Judgments of 1998

The Moharrirs/peons of Municipal Council Hatta filed an application under Section 22 of the Minimum Wages Act, 1948 seeking overtime pay for four extra hours worked daily during February‑March 1982‑83. The Labour Court allowed the application, but the High Court dismissed the Municipal Council's petition. On appeal, th…

All India Radio and Doordarshan challenged the termination and non‑regularisation of several clerical, linemen and casual workmen, contending that they are not "industries" under Section 2(j) of the Industrial Disputes Act, 1947 because they perform sovereign functions. The Supreme Court examined whether the broadcasti…

Lakshmi Ram (deceased) had an agreement with vendor Trikha Ram to sell land for a consideration, but the vendor sold the property to subsequent purchasers. Lakshmi Ram filed a suit for specific performance which was decreed by the trial court. On appeal, the defendants argued that the suit was barred under Section 16(c…

The landlord, Life Insurance Corporation of India, sought eviction of the tenant, Mis Bharat Sales Ltd., under Section 14(1)(b) of the Delhi Rent Control Act, 1958 on the ground of sub‑letting. The Additional Rent Controller, the Rent Control Tribunal and the Delhi High Court all held that the tenant had sub‑let the pr…

The appellant Bhandari had given a short‑term loan of Rs 15 lakh to the respondent Heavy Mechanical Lifting Enterprises. A dispute over interest and repayment was referred to arbitration; the arbitrator passed an award on 17‑Apr‑1985 and, after a four‑year delay, filed it in the Calcutta High Court on 23‑Mar‑1989 to be…

The case involved 25 workmen employed by Indian Railway Construction Co. Ltd. (IRCON) on the Rihand Nagar railway line project who were served retrenchment notices in 1993 stating that most work was completed. The workmen challenged the notices, arguing that the project constituted a "factory" under the Factories Act, …

The appellant, a clerk at Dayanand Medical College and Hospital, was dismissed after a domestic enquiry that she alleged was biased and violated natural justice. The Labour Court found the enquiry to be unfair and ordered the management to lead fresh evidence on the merits, but the management relied only on the enquiry…

The first respondent, a dealer under the Punjab Agricultural Produce Market Act, purchased paddy outside the jurisdiction of the Kamal Market Committee and filed a return in Form M late, leaving the column on fee liability blank. The Committee levied a market fee, rejecting the dealer's claim of exemption on the ground…

The appellant, a civil servant, was found guilty in a departmental enquiry and dismissed from service. He challenged the dismissal by filing a civil suit, which was initially dismissed, but the District Judge later set aside the dismissal order, declaring it illegal. The respondents appealed to the High Court, which he…

Ammonia Supplies Corp. (P) Ltd. claimed it had invested in 50% of the shares of Modern Plastic Containers Pvt. Ltd., a claim the respondent denied. The appellant filed a petition under Sections 397, 398 and 155 of the Companies Act, 1956 seeking rectification of the register of members. The Delhi High Court dismissed t…

The appellant sought redemption of a 1947 usufructuary mortgage, but the respondents contended that they had become deemed tenants under Section 4A of the Kerala Land Reforms Act, 1964 (as amended by Act 35 of 1969) because they had possessed the mortgaged land continuously for more than fifty years prior to 1 January …

The Central Bureau of Investigation (CBI) registered a case under the Prevention of Corruption Act against Raj Kumar Jain, a junior engineer, but after investigation found no prima facie case and submitted a report under Section 173(2) of the CrPC seeking closure. The Special Judge refused to accept the report, directi…

Kalicharan Mahapatra, a retired IPS officer, was charged under Sections 13(2) and 13(1)(e) of the Prevention of Corruption Act, 1988 for possession of cash and jewellery discovered during a raid. He argued that, having retired before the charge‑sheet was filed, he could not be prosecuted because the Act required a prio…

Bhadracalam Paperboards Ltd. and another entered into an agreement with the Government of Andhra Pradesh for the supply of bamboo and hardwood from state forests. Under the Andhra Pradesh Sales Tax Act, the Forest Department, as a dealer, was liable to pay sales tax on the value of the extracted timber, but the appella…

Polychem Ltd., a manufacturer of alcoholic beverages, paid supervision charges in advance each quarter as required by Section 58-A of the Bombay Prohibition Act, 1949. After the government raised the wages and dearness allowance of its supervising staff retrospectively, it demanded a differential amount of supervision …

