessary for the Judges to embark upon lengthy discussions. The words of Judges interpreting statutes are not to be interpreted as statutes. Axis Bank Ltd v. Vidarbha Industries Power Ltd; 2022 LiveLaw (SC) 817

Judgments - Practice of pronouncing final order without a reasoned judgment - Serious difficulties are caused on account of the said practice - Even if such oral orders were to be pronounced, it is expected that they are either dictated in Court or at least must follow immediately thereafter to facilitate the aggrieved party to seek redressal from the higher Court. (Para 2-3) Surendra Pratap Singh v. Vishwaraj Singh, 2022 LiveLaw (SC) 335

Judgments - Supreme Court advises High Courts to pronounce judgments without delay after concluding arguments -t is always advisable that the High Court delivers the judgment at the earliest after the arguments are concluded and the judgment is reserved-Long delay in delivery of the judgment gives rise to unnecessary speculations in the minds of the parties in a case. (Para 6.2) State of U.P. v. Akhil Sharda, 2022 LiveLaw (SC) 594

Judgments - Words and phrases and/or sentences in a judgment cannot be read in the manner of a statute, and that too out of context. (Para 47) Pahwa Plastics Pvt. Ltd. v. Dastak NGO, 2022 LiveLaw (SC) 318 : 2022 (5) SCALE 353

Judicial Misconduct

Judicial Misconduct - Showing undue favour to a party under the guise of passing judicial orders is the worst kind of judicial dishonesty and misconduct. The extraneous consideration for showing favour need not always be a monetary consideration. It is often said that "the public servants are like fish in the water, none can say when and how a fish drank the water". A judge must decide the case on the basis of the facts on record and the law applicable to the case. If he decides a case for extraneous reasons, then he is not performing his duties in accordance with law. As often quoted, a judge, like Caesar's wife, must be above suspicion. (Para 15) Muzaffar Hussain v. State of Uttar Pradesh, 2022 LiveLaw (SC) 450

Judicial Review

Judicial Review - Limited scope of judicial review over policy matters of executive-we do not think in exercise of judicial power we can require the State to operate a pension scheme in a particular manner. These factors would be for the policy makers to examine and prescribe. We cannot issue directions on the Central Government to work out statutory scheme in a particular fashion. (Para 32) Employees Provident Fund Organization v. B. Sunil Kumar, 2022 LiveLaw (SC) 912 : AIR 2022 SC 5634

Jurisdiction

Jurisdiction - An ouster of jurisdiction cannot be lightly assumed unless express words are used or such a consequence follows by necessary implication. (Para 16) Vodafone Idea Cellular Ltd. v. Ajay Kumar Agarwal, 2022 LiveLaw (SC) 221 : (2022) 6 SCC 496

Juvenile Justice

Juvenile Justice - Plea of juvenility could be raised in any court, at any stage even after the final disposal of the Special Leave Petition- Where the plea of juvenility is raised at a belated stage, often certain medical tests are resorted to forage determination in absence of the documents - While appreciating the evidence adduced on behalf of the accused in support of the plea that he is a juvenile, if two views are possible on the same evidence, the Court should lean in favour of holding the accused to be juvenile in borderline cases. The inquiry contemplated is not a roving inquiry. The Court can accept as evidence something more than an affidavit i.e. documents, certificates etc. as evidence in proof of age. A mere opinion by a person as to the accused looking one or two years older than the age claimed by him (as the opinion of the head master in the present case) or the fact that the accused told his age to be more than what he alleges in the case while being arrested by the police officer would not hold much water. It is the documentary evidence placed on record that plays a major role in determining the age of a juvenile in conflict of law. And, it is only in the cases where the documents or certificates placed on record by the accused in support of his claim of juvenility are found to be fabricated or manipulated, that the Court, the Juvenile Justice Board or the Committee need to go for medical test for age determination. Vinod Katara v. State of Uttar Pradesh, 2022 LiveLaw (SC) 757 : AIR 2022 SC 4771

Juvenile Justice (Care and Protection of Children) Act, 2000

Juvenile Justice (Care and Protection of Children) Act, 2000 - Section 7A - The plea of juvenility has to be raised in a bonafide and truthful manner. If the reliance is on a document to seek juvenility which is not reliable or dubious in nature, the accused cannot be treated to be juvenile keeping in view that the Act is a beneficial legislation. (Para 38) Manoj @ Monu @ Vishal Chaudhary v. State of Haryana, 2022 LiveLaw (SC) 170 : AIR 2022 SC 1060 : (2022) 6 SCC 187

Juvenile Justice (Care and Protection of Children) Act, 2000 - Section 7A - Date of Birth certificate be obtained after filing of the application under Section 7A of the Act cannot be relied upon. (Para 9) Manoj @ Monu @ Vishal Chaudhary v. State of Haryana, 2022 LiveLaw (SC) 170 : AIR 2022 SC 1060 : (2022) 6 SCC 187

Juvenile Justice (Care and Protection of Children) Act, 2000 - Section 7A - Ossification test varies based on individual characteristics and hence its reliability has to be examined in each case - It cannot be reasonably expected to formulate a uniform standard for determination of the age of the union of epiphysis on account of variations in climatic, dietetic, hereditary and other factors affecting the people of the different States of India. (Para 15 -17) Manoj @ Monu @ Vishal Chaudhary v. State of Haryana, 2022 LiveLaw (SC) 170 : AIR 2022 SC 1060 : (2022) 6 SCC 187

Juvenile Justice (Care and Protection of Children) Act, 2015

Juvenile Justice (Care and Protection of Children) Act, 2015 - Guidelines with respect to preliminary evaluation - appropriate and specific guidelines in this regard are required to be put in place - it open for the Central Government and the National Commission for Protection of Child Rights and the State Commission for Protection of Child Rights to consider issuing guidelines or directions in this regard which may assist and facilitate the Board in making the preliminary assessment under section 15 of the Act, 2015. [Para 87] Barun Chandra Thakur v. Master Bholu, 2022 LiveLaw (SC) 593

Juvenile Justice (Care and Protection of Children) Act, 2015 - Proviso to Section 15 read as mandatory condition - for such an assessment, the Board may take the assistance of experienced psychologists or psycho-social workers or other experts - where the Board is not comprising of a practicing professional with a degree in child psychology or child psychiatry, the expression "may" in the proviso to section 15(1) would operate in mandatory form and the Board would be obliged to take assistance of experienced psychologists or psychosocial workers or other experts - however, in case the Board comprises of at least one such member, who has been a practicing professional with a degree in child psychology or child psychiatry, the Board may take such assistance as may be considered proper by it; and in case the Board chooses not to take such assistance, it would be required of the Board to state specific reasons therefor. [Para 76] Barun Chandra Thakur v. Master Bholu, 2022 LiveLaw (SC) 593

Juvenile Justice (Care and Protection of Children) Act, 2015 - Rising rate of juvenile delinquency in India is a matter of concern and requires immediate attention - We have started gathering an impression that the leniency with which the juveniles are dealt with in the name of goal of reformation is making them more and more emboldened in indulging in such heinous crimes - It is for the Government to consider whether its enactment of 2015 has proved to be effective or something still needs to be done in the matter before it is too late in the day. (Para 79) State of Jammu & Kashmir v. Shubam Sangra, 2022 LiveLaw (SC) 965

Juvenile Justice (Care and Protection of Children) Act, 2015 - The benefit of the principle of benevolent legislation attached to the Juvenile Justice Act would thus be extended to only such cases wherein the accused is held to be a juvenile on the basis of at least prima facie evidence inspiring confidence regarding his minority as the benefit of the possibilities of two views in regard to the age of the alleged accused who is involved in grave and serious offence which he is alleged to have committed and gave effect to it in a well-planned manner reflecting his maturity of mind rather than innocence indicating that his plea of juvenility is more in the nature of a shield to dodge or dupe the arms of law, cannot be allowed to come to his rescue. (Para 72) State of Jammu & Kashmir v. Shubam Sangra, 2022 LiveLaw (SC) 965

