Criminal Law – Bail under UAPA – Section 43D(5) – Prima Facie Case – Held: The proviso to Section 43D(5) of the UAPA creates an embargo on granting bail if the Court, on perusal of the case diary or Section 173 CrPC report, is of the opinion that there are reasonable grounds for believing the accusation is prima facie true. In this case, the recovery of explosive material (Potassium Nitrate, Chlorate, etc.) from the appellant, coupled with disclosure statements of co-accused regarding the supply of material for creating terror, established a prima facie case. [Paras 9-11, 15]

Criminal Law – Explosives and Conspiracy – Held: The appellant, running a firecracker business without a license, was found in possession of explosive substances. The FSL report confirmed the nature of the substance. The material was allegedly supplied to co-accused to cause explosions near the Golden Temple to hurt religious harmony and integrity of the country. The absence of a license leads to the conclusion that the material was collected for illegal purposes. [Paras 15-16]

Criminal Law – Delay in Trial vs. Gravity of Offence – Held: While prolonged incarceration can be a ground for bail under Article 21, the gravity of the offence involving a conspiracy to cause bomb blasts in a public/religious place weighs heavily against the accused. The appellant is involved in multiple cases under the Explosives Act. Bail denied. [Paras 14, 17-18]

Decision: Appeals dismissed.

Arbitration – Substitution of Parties – Order XXII Rule 10 CPC – Assignment and Settlement Agreements – NHAI sought substitution by IL&FS Transportation Networks Ltd. (concessionaire) in ongoing arbitration with CFM Asset Reconstruction Pvt. Ltd. (assignee of senior lenders) – Arbitral tribunal rejected application noting claimant was not a party to Settlement Agreement between NHAI and concessionaire – Held: An assignee cannot be substituted for a party unless assignment covers corresponding obligations; claimant not bound by settlement to which it was not a party – Substitution would risk frustration of claims and expand arbitral scope – Tribunal’s decision justified [Paras 6–9].

Arbitration and Conciliation Act, 1996 – Sections 5, 16, 34, and 37 – Limited Judicial Interference – Scope under Article 227 – High Court reiterated that under Section 5, judicial intervention is restricted; orders of arbitral tribunals rejecting applications under Section 16 or procedural claims are not appealable until award is passed – Article 227 can be invoked only in cases of patent lack of jurisdiction, manifest injustice, or bad faith – Liberal interference undermines arbitral autonomy [Paras 4.1–5.5].

Constitutional Law – Article 227 – Maintainability of Petitions against Arbitral Orders – Petition maintainable only where arbitral order is perverse or jurisdictionally flawed – Court cited SBP & Co. v. Patel Engineering (2005) 8 SCC 618, Deep Industries Ltd. v. ONGC (2020) 15 SCC 706, Bhaven Construction v. Sardar Sarovar Narmada Nigam Ltd. (2022) 1 SCC 75 – Held: Courts must exercise restraint; party can challenge adverse orders post-award under Section 34 [Paras 5.1–5.5].

Doctrine of Bad Faith – Non-applicability to Non-Parties – NHAI’s contention that concessionaire’s opposition amounted to “bad faith” rejected – Doctrine applies only to parties to arbitration, not to third parties sought to be substituted [Para 9].

Arbitration – Assignment and Privity of Contract – Settlement between NHAI and concessionaire cannot bind CFM (assignee of lenders) which was not party to conciliation – Assignment of debt does not ipso facto transfer liabilities – Obligations cannot be unilaterally shifted without creditor consent [Paras 6–7].

Decision: Petition dismissed – No exceptional circumstances warranting interference under Article 227 – Tribunal’s order upheld – NHAI directed to continue participation in arbitration – No costs. [Para 10].

Employees’ Compensation – Employer–Employee Relationship – Total Lack of Evidence – Commissioner relied solely on FIR/FIS without oral proof – Appellant specifically denied employment – Held: Existence of jurisdictional fact must be proved; matter remanded for fresh evidence; substantial question of law arises [Paras 7-10].

Employees’ Compensation – Jurisdictional Fact – Proof of Employment – Death of worker in quarry – Claimants produced only FIR/FIS and three other documents, no oral evidence – Commissioner accepted employer–employee relationship solely on basis of FIR/FIS – Held: Initial burden to prove relationship lies on claimants; lack of evidence on jurisdictional fact raises substantial question of law [Paras 2, 4, 7].

Evidence – FIR/FIS Not Substantive Proof – FIR/FIS marked without objection, but no witness examined to prove employment – Appellant denied relationship in written statement – Absence of oral evidence is fatal; mere marking of documents does not discharge burden – Commissioner’s reliance on FIR/FIS misplaced [Paras 4, 7].