The case arose from a bomb attack on a police lock‑up in Mumbai where a detainee was killed. Police constable PW‑2 identified two accused, Vijay and Keshya, as miscreants, but his statement did not contain their surnames. The FIR later listed full names, and the accused were arrested, photographed while in lock‑up, and…

The case concerned the validity of amendments to the Indian Meteorological Service (Group A) Recruitment Rules of 1978 and 1983, which broadened the field of consideration for promotion to the post of Meteorological Grade‑I (MG‑I) by equating service experience across different grades (MG‑II and Assistant Meteorologist…

The appellants, a firm, voluntarily disclosed undisclosed income for the years 1958-65 before any tax authority detection and filed a statement of affairs. The Assessing Officer initiated penalty proceedings under Section 271(1)(c) of the Income Tax Act, imposing a penalty of Rs. 4,90,365, which was upheld by the Incom…

The Supreme Court examined the rescission of appointments of clerks by the Registrar of Co‑operative Societies in two banks, on the ground that the banks allegedly violated Section 80(4) of the Kerala Co‑operative Societies Act, Rules 186 and 187, exceeded approved staff strength, and failed to follow a statutory circu…

The appellant, a textile mill, was served with two show‑cause notices under Section 11‑A of the Central Excises and Salt Act for alleged excise duty on yarn removed within the factory for the period November 1980 to December 1981. The Delhi High Court had stayed the effect of a circular dated 24‑September‑1980, and the…

The appellants, Shiv Prakash Pandey (A‑1) and Shobhit Chamar (A‑2), were convicted under IPC Sections 302, 149, 380 and 460 and under Section 27 of the Arms Act for the murder of six male members of a family, including two children, during a dacoity in Rohtas district, Bihar. They challenged the convictions on the grou…

The respondents, originally employed by the Rehabilitation and Reclamation Organisation, were declared surplus and redeployed to All India Radio under the Central Civil Services (Redeployment of Surplus Staff) Rules, 1990. Their past service and experience in the parent organisation were not taken into account for seni…

The respondents, M/s Orient Enterprises, imported skimmed milk powder which the Customs Collector deemed undervalued and ordered confiscation, allowing redemption on payment of a fine, penalty and additional duty. The revenue’s appeal against the Tribunal’s order that the goods were lawfully imported was dismissed, and…

The respondents were primary school teachers employed under the Dandakaranya Development Project (DDP) of the Ministry of Home Affairs until the schools were handed over to the states on 1 April 1986, after which they were placed on the Central Surplus Staff Cell and later redeployed in non‑teaching posts. They claimed…

The Coir Board, a statutory body established under the Coir Industry Act, 1953, dismissed several temporary clerks and typists who claimed that their termination was governed by Chapter V‑A of the Industrial Disputes Act, 1947. The Kerala High Court held that the Board qualified as an "industry" under the Act, making t…

The appellants, Sheikh Abdul Hamid and Ashiq Ali, were convicted under Sections 302 and 34 of the IPC for the murder of a woman, her daughter and infant son whose bodies were exhumed from a locked inner room of a dhaba where the accused lived. The prosecution relied solely on circumstantial evidence, including the lock…

The appellants, B. Rudraiah and his son, sought occupancy rights over lands attached to a former village office by filing an application under Section 45 of the Karnataka Land Reforms Act, 1961 on 7 March 1984. The High Court dismissed the application as time‑barred, holding that the six‑month limitation prescribed in …

The State Government of Uttar Pradesh transferred two Assistant Engineers, which was challenged by the second respondent. The Allahabad High Court dismissed the challenge and later, after President's rule, stayed the transfer and issued fresh orders. The High Court then directed the Engineer‑in‑Chief (appellant) to app…

Mirah Exports Pvt. Ltd. and other importers brought ball bearings from SKF at discounts of 50‑70% to the published price list. The Customs authorities issued show‑cause notices alleging undervaluation and relied on the 1981‑82 price list, contending that discounts above 20% were not admissible under Section 14 of the C…

Rati Pal Saroj, an Under Secretary of the UPSC, was offered an IAS appointment which he accepted but could not join as a probationer because he was not relieved from his previous post. A CBI FIR later alleged his involvement in a conspiracy to tamper with his examination answer sheets. The Government withdrew the appoi…