Juvenile Justice (Care and Protection of Children) Act, 2015; Section 15 - Preliminary assessment on four aspects - mental capacity to commit the offence; physical capacity to commit the offence; ability to understand the consequences of the offence; and circumstances under which allegedly the offence was committed. [Para 62] Barun Chandra Thakur v. Master Bholu, 2022 LiveLaw (SC) 593

Juvenile Justice (Care and Protection of Children) Act, 2015; Section 15 - preliminary assessment requires holistic evaluation. [Para 65, 66] Barun Chandra Thakur v. Master Bholu, 2022 LiveLaw (SC) 593

Juvenile Justice (Care and Protection of Children) Act, 2015; Section 15 - Ability to understand the consequences of the offence - The language used in section 15 is "the ability to understand the consequences of the offence" - the expression used is in plurality i.e., "consequences" of the offence and, therefore, would not just be confined to the immediate consequence of the offence but impact/consequences for other people connected with the victim and the child and other far-reaching consequences in the future - This evaluation of 'mental capacity and ability to understand the consequences' of the child in conflict with law can, in no way, be relegated to the status of a perfunctory and a routine task. [Para 68, 69, 70, 71, 75] Barun Chandra Thakur v. Master Bholu, 2022 LiveLaw (SC) 593

Juvenile Justice (Care and Protection of Children) Rules, 2007

Juvenile Justice (Care and Protection of Children) Rules, 2007 - Rule 12(3) - U.P. Panchayat Raj (Maintenance of Family Register) Rules, 1970 - Birth certificate issued by corporation or municipal authority or a panchayat is a relevant document to prove the juvenility. The family register is not a birth certificate. Therefore, it would not strictly fall within clause (iii) of Rule 12(3) of the Rules. (Para 37) Manoj @ Monu @ Vishal Chaudhary v. State of Haryana, 2022 LiveLaw (SC) 170 : AIR 2022 SC 1060 : (2022) 6 SCC 187

Juvenile Justice (Care and Protection) Act, 2000

Juvenile Justice (Care and Protection) Act, 2000 - Juvenility Plea of applicant whose murder conviction was affirmed by Supreme Court by dismissing SLP in 2009 - Juvenile Justice Board passed an order holding that, on the date of commission of the offence, his age was 17 years 07 months and 23 days - Applicant has undergone the sentence for 17 years and 03 days - It will be unjust to send the applicant to the Juvenile Justice Board - He shall be forthwith set at liberty provided he is not required to be detained under any other order of the competent Court. Sanjay Patel v. State of Uttar Pradesh, 2022 LiveLaw (SC) 369 : AIR 2022 SC 1852

Juvenile Justice(Care and Protection of Children) Act, 2015; Section 15 - Mental Capacity to commit offence and ability to understand the consequences of offence are different -The Board and the Children's Court apparently were of the view that the mental capacity and the ability to understand the consequences of the offence were one and the same, that is to say that if the child had the mental capacity to commit the offence, then he automatically had the capacity to understand the consequences of the offence. This, in our considered opinion, is a grave error committed by them. [Para 67] Barun Chandra Thakur v. Master Bholu, 2022 LiveLaw (SC) 593

Juvenility Claims

Juvenility Claims - Age Determination Techniques - There are better techniques available and are used for determination of age across the world. For example, the United States Immigration Department uses 'wisdom teeth' technique for determination of age - Another technique is 'epigenetic clock' technique - Such techniques should be introduced in our country as well. (Para 75) State of Jammu & Kashmir v. Shubam Sangra, 2022 LiveLaw (SC) 965

Kathua rape-murder case

Kathua rape-murder case - SC sets aside the orders of the Chief Judicial Magistrate, Kathua and the Jammu and Kashmir High Court which held that one of the accused in the Kathua rape-murder case was a juvenile - The accused was not a juvenile at the time of commission of the offence and should be tried the way other co-accused were tried in accordance with the law. Law to take its own course. State of Jammu & Kashmir v. Shubam Sangra, 2022 LiveLaw (SC) 965

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Labour Law

Labour Law - An employee or workman whose services are terminated and who is desirous of getting back wages is required to either plead or at least make a statement before the adjudicating authority or the Court of first instance that he/she was not gainfully employed or was employed on lesser wages- In the first instance, there is an obligation on the part of the employee to plead that he is not gainfully employed. It is only then that the burden would shift upon the employer to make an assertion and establish the same. [Para 31-33] Allahabad Bank v. Avtar Bhushan Bhartiya, 2022 LiveLaw (SC) 405 : AIR 2022 SC 3025

Labour Law - Appeal against Madras HC judgment directing payment of backwages to an employee - Dismissed - Employee/writ petitioner cannot be denied the back wages for no fault of his and the principle of "no work no pay" shall not be applicable. Salim Ali Centre for Ornithology & Natural History v. Dr. Mathew K. Sebastian, 2022 LiveLaw (SC) 377 : 2022 (6) SCALE 265

Labour Law - Employee is not supposed to prove the negative that he was not gainfully employed during the period he was out of employment- Once he asserts that he is not gainfully employed, thereafter the onus will shift to the employer positively and it would be for the employer to prove that the employee was gainfully employed. (Para 6) Salim Ali Centre for Ornithology & Natural History v. Dr. Mathew K. Sebastian, 2022 LiveLaw (SC) 377 : 2022 (6) SCALE 265

Labour Law - Industrial Disputes Act 1947 - Once the order of termination was approved by the Industrial Tribunal on appreciation of evidence led before it, thereafter the findings recorded by the Industrial Tribunal were binding between the parties. No contrary view could have been taken by the Labour Court contrary to the findings recorded by the Industrial Tribunal. (Para 5.2) Rajasthan State Road Transport Corporation v. Bharat Singh Jhala, 2022 LiveLaw (SC) 818

Labour Law - Supreme Court directs reinstatement of watchman who was retrenched 20 years ago - Labour Court had directed him to be reinstated in 2010- High Court set aside the direction for reinstatement and modified it as a direction for lumpsum payment of 1 lakh compensation- Supreme Court held that the High Court's interference was unwarranted in the facts of the case - Had the respondent management chosen to accept the verdict, the appellant would have been spared the agony of waiting for more than 10 years. In such circumstances, the denial of backwages, has resulted in punishing him - So apart from reinstatement, the SC directs that the workman be paid backwages of from 2020 to 2022. Jeetubha Khansangji Jadeja v. Kuttch District Panchayat, 2022 LiveLaw (SC) 797

Land Acquisition

Land Acquisition - Appeal against Himachal Pradesh HC judgment which disposed a writ petition challenging dispossession and seeking compensation - Allowed - In the absence of written consent to voluntarily give up their land, the appellants were entitled to compensation in terms of law - State directed to treat the subject lands as a deemed acquisition and appropriately disburse compensation to the appellants. Sukh Dutt Ratra v. State of Himachal Pradesh, 2022 LiveLaw (SC) 347 : (2022) 7 SCC 508

Land Acquisition - Need for written consent in matters of land acquisition proceedings - contention of 'oral' consent to be baseless. Sukh Dutt Ratra v. State of Himachal Pradesh, 2022 LiveLaw (SC) 347 : (2022) 7 SCC 508

Land Acquisition - When the matter relates to the payment of amount of compensation to the land losers, if at all two views are possible, the view that advances the cause of justice is always to be preferred rather than the other view, which may draw its strength only from technicalities. (Para 14) Kazi Moinuddin Kazi Bashiroddin v. Maharashtra Tourism Development Corporation, 2022 LiveLaw (SC) 827

