Income Tax – Disallowance under Section 36(1)(va) – Adjustment under Section 143(1)(a) – Disallowance Upheld – The assessee challenged addition of ₹4.14 crores made u/s 143(1)(a) towards delayed deposit of employees’ EPF/ESI contributions – Held: Relying on Checkmate Services (P) Ltd. (2023) 6 SCC 451, the Court upheld that employees’ contributions are distinct from employers’ and must be deposited within the statutory due date, failing which deduction is not allowed – The Court rejected the argument that such additions under Section 143(1)(a) were impermissible, noting that the delay was evident from audit records and not a debatable issue – ITAT was justified in sustaining the adjustment [Paras 35–45].

Prospective vs Retrospective – Explanation 5 to Section 43B – Clarificatory in Nature – Retrospective Effect – The assessee argued that Explanation 5 (inserted by Finance Act, 2021) should apply prospectively – Held: The Supreme Court in Checkmate Services had already clarified the legal position based on pre-existing provisions; Explanation 5 is declaratory and does not introduce a new condition – Hence, it applies retrospectively and supports disallowance even for AY 2019-20 [Paras 37–41].

Binding Precedents – Sub Silentio Argument Rejected – The Court dismissed the claim that Checkmate Services was sub silentio regarding retrospective application – Held: The decision substantively analyzed the relevant provisions (Sections 2(24)(x), 36(1)(va), 43B), and clarification in Explanation 5 was unnecessary for its ratio – Checkmate is binding and applicable [Paras 37–41].

National Holiday – Due Date for PF/ESI Deposit – Relief Granted – For a portion of the contribution deposited on 16.08.2018, where due date (15.08.2018) was a national holiday, the Court allowed deduction – Held: Under Section 10 of the General Clauses Act, deposit on the next working day is valid where deadline falls on a public holiday – Issue settled by earlier coordinate bench in Pepsico India Holding Pvt. Ltd. – Deduction allowed for this part only [Paras 46–47].

Final Decision – Appeal Partly Allowed – The Court upheld the disallowance of ₹4.14 crores under Section 36(1)(va) but allowed deduction for the amount delayed due to a national holiday – ITAT’s decision affirmed in part and reversed to limited extent – Appeal disposed of accordingly [Paras 45–48].

Service Law – Regularization of Long-serving Employees – Denial on Ground of No Sanctioned Posts – Arbitrary and Unconstitutional – Petitioners appointed in 1995 onwards, repeatedly litigated; co-worker Vir Bahadur regularized – Respondents denied petitioners’ regularization citing absence of sanctioned posts – Court held plea unsustainable; reliance on Umadevi misplaced – Continuous exploitation through ad hocism violates Articles 14, 16, 21 – Services directed to be regularized within six weeks; failing which deemed regularization with full benefits – Writ allowed [Paras 5–10, 18].

Constitutional Mandate – State as Model Employer – Court condemned “perennial ad hocism” in public employment; financial constraints or lack of sanctioned posts cannot justify decades-long denial of regularization where work is perennial – State duty-bound to create posts and budgetary provisions; exploitation under guise of outsourcing or casualization unconstitutional [Paras 6–9, 11–12].

Judicial Directives – Enforcement of Court Orders – Administrative Indifference – Court expressed concern over habitual delays and bureaucratic non-compliance with judicial mandates – Laid down parameters: accountability of officers, statutory timelines, monitoring cells, digital transparency, grievance redressal, training, and appraisal linkage – Warning of contempt under Article 215 if directions flouted [Paras 13–17, 19].

Decision – Petition allowed – Respondent-Corporation directed to regularize services of petitioners within six weeks, else deemed regularized with arrears, seniority, and parity benefits as granted to Vir Bahadur – Copy sent to Chief Secretaries of Punjab, Haryana and U.T. Chandigarh for litigation policy reforms [Paras 18–21].

Banking Law - SARFAESI Act – Section 14 – Nature of Magistrate’s power – Ministerial vs. adjudicatory – Powers exercised by Chief Metropolitan Magistrate/District Magistrate under Section 14 are purely ministerial – Magistrate not required or empowered to adjudicate disputes between borrower, secured creditor, or third parties – Duty limited to assisting secured creditor in taking possession on compliance with statutory affidavit requirements [Paras 9.1–9.3, 10.1–10.2].

SARFAESI Act – Section 14 – Requirement of notice to borrower – No obligation – Statutory scheme mandates only filing of authorised officer’s affidavit – Magistrate to act within 30 days (extendable to 60 days with reasons) – No requirement to issue notice to debtor or hear objections – Any grievance lies under Section 17 before DRT [Paras 11.3–11.8, 12.4–12.6].

Possession Delivery Warrant – Condition regarding third parties – Impermissible – Once property is a secured asset under SARFAESI, Magistrate cannot restrict possession delivery warrant by saving alleged third-party rights – Such disputes, if any, to be adjudicated under Section 17 before DRT, not by Magistrate under Section 14 [Paras 12.1–12.6, 13.1–13.2].

