Important MCQs Based On Latest Supreme Court Judgments For Law Examination
1. A files a suit seeking cancellation of certain sale deeds claiming they are invalid. The suit is dismissed for default due to A's repeated non-appearance. A neither seeks restoration nor files a fresh suit. Later, during execution proceedings arising from a separate decree in A's favour, A attempts to challenge the validity of the same sale deeds again.
Which of the following is the MOST appropriate legal position?
(A) A is barred by res judicata from raising the issue again since the earlier suit was dismissed.
(B) A can raise the issue freely since dismissal for default is not a decision on merits.
(C) A may not be barred by res judicata, but can still be denied relief due to abuse of process and abandonment of earlier remedies.
(D) A must necessarily file a fresh suit, and execution court has no jurisdiction to examine such issues.
Answer: C
Explanation: Dismissal of a suit for default does not operate as res judicata because there is no adjudication on merits. However, if a party deliberately fails to pursue available remedies under Order IX CPC (such as restoration or refiling) and later attempts to raise the same issue in collateral proceedings like execution, the court may deny relief on equitable grounds, treating such conduct as an abuse of the process of law.
Cause Title: SHARADA SANGHI & ORS. VS. ASHA AGARWAL & ORS., Citation : 2026 LiveLaw (SC) 299
2. A public servant was prosecuted for an alleged offence, and the Magistrate validly took cognizance at a time when no prior sanction was required under Section 197 CrPC. Subsequently, a government notification extended the requirement of prior sanction to include such category of public servants. The accused now challenges the proceedings on the ground that no sanction was obtained.
Which of the following is the correct legal position?
(A) The proceedings are vitiated as sanction is mandatory at any stage once the law is amended.
(B) The proceedings remain valid, as the requirement of sanction is determined at the time of taking cognizance.
(C) The proceedings must be stayed until sanction is obtained retrospectively.
(D) The accused is entitled to automatic discharge due to absence of sanction.
Answer: B
Explanation: The applicability of a sanction under Section 197 CrPC is determined based on the legal position prevailing at the time the court takes cognizance of the offence. A subsequent extension of sanction protection does not invalidate proceedings that were validly initiated when no such bar existed.
Cause Title: SAMARENDRA NATH KUNDU & ANR. VERSUS SADHANA DAS & ANR., Citation : 2026 LiveLaw (SC) 314
3. A civil court passes an ex parte decree against Defendant X due to his non-appearance. X subsequently files an appeal against the decree, which is dismissed on the merits. Later, X files an application under Order IX Rule 13 CPC seeking to set aside the ex parte decree on the ground that he had sufficient cause for non-appearance.
Which of the following is the most correct legal position?
A. The application under Order IX Rule 13 CPC is barred because the appeal has already been dismissed.
B. The application is maintainable because the remedies of appeal and Order IX Rule 13 CPC operate in distinct spheres.
C. The application is maintainable only if the appellate court grants permission.
D. The application is barred unless fraud is specifically proven.
Answer: B
Explanation: A civil court passes an ex parte decree against Defendant X due to his non-appearance. X subsequently files an appeal against the decree, which is dismissed on merits. Later, X files an application under Order IX Rule 13 CPC seeking to set aside the ex parte decree on the ground that he had sufficient cause for non-appearance.
Cause Title: DEEPESH MAHESWARI AND ANR. VERSUS RENU MAHESWARI AND ORS, Citation : 2026 LiveLaw (SC) 317
4. In an international commercial arbitration, a party challenges an arbitral award before the court at the seat of arbitration, but fails. The decision becomes final. Subsequently, during enforcement proceedings in another country, the same party attempts to raise identical issues by presenting them in a different legal form.
Which of the following best reflects the principle of transnational issue estoppel in this context?
A. Issues already decided by a competent court at the seat cannot be reopened in enforcement proceedings between the same parties.