Land Acquisition Act, 1894 - A consent award cannot be the basis to award and/or determine the compensation in other acquisition, more particularly, when there are other evidences on record - In case of a consent award, one is required to consider the circumstances under which the consent award was passed and the parties agreed to accept the compensation at a particular rate. In a given case, due to urgent requirement, the acquiring body and/or the beneficiary of the acquisition may agree to give a particular compensation. (Para 5) Special Land Acquisition Officer v. N. Savitha, 2022 LiveLaw (SC) 316 : (2022) 7 SCC 256

Land Acquisition Act, 1894 - Appeal against Karnataka HC judgment that enhanced the amount of compensation in respect of the acquired land on the basis of a Consent award - Allowed - The consent award ought not to have been relied upon and/or considered for the purpose of determining the compensation in case of another acquisition - The High Court has not at all considered whether the lands acquired in the present case is similarly situated to the lands acquired in the case of the said Consent award. Special Land Acquisition Officer v. N. Savitha, 2022 LiveLaw (SC) 316 : (2022) 7 SCC 256

Land Acquisition Act, 1894 - Awarding of fair compensation to the landowner whose land has been acquired for public purpose - The claimant whose land is acquired is entitled to the fair market value of his land. (Para 3.1) Sanjay Kumar Singh v. State of Jharkhand, 2022 LiveLaw (SC) 268 : AIR 2022 SC 1372 : (2022) 7 SCC 247

Land Acquisition Act, 1894 - If on account of acquisition of land a person is deprived of possession of his property, he should be paid compensation immediately and if the same is not paid to him forthwith, he would be entitled to interest on the compensation amount from the date of taking possession of the land till the date of payment. Gayabai Digambar Puri v. Executive Engineer, 2022 LiveLaw (SC) 15

Land Acquisition Act, 1894 - Land acquired in 1981 but compensation not yet paid - Authorities directed payment of compensation within two months - The value of the said land cannot be computed at the rate less than Rs. 250/ per sq. yard which is supported by the evidence brought on record by the land owners. Revenue Divisional Officer v. Ismail Bhai, 2022 LiveLaw (SC) 984

Land Acquisition Act, 1894 - Market Value - It is not the nature of land which alone is determinative of the market value of the land. The market value must be determined keeping in view the various factors including proximity to the developed area and the road etc. (Para 11) Madhukar Govindrao Kamble v. Vidarbha Irrigation Development Corp.,2022 LiveLaw (SC) 112 : 2022 (2) SCALE 551

Land Acquisition Act, 1894 - Section 23(1) - The six items covered by Section 23(1), which are to be taken into consideration by the court in determining compensation, can be summarized as follows: - (i) The market value of the land on the date of publication of notification under Section 4(1); (ii) The damage to standing crops or trees, which are on the land at the time of the Collector taking possession; (iii) The damage sustained by reason of severing such land from the unacquired land; (iv) The damage sustained by reason of the acquisition injuriously affecting the other property, movable or immovable, in any other manner or the earnings, of the person interested; (v) The reasonable expenses incurred by the person interested, in changing his residence or place of business, when he is compelled to do so in consequence of the acquisition; (vi) The damage bona fide resulting from diminution of the profits of the land between the time of publication of the declaration under Section 6 and the time of the Collector’s taking possession. (Para 31) Walchandnagar Industries Ltd. v. State of Maharashtra, 2022 LiveLaw (SC) 159 : (2022) 5 SCC 71

Land Acquisition Act, 1894 - Section 23(1) - What is injuriously affected at the time of Collector’s taking possession of the land, may either be the unacquired portion of the immovable property or other movable property or even the earnings of the person interested. (Para 34) Walchandnagar Industries Ltd. v. State of Maharashtra, 2022 LiveLaw (SC) 159 : (2022) 5 SCC 71

Land Acquisition Act, 1894 – Section 28A – Legal Services Authorities Act, 1987 - An Award passed under Section 20 of the 1987 Act by the Lok Adalat cannot be the basis for invoking Section 28A. (Para 49) New Okhla Industrial Development Authority (Noida) v. Yunus, 2022 LiveLaw (SC) 123 : AIR 2022 SC 847 : (2022) 9 SCC 516

Land Acquisition Act, 1894 – Section 28A – Legal Services Authorities Act, 1987 - The award which is passed by the Lok Adalat cannot be said to be an award passed under Part III. It is the compromise arrived at between the parties before the Lok Adalat which culminates in the award by the Lok Adalat. In fact, an award under Part III of the Act contemplates grounds or reasons and therefore, adjudication is contemplated. (Para 44) New Okhla Industrial Development Authority (Noida) v. Yunus, 2022 LiveLaw (SC) 123 : AIR 2022 SC 847 : (2022) 9 SCC 516

Land Acquisition Act, 1894 – Section 28A – Legal Services Authorities Act, 1987 - The word ‘Court’ has been defined in the Act as the Principal Civil Court of original jurisdiction unless the appropriate Government has appointed a Special Judicial Officer to perform judicial functions of the court under this Act. The Court is not the same as a Lok Adalat. (Para 45) New Okhla Industrial Development Authority (Noida) v. Yunus, 2022 LiveLaw (SC) 123 : AIR 2022 SC 847 : (2022) 9 SCC 516

Land Acquisition Act, 1894 - Section 49 - Distinction between the scope of sub -section (1) and the scope of sub -section (2) of Section 49 discussed. Walchandnagar Industries Ltd. v. State of Maharashtra, 2022 LiveLaw (SC) 159 : (2022) 5 SCC 71

Land Acquisition Act, 1894 - The purpose for which acquisition is made is also a relevant factor for determining the market value. S. Shankaraiah v. Land Acquisition Officer, 2022 LiveLaw (SC) 934 : AIR 2022 SC 5702

Land Acquisition Act, 1894 - The rates mentioned in the Ready Reckoner, which are basically for the purpose of collection of stamp duty, which are the uniform rates for all the lands in the area, cannot be the basis for determination of the compensation for the lands acquired under the Land Acquisition Act - The market value of the land depends upon the location of the land; area of the land; whether the land is in a developed area or not; whether the acquisition is of a small plot of land or a big chunk of land and number of other advantageous and disadvantageous factors are required to be considered - There cannot be a uniform market value of the land for the purpose of determination of the compensation for the lands acquired under the Land Acquisition Act. (Para 9-12) Bharat Sanchar Nigam Ltd. v. Nemichand Damodardas, 2022 LiveLaw (SC) 603 : AIR 2022 SC 3458

Land Acquisition Act, 1894 - There may be different market prices/compensation with respect to different lands, may be in the same village and/or nearby location. The land, which is on a prime location and which is on the highway and/or at a proximity to a highway may have a different market price than the land which is situated in a different location/interior of the village and which might not have a good potential for development. (Para 6) Special Land Acquisition Officer v. N. Savitha, 2022 LiveLaw (SC) 316 : (2022) 7 SCC 256

Land Acquisition Act, 1894; Section 11A, 17(3A) - The provision contained in Section 11A shall be applicable to cases in which the acquiring authority has not complied with the requirement of Section 17 (3A) by tendering and paying eighty per centum of the estimated compensation before taking possession since possession in such cases cannot be considered to be taken in accordance with law and the vesting is not absolute - If the requirement is complied and possession is taken after tendering and paying eighty per centum, though there is need to pass an award and pay the balance compensation within a reasonable time, the rigour of Section 11A will not apply so as to render the entire proceedings for acquisition to lapse in the context of absolute vesting. The right of land loser in such case is to enforce passing of the award and recover the compensation - The decision in this case if it arises for consideration in any other case under Act, 1894 or any other enactment relating to land acquisition containing pari materia provisions shall be applied only prospectively and cases which have attained finality shall not be reopened. (Para 25-26) Delhi Airtech Services Pvt. Ltd v. State of U.P., 2022 LiveLaw (SC) 888