The dispute arose between two branches of the Modi family over the division of assets and companies following a 1989 Memorandum of Understanding (MOU). Clause 9 of the MOU referred any implementation disputes to the Chairman of the Industrial Finance Corporation of India (IFCI), whose decision was final and binding. Th…

The Supreme Court dealt with a public‑interest litigation concerning the allocation of hawker and squatter sites within the New Delhi Municipal Committee (NDMC) area. The Court examined the objections raised by NDMC to the inclusion of 33 sites in the Thareja Committee’s report and whether the Committee’s recommendatio…

The S.R.M.M.CT.M. Tiruppani Trust, a charitable trust for temple repairs and related activities, resolved in 1963 to accumulate its income for ten years and filed Form 10 under Section 11(2) of the Income‑Tax Act. In the assessment year 1970‑71 it realised Rs 8 lakhs from an advance to a firm, which it used to purchase…

The appellant, appointed as Tailoring Instructor in 1983, was promoted to Superintendent in 1991 on the basis of seniority. Respondents 3 and 4, who were graduates, challenged the promotion invoking the unnotified Haryana Social Welfare and Relief Organisation Service Group ‘C’ Rules, 1983, and the High Court ordered t…

The respondent, S.C. Shah, an Assistant Food Controller (Class II) in Gujarat, was accused of issuing bogus cement permits and fabricating a government stamp, leading to his suspension and two FIRs under the Indian Penal Code and the Prevention of Corruption Act. A Review Committee was convened under Rule 161 of the Bo…

Kishorilal Bablani qualified for the IAS in 1974 and was placed in Class II service because the number of Class I vacancies was allegedly miscomputed. He claimed that 97 Class I posts should have been notified, not 40, and sought appointment under the 50% direct‑recruit/50% promotee quota. The Central Administrative Tr…

The case concerned the appointment of Dr. Kumar Bar Das as Professor (SBI Chair) at Utkal University. The advertisement required "about ten years experience of teaching and/or research". The Selection Committee, after evaluating his combined teaching (7 years 7 months) and research (1 year 5 months) experience, recomme…

Hope Plantations Ltd., which owned a large tea estate, claimed exemption from the ceiling area under the Kerala Land Reforms Act for land classified as fuel area, rested tea area, roads and buildings, and other agricultural land interspersed. The Taluk Land Board initially disallowed the fuel and rested tea claims, but…

The appellants purchased iron and steel scrap and cut it into smaller pieces for use by rolling mills and other manufacturers. They obtained a tax‑exemption eligibility certificate under a notification issued under Section 12 of the Madhya Pradesh General Sales Tax Act, which was later cancelled on the ground that the …

The Zippers Karamchari Union filed a writ petition under Article 32 seeking to quash the Central Government's permission to YKK for setting up an integrated plant for zip fasteners and to set aside Notification No. S.O. 309(E) dated 30 May 1986, alleging that the de‑reservation of zip‑fastener manufacturing from the sm…

The respondent obtained an ex‑parte decree against the appellant. The appellant filed an application to set aside the decree but delayed filing it by 883 days, citing his advocate's negligence as the cause. The trial court, applying Section 5 of the Limitation Act, 1963, accepted the explanation and condoned the delay.…

The police filed a report under Section 190(1)(b) CrPC and the trial court acquitted all accused. The complainant, Birbal, appealed to the High Court under Section 378(4) after obtaining leave, and the High Court convicted two of the appellants. The appellants challenged this conviction before the Supreme Court under S…

The Nizam of Hyderabad, Sir Mir Osman Ali Khan, executed two deeds of trust in 1953 creating wakf‑al‑aulad for his granddaughter Oalia Kulsum and his daughter‑in‑law Anwar Begum, with benefits flowing to their descendants and ultimately to a holy shrine. After his death in 1967, the estate duty authorities treated the …

The State of U.P. appealed the acquittal of Sikandar Ali and others, who had been convicted by a trial court for the murder of two brothers‑in‑law, Shamsher Singh and Ramji Tripathi, based on the testimony of two eye‑witnesses (PW‑1 and PW‑2) recorded in the FIR within an hour of the incident. The High Court set aside …

