Civil Law - Intellectual Property Rights – Personality and Publicity Rights – Interim Injunction – Plaintiff, a renowned film director, producer, and television personality, sought an interim injunction against Defendants from using his name “Karan Johar” in the title of the cinematographic film “Shaadi Ke Director Karan Aur Johar” / “Shaadi Ke Director Karan Johar” – Contended that such use violated his personality and publicity rights, misleadingly associating the film with him – Defendants argued that the names “Karan” and “Johar” were of two separate characters and did not directly reference Plaintiff – Court held that the Defendants’ use of “Karan” and “Johar” along with the theme of film direction in Bollywood created a direct and undeniable reference to Plaintiff – Plaintiff’s name had attained distinctive indicia and was entitled to protection against unauthorized commercial exploitation [Paras 6-10, 59-61, 62-64, 70].

Unauthorized Commercial Use – Exploitation of Brand Name – Plaintiff established goodwill and reputation in the entertainment industry, with his name being a brand name – Defendants’ film title and script contained multiple instances of “Karan Johar” being used together, making an association with Plaintiff inevitable – Court found that such use aimed to ride upon Plaintiff’s goodwill and reputation for unjust commercial gain – Defendants’ argument that adding “AUR” between “Karan” and “Johar” would remove any association was rejected – Mere cosmetic changes could not remedy the unauthorized use of Plaintiff’s name and personality rights [Paras 8-9, 25-26, 63-69, 76-77].

Censorship Certificate – Irrelevance in Personality Rights Violation – Defendants argued that their film had obtained certification from the Central Board of Film Certification (CBFC), and hence no injunction should be granted – Court rejected this argument, holding that CBFC certification does not evaluate or determine violations of personal rights, publicity rights, or brand names – Precedents cited where courts have restrained films from using brand names despite CBFC certification – Mere certification did not restrict Plaintiff’s right to seek protection of his name and reputation [Paras 71-72].

Disclaimers – Insufficiency as a Remedy – Defendants offered to include a disclaimer stating that the film had no connection with Plaintiff – Court held that such disclaimers were inadequate to protect personality and publicity rights – Noted that mere disclaimers could not override direct and indirect references in the film that associated it with Plaintiff – Case law reviewed where courts ordered removal of brand names from films despite disclaimers [Paras 35-38, 73-75].

Judicial Precedents – Recognition of Personality Rights – Court relied on multiple judgments affirming the right of celebrities and public figures to control commercial use of their name, likeness, and attributes – Precedents from Delhi High Court, Bombay High Court, and Madras High Court recognized enforceability of personality and publicity rights – Held that unauthorized use of Plaintiff’s name in Defendants’ film amounted to infringement of his personality rights, requiring injunctive relief [Paras 12-18, 59-61, 66-70].

Relief Granted – Strong prima facie case made out by Plaintiff – Balance of convenience in Plaintiff’s favor as unauthorized use of his name could cause irreparable harm to his reputation – Interim application made absolute, restraining Defendants from using the name “Karan Johar” in any manner in relation to the film, its promotional materials, or public advertisements – No order as to costs [Paras 78-79].

Motor Vehicle Accident  Claim – Negligence – Determination of Liability – Whether the accident resulted from sole negligence of the truck driver or contributory negligence of the car driver – The tribunal held the accident occurred solely due to the negligence of the truck driver who rammed into the car from behind – Held: No contributory negligence of the car driver was established, and the insurance company’s challenge to liability was dismissed [Paras 9-18].

Compensation – Future Prospects – Assessment – The tribunal awarded future prospects at 50% for a self-employed deceased person – Held: As per the Supreme Court’s ruling in Pranay Sethi, future prospects should be limited to 40% – Compensation recalculated accordingly [Paras 23-29].

Interest Rate on Compensation – Insurance company challenged the interest rate of 8% per annum as excessive – Held: Interest rate awarded by the tribunal was reasonable and did not warrant modification [Paras 19-22].

Enhancement of Compensation – Claimants sought higher compensation based on latest income tax returns and additional damages for loss of love and affection – Held: Income tax return for 2016-2017 should have been considered, and loss of consortium enhanced for each claimant – Total compensation enhanced to ₹42,46,000/- with interest @8% p.a. [Paras 30-37].