Land Acquisition Act, 1894; Section 17 - (1) payment of 80% (2) taking over possession thereafter and (3) vesting of land in the government take place in a sequence. Absent anyone of these in the sequence, the emergency provision fails - It cannot be understood as providing any discretion to the acquiring authority. (Para 12) Delhi Airtech Services Pvt. Ltd v. State of U.P., 2022 LiveLaw (SC) 888

Land Acquisition Act, 1894; Section 23(1) - Injurious affection to property, in any other manner, may stand on a different footing from injurious affection to earnings. (Para 78) Walchandnagar Industries Ltd. v. State of Maharashtra, 2022 LiveLaw (SC) 159 : (2022) 5 SCC 71

Land Acquisition Act, 1894; Sections 11A and 6 - If the award is not made within the period of two years from the date of publication of the declaration under Section 6, the entire proceedings will stand lapsed. The only option for the acquiring authority if the land is still required for the public purpose is to notify afresh from the stage of issuing notification under Section 4. The computation of two years would however exclude the period if the process was stayed by an order of the Court. (Para 11) Delhi Airtech Services Pvt. Ltd v. State of U.P., 2022 LiveLaw (SC) 888

Land Law

Land Law - Bangalore Development Authority Act, 1976 - Land Acquisition Act, 1894 - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Since LA Act has been incorporated into the BDA Act so far as they are applicable, the provisions of 2013 Act are not applicable for the acquisitions made under the BDA Act. (Para 23) Bangalore Development Authority v. State of Karnataka, 2022 LiveLaw (SC) 76 : AIR 2022 SC 598

Land Law - Supreme Court holds that persons in four villages which were acquired for Mahanadi coalfields in 1988 are entitled to compensation under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 - Directions issued for providing employment and resettlement packages in addition to land compensation. Mahanadi Coal Fields Ltd. v. Mathias Oram, 2022 LiveLaw (SC) 916 : AIR 2022 SC 5723

Land Laws - Abolition of Inams Act, 1955 (Andhra Pradesh (Telangana Area)) - The land dedicated for pious and religious purpose is not immune from its vesting with the State. (Para 196) State of Andhra Pradesh v. A.P. State Wakf Board, 2022 LiveLaw (SC) 136

Land Reforms Act, 1954 (Delhi)

Land Reforms Act, 1954 (Delhi); Section 50(a) - Constitutional Validity upheld - The Act is special law, dealing with fragmentation, ceiling, and devolution of tenancy rights over agricultural holdings only - The Contention re: Gender bias/ women empowerment rejected - There can be no challenge to the 1954 Act as the said legislation is included in the Ninth Schedule of the Constitution. Har Naraini Devi v. Union of India, 2022 LiveLaw (SC) 783 : AIR 2022 SC 4632

Land Reforms Act, 1961 (Karnataka) - Beneficent legislation for granting occupancy rights to cultivating tenants of agricultural lands - In construing the provisions of such enactments, the court should adopt a construction which advances, fulfils and furthers the object of the Act rather than the one which would defeat the same and render the protection illusory - Most of the tenants are villagers from remote areas and most of them are illiterate persons and that the Act is a beneficent legislation. This aspect has to be kept in mind while deciding cases under the Act. (Para 23, 28) Nadakerappa v. Pillamma, 2022 LiveLaw (SC) 332 : AIR 2022 SC 1609

Land Revenue Code (Maharashtra)

Land Revenue Code (Maharashtra) - Maharashtra Government cannot insist on NOC from it for registering the subsequent transfer of flats built on a land leased to a developer - State government is not entitled to a premium when the land is not allotted to a society but to a builder on lease, who has constructed flats for private individuals, who in turn formed a Co-operative Society-1999 and 1983 Resolutions are applicable to the co-operative societies to whom the government lands are sanctioned on concessional rates-Since the land was not allotted to a society but to a builder on lease, who has constructed flats for private individuals, who have subsequently formed a Co-operative Society, the 1983 Resolution and 1999 Resolution would not be applicable to the members of such a society. (Paras 13, 14 & 15) State of Maharashtra v. Aspi Chinoy, 2022 LiveLaw (SC) 825

Law of Precedent

Law of Precedent - Constitution Bench Judgment - Once the majority opines in a particular matter, that is the judgment of the Constitution Bench. (Para 3) Ravindra v. Union of India, 2022 LiveLaw (SC) 156

Law of Precedents - A decision is an authority only for what it actually decides. Every judgment must be read as applicable to the particular facts, proved or assumed to be proved. The generality of the expressions found there, is not intended to be exposition of the whole law, but governed and qualified by the particular facts of the case in which such expressions are to be found. (Para 93) Ms. X v. Registrar General, 2022 LiveLaw (SC) 150 : 2022 (3) SCALE 99

Law of Precedents - A judgment of a Court is precedent for the issue of law which is raised and decided. Words and phrases used in a judgment cannot be read in isolation, out of context. (Para 59) Indian Oil Corporation Ltd. v. Shree Ganesh Petroleum Rajgurunagar, 2022 LiveLaw (SC) 121 : (2022) 4 SCC 463

Law of Precedents - Obiter Dictum - Ratio Decidendi - “Obiter dictum” as “an opinion not necessary to a judgment; an observation as to the law made by a Judge in the course of a case, but not necessary to its decision, and therefore, of no binding effect; often called as obiter dictum, ‘a remark by the way’”- A decision on a point not necessary for the purpose of or which does not fall for determination in that decision becomes an obiter dictum - Only the ratio decidendi can act as the binding or authoritative precedent. Reliance placed on mere general observations or casual expressions of the Court, is not of much avail. (Para 41) Jarnail Singh v. Lachhmi Narain Gupta, 2022 LiveLaw (SC) 94 : 2022 (2) SCALE 494

Law of Precedents - The ratio decidendi is a rule deducible from the application of law to the facts and circumstances of a case and not some conclusion based upon facts which may appear to be similar. - One additional or different fact can make a world of difference between conclusions in two cases even when the same principles are applied in each case to similar facts. (Para 94) Ms. X v. Registrar General, 2022 LiveLaw (SC) 150 : 2022 (3) SCALE 99

Law of Torts

Law of Torts - Negligence - Meaning - Failure to exercise that care which a reasonably prudent person would usually exercise under similar circumstances would amount to negligence; it is not necessary that negligence would always be advertent one where the wrongdoer is aware of unreasonable risk being created but it may be inadvertent or passive too, arising for want of foresight or because of some omission. However, the question as to whether the liability because of negligence could be fastened on the respondent company or not cannot be determined without dealing with the other aspects related with exceptions and defence to the allegation of negligence. (Para 49-52) State of U.P. v. Mcdowell and Company Ltd., 2022 LiveLaw (SC) 13 : (2022) 6 SCC 223

Law of Torts - Negligence - The fault of “negligence” need not always be of active negligence or of gross negligence, but it may also be of inadvertent negligence or of passive negligence. (Para 63) State of U.P. v. Mcdowell and Company Ltd., 2022 LiveLaw (SC) 13 : (2022) 6 SCC 223

Legal Aid

Legal Aid - What is meant by the duty of the State to ensure a fair defence to an accused is not the employment of a defence counsel for namesake. It has to be the provision of a counsel who defends the accused diligently to the best of his abilities - The presence of counsel on record means effective, genuine and faithful presence and not a mere farcical, sham or a virtual presence that is illusory, if not fraudulent - In Sessions trials, more particularly relating to serious offences involving severe sentences, appoint experienced lawyers who had conducted such cases in the past. It is desirable that in such cases senior advocate practising in the trial court shall be requested to conduct the case himself or herself on behalf of the undefended accused or at least provide good guidance to the advocate who is appointed as amicus curiae or an advocate from the legal aid panel to defend the case of the accused persons. (Para 117-126) Ramanand @ Nandlal Bharti v. State of Uttar Pradesh, 2022 LiveLaw (SC) 843 : AIR 2022 SC 5273