Precedents – Distinction with Gangan v. Christin Raj – Division Bench decision relied upon by Commissioner held applicable only where adequate evidence is produced – Present case involves no such evidence; hence Commissioner’s reading incorrect [Para 7].

Substantial Question of Law – When Arises – Whether there is total lack of evidence regarding jurisdictional fact is a substantial question of law – Court follows earlier ruling in MFA(ECC) No. 18 of 2024 – Examination of total absence of evidence does not amount to re-appreciation of evidence [Paras 8-9].

Remand – Fresh Consideration Needed – As FIR/FIS and documents were marked without objection, claimants may have believed no further evidence required – Interest of justice and object of the Act require remand to give parties full opportunity to adduce evidence on employer–employee relationship [Paras 9-10].

Decision – Impugned award set aside – Matter remitted to Employees’ Compensation Commissioner – Parties to appear on 15.12.2025; evidence to be completed within four months; Commissioner to pass fresh order within six months – Deposited amount to remain intact till disposal [Para 10].

Rent Law – Fair Rent Fixation – Retrospective Operation – Equitable Relief – Arrears – Tenant Surrender – Delay in Proceedings – Tenant cannot be burdened with arrears at newly fixed fair rent retrospectively from 2013 when rent control proceedings prolonged for over a decade – Appellate Court had fixed Rs.32,000/month with 5% annual increase from 2014 onwards – Held: Direction to pay arrears at a rate 150 times higher than existing rent would result in grave prejudice – Rent to be paid at Rs.25,000/month from 24.02.2021 (date of Rent Controller’s order) and Rs.32,000/month from 18.03.2024 (Appellate Court’s order) – Arrears from 2013 to 2021 not recoverable in rent control proceedings but liberty left to landlord to pursue civil remedy – Modification granted to ensure balance of interests [Paras 1, 2, 5, 6].

Rent Control – Public Policy – Delay in Adjudication – Effect – Rent control statutes intended to protect both landlord and tenant – Proceedings that linger for more than 10 years cannot be used to justify oppressive financial burdens – Held: Rent control litigation cannot be permitted to function as an instrument of oppression due to systemic delays – Tenant’s act of surrender during pendency cannot be overlooked [Paras 3, 5, 6].

Limitation – Civil Suit for Arrears – Cause of Action – Landlord’s claim for arrears from 2013 onwards to be decided in civil suit – Court refrains from deciding limitation issue in rent control proceedings [Para 4].

Decision: Order of Appellate Authority modified – Landlord entitled to claim arrears only from 24.02.2021 at Rs.25,000/month and from 18.03.2024 at Rs.32,000/month with 5% increase – Revisions disposed of accordingly.

Civil Law - Ex-parte Decree – Order 9 Rule 13 CPC – Non-issuance of Ordinary Summons – Registered Post Service Questioned – Failure of Courts to Consider Mandatory Service Requirements – Presumption under Section 27 General Clauses Act Rebuttable – Limitation & Date of Knowledge Ignored – Orders Set Aside and Matter Remanded for Fresh Decision [Paras 16–22].

Ex-parte Decree – Application under Order 9 Rule 13 – Ground of Non-Service – Defendant asserted she was never served and first learnt of decree on 5.10.2009; application filed promptly thereafter – Alleged manipulation of postal report by postman related to plaintiffs – Plaintiffs denied allegations; claimed refusal of registered letter [Paras 4–6].

Evidence on Service – Postman Examined – Defendant Led Evidence of Postal Complaint – Defendant examined herself and her son-in-law; postal official produced records; postman RW-2 supported refusal entry – Courts below relied heavily on refusal endorsement without considering surrounding circumstances [Paras 10–12].

Mandatory Requirement of Ordinary Service – Order 5 Rule 9(1) CPC – Trial Court never exercised discretion to exempt ordinary service; records show no summons issued through ordinary process – Defendant proceeded ex parte solely on basis of refusal of registered post – Held improper and contrary to Rule 9(1) and pre-repeal Rule 19(a) which mandated simultaneous registered post service along with ordinary process [Paras 16–18].

State Amendment Misapplied – Order 5 Rule 10 (Punjab Rules applicable to H.P.) – District Judge wrongly relied on proviso permitting first-instance registered post service at plaintiff’s request – No such request by plaintiffs on record; no finding that plaintiffs sought this mode – Hence registered post alone insufficient to effect valid service [Para 19].

Presumption of Service under Section 27 General Clauses Act – Rebuttable – Court held that refusal endorsement alone cannot be treated as conclusive when surrounding material casts doubt; possibility of manipulation of postal reports recognized; both Courts failed to consider circumstances warranting closer scrutiny – Constitutes failure to exercise jurisdiction [Paras 20–22].