The State of Gujarat appealed a trial court order that barred the use of confessional statements recorded under Section 15 of the Terrorist and Disruptive Activities (Prevention) Act, 1987 (TADA) in separate bomb‑blast cases. The Supreme Court held that a confession made to a police officer of at least Superintendent r…

Gomathi Ammal, a Hindu female, died intestate. Her husband and only son had predeceased her, and the appellant, the widow of that pre‑deceased son, filed a suit for declaration of ownership of the deceased's properties. The High Court held that the appellant was not an heir because at the time of the husband's death th…

The Andhra Pradesh College Service Commission (APCSC) was constituted under the Andhra Pradesh College Service Commission Act, 1985 and staffed by employees on deputation from the State Government. Regulation 9(2) of the 1986 Regulations provided that seniority of deputationists, once absorbed, would be determined sole…

The case involved six accused who attacked and killed Buchi Reddi with knives, spears and an axe. The trial court convicted all of them under Sections 148 and 302 IPC, and also under Sections 307, 326 and 324 IPC. The High Court set aside the convictions of four accused, reasoning that the FIR did not specify the manne…

The State of Gujarat filed a criminal appeal against Dilipbhai Nathjibhai Patel challenging a High Court order that a prior hearing was required before granting sanction for prosecution under Section 147(1)(d) of the Gujarat Cooperative Societies Act. The appellant had obtained sanction from the District Registrar as m…

The appellant, Raja Yan, was married to Sanalkumari who later committed suicide. The prosecution alleged that the appellant repeatedly demanded dowry before and after the marriage, leading to mental and physical cruelty that caused her death. The trial court acquitted the appellant, but the Kerala High Court reversed t…

The Himachal Pradesh University regularised a group of long‑serving Research Associates and Evaluators as Lecturers by Executive Council resolutions, invoking equity, justice and fair play, without following the statutory procedure of direct recruitment prescribed in Ordinance 35.11. Respondent Dr. S.R. Mehrotra filed …

The appellants forged a certified copy of a Jamabandi (Rent Roll) and introduced it in a court of Executive Magistrate during proceedings under Section 145 of the CrPC. A complaint alleging forgery offences (IPC §§ 468, 469, 471) was filed before the Chief Judicial Magistrate, who forwarded it to police, leading to an …

K.R. Gulati, a substantive Junior Scale Stenographer in the Himachal Pradesh State Electricity Board (HPSEB), was promoted ad‑hoc to Head Clerk and was not considered for the upgrade of Junior Stenographers to Senior Stenographers in 1976. The Himachal Pradesh High Court held that he was entitled to be considered for p…

Dr. A.K. Sinha, who had served as a Resident Medical Officer in a Bihar medical college from October 1971 to April 1978, sought to have that period counted as teaching experience for promotion to Assistant and Associate Professor. The High Court dismissed his writ petition, holding that the Government Circular dated 7 …

Continental Construction Ltd., a civil construction company with overseas projects, paid remuneration to its directors, some of whom were also employees posted outside India. The Income‑Tax Officer disallowed amounts exceeding the Rs 72,000 ceiling per director under sections 40(c) and 40A(5)(a) of the Income‑Tax Act, …

Two homoeopathic colleges, Bhartiya Homoeopathy College, Bharatpur and Yuvraj Pratap Senior Memorial Homoeopathy Medical College, Alwar, were affiliated to the Rajasthan Board of Homoeopathic Medicine and conducted B.H.M.S. examinations through the Board until 1994. The State Government, following a Supreme Court decis…

Nishant Puri, a resident of Himachal Pradesh, applied for admission to the MBBS programme under the Himachal Pradesh University prospectus. Clause (iii) of the prospectus exempts wards of defence personnel or serving Central Government employees who are bona fide Himachalis from the requirement of passing two examinati…

The Haryana State Industrial Development Corporation (HSIDC) allotted an industrial plot to York Printers under an agreement that required the allottee to commence construction within six months, complete it within two years, and start production within three years, failing which the plot could be resumed. York Printer…

The respondent appealed a rateable value order under Section 217(1) of the Bombay Municipal Corporation Act to the Additional Chief Judge of the Small Causes Court. That order was challenged by the respondent in a second appeal to the High Court under Section 218D, where a single judge partially allowed it. The appella…