Legal maxim

Legal maxim - Cessante ratione legis cessat ipsa lex - Reason is the soul of the law, and when the reason of any particular law ceases, so does the law itself. (Para 25) Kamla Devi v. State of Rajasthan, 2022 LiveLaw (SC) 272 : AIR 2022 SC 1524 : (2022) 6 SCC 725

Legal Maxims - "Leges posteriores priores contrarias abrogant" (the later laws shall abrogate earlier contrary laws) - "generalia specialibus non derogant" (General laws do not prevail over Special laws). When there is apparent conflict between two statutes, the provisions of a general statute must yield to those of a special one. (Para 17, 18) Gujarat State Civil Supplies Corporation v. Mahakali Foods Pvt. Ltd., 2022 LiveLaw (SC) 893 : AIR 2022 SC 5545

Legal Maxims - ‘Contra proferentem rule - Inapplicability of this doctrine to the eligibility conditions in a notice inviting tender - This rule cannot be applied to lay down that in case of any ambiguity in a tender document, it has to be construed in favour of a particular person who projects a particular viewpoint - if two different tenderers suggest two different interpretations, the question would always remain as to which of the two interpretations is to be accepted? Obviously, to avoid such unworkable scenarios, the principle is that the author of the tender document is the best person to interpret its documents and requirements. The only requirement of law, for such process of decision making by the tender inviting authority, is that it should not be suffering from illegality, irrationality, mala fide, perversity, or procedural impropriety. (Para 24) Agmatel India Pvt. Ltd. v. Resoursys Telecom, 2022 LiveLaw (SC) 105 : AIR 2022 SC 1103 : (2022) 5 SCC 362

Legal Maxims - Concept of dies non juridicus - A day which is regarded by the law as one on which no judicial act can be performed, or legal diligence used. [Referred to P. Ramanatha Aiyar's Law Lexicon] (Para 25.1) Prakash Corporates v. Dee Vee Projects Ltd., 2022 LiveLaw (SC) 162 : AIR 2022 SC 946 : (2022) 5 SCC 112

Legal Maxims - Falsus in uno, falsus in omnibus is not the principle applicable in India. (Para 6) Rishi Pal Singh v. New India Assurance Co Ltd., 2022 LiveLaw (SC) 646

Legal Maxims - Nemo dat quod non habet - No one can confer a better title than what he himself has. (Para 19) Umadevi Nambiar v. Thamarasseri Roman Catholic Diocese, 2022 LiveLaw (SC) 338 : AIR 2022 SC 1640 : (2022) 7 SCC 90

Legal Maxims - Res ipsa loquitor - Res ipsa loquitor is resorted to when an accident is shown to have occurred and the cause of the accident is primarily within the knowledge of the defendant. The mere fact that the cause of the accident is unknown does not prevent the plaintiff from recovering the damages, if proper inference to be drawn from the circumstances which are known is that it was caused by the negligence of the defendant. (Para 53) Sanjay Gupta v. State of Uttar Pradesh, 2022 LiveLaw (SC) 368 : (2022) 7 SCC 203

Legal Maxims - Res ipsa loquitur - Negligence may be presumed from the mere fact of accident; of course, the presumption depends upon the nature of the accident and the surrounding factors. (Para 57-58) State of U.P. v. Mcdowell and Company Ltd., 2022 LiveLaw (SC) 13 : (2022) 6 SCC 223

Legal Maxims- ‘Contra proferentem rule - The rule applied in the case of ambiguity in the insurance policy because the policies are made by the insurer and its ambiguity cannot be allowed to operate against the insured. (Para 24) Agmatel India Pvt. Ltd. v. Resoursys Telecom, 2022 LiveLaw (SC) 105 : AIR 2022 SC 1103 : (2022) 5 SCC 362

Legal Services Act, 1987

Legal Services Act, 1987; Section 22C, 22D - Permanent Lok Adalat has adjudicatory functions and is empowered to decide the dispute between the parties on merits - Conciliation proceedings under Section 22-C of the LSA Act are mandatory in nature - Even if the opposite party does not appear, the Permanent Lok Adalat is still bound to follow the step-by-step procedure - Main goal is conciliation and settlement of disputes in relation to public utilities, with a decision on merits always being the last resort. (Para 26-28) Canara Bank v. G.S. Jayarama, 2022 LiveLaw (SC) 499 : (2022) 7 SCC 776

Legal Services Act, 1987; Sections 19 - 22E - Two different types of Lok Adalats - (1) Lok Adalat constituted under Section 19 of the LSA Act, having no adjudicatory power, which can only conduct conciliatory proceedings (2) Permanent Lok Adalat, established under Section 22-B(1) of the LSA Act in respect of public utility services, which can carry out both conciliatory and adjudicatory functions, subject to the procedure to be followed under Section 22-C of the LSA Act. (Para 28-31) Canara Bank v. G.S. Jayarama, 2022 LiveLaw (SC) 499 : (2022) 7 SCC 776

Legal Services Act,1987; Sections 19 - 22E - Similarities between Lok Adalats and Permanent Lok Adalats - (i) they can both attempt conciliation proceedings with the parties before them, and can pass awards recording the terms of settlement agreed upon by the parties (Section 20(3) and 22- C(7)); (ii) in doing do, they are both bound by principles of justice, equity, fair play and other legal principles (Section 20(4) and 22-D); and (iii) their awards, deemed to be decrees of courts, will be final and cannot be challenged in an appeal (Section 21 and 22-E). - Permanent Lok Adalat is limited to disputes regarding public utility services, crucially, its powers are wider than the Lok Adalat in many respects. (Para 21- 22) Canara Bank v. G.S. Jayarama, 2022 LiveLaw (SC) 499 : (2022) 7 SCC 776

Legal Services Authorities Act, 1987 - An Award passed by the Lok Adalat is not a compromise decree. An Award passed by the Lok Adalat without anything more, is to be treated as a decree inter alia. (Para 47) New Okhla Industrial Development Authority (Noida) v. Yunus, 2022 LiveLaw (SC) 123 : AIR 2022 SC 847 : (2022) 9 SCC 516

Legal Services Authorities Act, 1987 – Code of Civil Procedure, 1908 – Order XXII - An award unless it is successfully questioned in appropriate proceedings, becomes unalterable and non -violable. In the case of a compromise falling under Order XXIII Code of Civil Procedure, it becomes a duty of the Court to apply its mind to the terms of the compromise. Without anything more, the mere compromise arrived at between the parties does not have the imprimatur of the Court. It becomes a compromise decree only when the procedures in the Code are undergone. (Para 47) New Okhla Industrial Development Authority (Noida) v. Yunus, 2022 LiveLaw (SC) 123 : AIR 2022 SC 847 : (2022) 9 SCC 516

Legal Services Authorities Act, 1987 – Even when the Criminal Court refers the matter under Section 138 of the Negotiable Instruments Act in order to make it executable, it will be treated as if it were a decree. New Okhla Industrial Development Authority (Noida) v. Yunus, 2022 LiveLaw (SC) 123 : AIR 2022 SC 847 : (2022) 9 SCC 516

Legal Services Authorities Act, 1987 – If a Revenue Court or a Tribunal which, undoubtedly, fall under Section 2(aaa) of the 1987 Act were to refer a case to the Lok Adalat under Section 20(1) and an award is passed it may become the order of the court/tribunal. In other words, if the matter were finally concluded on a regular basis, that is, without reference to the Lok Adalat, it would be an order which would be passed. (Para 39) New Okhla Industrial Development Authority (Noida) v. Yunus, 2022 LiveLaw (SC) 123 : AIR 2022 SC 847 : (2022) 9 SCC 516

Legal Services Authorities Act, 1987 – It is the province and duty of the Court in the ultimate analysis to give effect to the will of the legislature – Golden rule of interpretation of statutes along with other principles discussed - Referred to Union of India and Another v. Hansoli Devi 6 (2002) 7 SCC 273 (Para 30) New Okhla Industrial Development Authority (Noida) v. Yunus, 2022 LiveLaw (SC) 123 : AIR 2022 SC 847 : (2022) 9 SCC 516