Limitation – Date of Knowledge – Application Dismissed Without Proper Finding – Courts below treated application as time-barred because defendant withdrew application under Section 5 Limitation Act – However, finding on limitation was influenced by erroneous assumption of valid service; failure to determine actual date of knowledge vitiates finding [Paras 13–15, 21].

Revisional Jurisdiction – Failure to Exercise Jurisdiction by Courts Below – Both Courts ignored material facts regarding service and mandatory procedural requirements; revisional interference warranted under Section 115 CPC [Para 22].

Remand – Orders of District Judge (9.1.2020) and Civil Judge (31.5.2019) set aside – Matter remanded to trial Court for fresh adjudication of application under Order 9 Rule 13 CPC in light of observations made [Para 23].

Petition Disposed – Pending applications also disposed; record directed to be sent back immediately [Para 24].

Motor Accident Claim – Composite Negligence – Liability Apportionment – Tribunal held both taxi and lorry drivers equally negligent in causing the fatal accident – Based on testimony of co-passenger widow (P.W.1), vehicle damage reports (Ex.P6, Ex.R5), and site sketch (Ex.P5) – Court found no perversity in Tribunal's apportionment of 50:50 liability [Paras 12–19].

Motor Vehicles Act – Quantum of Compensation – Deceased was 44 years old and employed as Assistant Vice President in Axis Bank – Income of Rs.1,24,350 per month proved by salary slips (Ex.X2, Ex.P13) and ITRs (Ex.P16) – Tribunal awarded Rs.1.63 crore with interest – Court upheld award as reasonable and based on correct dependency assessment [Paras 20–21].

Insurance Law – Cancellation of Policy – Bounced Cheque – Taxi's insurance premium cheque dishonoured – Insurer had cancelled policy and duly intimated both vehicle owner and RTO before the accident – Held: Valid cancellation meant no insurance contract subsisted on date of accident – Insurer not liable [Paras 22–23, 30].

“Pay and Recover” – Not Applicable – Court held “pay and recover” principle cannot be invoked where insurance contract was rescinded before accident due to non-payment of premium – No exceptional circumstances to invoke powers under Article 142 – Tribunal rightly held taxi owner liable for 50% of compensation, insurer of lorry liable for remaining 50% [Paras 23–31].

Decision: Both appeals dismissed – Tribunal's findings on negligence and quantum upheld – No liability imposed on insurer of taxi – No direction to “pay and recover” – Costs imposed – Miscellaneous Petition closed.

Criminal Law – Anticipatory Bail – Maintainability despite pending proclamation proceedings – Applicant not declared proclaimed offender at time of bail application – Held: Application maintainable – Proclamation under Section 84 BNSS initiated post-filing of bail application does not bar its consideration [Paras 95-100].

Prevention of Money Laundering – Bail under Section 45 PMLA – Twin conditions – Applicant alleged to have generated proceeds of crime through forged scholarship claims – ED failed to justify custodial interrogation – No material produced to show non-cooperation – Held: Twin conditions under Section 45 satisfied – Applicant deemed not guilty at this stage and unlikely to commit offence while on bail [Paras 145-156].

Investigation Conduct – Mala fide Action – ED officer arrested in CBI trap for demanding bribe from applicant – ED became hyperactive thereafter – Summons issued in haste, NBWs sought without fair hearing – Held: Conduct of ED raises suspicion of vendetta and lacks fair play – Application of arrest powers under Section 19 PMLA must be fair, reasoned, and based on material – Custody not required merely for further interrogation [Paras 101-117, 124-128, 139-140].

Criminal Law – Presumption of Innocence – Delay in invoking coercive action – ED took no steps to arrest applicant between 2019 and 2025 – No complaint of non-cooperation until after arrest of IO – Held: Prolonged inaction supports inference of lack of necessity for custodial interrogation – Right to liberty prevails unless arrest justified by compelling necessity [Paras 111-115, 123].

Constitutional Law – Right Against Self-Incrimination – Non-confession cannot be deemed non-cooperation – Mere failure to admit guilt or provide ‘non-evasive’ replies not ground for arrest – Held: Accused cannot be compelled to self-incriminate under Article 20(3) – Arrest not to be used as tool to extract confession [Paras 132-138].

Criminal Procedure – Proper Summons – Electronic service of summons – Validity under PMLA – Guidelines in *Satender Kumar Antil* relied upon – Held: Service through email not invalid, but issuance of repeated summons in haste, without proper opportunity, found unjustified in facts [Paras 19, 29, 70, 108-110].