Bail Application – Unlawful Activities (Prevention) Act, 1967 – Prima Facie Case Against Accused – Rejection Upheld – The appellants, accused of recruiting individuals for a proscribed organization, filed for bail under UAPA – The trial court rejected their applications, citing the bar under Section 43-D(5) UAPA – Held: The prosecution presented credible material including witness testimonies and documentary evidence linking the appellants to CPI (Maoist) – The threshold under Section 43-D(5) UAPA requires only a prima facie case, not conclusive proof – The burden is on the accused to disprove allegations, which they failed to do – Bail rightly denied [Paras 7-10].

Burden of Proof – Standard for Bail Under UAPA – Section 43-D(5) UAPA – Stringent Conditions Applied – The defense argued that CMS (Chaitanya Mahila Sangham), to which the accused belonged, is not a banned organization – However, the prosecution produced letters, protected witness statements, and identification records linking the appellants to CPI (Maoist) – Held: Under Section 43-D(5) UAPA, if the court finds reasonable grounds to believe the accusations are prima facie true, bail must be denied – The evidence sufficiently established the accused’s role in radicalization and recruitment activities [Paras 8-9].

Delay in FIR – Impact on Prosecution – Not a Ground for Bail – The appellants contended that the de facto complainant reported her daughter’s disappearance after four years, weakening the prosecution’s case – Held: Delay in filing an FIR, though a factor for consideration, is not fatal if the prosecution can justify it – The complainant consistently maintained that her daughter was misled and recruited into the Maoist cadre – The investigative agencies corroborated the claims with independent material, making delay irrelevant [Paras 5-6].

Decision – Criminal Appeals Dismissed – Bail Denied – The High Court found the trial court’s decision to be legally sound – Considering the gravity of the offense and the prima facie case established, the appellants were not entitled to bail under Section 43-D(5) UAPA – No interference warranted – Appeals dismissed [Paras 10-11].
 

Matrimonial Law – Divorce – Cruelty and Desertion – Burden of Proof on Petitioner – Appellant sought divorce under Section 10(1)(ix) & (x) of the Indian Divorce Act, 1869, alleging that the respondent-wife left the matrimonial home, subjected him to cruelty, and filed false complaints – Respondent denied allegations, stating that the appellant was living with another woman and that she was forced to file complaints – High Court held: Mere allegations without substantive evidence do not constitute cruelty or desertion – Divorce cannot be granted in the absence of clear proof of grave and weighty conduct making cohabitation impossible [Paras 8-10, 15-16].

Evidence Law – Admissibility and Weight of Evidence – Unrebutted Testimony Insufficient – The appellant’s evidence was not corroborated by independent witnesses – Respondent’s evidence was eschewed due to her failure to appear for cross-examination – High Court ruled that even in such a scenario, the appellant bears the burden of proving cruelty and desertion, which he failed to discharge – Failure to examine independent witnesses further weakened his case [Paras 11-12, 15].

Irretrievable Breakdown of Marriage – Not a Ground for Divorce Under Indian Divorce Act, 1869 – Appellant relied on precedents supporting dissolution of marriage on the ground of irretrievable breakdown – High Court held: Mere separation and strained relations do not automatically justify divorce under the Act – Unlike Hindu Marriage Act, 1955, the Indian Divorce Act, 1869 does not recognize irretrievable breakdown as a standalone ground for divorce [Paras 17-18].

Decision – Appeal dismissed – Judgment of Family Court upheld – No costs awarded [Paras 19-20].
 

Custody of Child – Jurisdiction of Family Court – Section 26 of the Hindu Marriage Act – The petitioners argued that once custody was granted to the mother in a divorce decree, the Family Court had no jurisdiction to entertain a fresh application under Section 11 of the Guardian and Wards Act – High Court held that Section 26 of the Hindu Marriage Act allows modification of custody orders even after divorce if circumstances change – The Family Court has jurisdiction to reconsider custody in the child’s best interests [Paras 5-6].