Legal Services Authorities Act, 1987 – Lok Adalat - An Award passed by the Lok Adalat under 1987 Act is the culmination of a non -adjudicatory process. The parties are persuaded even by members of the Lok Adalat to arrive at mutually agreeable compromise. The Award sets out the terms. The provisions contained in Section 21 by which the Award is treated as if it were a decree is intended only to clothe the Award with enforceability. In view of the provisions of Section 21 by which it is to be treated as a decree which cannot be challenged, undoubtedly, by way of an appeal in view of the express provisions forbidding it, unless it is set aside in other appropriate proceedings, it becomes enforceable. The purport of the law giver is only to confer it with enforceability in like manner as if it were a decree. Thus, the legal fiction that the Award is to be treated as a decree goes no further. (Para 37) New Okhla Industrial Development Authority (Noida) v. Yunus, 2022 LiveLaw (SC) 123 : AIR 2022 SC 847 : (2022) 9 SCC 516

Legal Services Authorities Act, 1987 – Lok Adalat - The Court as defined in Section 2 (aaa) can refer the case to the Lok Adalat. Such court, as already noticed, can be civil, criminal or a revenue court. (Para 38) New Okhla Industrial Development Authority (Noida) v. Yunus, 2022 LiveLaw (SC) 123 : AIR 2022 SC 847 : (2022) 9 SCC 516

Legal Services Authorities Act, 1987 – Lok Adalat - The Lok Adalat by virtue of the express provisions is only a facilitator of settlement and compromise in regard to matters which are referred to it. It has no adjudicatory role. (Para 27) New Okhla Industrial Development Authority (Noida) v. Yunus, 2022 LiveLaw (SC) 123 : AIR 2022 SC 847 : (2022) 9 SCC 516

Legal Services Authorities Act, 1987 – Section 19 - An Award passed under Section 19 of the 1987 Act is a product of compromise. Sans compromise, the Lok Adalat loses jurisdiction. The matter goes back to the Court for adjudication. Pursuant to the compromise and the terms being reduced to writing with the approval of the parties it assumes the garb of an Award which in turn is again deemed to be a decree without anything more. (Para 48) New Okhla Industrial Development Authority (Noida) v. Yunus, 2022 LiveLaw (SC) 123 : AIR 2022 SC 847 : (2022) 9 SCC 516

Legal Services Authorities Act, 1987; Section 12 (e) - Incidents of December 1992 and January 1993 are the incidents of ethnic violence within the meaning of clause (e) of Subsection (1) of Section 12 of the 1987 Act - Riot victims are entitled to free legal aid. (Para 16) Shakeel Ahmed vs Union of India, 2022 LiveLaw (SC) 910

Legislation

Legislation - A statute which is made by a competent legislature is valid till it is declared unconstitutional by a court of law. After declaration of a statute as unconstitutional by a court of law, it is non est for all purposes. (Para 23) State of Manipur v. Surjakumar Okram, 2022 LiveLaw (SC) 113

Legislation - Amendment - All amendments are deemed to apply prospectively unless expressly specified to apply retrospectively or intended to have been done so by the legislature. (Para 23) Har Naraini Devi v. Union of India, 2022 LiveLaw (SC) 783 : AIR 2022 SC 4632

Legislation - Amendment - Retrospective or Prospective - Ordinarily, the effect of amendment by substitution would be that the earlier provisions would be repealed, and amended provisions would be enacted in place of the earlier provisions from the date of inception of that enactment. However, if the substituted provisions contain any substantive provisions which create new rights, obligations, or take away any vested rights, then such substitution cannot automatically be assumed to have come into force retrospectively. In such cases, the legislature has to expressly provide as to whether such substitution is to be construed retrospectively or not. (Para 54) Katta Sujatha Reddy v. Siddamsetty Infra Projects Pvt. Ltd., 2022 LiveLaw (SC) 712 : AIR 2022 SC 5435

Legislation - Amendment - When the legislature acts within its power to usher in a valid law and rectify a legal error, even after a court ruling, the legislature exercises its constitutional power to enact the law and does not overrule an earlier court decision - The power to amend, which includes the power to amend the statute with retrospective effect, is a constitutional power vested with the legislature, which is not confined and restricted to any particular type of statutes, namely, tax statutes. (Para 13, 22) Independent Schools Federation of India v. Union of India, 2022 LiveLaw (SC) 719 : 2022 (12) SCALE 463

Legislation - Difference between retroactive effect and retrospective operation - Retrospective statute operates backwards and takes away vested rights accrued under law. The retroactive statute does not operate retrospectively, but it operates in future, albeit it does not become retrospective in operation when the operation is based on the character and status that arose earlier. Character or event which has happened in past or requisites which have been drawn from antecedent events cannot be necessarily construed as having retrospective effect. A retrospective statute means a statute which creates a new obligation on transactions or considerations already past or destroyed or impaired vested rights on and from the retrospective date. Independent Schools Federation of India v. Union of India, 2022 LiveLaw (SC) 719 : 2022 (12) SCALE 463

Legislation - Distinction between declaration of a statute as unconstitutional by a Court of law and the repeal of a statute by the Legislature - On declaration of a statute as unconstitutional, it becomes void ab initio. Saving past transactions are within the exclusive domain of the Court - Though the consequence of repeal is also obliteration of the statute with retrospective effect on past transactions, the Legislature is empowered to introduce a saving clause in the repealing act. (Para 20) State of Manipur v. Surjakumar Okram, 2022 LiveLaw (SC) 113

Legislation - It is for the legislature to amend the law and not the Court. (Para 6.1) Kamla Neti v. Special Land Acquisition Officer, 2022 LiveLaw (SC) 1014

Legislation - Legislature has power to enact retroactive/retrospective civil legislations under the Constitution. However, Article 20(1) mandates that no law mandating a punitive provision can be enacted retrospectively. Further, a punitive provision cannot be couched as a civil provision to bypass the mandate under Article 20(1) of the Constitution which follows the settled legal principle that "what cannot be done directly, cannot be done indirectly”. (Para 17.10) Union of India v. Ganpati Dealcom Pvt. Ltd., 2022 LiveLaw (SC) 700 : AIR 2022 SC 4558

Legislation - Repeal - There is no question of repeal of a statute which has been declared as unconstitutional by a Court. The very declaration by a Court that a statute is unconstitutional obliterates the statute entirely as though it had never been passed. The consequences of declaration of unconstitutionality of a statute have to be dealt with only by the Court. (Para 23) State of Manipur v. Surjakumar Okram, 2022 LiveLaw (SC) 113

Legislation - Substitution of a provision results in repeal of the earlier provision and its replacement by the new provision. (Para 9) Chandra Sekhar Jha v. Union of India, 2022 LiveLaw (SC) 256

Legislation - Writ petition seeking direction to centre and States to publish draft legislation - There are certain Legislations which contemplate participation of public at certain levels. For instance, in some town-planning legislations public participation at the stage of finalization of a Draft Development Plan is contemplated and encouraged. The legislative provisions thus do provide for such participation whenever deemed appropriate - It would not be proper on our part to direct the Government at the Central or State level to publish every Draft Legislation. Ashwini Kumar Upadhyay v. Union of India, 2022 LiveLaw (SC) 906

Legislation - Writ petition seeking direction to centre and States to publish legislation in regional language - We do see some force in the submission that the people at large must have every facility to make themselves aware of the Legislations that would govern their conduct and day-to-day life and therefore such Legislations must be kept in public domain in all regional languages - We only express hope that the abovementioned prayer would be looked into by all the concerned and steps in that behalf shall be taken. Ashwini Kumar Upadhyay v. Union of India, 2022 LiveLaw (SC) 906