Decision: Bail application allowed – Applicant granted anticipatory bail in ECIR No. SHSZO/04/2019 – Personal bond of ₹2,00,000/- with two sureties – Conditions imposed to secure appearance and non-interference with investigation – ED at liberty to seek cancellation if conditions violated [Paras 157-160].

Negotiable Instruments – Dishonour of Cheque – Presumption under Section 139 NI Act – Complainant claimed accused borrowed Rs.5,40,000/- and issued cheque for Rs.2,50,000/- in partial discharge – Cheque dishonoured with remark “payment stopped by drawer” – Complainant relied on promissory note and supporting witness – Held: Initial presumption under Section 139 arises, but accused successfully rebutted it by establishing preponderance of probability that the cheque was not issued in discharge of alleged debt – Acquittal by trial court upheld [Paras 3–14].

Cheque Dishonour – Defence Evidence – Accused claimed cheque was issued for earlier loan of Rs.2,50,000/- and was later repaid – Accused relied on variations in handwriting/ink on cheque and promissory note, and testimony of his brother – Court found the defence plausible – Letter stopping payment on cheques predates dishonour – Held: Defence raised sufficient doubt about complainant’s version – Rebuttal of presumption under NI Act proved by defence evidence [Paras 12–14].

Criminal Appeal – Scope of Interference with Acquittal – Appeal against concurrent findings of acquittal by trial and sessions court – High Court found no perversity in appreciation of evidence – Held: View taken by trial court is reasonable and supported by evidence – No ground to interfere in acquittal under Section 378 CrPC [Paras 14–15].

Decision: Appeal dismissed – Acquittal of respondent/accused confirmed – Trial court’s finding that presumption under NI Act was rebutted and complainant failed to prove legally enforceable debt upheld.

Criminal Law – Anticipatory Bail – Allegation of Forgery and Land Grab – Accused No. 3 sought pre-arrest protection under Section 482 of the Bharatiya Nagarik Suraksha Sanhita, 2023 in FIR No. 559 of 2025 registered under Sections 420, 467, 468, 471, 120B, and 34 of IPC – FIR alleged that applicant conspired to execute forged conveyance deed by altering Power of Attorney and tampering revenue records – FIR lodged 12–15 years after impugned transactions, raising issue of delay – Held: Delay, civil settlements, existence of registered documents and permission under tenancy law weigh in favour of applicant – Anticipatory bail granted with stringent conditions [Paras 1, 10, 30, 35-39, 47, 49, 54, 56, 69-70].

Delay in Lodging FIR – Relevance – Transactions date back to 2003–2011 – Conveyance deed executed in 2008, rectification in 2011, and permission under Section 43 of BTAL Act granted after due inquiry – Civil suits filed, confirming deeds executed – No action taken by complainant or predecessors for over a decade – Held: Delay affects reliability of allegations and suggests attempt to unsettle concluded title – Prima facie, FIR appears to revive stale disputes under guise of criminal prosecution [Paras 35-39, 44-48, 54].

Forgery – Allegations of Tampering with 7/12 Extract – Prosecution relied on Tahsildar’s statement that extract annexed to 2008 deed was of a different village (Godev instead of Navghar) and lacked Section 43 entry – Alleged use of whitener to alter revenue records – Held: Allegations are serious and raise issue of public record tampering – However, documents are registered and on public record since 2008 – Criminality, if any, to be investigated but does not warrant custodial interrogation at this stage [Paras 40-42, 55].

Custodial Interrogation – Necessity Not Shown – Applicant cooperated during interim protection – Appeared before IO, produced documents – No specific recovery shown to require custody – Co-accused purchasers already granted bail – Held: Liberty cannot be curtailed merely because investigation is ongoing – Stringent bail conditions can secure cooperation and prevent obstruction [Paras 42-43, 58-62].

Antecedents – Applicant Involved in 35–42 Cases – Some cases resulted in acquittals, quashing, or summary reports – Allegation that criminal history was partially suppressed – Held: Antecedents not to be ignored but not decisive unless they show pattern of evasion or obstruction – Balance can be maintained through safeguards ensuring cooperation with investigation [Paras 18, 28, 63-68].

Precedent – Pratibha Manchanda v. State of Haryana (2023) 8 SCC 181 – Relied on by prosecution to argue that delay not fatal in cases of land grab and forgery – Held: Facts distinguishable – In Manchanda, forged document remained concealed for 20 years – In present case, documents are registered, acted upon, and part of public record – Principle of delay remains relevant when no concealment or fraud on record is established [Paras 50-54, 56-57].

Decision: Anticipatory bail granted – Applicant to be released on bond of ₹50,000 with two local sureties – Conditions imposed to ensure cooperation, prevent tampering and protect investigation – Order clarified to not affect parties’ civil rights – Civil proceedings may continue independently [Paras 70-73].