Change in Circumstances – Right to Seek Custody – Welfare of the Child is Paramount – The respondent-father sought custody modification citing changed circumstances – Petitioners argued that there was no material change – Relying on Rosy Jacob v. Jacob A. Chakramakkal and Tejaswini Gaud v. Shekhar Jagdish Prasad Tewari, the Court held that custody orders are temporary in nature and can be altered if the child’s welfare demands it – Held: A parent cannot be debarred from seeking custody modification solely because of a prior consent decree [Paras 7-8].

Rejection of Suit under Order 7 Rule 11 CPC – Whether Maintainable – Petitioners contended that the custody modification application was barred by law and should have been dismissed at the threshold under Order 7 Rule 11 CPC – High Court ruled that objections on merits should be raised during trial, not at the stage of admission – Held: The Family Court correctly rejected the Order 7 Rule 11 CPC application as the case required full adjudication [Paras 9-10].

Final Decision – Revision petition dismissed – Held: The Family Court correctly exercised jurisdiction under Section 26 of the Hindu Marriage Act – Petitioners are free to raise objections on guardianship during trial, and the Family Court must decide the issue independently without being influenced by this order [Paras 10-11].

Taxation Law - Transfer Pricing – International Transaction – AMP Expenses – Absence of Agreement – No Adjustment Required – The Transfer Pricing Officer (TPO) treated AMP expenses incurred by the assessee as an "international transaction" for brand-building for its Associated Enterprise (AE) and made an adjustment – The ITAT held that the Revenue failed to establish the existence of an "international transaction" as defined under Section 92B of the Income Tax Act – Held: The existence of an international transaction cannot be inferred merely based on high AMP expenditure, and there must be an arrangement, agreement, or understanding between the parties to trigger transfer pricing provisions – ITAT's decision upheld [Paras 4, 10, 29-30].

Transfer Pricing – Benchmarking Analysis – Revenue’s Burden to Prove International Transaction – The Revenue contended that excessive AMP expenditure resulted in a transfer pricing adjustment – The Court held that before undertaking benchmarking analysis, the Revenue must first establish the existence of an international transaction with tangible evidence – Mere comparison with industry standards or other entities' AMP expenditures does not justify a transfer pricing adjustment – ITAT’s decision to quash the addition upheld [Paras 7, 23-24].

Bright Line Test – Not a Valid Basis for Transfer Pricing Adjustment – The TPO applied the "Bright Line Test" (BLT) to determine excess AMP expenditure benefiting the AE – The Court referred to the decision in Maruti Suzuki India Ltd. v. CIT and Sony Ericsson Mobile Communications India (P.) Ltd. v. CIT, reaffirming that BLT has no statutory basis and cannot be used to determine the existence of an international transaction – The Revenue's approach of inferring a transaction based on excess AMP expenditure rejected [Paras 26-27, 60, 62].

Transfer Pricing – Relationship with AE Alone Not Sufficient to Presume International Transaction – The Revenue argued that AMP expenditure benefited the foreign AE and thus should be considered an international transaction – The Court rejected this argument, holding that the mere existence of a parent-subsidiary relationship does not automatically imply an obligation to incur AMP expenses on behalf of the AE – The Tribunal's finding that no agreement or arrangement existed was upheld [Paras 9, 11, 29].

Decision: Appeals dismissed – ITAT’s order upheld – Transfer pricing adjustment on AMP expenditure deleted – Revenue failed to establish the existence of an international transaction.

Taxation Law - Reassessment Proceedings – Requirement of Failure to Disclose Material Facts – Jurisdictional Condition – Section 147 of the Income-tax Act – Reassessment notice issued after four years from the end of the relevant assessment year must satisfy the condition that income escaped assessment due to failure to disclose fully and truly all material facts – In the present case, reassessment proceedings were initiated without establishing such failure – Held: Reassessment proceedings are invalid and without jurisdiction [Paras 20-23].

Reassessment Proceedings – Bar Under Third Proviso to Section 147 – Where the subject matter of reassessment is pending in appeal before the appellate authority, reassessment proceedings on the same issue are barred – In the present case, the issue of "guarantee fee" was already under appeal before the Tribunal – Held: Reassessment proceedings initiated on the same issue are without jurisdiction and liable to be quashed [Paras 24-25].

