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Failure of a bank to re-present cheques within validity, without justification, constitutes deficiency in service

  Failure of a bank to re-present cheques within validity, without justification, constitutes deficiency in service; compensation must be reasonable and proportionate to indeterminate loss. Facts The respondent deposited two cheques (~₹1.06 crore) with the appellant bank within validity. The cheques were initially credited but subsequently returned due to bank strike. Despite having working days available before expiry, the bank failed to re-present the cheques within validity, resulting in them becoming stale. The respondent claimed deficiency in service, alleging loss including inability to initiate proceedings under s. 138 NI Act, 1881 . The NCDRC awarded compensation of 10% of cheque value with interest. The bank appealed. Issues Framed (a) Whether failure to timely re-present cheques constituted deficiency in service. (b) Whether compensation awarded (10%) was reasonable. Court’s Reasoning (a) Deficiency in Service The Court held that banking services fall within ...
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Once criminal court jurisdiction is chosen and results in discharge, subsequent administrative dismissal on same facts is impermissible and arbitrary.

  Once criminal court jurisdiction is chosen and results in discharge, subsequent administrative dismissal on same facts is impermissible and arbitrary. Facts The appellant, an Air Force officer, was implicated in a 1987 incident where a civilian driver was removed from camp and later found dead. Criminal proceedings were initiated but the Sessions Court discharged all accused for lack of evidence. Despite this, administrative action was initiated under s. 19 AF Act, 1950 read with Rule 16 AF Rules, 1969 , culminating in dismissal (1993). The Single Judge set aside dismissal as time-barred under s. 121 AF Act ; however, the Division Bench restored dismissal holding limitation inapplicable to administrative action. Issues Framed (a) Whether administrative action could be initiated after discharge by criminal court on same facts. (b) Whether the reasons for dismissal were legally sustainable. (c) Whether punishment imposed was arbitrary/disproportionate. Court’s Reasoning...
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Consent award obligation to “ensure no liability is recovered” creates an immediate, absolute liability upon crystallisation, not contingent on final appellate confirmation.

Consent award obligation to “ensure no liability is recovered” creates an immediate, absolute liability upon crystallisation, not contingent on final appellate confirmation. Facts Commercial dispute arising from share acquisition and settlement embodied in a consent award. The appellants (VPS/Medeor) acquired Rockland Hospitals from the respondents (promoters) under a Share Purchase Agreement. Disputes between them were settled through a Deed of Compromise dated 02.02.2019, which culminated in a Consent Award dated 01.03.2019 rendered by SIAC. Under Paragraph 32(a) of the Consent Award, the promoters undertook: (i) to defend specified litigations (including an arbitration initiated by Ernst & Young), (ii) to bear all litigation costs, and crucially, (iii) to “ensure that no liability… is recovered” from VPS/Medeor, while also agreeing to indemnify them and discharge liabilities confirmed by the Highest Court of Appeal within 30 days. Subsequently, an arbitral award dated 17....
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High Court cannot quash criminal proceedings at the threshold merely because a dispute has civil elements; investigation must proceed if allegations disclose cognizable offences.

  High Court cannot quash criminal proceedings at the threshold merely because a dispute has civil elements; investigation must proceed if allegations disclose cognizable offences. Facts Allegations of large-scale property fraud involving forged documents and competing title claims. The complainant, an NRI purchaser, alleged that her plot in a Bengaluru layout was fraudulently transferred through forged documents, misrepresentation, and conspiracy involving multiple accused. The complaint alleged offences under various provisions of IPC , including cheating, forgery, and criminal conspiracy. The Magistrate, exercising powers under s. 156(3) CrPC , directed registration of FIR and investigation. The High Court, however, quashed the proceedings under s. 482 CrPC , holding that the dispute was civil in nature and that registered sale deeds must first be cancelled under s. 31 Specific Relief Act, 1963 . Issues Framed Whether the High Court was justified in quashing FIR and proceedings ...
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A party cannot resile from a mediated settlement without just cause

  A party cannot resile from a mediated settlement without just cause, and DV proceedings based on vague allegations after such resilement constitute abuse of process; Supreme Court may dissolve marriage under Article 142 on irretrievable breakdown. Facts Dispute arose after mediated settlement and withdrawal of consent for mutual divorce. The parties entered into a mediated Settlement Agreement resolving all matrimonial disputes, including payment of ₹1.5 crore and mutual undertakings not to initiate further litigation. The First Motion for divorce under s. 13B HMA was allowed and substantial obligations were performed by both parties. Subsequently, the wife withdrew consent before the Second Motion and initiated proceedings under s. 12 DV Act, 2005 . The High Court permitted continuation of DV proceedings subject to deposit of ₹89 lakhs. The husband challenged this and also sought divorce under Art. 142 Const. of India . Issues Framed (a) Whether DV proceedings should b...
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Sri M.V. Ramachandrasa (D) v. M/s. Mahendra Watch Company & Ors.

  High Court in revisional jurisdiction cannot reappreciate evidence; exclusive possession by strangers without proof of lawful induction constitutes unlawful sub-letting warranting eviction. Facts Eviction on ground of unlawful sub-letting reversed by High Court (a) Landlord leased premises to respondent firm under registered lease (1985) with restriction on sub-letting (Para 3–4). (b) Allegation: original tenant not in possession; strangers (Respondent Nos. 2 & 3) occupying premises (Para 4). (c) Trial Court, on evidence, found unlawful sub-letting and ordered eviction (Para 5). (d) High Court, in revision under s. 46 Karnataka Rent Act, 1999 , set aside eviction (Para 6). Issues Framed (i) Whether High Court exceeded revisional jurisdiction by reappreciating evidence. (ii) Whether unlawful sub-letting was proved. (iii) Whether alleged partnership was genuine or a cloak for sub-letting (Para 11). Court’s Reasoning (a) Scope of Revisional Jurisdiction The Cour...
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State of Kerala v. M. Vijayakumar & Ors.

  Fixing a lower rate of dearness relief (DR) than dearness allowance (DA), when both serve the same purpose of offsetting inflation, is arbitrary and violative of equality. Facts Differential DA/DR rates challenged as discriminatory (a) KSRTC enhanced DA for employees by 14% but DR for pensioners by 11% (Para 4, 20). (b) Pensioners challenged differential rates as discriminatory under Art. 14 Const. of India . (c) Single Judge upheld distinction; Division Bench struck it down; State appealed to Supreme Court. Issues Framed Whether different rates of enhancement for DA (employees) and DR (pensioners) are constitutionally valid when both are linked to inflation (Para 3). Court’s Reasoning (a) Common Object of DA and DR The Court held: Both DA and DR aim to “mitigate… hardship… on account of inflation” (Para 21, 25). Inflation affects serving employees and pensioners equally. (b) Application of Equality Test Under Art. 14 Const. of India , classification mus...
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