B. A party is free to re-agitate issues in a different jurisdiction as enforcement proceedings are independent.
C. Only questions of law are barred from reconsideration, but factual issues can be raised again.
D. Transnational issue estoppel applies only when enforcement is sought in the same country as the seat of arbitration.
Answer: A
Explanation:Transnational issue estoppel prevents parties from re-litigating issues that have already been conclusively decided by a competent court (such as the seat court in arbitration). It ensures finality in international dispute resolution and avoids duplicative litigation across jurisdictions.
Cause Title: Nagaraj V. Mylandla versus PI Opportunities Fund-I and others Etc., Citation : 2026 LiveLaw (SC) 305
5. An accused files a petition before the High Court seeking quashing of criminal proceedings on the ground that the complaint is frivolous and vexatious. The Court finds that, although the complaint technically contains the basic ingredients of an offence, the surrounding circumstances and materials collected during investigation indicate that the allegations are baseless and motivated.
In such a situation, which of the following is the most appropriate legal position?
(A) The High Court must restrict itself strictly to the contents of the complaint and cannot consider any external material.
(B) The High Court can quash proceedings only after a full trial is conducted.
(C) The High Court may consider surrounding circumstances and materials beyond the complaint to prevent abuse of process.
(D) The High Court must refer the matter to the trial court without examining the merits at all.
Answer: C
Explanation: The High Court, while exercising its inherent or constitutional jurisdiction to quash criminal proceedings, is not confined solely to the averments in the complaint. It may examine surrounding circumstances, materials collected during investigation, and overall context to determine whether the proceedings are frivolous, vexatious, or an abuse of the process of law.
Cause Title: SUJOY GHOSH VERSUS THE STATE OF JHARKHAND & ANR., Citation : 2026 LiveLaw (SC) 271
6. A company undergoes a corporate insolvency resolution process, and a resolution plan is duly approved. Subsequently, in arbitration proceedings initiated by the corporate debtor, the respondent raises a claim that was not included in the resolution plan. The respondent argues that although it cannot pursue the claim independently, it should be allowed to use it to reduce the liability claimed by the corporate debtor.
Which of the following is the most legally correct position?
(A) The respondent cannot raise the claim in any manner after approval of the resolution plan, whether as a defence or otherwise.
(B) The respondent can pursue the claim fully, including seeking affirmative recovery through counterclaim in arbitration.
(C) The respondent can raise the claim only as a defence by way of set-off, but cannot seek any affirmative relief or recovery beyond reducing the corporate debtor's claim.
(D) The respondent can revive the claim only if it proves that the resolution professional had knowledge of such claim during the insolvency process.
Answer: C
Explanation: Once a resolution plan is approved, claims not included in it stand extinguished and cannot be pursued independently. However, such claims may still be used defensively as a set-off to reduce liability, provided no affirmative recovery is sought.
Cause Title: UJAAS ENERGY LTD. VS. WEST BENGAL POWER DEVELOPMENT CORPORATION LTD., Citation : 2026 LiveLaw (SC) 272
7. A party initiates arbitration proceedings under an agreement containing an arbitration clause. However, midway through the proceedings, the party withdraws and refuses to participate further without obtaining liberty to re-initiate proceedings. Later, the same party files a fresh application for appointment of an arbitrator on the same cause of action.
Which of the following is the most appropriate legal position?
A. The fresh arbitration is maintainable since arbitration proceedings are independent of civil procedure principles.
B. The fresh arbitration is barred as abandonment of earlier proceedings without liberty attracts principles analogous to Order 23 Rule 1 CPC.
C. The fresh arbitration is maintainable because each arbitration invocation creates a new cause of action.
D. The fresh arbitration is barred only if the earlier arbitral tribunal had passed a final award on merits.
Answer: B
Explanation: A party initiates arbitration proceedings under an agreement containing an arbitration clause. However, midway through the proceedings, the party withdraws and refuses to participate further without obtaining liberty to re-initiate proceedings. Later, the same party files a fresh application for appointment of an arbitrator on the same cause of action.