B.N. Sharma, a retired member of the Rajasthan Judicial Service, sought promotion to the Rajasthan Higher Judicial Service. After filing a writ petition that was withdrawn with liberty to re‑file, his representation was rejected by the High Court’s Full Court, prompting a second writ petition which the High Court dismi…

The appellants were convicted of murder under Sections 302/149 IPC for the killing of Munnabhai, but the Madhya Pradesh High Court Division Bench was split on the convictions of seven of them. The matter was referred to a third judge under Section 392 of the CrPC, who refused to revisit the convictions of three appella…

M/s DLF Universal Ltd. proposed a garden colony of 270 country‑type villas on agricultural land along the Arkavathi River. The Karnataka State Government approved the scheme on 29 June 1991, imposing conditions prescribed by the State Pollution Control Board to prevent water pollution and ensuring water supply from bor…

The case concerned a scheme for the administration of the Devarajaswamy Temple at Kancheepuram, originally settled in 1909 under Section 92 of the Code of Civil Procedure and modified in 1941 under the Madras Hindu Religious Endowments Act, 1927. In 1982 the Deputy Commissioner of Hindu Religious and Charitable Endowme…

The Allahabad Jal Sansthan created the post of Finance Officer in 1978 without prior State Government approval and promoted the appellant to that post in 1986. In 1992 the State Government ordered his reversion to Accounts Officer, alleging that the post creation and promotion were irregular under Section 27 of the U.P…

The case concerned applications under Section 50A of the Bombay Public Trusts Act, 1950 for settling the scheme of a public trust. One of the original applicants died and, after a long delay, his son sought substitution; another set of applicants also sought to be joined. The Charity Commissioner allowed both substitut…

The Central Bureau of Investigation (CBI) relied on two spiral notebooks and related documents recovered from J.K. Jain's premises to charge politicians V.C. Shukla and L.K. Advani, alleging they received bribes through a hawala scheme. The Supreme Court examined whether the notebooks qualified as "books of account" un…

Indore Textiles Ltd., a closed public limited company, had its management taken over by the Central Government under Section 18AA of the Industries (Development and Regulation) Act, 1951. Shortly before the expiry of that takeover, the Madhya Pradesh Governor promulgated an ordinance, later replaced by the Indore Texti…

The Uttar Pradesh Forest Corporation claimed exemption from income tax on the ground that it was a "local authority" under Section 10(20) of the Income Tax Act, 1961, and alternatively that it was a charitable institution under Section 11(1). The assessing officer rejected the claim, the Commissioner of Income Tax (App…

The plaintiff, K.M. Krishnah, sued Tirumala Tirupati Devasthanams (TTD) for a permanent injunction over 2.29 acres of land. The trial court dismissed the suit for lack of title and possession; the plaintiff later amended the suit to seek possession after being dispossessed on 30 August 1969, filing the amendment on 25 …

The petitioners, direct recruits to the Karnataka Administrative Service (Junior Scale), challenged a Karnataka Government order dated 3 March 1976 that listed 133 temporary posts alongside 152 permanent posts, arguing that the temporary posts should be counted in the cadre strength of 285 for applying the quota betwee…

Four accused were caught red‑handed with lethal explosives and convicted under Section 5 of the Terrorist and Disruptive Activities (Prevention) Act, 1987, receiving five years' rigorous imprisonment. They appealed under Section 19 of TADA seeking sentence enhancement, contending that under Section 377(3) of the Crimin…

The petitioner, Tarsem Singh, owned agricultural land and entered into a sale agreement with the respondent, Sukhminder Singh, for Rs. 24,000 per acre, with Rs. 77,000 paid as earnest money. The parties differed on the unit of measurement—"bighas" versus "kanals"—leading to a mutual mistake about the land's area, an es…

The appellants, representing teachers and staff of aided non‑government schools in Madhya Pradesh, challenged orders of the Regional Provident Fund Commissioner directing contributions to the Employees' Provident Fund (EPF) for the period 1 August 1982 to 1 December 1988, alleging that the Madhya Pradesh Ashaskiya Siks…

The appellant V. K. Dura submitted the highest tender for a sand quarry lease but his offer was rejected. He appealed to the Director of Geology and Mines, who allowed the appeal on 1 April 1997 but granted the lease only for the remaining period up to 31 March 1998 and imposed seigniorage fees under the amended Rule 8…

