Corporate Criminal Liability – Vicarious Liability of Directors – Prima Facie Case – Dismissal of Discharge Application Upheld – The petitioner, an executive director of Amrit Projects Ltd., challenged the continuation of proceedings against him under the SEBI Act and Companies Act, claiming no involvement in daily operations – Held: Directors with significant roles, even if limited to oversight, can be held vicariously liable if prima facie evidence indicates their knowledge or consent in the alleged violations – Discharge denied [Paras 8-10].

Executive Director’s Role – Responsibility for Company Affairs – Liability Not Limited to Designation – The petitioner claimed to have been involved only in technical projects and not in financial operations – Held: A director's liability depends on their role, not just their designation – Mere denial of involvement in daily operations is insufficient without concrete evidence – Proceedings against the petitioner justified [Paras 28-30].

SEBI Enforcement Actions – Abuse of Process – Court Refusal to Intervene – The Court observed that quashing proceedings at this stage would undermine SEBI's regulatory actions and constitute abuse of process, particularly when the trial was already underway and evidence had been presented – Revision dismissed [Paras 34-36].

Decision: The revision application (CRR 3638 of 2022) was dismissed. The trial court’s order rejecting the petitioner’s discharge application was upheld, directing the trial to proceed expeditiously.

Criminal Law – Cheating and Breach of Trust – Prima Facie Case for Summons – Petitioner challenged the order setting aside summons issued against Educomp and associates for alleged fraud and misrepresentation in a joint venture – Court found that allegations involved a contractual dispute lacking evidence of fraudulent intent at inception, dismissing claims under Sections 420, 406 IPC – Held: Mere breach of contract does not constitute a criminal offense unless deceitful intent exists from the start, as required for offenses under Section 420 IPC [Paras 8-12, 24-28].

Civil vs. Criminal Liability – Contractual Disputes and Penal Provisions – The Court emphasized that allegations arising solely from contract performance disputes should proceed through civil channels, with criminal liability reserved for clear deceit or misrepresentation – Relying on precedents, the Court stressed that invoking criminal process to resolve civil disputes constitutes abuse of law – Held: Civil remedies sufficient; penal proceedings inappropriate for the presented allegations [Paras 30-33].

Decision: Petition dismissed. The Court upheld the Sessions Court’s order quashing the summoning order, concluding the dispute was civil and did not justify criminal proceedings.

Right to Information Act – Disclosure of Candidate Marks – Petitioner, a candidate for Junior Clerk post, was denied information regarding marks obtained by other candidates on grounds of confidentiality under Maharashtra District Courts Right to Information (Revised Rules), 2009, and under Sections 8(1)(j) and 11 of RTI Act – Petitioner contended that public interest and transparency required disclosure of all candidates' marks – Held: Disclosure of marks obtained in a public recruitment process does not constitute an "unwarranted invasion of privacy" as it is related to a public activity – Disclosure justified by larger public interest, promoting transparency and accountability in recruitment process [Paras 5-7, 24-29, 35-38, 50-52, 54].

Confidentiality and Public Interest – Applicability of Rule 13(e) of Maharashtra District Courts RTI Rules – Rule 13(e) exempts information affecting examination confidentiality – Court clarified that once an exam concludes, disclosure of marks does not affect confidentiality but rather enhances transparency – Prior disclosure by another district court (Wardha) found relevant though not binding, affirming transparency practices in public recruitment [Paras 43-46, 51-52].

Privacy Concerns – Section 8(1)(j) and Privacy – Marks in public exams not deemed personal information exempt under Section 8(1)(j) – Court distinguished between genuinely private information and information relevant to public recruitment – Found that disclosure serves public interest by ensuring recruitment fairness and transparency, which outweighs privacy concerns of individual candidates [Paras 25-28, 30-34].

Precedent Analysis – Supreme Court Precedent in Central Public Information Officer v. Subhash Chandra Agarwal – Petitioner relied on Supreme Court’s clarification that disclosure of information related to public functions and transparency aligns with RTI Act objectives – Rationale of public interest and accountability reinforced need for disclosure in cases involving public selection process [Paras 31-37].