Cause Title: RAJIV GADDH VERSUS SUBODH PARKASH, Citation : 2026 LiveLaw (SC) 310
8. A welfare society is formed to provide financial and insurance benefits to employees of a government-controlled organization. The society is funded through mandatory contributions from employees, managed entirely by serving government officials on deputation, and its policies are subject to approval and oversight by senior government authorities.
Which of the following factors would be most decisive in determining whether such a society qualifies as “State” under Article 12 of the Constitution?
A. The society is registered as a separate legal entity under a statute
B. The society generates its own funds through member contributions
C. The existence of deep and pervasive governmental control over its functioning
D. The absence of profit-making motive in the society's activities
Answer: C
Explanation: The determination of “State” under Article 12 depends on a cumulative assessment of factors such as functional character, public duty, and degree of governmental control. Among these, deep and pervasive control, including administrative, financial, and functional domination by the government, is often the most decisive indicator. Mere registration as a society or source of funds is not conclusive.
Cause Title: RAVI KHOKHAR & ORS Versus UNION OF INDIA & ORS, Citation : 2026 LiveLaw (SC) 244
Air Force Group Insurance Society Is 'State' Under Article 12 Of Constitution : Supreme Court
9. A candidate belonging to the Other Backward Classes (OBC) applies for a government post claiming Non-Creamy Layer status. Her parents are employed in a public sector undertaking (PSU), and their annual salary exceeds the prescribed income limit for three consecutive years. However, their posts are not equivalent to high-ranking government posts (such as Group A or equivalent), and no formal equivalence classification has been made. The authority rejects her claim solely on the ground that her parents' salary exceeds the income threshold.
Which of the following is the most legally correct position?
(A) The rejection is valid because parental income alone is sufficient to determine creamy layer status.
(B) The rejection is invalid because salary income cannot be considered at all under any circumstances.
(C) The rejection is valid because PSU employees are always assessed only on the basis of income.
(D) The rejection is invalid because parental status and post must be considered, and income alone cannot be the sole criterion.
Answer: D
Explanation: The determination of OBC creamy layer status is primarily status-based, focusing on the nature and category of the parents' posts, not merely their income. Salary income cannot be the sole determining factor, especially when it ignores the structural criteria laid down in policy. The income/wealth test operates only residually and cannot override the primary status-based framework.
Cause Title: UNION OF INDIA AND OTHERS VERSUS ROHITH NATHAN AND ANOTHER, ETC., Citation : 2026 LiveLaw (SC) 232
Parental Salary Alone Can't Decide OBC Creamy Layer Status : Supreme Court
10. A Drugs Inspector files a written complaint before a Magistrate alleging offences under the Drugs & Cosmetics Act against a company located outside the Magistrate's territorial jurisdiction. The Magistrate, without conducting an inquiry under Section 202 CrPC, directly issues summons to the accused.
Which of the following statements is correct in law?
A. The summons is invalid because inquiry under Section 202 CrPC is mandatory when the accused resides outside jurisdiction in all cases.
B. The summons is valid because inquiry under Section 202 CrPC is not mandatory when the complaint is filed by a public servant acting in official duty.
C. The summons is invalid unless the complainant and witnesses are examined under Section 200 CrPC.
D. The summons is valid only if the accused waives the requirement of inquiry under Section 202 CrPC.
Answer: B
Explanation: The Supreme Court has clarified that although Section 202(1) CrPC generally mandates an inquiry where the accused resides outside the Magistrate's territorial jurisdiction, this requirement is not mandatory when the complaint is filed by a public servant acting in discharge of official duties.
Cause Title: THE STATE OF KERALA & ANR. v. M/s. PANACEA BIOTEC LTD. & ANR., Citation : 2026 LiveLaw (SC) 206
S. 202 CrPC Inquiry Not Mandatory In Complaint Filed By Public Servant: Supreme Court