The landlord M.S. Zayed sued tenant K. Raghavan for possession of a portion of a house under Section 21(1)(h) of the Karnataka Rent Control Act, claiming a reasonable and bona‑fide need for the premises. The trial court found the landlord's need genuine and granted possession, but the Karnataka High Court, on revision …

Mis. Upadhyay & Co. was permitted to collect tolls on the Shastri Bridge for a limited period and later sought to continue collection at revised rates. Various writ petitions were filed in the Allahabad High Court, resulting in interim orders, a Supreme Court set‑aside of those orders, and a High Court direction dated …

The Supreme Court examined two civil appeals arising from an election petition that sought to void the election of L.R. Shivaramagowda on grounds of alleged corrupt practices under the Representation of the People Act, 1951. The petition alleged that the returned candidate had failed to file true and correct accounts o…

The writ petition filed by environmental activist M.C. Mehta in 1985 sought proper management and control of traffic in the National Capital Region and Delhi, highlighting vehicular pollution and chaotic traffic conditions that endangered public safety. The Supreme Court observed that the executive is primarily respons…

An ex‑serviceman (respondent No. 1) was re‑employed by the ESI Corporation as a Lower Division Clerk. His salary was fixed at the minimum of the prescribed pay scale under Government Order (G.O.) dated 8 February 1983, and he was also entitled to his full military pension. He contended that, for the purpose of assessin…

The appellant, a passenger in a bus owned by the Managing Director of Assam State Transport Corporation, suffered serious injuries when a bomb exploded inside the bus while passengers were alighting at the last stop during the Assam agitation. He claimed compensation under Sections 92‑A and 110 of the Motor Vehicles Ac…

Muthiah Sekhar, a 25‑year‑old lawyer, was injured in a collision between a taxi and a bus owned by Nesamony TPT. Corporation Ltd. He suffered permanent dislocation of the right hip, 60% loss of vision in the left eye and 50% loss of hearing in the left ear, and had to travel to New York for balloon embolisation of a ca…

M.S. Bindra, a senior Indian Revenue Service officer, was compulsorily retired on the ground that his integrity was doubtful, based on three investigations cited by a Screening Committee. The Committee’s conclusions were challenged before the Central Administrative Tribunal, which dismissed the appeal, leading to a pet…

Two neighbours were litigating over a narrow lane. The plaintiff obtained an interim injunction restraining the defendant from obstructing the lane, but the defendant erected a brick wall in defiance. The trial court, invoking Order 39 Rule 2A of the Code of Civil Procedure, ordered the defendant's civil imprisonment f…

The tenant, Mohan Singh, obtained two successive permissions for a limited tenancy under Section 21 of the Delhi Rent Control Act, 1958. After the second limited period expired, the landlord sought possession and the tenant alleged that the second permission was procured by fraud and that he was absent from the court o…

The appellants, former Rangers promoted temporarily as Assistant Conservators of Forests under Rule 9(a)(i), claimed seniority over directly recruited Assistant Conservators appointed after 1 May 1978. The High Court dismissed the claim, holding that temporary or stop‑gap appointments do not constitute an appointment t…

The landlord filed an eviction suit against the tenant claiming a bona‑fide personal need for the premises to start a general‑store business. The trial court, after evaluating evidence, held that the landlord's need was not genuine and dismissed the suit; the appellate court affirmed this finding. The landlord then fil…

The U.P. State Road Transport Corporation sought permits for routes covered by an exclusive scheme and was told by the Regional Transport Authority that, under Section 58(2)(a) of the Motor Vehicles Act, 1939, the permits had to be renewed every three years. The corporation challenged this, arguing that Rule 10(4) of t…

The State of Rajasthan filed a complaint under sections 27(d) and 27(b)(i) of the Drugs and Cosmetics Act, 1940 alleging that sub‑standard drugs were being sold. Samples were collected on 29‑Feb‑1988, but the Government Analyst’s report confirming the drugs were not of standard quality was received on 2‑July‑1988. The …

Hyderabad Vanaspathi Ltd. entered into two high‑tension electricity supply agreements with the Andhra Pradesh State Electricity Board (APSEB). After the Board discovered alleged pilferage, it disconnected supply and made a provisional and then a final assessment of loss under Clause 39 of the Board's Terms and Conditio…