Supreme Court Weekly Round Up: January 3 To January 9, 2022

JUDGMENTS THIS WEEK1. Employee Who Refuses Promotion Offer Not Entitled To Financial Upgradation Merely Because She Suffered Stagnation : Supreme CourtCase name: Union of India vs Manju AroraCitation: 2022 LiveLaw (SC) 1The Supreme Court observed that if a regular promotion is offered but is refused by the employee before becoming entitled to a financial upgradation, she/he shall not be entitled to financial upgradation only because he/she has suffered stagnation.The court said that Central Government employees who have refused the offer of regular promotion are disentitled to the financial upgradation benefits envisaged under the O.M. dated 9.8.1999 When an employee refuses the offered promotion, difficulties in manning the higher position might arise which give rise to administrative difficulties as the concerned employee very often refuse promotion in order to continue in his/her own place of posting, the bench comprising Justices R. Subhash Reddy and Hrishikesh Roy observed. In this case, some employees claimed the benefit of Assured Career Progression Scheme for the Central Government civilian employees under the O.M. dated 9.8.1999 issued by the Ministry of Personnel, Public Grievances and Pensions, Government of India. The ACP Scheme provided for financial upgradation to the next higher grade of pay for those employees who could not get promotion after 12 years of service. Second upgradation is similarly admissible after 24 years of service. 2. Not Always Obligatory To Remit Matter To Arbitration Tribunal Merely Because A Party Filed Application U/s 34(4) Arbitration Act: Supreme CourtCase name: I-Pay Clearing Services Private Limited vs ICICI Bank LimitedCitation: 2022 LiveLaw (SC) 2The Supreme Court observed that merely because an application is filed under Section 34(4) of the Arbitration and Conciliation Act by a party, it is not always obligatory on the part of the Court to remit the matter to Arbitral Tribunal."When it prima facie appears that there is a patent illegality in the award itself, by not recording a finding on a contentious issue, in such cases, Court may not accede to the request of a party for giving an opportunity to the Arbitral Tribunal to resume the arbitral proceedings.", the bench comprising Justices R. Subhash Reddy and Hrishikesh Roy observed. The court said that the discretionary power conferred under Section 34(4) of the Act, is to be exercised where there is inadequate reasoning or to fill up the gaps in the reasoning, in support of the findings which are already recorded in the awar As per Section 34(4) of the Act, upon a request by a party, the Court may adjourn the proceedings for a period determined by it in the order to give the Arbitral Tribunal an opportunity to resume the arbitral proceedings or to take such other action as in the opinion of Arbitral Tribunal, will eliminate the grounds for setting aside the arbitral award. 3. Acquittal In A Criminal Trial Has No Bearing Or Relevance On The Disciplinary Proceedings: Supreme CourtCase name: Maharashtra State Road Transport Corporation vs Dilip Uttam JayabhayCitation: 2022 LIVELAW (SC) 3The Supreme Court observed that an acquittal in a criminal trial has no bearing or relevance on the disciplinary proceedings.The standard of proof in both the cases are different and the proceedings operate in different fields and with different objectives, the bench comprising Justices M R Shah and BV Nagarathna observed while setting aside an order passed by Industrial Court which directed Maharashtra State Road Transport Corporation to reinstate a driver whose services were terminated by it after holding a disciplinary enquiry. "Therefore, at the best even if it is assumed that even driver of the jeep was also negligent, it can be said to be a case of contributory negligence. That does not mean that the respondent – workman was not at all negligent. Hence, it does not absolve him of the misconduct.", the court said. 4. Income Deduction For State Govt Undertakings - 'Exclusivity' Under S. 40(a)(iib) of Income Tax Act Not Based On Number Of Undertakings : Supreme CourtCase name: Kerala State Beverages Manufacturing and Marketing Corporation Ltd versus Assistant Commissioner of Income Tax Citation: 2022 LiveLaw (SC) 4The Supreme Court has rejected the argument raised by the Kerala State Beverages Corporation that it is entitled to deduct the levies made by the state government on it from income. The Beverages Corporation's claim was on the premise that the license given to by the State Government to trade in liquor was not 'exclusive'.Section 40(a)(iib) of the Income Tax Act, which refers to charges paid to the government that are not deductible from income, uses the word "exclusively". The Supreme Court held that this term "exclusively" is not to be understood on the basis of the number of undertakings involved. A bench comprising Justice Subhash Reddy and Justice Hrishikesh Roy observed that, "The aspect of exclusivity...

Supreme Court Weekly Round Up: January 3 To January 9, 2022

Nupur Thapliyal

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