Reassessment Proceedings – Absence of Fresh Tangible Material – Change of Opinion Not Permissible – Reassessment cannot be initiated based on the same material that was already considered during original assessment – The reasons for reopening did not rely on any new material – Held: The reassessment proceedings amount to a mere change of opinion, which is impermissible in law [Paras 22-23, 26].

Notice under Section 148 – Compliance by Treating Original Return as Response – An assessee is not barred from challenging reassessment proceedings merely for not filing a fresh return in response to Section 148 notice – If the assessee requests the department to treat the previously filed return as a response, it constitutes substantial compliance – Held: Petitioner complied with Section 148 notice requirements, and the reassessment order remains challengeable [Paras 28-29].

Quashing of Reassessment Proceedings – Absence of Jurisdictional Grounds – Section 147 & 148 of the Income-tax Act – Since there was full disclosure, the issue was already under appeal, and no fresh tangible material existed, the jurisdictional conditions under Section 147 were not satisfied – Held: The reassessment notice under Section 148 and the subsequent reassessment order are quashed as without jurisdiction [Paras 27, 30-31].

Property Law – Bank Auction of Mortgaged Property – No Objection Certificate (NOC) – Authorities Cannot Withhold Transfer - Petitioners purchased Plot No. 1591-B, Sector 23-23A, Gurugram, in a public auction conducted by the bank under SARFAESI Act, 2002 – Sale confirmed, full payment made, and possession delivered – However, authorities refused to issue NOC, citing lack of prior approval for auction – Held: Once mortgage was permitted, inherent rights of the mortgagee included auctioning in case of loan default – Decision: Authorities directed to issue NOC and update records in favor of the petitioners [Paras 8-14].

Mortgage Rights – Auction Sale Valid Despite Absence of Additional Permission – Borrower’s Default Triggers Sale Rights - Respondents argued that bank required explicit NOC before auctioning the property – Court ruled that once mortgage was created with permission, sale rights in case of default were implicit – Held: Absence of additional NOC for auction does not invalidate the sale – Decision: Mortgagee (bank) was within its rights to sell the property through public auction [Paras 9-11].

Public Auction – Challenge to Legality – Absence of Allegations of Fraud or Collusion - Authorities did not challenge the auction as fraudulent or illegal, except on procedural grounds – Court noted that no material irregularities or collusion were alleged – Held: In the absence of any specific illegality, the auction sale stands valid – Decision: Petition allowed, property transfer to petitioners upheld [Paras 12-13].

Criminal Law - Quashing of FIR – Delay in Filing of Complaint – Continuous Offense – No Bar on Investigation – The petitioner contended that the complaint was lodged five years after the alleged incidents, rendering it politically motivated – The Court held that the complaint was not limited to events in 2019 but referred to a continuing pattern of conduct up to 2024 – Held: The investigation is not barred by delay since the allegations indicate a continuing offense [Paras 9-10].

Special Investigation Team (SIT) – Legality of Constitution – Officers Need Not Be Exclusively from CID – The petitioner argued that the SIT was improperly constituted since not all its members were from the Criminal Investigation Department (CID) – The Court clarified that while the head of the SIT was from CID, other members could be drawn from different departments – Held: The constitution of SIT was legal and within the State Government's powers [Paras 11-12].

Power of SIT to File Report – Direction to Submit Report to Government Does Not Vitiate Investigation – The petitioner contended that since the SIT was directed to submit its report to the Government instead of the Court, the investigation was vitiated – Relying on precedents, the Court held that such a direction does not preclude the SIT from filing its final report before the jurisdictional court – Held: The notification constituting the SIT does not render the investigation illegal or without jurisdiction [Paras 12-13].

CID as a Police Station – Authority to Investigate and Register Cases – The Court referred to the Government Notification dated 12-01-2024, declaring CID as a police station for the entire state of Karnataka – Held: CID officers investigating the case were acting within their legal authority, and the investigation was valid [Para 14].

Final Decision – Petition Dismissed – No Grounds for Quashing FIR – The Court found no merit in the petition and dismissed it – Held: The FIR and investigation shall continue as per law [Para 15].