Legislative Assembly

Legislative Assembly - Maharashtra Legislative Assembly's resolution of July 5, 2021, which suspended 12 BJP MLAs for a period of one year for alleged disorderly behavior in the house - Resolution directing suspension of the petitioners beyond the period of the remainder of the concerned Monsoon Session held in July 2021 is non est in the eyes of law, nullity, unconstitutional, substantively illegal and irrational - In absence of any express provision bestowing power in the Legislature to suspend its member(s) beyond the term of the ongoing Session, the inherent power of the Legislature can be invoked only to the extent necessary and for proper exercise of the functions of the House at the relevant point of time. Ashish Shelar v. Maharashtra Leg. Assembly, 2022 LiveLaw (SC) 91 : AIR 2022 SC 721

Legislative Assembly - There can be no place for disorderly conduct in the House much less “grossly disorderly”. Such conduct must be dealt with sternly for ensuring orderly functioning of the House. But, that action must be constitutional, legal, rational and as per the procedure established by law. (Para 74) Ashish Shelar v. Maharashtra Leg. Assembly, 2022 LiveLaw (SC) 91 : AIR 2022 SC 721

Legislative Assembly Rules (Maharashtra); Rule 53 - The word “suspension” is necessarily linked to attendance of the member in the House. Thus, the suspension may be resorted to merely for ensuring orderly conduct of the business of the House during the concerned Session. Anything in excess of that would be irrational suspension. (Para 54) Ashish Shelar v. Maharashtra Leg. Assembly, 2022 LiveLaw (SC) 91 : AIR 2022 SC 721

Legitimate Expectation - A facet of Article 14 of the Constitution - The doctrine of legitimate expectations can be invoked if a representation made by a public body leads an individual to believe that they would be a recipient of a substantive benefit. (Para 26) Indian Ex Servicemen Movement v. Union of India, 2022 LiveLaw (SC) 289 : (2022) 7 SCC 323

Letter of Credit

Letter of Credit - A letter of credit is independent of and unqualified by the contract of sale or underlying transactions. Bawa Paulins Pvt. Ltd. v. UPS Freight Services (India) Pvt. Ltd., 2022 LiveLaw (SC) 938

Letters Patent (Calcutta High Court)

Letters Patent (Calcutta High Court); Clause 15 - Appeal against Division Bench order of the Calcutta High Court which allowed Letters Patent appeal against a Single Judge order which directed defendants to file affidavit in opposition and postponed the hearing of the application seeking injunction - Allowed - Though by postponement of the issue with regard to grant of ad interim injunction, the order might have caused some inconvenience and may be, to some extent, prejudice to the plaintiff; the same could not be treated as a 'judgment' inasmuch as there was no conclusive finding as to whether the plaintiff was entitled for grant of ad interim injunction or not. As such, the order passed by the Single Judge did not contain the traits and trappings of finality - The appellate court cannot usurp the jurisdiction of the Single Judge to decide as to whether the tests of prima facie case, balance of convenience and irreparable injury are made out in the case or not. Shyam Sel and Power Ltd. v. Shyam Steel Industries Ltd; 2022 LiveLaw (SC) 282 : 2022 (4) SCALE 720

Letters Patent (Calcutta High Court); Clause 15 - Whether an order impugned would be a 'judgment' within the scope of Clause 15 of Letters Patent, would depend on facts and circumstances of each case - For such an order to be construed as a 'judgment', it must have the traits and trappings of finality - It must affect vital and valuable rights of the parties, which works serious injustice to the party concerned. Each and every order passed by the Court during the course of the trial, though may cause some inconvenience to one of the parties or, to some extent, some prejudice to one of the parties, cannot be treated as a 'judgment'. If such is permitted, the floodgate of appeals would be open against the order of Single Judge. Shyam Sel and Power Ltd. v. Shyam Steel Industries Ltd; 2022 LiveLaw (SC) 282 : 2022 (4) SCALE 720

Licensing and Performance for Public Amusement including Cabaret Performance, Melas and Tamashas Rule, 1960

Licensing and Performance for Public Amusement including Cabaret Performance, Melas and Tamashas Rule, 1960 - The regulation on the overall number of performers, or even the dimensions of a stage (on which a performance can take place) cannot be characterized as a restriction; they can fall within the legitimate domain of the authority of the commissioner or the government which formulates such conditions. (Para 47) Hotel Priya A Proprietorship v. State of Maharashtra, 2022 LiveLaw (SC) 186 : 2022 (3) SCALE 663

Limitation

Limitation - Suo Motu Order Extending Limitation - Even the period of limitation which could have been extended and/or condoned by the Tribunal/Court is excluded and/or extended even up to 07.10.2021. (Para 2) Centaur Pharmaceuticals Pvt. Ltd. v. Stanford Laboratories Pvt. Ltd., 2022 LiveLaw (SC) 26

Limitation - When the proceedings are required to be initiated within a particular period provided under the Statute, the same are required to be initiated within the said period. However, where no such period has been provided in the Statute, the authorities are required to initiate the said proceeding within a reasonable period. No doubt that what would be a reasonable period would depend upon the facts and circumstances of each case. (Para 19) Union of India v. Citibank NA, 2022 LiveLaw (SC) 704

Limitation Act 1963; Section 17 - By such a clever drafting and using the word "fraud", the plaintiffs have tried to bring the suits within the period of limitation invoking Section 17 of the limitation Act. The plaintiffs cannot be permitted to bring the suits within the period of limitation by clever drafting, which otherwise is barred by limitation-Mere stating in the plaint that a fraud has been played is not enough and the allegations of fraud must be specifically averred in the plaint, otherwise merely by using the word "fraud", the plaintiffs would try to get the suits within the limitation, which otherwise may be barred by limitation. (Para 7.8) C.S. Ramaswamy v. V.K. Senthil, 2022 LiveLaw (SC) 822 : AIR 2022 SC 4724

Limitation Act, 1963 – Article 137 – Limitation Act would apply to applications filed under Sections 7 and 9 of the IBC. Consolidated Construction Consortium Ltd. v. Hitro Energy Solutions Pvt. Ltd., 2022 LiveLaw (SC) 129 : (2022) 7 SCC 164

Limitation Act, 1963 – Article 137 – Limitation does not commence when the debt becomes due but only when a default occurs. As noted earlier in the judgment, default is defined under Section 3(12) of the IBC as the non -payment of the debt by the corporate debtor when it has become due. (Para 59) Consolidated Construction Consortium Ltd. v. Hitro Energy Solutions Pvt. Ltd., 2022 LiveLaw (SC) 129 : (2022) 7 SCC 164

Limitation Act, 1963; Section 14, 18 - IBC does not exclude the application of Section 14 or 18 or any other provision of the Limitation Act. (Para 81) Asset Reconstruction Company (India) Ltd. v. Tulip Star Hotels Ltd., 2022 LiveLaw (SC) 648 : AIR 2022 SC 3559

Limitation Act, 1963; Section 18 - The provisions of Section 18 of the Limitation Act are not alien to and are applicable to proceedings under the IBC; and (ii) An acknowledgement in a balance sheet without a qualification can furnish a legitimate basis for determining as to whether the period of limitation would stand extended, so long as the acknowledgement was within a period of three years from the original date of default. (Para 13) State Bank of India v. Krishidhan Seeds, 2022 LiveLaw (SC) 497 : 2022 (8) SCALE 253

Limitation Act, 1963; Section 3, 5 - The right of appeal is a statutory right, subject to the laws of limitation. The law of limitation is valid substantive law, which extinguishes the right to sue, and/or the right to appeal. Once an appeal is found to be barred by limitation, there can be no question of any obligation of the Court to consider the merits of the case of the Appellant. State of Uttar Pradesh v. Satish Chand Shivhare, 2022 LiveLaw (SC) 430

