Lucid Law

  Background Appeals challenging High Court’s clarification modifying deduction of benefits. The claimants were awarded compensation under the  Motor Vehicles Act, 1988 (MVA)  for a fatal accident. The High Court enhanced compensation but directed deduction of amounts received under the  Haryana Compassionate Assistance to Dependents of Deceased Government Employees Rules, 2006 (“2006 Rules”) . Upon a clarification application, the High Court modified its earlier order and effectively reversed the deduction. The insurer appealed.   Issues Framed 1.  Whether amounts received under the 2006 Rules are deductible from compensation under the MVA. 2.  Whether the High Court, under the guise of clarification, could substantively alter its appellate judgment.   Court’s Reasoning 1. Deductibility under the 2006 Rules •  Reaffirmed  Reliance General Insurance v. Shashi Sharma (2016) 9 SCC 627 : o  Amounts substituting “pay and allowances” are...

  Background Appeals by liquidators challenging provisional attachment under the  Benami  Act during CIRP/liquidation. Properties of the corporate debtor ( Padmaadevi  Sugars Ltd. and connected entities) were provisionally attached under  s. 24(3)  Benami  Act, 1988 , and later confirmed under  s. 26 , on allegations of  benami  acquisition funded through  demonetised currency. Meanwhile, CIRP commenced under the  IBC, 2016 , culminating in liquidation. The liquidator challenged the attachment before NCLT invoking  ss. 14, 32A & 60(5) IBC . NCLT and NCLAT held they lacked jurisdiction. The liquidators appealed.   Issues Framed 1.  Whether legality of attachment under the  Benami  Act  can be adjudicated by NCLT/NCLAT under the IBC. 2.  Whether  ss. 14, 32A & 238 IBC  override proceedings under the  Benami  Act. 3.  Whether attached property forms part of the li...

  Background Appeal against refusal to admit s. 7 IBC petition. The respondent issued ₹600  crore  worth of secured non-convertible debentures under a Debenture Trust Deed (DTD) dated 27.03.2018. Upon default in servicing interest, the debenture trustee recalled the loan and filed an application under  s. 7 IBC . The NCLT dismissed the petition, holding that an 18-month moratorium pursuant to restructuring discussions existed. The NCLAT affirmed. The debenture trustee challenged these findings.   Issues Framed 1.  Whether restructuring discussions with one debenture holder amounted to a binding modification of the DTD negating default. 2.  Whether the NCLT/NCLAT erred in refusing admission under  s. 7 IBC .   Court’s Reasoning 1. Scope of s. 7 IBC Relying on  Innoventive  Industries v. ICICI Bank  (2018) 1 SCC 407, the Court reiterated that the Adjudicating Authority must only ascertain: •  existence of financial debt; and...

  Degrees obtained from a university established under a statute later declared ultra vires cannot be invalidated retrospectively to  penalise  bona fide students who had already graduated.   Background The appellants were appointed as librarians in Bihar (2010) on the basis of  B.Lib  degrees obtained in 2004 from the University of Technology and Science, Raipur, established under the Chhattisgarh  Niji   Kshetra   Vishwavidyalaya  Act, 2002. In  Prof.  Yashpal  v. State of Chhattisgarh , (2005) 5 SCC 420, this Court declared Sections 5 and 6 of the 2002 Act ultra vires, resulting in such private universities ceasing to exist. In 2015, the appellants’ services were terminated on the ground that their degrees were from an  unrecognised  university. The High Court upheld the termination.   Issues Framed 1.  Whether degrees obtained prior to the striking down of the 2002 Act stood invalidated retrospectiv...

  A long-standing occupant’s belated payment for cooperative society membership cannot defeat an unrevoked resolution admitting him; equitable recognition of membership must follow, subject to adjustment by enhanced interest for delay.   Background Flat No. 7 in  Malboro  House, Mumbai, was occupied for decades by Shri Narendra Patel as a tenant. When tenants collectively formed a cooperative housing society during liquidation of the owner-company, all but Shri Patel paid their apportioned contribution. Despite an  offer letter (1995)  and an  AGM resolution dated 11.08.2005  resolving to admit him upon payment of ₹5 lakhs, he continued in occupation without depositing the amount. After appointment of an Administrator due to mismanagement, his legal heirs (the appellants) deposited the amount with interest and sought membership. The Divisional Joint Registrar allowed their claim, which the High Court set aside, directing the Society to reconsider....

  Dearness Allowance, once statutorily  recognised  and accepted by the State, constitutes an enforceable service entitlement grounded in Article 309 and informed by Article 21; fiscal constraints cannot justify arbitrary deferment or denial contrary to the governing rules.   Background The dispute concerns the non-payment and delayed payment of Dearness Allowance (DA) to employees of the Government of West Bengal for the period 2008–2019. After acceptance of the Fifth Pay Commission recommendations and promulgation of the  West Bengal Services (Revision of Pay and Allowance) Rules, 2009  under  Art. 309 Const. of India , DA was  recognised  as part of “existing emoluments”. Employees challenged the State’s failure to release DA in accordance with inflation-linked norms. The matter traversed two rounds before the High Court and one remand to the Administrative Tribunal, culminating in directions to evolve norms based on AICPI and release arre...

  Prolonged incarceration of an  undertrial  under the NDPS Act, coupled with parity with a co-accused already enlarged on bail, justifies grant of regular bail notwithstanding seizure of commercial quantity; trial courts must scrupulously secure the accused’s right to legal representation.   Background The appellant was arrested in connection with an NDPS prosecution arising out of seizure of contraband allegedly exceeding commercial quantity. She was charged under  s. 8(c) read with ss. 20(b)(ii)(C), 22(c), 23, 28 & 29 NDPS Act , and  s. 135 Customs Act . Her application for regular bail was rejected by the Madras High Court. By the time the appeal was considered, the appellant had remained in custody for over  four years . A co-accused travelling on the same flight had already been granted bail by the Supreme Court.   Issues Framed 1.  Whether prolonged pre-trial incarceration can justify grant of regular bail in NDPS cases involving c...