Decision – Petition partly allowed – Orders denying petitioner access to other candidates' marks set aside – Direction issued to furnish marks obtained by candidates from serial nos. 1 to 363 in written/screening test, Marathi and English typing test, and interview within six weeks upon payment of prescribed costs – Promotes public confidence in recruitment process and aligns with RTI's goal of transparency [Paras 54-56].

Bail Application – Custodial Detention – Section 439 CrPC – Bail Granted - The petitioner sought bail, asserting prolonged detention and lack of specific evidence linking him to the alleged offences of wrongful confinement, assault, and murder – The State opposed bail, citing witness statements recorded under Section 164 CrPC and the chargesheet naming eight accused, including the petitioner – The Court noted that despite completed investigation, the petitioner’s specific involvement was unclear, and extended detention was unjustified given the remote likelihood of early trial commencement – Held: Petitioner granted bail with conditions to avoid tampering with evidence or witness intimidation [Paras 1-3].

Conditions of Bail – Appearance and Conduct – Compliance Mandated - The Court imposed strict conditions on the petitioner, including restriction from entering the jurisdiction of the Nagrakata Police Station, regular reporting to the local police, and a warning that any breach would enable the trial court to cancel bail without further reference – Held: Bail conditional on compliance to ensure fair trial proceedings [Paras 4-5].

Decision: The bail application is allowed, subject to a bail bond of ₹10,000 with two sureties, one local. The petitioner must adhere to stipulated conditions, including staying outside Nagrakata Police Station limits and regular reporting, to retain bail.

Labour Law – ESI Act – Principal Employer Liability for Contract Workers – Petitioner contended that contract workers, engaged via petty contractors with no direct supervisory control by KSEB, should not be covered under the ESI Act – The Court highlighted that under Section 2(12), establishments employing more than 10 workers are covered, and principal employers bear responsibility for ensuring ESI contributions – Held: KSEB’s liability as principal employer includes contract workers engaged indirectly through contractors [Paras 14-20].

ESI Contribution Demands – Exemption for High Earners and Contract Workers – The petitioner argued exemption for employees earning above ₹21,000/month and claimed that ESI demands were incorrectly calculated based on exaggerated worker numbers – Held: Court found that ESI dues assessment must consider eligible employees and should re-evaluate worker count and wages under Section 45A; erroneous assessments warrant reconsideration [Paras 21-25].

Procedural Fairness – Requirement of Hearing and Fair Assessment – Noting discrepancies in assessments and lack of consultation, Court ordered a fresh determination of ESI liabilities after a hearing – Held: Demand notices quashed; respondents directed to reassess KSEB’s contributions following fair procedure [Paras 26-30].

Decision:

The writ petition is allowed in part. Demand notices (Exts.P4, P7, P9, and P10) are quashed. Respondents are directed to conduct a reassessment after giving the petitioner an opportunity for hearing.

Arbitration Law – Single Transaction and Interconnected Agreements – Enforceability of Arbitration Clause – Appellants sought to refer disputes to arbitration, citing a single transaction encompassing a sale agreement with an arbitration clause and subsequent MoU and Allotment Letter – Trial Court dismissed the application, treating the MoU as an independent agreement lacking an arbitration clause – Held: Conveyance deed’s execution ended the enforceability of the arbitration clause in the original sale agreement; subsequent agreements did not explicitly incorporate arbitration [Paras 16-20, 24-26].

Doctrine of Merger – Effect of Conveyance on Arbitration Clause – Court affirmed that conveyance execution concludes the original agreement, terminating any arbitration clause therein; absence of specific arbitration clause reference in MoU or Allotment Letter supports their independent status – Held: Arbitration clause cannot be revived post-conveyance; dismissal of application upheld [Paras 27-30, 35].

Decision: Arbitration Appeal dismissed; Interim Application disposed of. Trial Court’s rejection of arbitration reference application confirmed as valid under legal principles of contract termination and lack of arbitration clause incorporation.
 

SC/ST Act – Prima Facie Case – Sections 3(1)(x)(xi) – Charges Dropped – Allegations under the SC/ST Act regarding caste-based abuse and intimidation not substantiated – Trial court rightly found that the complaints were contradictory and did not establish public view or deliberate caste-based insult – Charges dropped under the SC/ST Act due to lack of prima facie evidence [Paras 7-8].

