Supreme Court Monthly Digest- April 2019

One Sided Clauses In Builder-Buyer Agreements Is An Unfair Trade Practice Pioneer Urban Land & Infrastructure Ltd. V. Govindan Raghavan The Supreme Court held that the incorporation of one-sided clauses in a builder-buyer agreement constitutes an unfair trade practice as per Section 2 (r) of the Consumer Protection Act, 1986. The bench comprising Justice UU Lalit and Justice Indu Malhotra also observed that a builder could not seek to bind a flat buyer with one-sided contractual terms. Employee Not Entitled To Full Back Wages On Acquittal, Unless His Prosecution Was Found Malicious Raj Narain V. Union of India The Supreme Court held that the employer cannot be mulcted with full back wages on the acquittal of an employee by a criminal Court, unless it is found that the prosecution is malicious. SC Strikes Down RBI Circular Asking Banks To Take Defaulting Companies To Insolvency Dharani Sugars &Chemicals Ltd. V. Union of India The Supreme Court struck down the circular issued by the Reserve Bank of India on February 12, 2018 directing banks to initiate insolvency proceedings against companies having bad debts of Rs 2000 crores or above. Authorization From Central Govt Necessary For RBI To Direct Insolvency Process Against Stressed Assets The Supreme Court observed that after the insertion of Section 35AA in 2017 with a specific condition of authorization from central government, recourse cannot be made to general powers under Section 35A for issuing directions to take insolvency action in respect of bad debts. SC Sets Aside Bail Granted To J&K Businessman In Terror Funding Case National Investigation Agency V. Zahoor Ahmad Shah Watali The Supreme Court set aside the Delhi High Court order which granted bail to Jammu and Kashmir based influential businessman Zahoor Ahmad Shah Watali in Terror funding case. Allowing the appeal filed by the National Investigating Agency, the bench comprising Justice AM Khanwilkar and Justice Ajay Rastogi observed that the Designated NIA Court had rightly rejected the bail application after adverting to the relevant material/evidence indicative of the fact that there are reasonable grounds for believing that the accusation against the respondent is prima facie true. Employees Of 'Local Bodies' Entitled To Gratuity Under Payment Of Gratuity Act Nagar Ayukt Nagar Nigam, Kanpur V. Sri. Mujib Ullah Khan The Supreme Court held that the employees of the local bodies like Municipalities are entitled for gratuity under Payment of Gratuity Act, 1972. The bench comprising Justice Mohan M. Shantanagoudar and Justice Hemant Gupta upheld Allahabad High Court judgments while upholding appeals filed by Kanpur and Gorakhpur Municipalities. Sanction Under Sec.197 CrPC Required Only If Offence Has Nexus With Duties Of Public Servant Devendra Prasad Singh V. State of Bihar In order to attract the rigor of section 197 Cr.P.C. the offence alleged against a Government Officer must have some nexus with the discharge of his official duties as Government Officer, held the Supreme Court. No Prohibition In Granting Interim Mandatory Injunctions In Appropriate Cases Hammad Ahmed V. Abdul Majeed The Supreme Court observed that grant of interim mandatory injunction is not prohibited, and it can granted in 'appropriate' cases. The bench comprising Justice Uday Umesh Lalit and Justice Hemant Gupta observed that an ad interim mandatory injunction, is to be granted not at the asking but on strong circumstance so that to protect the rights and interest of the parties so as not to frustrate their rights regarding mandatory injunction. #Rafale- Official Secrets Act Does Not Empower Executive To Restrain Publication Of Documents Marked As Secret Yashwant Sinha V. Central Bureau Investigation The Supreme Court dismissed Centre's preliminary objection against using privileged documents for considering the review petitions in the Rafale case. While dismissing the Centre's preliminary objections, the CJI observed that there is no provision in the Official Secrets Act by which Parliament has vested any power in the executive arm of the government either to restrain publication of documents marked as secret or from placing such documents before a Court of Law which may have been called upon to adjudicate a legal issue concerning the parties. No such provision in any other statute has been brought to our notice, the CJI said. SC Dismisses Centre's Preliminary Objections Against Relying On "Privileged" Documents; Review To Be Heard On Merits Yashwant Sinha V. Central Bureau Investigation The Supreme Court dismissed the preliminary objections raised by the Centre against using privileged documents for considering the review petitions in the Rafale case. The Court said that the review...

Supreme Court Monthly Digest- April 2019

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