Limitation Act, 1963; Section 3, 5 - The law of limitation binds everybody including the Government. The usual explanation of red tapism, pushing of files and the rigmarole of procedures cannot be accepted as sufficient cause - A different yardstick for condonation of delay cannot be laid down because the government is involved. (Para 17) State of Uttar Pradesh v. Satish Chand Shivhare, 2022 LiveLaw (SC) 430

Limitation Act, 1961; Section 5 - Section 5 of Limitation Act is not applicable to condone the delay beyond the period prescribed under Section 34(3) of Act 1996. Mahindra and Mahindra Financial Services Ltd. v. Maheshbhai Tinabhai Rathod, 2022 LiveLaw (SC) 5 : (2022) 4 SCC 162

Limitation Act, 1961; Article 54 - Article 54 of the Limitation Act provides for two consequences based on the presence of fixed time period of performance. It is only in a case where the time period for performance is not fixed that the purchaser can take recourse to the notices issued and the vendors' reply thereto. (Para 37) Katta Sujatha Reddy v. Siddamsetty Infra Projects Pvt. Ltd., 2022 LiveLaw (SC) 712 : AIR 2022 SC 5435

Limitation Act, 1961; Section 5 - Section 5 of the Limitation Act does not apply to the institution of civil suit in the Civil Court. (Para 12) Sunil Kumar Maity v. State Bank of India, 2022 LiveLaw (SC) 77 : AIR 2022 SC 577

Limitation Act, 1963 - Appeal against Gauhati High Court judgment which held that the Limitation Act was applicable in the State of Mizoram and that Section 5 did not apply to suits, but only to appeals and to applications except for applications under Order XXI of the Civil Procedure Code - Dismissed - The High Court rightly set-aside the impugned order of Trial Court holding that it could not have condoned the delay of 325 days in filing the Money Suit. F. Liansanga v. Union of India, 2022 LiveLaw (SC) 252

Limitation Act, 1963 - Limitation Act applicable in the State of Mizoram with effect from 21.01.1972. F. Liansanga v. Union of India, 2022 LiveLaw (SC) 252

Limitation Act, 1963 - Section 29(3) - The word 'proceedings' within the meaning of Section 29(3) is to be confined to the original proceeding and not appellate proceedings. (Para 21, 24) N. Rajendran v. S. Valli, 2022 LiveLaw (SC) 224 : 2022 (3) SCALE 275

Limitation Act, 1963 - Section 3 only bars the remedy, but when the right itself is extinguished, provisions of the Limitation Act have no application. (Para 15.2) Bhagwandas B. Ramchandani v. British Airways, 2022 LiveLaw (SC) 645

Limitation Act, 1963 - Section 4 - If the prescribed period for any suit/appeal/application expires on day when the Court is considered 'closed', such proceedings may be instituted on the re -opening day - A day when the Court may not as such be closed in physical sense, it would be 'deemed' to be closed, if during any part of its normal working hours, it remains closed on that day for any particular proceedings or work. (Para 25.2.1) Prakash Corporates v. Dee Vee Projects Ltd., 2022 LiveLaw (SC) 162 : AIR 2022 SC 946 : (2022) 5 SCC 112

Limitation Act, 1963 - Section 5 - Delay Condonation - SLP Against High Court order which set aside the Trial Court order condoning delay of 465 days even after finding that delay has not been properly explained - Dismissed - Once it was found even by the trial Court that delay has not been properly explained and even there are no merits in the application for condonation of delay, thereafter, the matter should rest there and the condonation of delay application was required to be dismissed. Lingeswaran v. Thirunagalingam, 2022 LiveLaw (SC) 227

Limitation Act, 1963 - Section 5 - Delay Condonation - When it is found that the delay is not properly explained, the application to condone delay is required to be dismissed - he Court has no power to extend the period of limitation on equitable grounds - Still to condone the delay would be giving a premium to a person who fails to explain the delay and who is guilty of delay and laches. (Para 5) Lingeswaran v. Thirunagalingam, 2022 LiveLaw (SC) 227

Limitation Act, 1963 - Section 5 does not apply to suits, but only to appeals and to applications except for applications under Order XXI of the Civil Procedure Code - Limitation may harshly affect a particular party, but it has to be applied with all its rigour when the statute so prescribes. The Court has no power to extend the period of limitation on equitable grounds, even though the statutory provision may sometimes cause hardship or inconvenience to a particular party. The Court has no choice, but to enforce it giving full effect to the same. F. Liansanga v. Union of India, 2022 LiveLaw (SC) 252

Limitation Act, 1963; Article 109 - Article 109 is the special Article to apply where the alienation of the father is challenged by the son and the property is ancestral and the parties are governed by Mitakshara law - The word 'alienation' in this article includes 'gift' - In order to attract Article 109, the following conditions have to be fulfilled: 1) The parties must be Hindus governed by Mitakshara; (2) the suit is for setting aside the alienation by the father at the instance of the son; (3) the property relates to ancestral property; and (4) the alienee has taken over possession of the property alienated by the father. (Para 8 - 9) K.C. Laxmana v. K.C. Chandrappa Gowda, 2022 LiveLaw (SC) 381 : 2022 (6) SCALE 315

Limitation Act, 1963; Article 136 - Article 136 applies only when an application for execution of any decree (other than a decree granting a mandatory injunction) or order of any Civil Court is to be filed. (Para 20) Sukhbiri Devi v. Union of India, 2022 LiveLaw (SC) 810 : AIR 2022 SC 5058

Limitation Act, 1963; Section 14 - Exclusion of time is different, and cannot be equated with condonation of delay. The period once excluded, cannot be counted for the purpose of computing the period for which delay can be condoned - For exclusion of time under Section 14, the conditions stipulated in Section 14 have to be satisfied. Laxmi Srinivasa R and P Boiled Rice Mill v. State of Andhra Pradesh, 2022 LiveLaw (SC) 964

Limitation Act, 1963; Section 18 - Acknowledgment in writing of liability, signed by the party against whom such property or right is claimed - Even if the writing containing the acknowledgment is undated, evidence might be given of the time when it was signed - An acknowledgment may be sufficient even though it is accompanied by refusal to pay, deliver, perform or permit to enjoy or is coupled with claim to set off, or is addressed to a person other than a person entitled to the property or right. 'Signed' is to be construed to mean signed personally or by an authorised agent. (Para 93) Asset Reconstruction Company (India) Ltd. v. Tulip Star Hotels Ltd., 2022 LiveLaw (SC) 648 : AIR 2022 SC 3559

Limitation Act, 1963; Section 18 - As per Section 18 of Limitation Act, an acknowledgement of present subsisting liability, made in writing in respect of any right claimed by the opposite party and signed by the party against whom the right is claimed, has the effect of commencing a fresh period of limitation from the date on which the acknowledgement is signed. Such acknowledgement need not be accompanied by a promise to pay expressly or even by implication. However, the acknowledgement must be made before the relevant period of limitation has expired. (Para 62) Kotak Mahindra Bank Limited v. Kew Precision Parts Pvt. Ltd., 2022 LiveLaw (SC) 673 : (2022) 9 SCC 364

Limitation Act, 1963; Section 29(2) - Express empowerment is to be gathered from the provisions of the statute - Even in a case where the special law does not exclude the provisions of Sections 4 to 24 of the Limitation Act by an express reference, it would nonetheless be open to the Court to examine whether and to what extent the nature of those provisions or the nature of the subject-matter and scheme of the special law exclude their operation. (Para 48) Bhagwandas B. Ramchandani v. British Airways, 2022 LiveLaw (SC) 645

Local Body Elections - Ongoing activity of delimitation or formation of ward cannot be a legitimate ground to be set forth by any authority much less the State Election Commission - to not discharge its constitutional obligation in notifying the election programme at the opportune time and to ensure that the elected body is installed before the expiry of 5 (five) years term of the outgoing elected body. (Para 11) Suresh Mahajan v. State of Madhya Pradesh, 2022 LiveLaw (SC) 463 : AIR 2022 SC 2739