Delay in Filing Complaint – Impact on Credibility – Delay of three months between the alleged incident and registration of the FIR under Section 3(1)(x)(xi) SC/ST Act held unexplained – Subsequent additions to allegations viewed as undermining the credibility of the charges [Para 8].

Quashing of FIR – Section 482 Cr.P.C. – Scope – Powers to quash FIR to be exercised sparingly – Investigation completed, and charges framed – Defense to be presented during the trial – Quashing not justified as no abuse of legal process established [Paras 9-11].

Trial Court Jurisdiction – Stage of Charge Framing – At the stage of charge, detailed appreciation of evidence is unwarranted – Sufficient grounds found to proceed with other IPC charges, dismissing revision petition challenging the trial court's order [Para 11].

Decision: Both petitions dismissed. The court upheld the trial court's decision to drop charges under Sections 109 IPC and 3(1)(x)(xi) of the SC/ST Act while retaining charges under Sections 447, 427, 147, 148, 504, and 506 IPC. Quashing of FIR No. 153/2020 was also denied. Trial to proceed expeditiously.
 

Judicial Immunity – Protection under Judges (Protection) Act, 1985 – The petitioner argued that actions performed under Section 165 of the Land Revenue Code were judicial in nature, entitling him to protection under the Judges (Protection) Act – The Court noted that Additional Collectors are empowered to perform judicial functions per Section 17 of the Code – Held: Petitioner’s quasi-judicial actions fall within the ambit of “judge” under the Act, granting immunity from disciplinary proceedings based on such actions [Paras 5-12, 30-36].

Administrative Law – Competence of Additional Collector – The Court reviewed the petitioner’s authority to grant permissions under the work distribution order and found his exercise of powers as Additional Collector lawful – Prior High Court rulings confirmed that work distribution does not limit judicial functions to the Collector exclusively – Held: Petitioner’s authority under the work distribution order was valid, making the disciplinary action baseless [Paras 18-23].

Malafide Disciplinary Action – Impact on Career Advancement – The Court observed that initiating disciplinary proceedings after a prolonged delay, without findings of personal gain or misconduct, suggests malicious intent to impede petitioner’s promotion to IAS cadre – Held: Chargesheet quashed; proceedings deemed punitive and lacking in legal grounds [Paras 38-42].

Decision: The petition is allowed. The chargesheet dated 29.04.2019 and subsequent inquiry orders are quashed. Respondents are directed to consider the petitioner for promotion to IAS cadre, if otherwise eligible.

Criminal Law – Murder – Evidence of Hostile Witnesses – Conviction Upheld – Appellants were convicted for murdering Chand Masih in daylight following a conspiracy – Prosecution witnesses turned hostile during the trial – Court relied on their earlier corroborated statements and medical evidence – Held: Testimonies of hostile witnesses can be partially relied upon if corroborated by other evidence – Conviction upheld [Paras 23-27].

Hostile Witnesses – Admissibility of Earlier Testimonies – Principles Applied – PW1 (complainant) and PW2 (mother of the deceased) resiled from their initial depositions implicating the accused – Court noted the earlier statements were corroborated by medical and forensic evidence and thus admissible – Principles from Hemudan Nanbha Gadhvi vs State of Gujarat, 2019 SCC reinforced [Paras 20-22, 25-26].

Conspiracy – Common Intention Under Section 120-B IPC – Proven Through Circumstantial Evidence – Accused acted with pre-planned intent to kill the deceased – Multiple injuries inflicted with sharp weapons substantiated premeditation – Proved beyond reasonable doubt [Paras 23-24].

Medical Evidence – Corroboration with Witness Statements – Conviction Justified – Medical reports confirmed injuries caused by sharp-edged weapons as described by witnesses in earlier testimonies – Incised wounds aligned with the sequence of events narrated in the FIR and initial depositions [Paras 21, 25].

Decision – Appeals Dismissed – Life Imprisonment Upheld – Court affirmed sentences of life imprisonment and fines for the appellants under Sections 302, 120-B, 148, and 149 IPC – Appeals dismissed, holding that the appellants acted in a calculated and heinous manner [Paras 26-27].