Decision – Writ petition allowed – Observation in impugned order dated 29.04.2025 in Crl. Misc. No.16/2025 (“possession delivery warrant is not binding on 3rd parties, if they are in possession of the property in any capacity”) quashed – Order under Section 14 SARFAESI to be implemented without the said observation [Para 13.3, 26].

Bail – Anti-National Facebook Post – Sections 152, 192, 197(1), 353(2) BNS – Bail Rejected – Applicant posted provocative and derogatory content including insult to Indian National Flag and slogans glorifying Pakistan – Cyber investigation traced posts to applicant's verified IP and mobile – Court found conduct detrimental to national integrity and social harmony – No grounds for bail [Paras 2–10].

Cyber Crime – Electronic Evidence – Facebook Post Verified Through IP and Mobile Linking – Meta data and cyber report confirmed the posts were made from applicant's mobile using his SIM and devices – Forensic collection upheld as credible prima facie evidence linking accused to offense [Paras 6(i)-(ii), 8].

National Flag – Insult to National Honour – Bail Denied – Photograph showing dog sitting on Indian Flag uploaded by applicant was termed as deliberate act of dishonour – Court reaffirmed importance of safeguarding national symbols and noted that such acts were punishable and socially corrosive [Paras 7, 9].

Criminal Antecedents – Previous Involvement in Arms Act and Attempt to Murder Cases – Considered in Bail Rejection – Two prior cases including one under Section 307 IPC weighed against applicant's plea for liberty [Para 6(vi)].

Social Media Responsibility – Posts Capable of Inciting Communal Disharmony – Court observed that the content uploaded was capable of disturbing public peace and order – Bail denied due to possibility of larger societal impact [Para 8].

Decision – Bail Application Rejected – Prima facie materials against the accused supported by technical evidence and witness statements – Insult to National Flag viewed as serious and non-bailable conduct – Application dismissed [Paras 10–11].

Murder  – Section 302 IPC – Circumstantial Evidence – Reliability of Witnesses – Trial Court convicted appellant for running over deceased with pick-up van due to enmity from alleged illicit relationship attempt – On appeal, Court found PW-1 (complainant) and PW-7 (widow of deceased) not eyewitnesses; both gave contradictory versions about source of information (reporter Vikram Purohit vs. PW-12 Parveez) – PW-12 turned hostile, denied knowledge – Reporter not examined – Held: contradictions fatal, prosecution failed to prove case beyond reasonable doubt. Acquittal. [Paras 22-24].

Revenge/Enmity Theory – Double-Edged Weapon – Court reiterated principle (SC in Aslam @ Imran v. State of M.P., 2025 LiveLaw SC 365; Maukam Singh v. State of M.P., 2025 INSC 435) that enmity may provide motive but equally raises possibility of false implication – In absence of documentary proof of prior illicit relationship complaint, prosecution’s revenge theory unsustainable [Paras 25-26].

Prosecution Evidence – Interested Witnesses – PW-1, PW-4, PW-7 statements found based on assumptions and hearsay, not direct observation – IO (PW-6) conducted casual investigation without corroborative evidence – No recovery, no direct witness – Held: conviction based on presumption, not proof – Benefit of doubt to accused [Paras 18-24].

Trial Court Judgment – Error in Appreciation of Evidence – Trial Court relied on “revenge theory” and uncorroborated witness accounts – High Court held findings erroneous; enmity alone cannot sustain conviction without reliable proof – Impugned judgment set aside [Paras 27-29].

Decision – Appeal Allowed – Conviction and sentence under Section 302 IPC set aside – Appellant acquitted by giving benefit of doubt – To be released forthwith if not required in any other case [Paras 30].

Civil Liability – Damages - Negligence by Licensing Authority – Non-issuance of Duplicate License – Driver prevented from duty – Appellant, a permanent DTC driver, lost his license in 1996; MLO refused duplicate citing expiry, though DTC records showed validity till 20.12.1996 – Civil Judge in earlier suit (2002) directed issuance of duplicate license, confirming validity till 1996 – Held: Negligence of respondents established; appellant wrongly deprived of duty as driver for 1997–2001 – Loss of salary attributable to negligence of Licensing Authority [Paras 19-24].

Evidence – Public Records – Salary Register – Admissibility – PW2 produced original DTC salary register (Ex. PW2/A), signed by Depot Manager, showing salary appellant would have earned as driver – Court held document admissible under Section 35 Evidence Act – No contrary evidence led by respondents; Trial Court erred in rejecting cogent record – Presumption of correctness applies to official records [Paras 26-33].

Employment – Continuity of Service – Appellant never terminated – Though not assigned driving duty, remained in service; later given desk duty in 2001 until license reissued in 2002 – Salary paid was less than driver’s entitlement – Court held appellant entitled to damages for difference between actual salary paid and driver’s pay for 1997–2001 [Paras 37-44].

Decision – Appeal Allowed in Part – Damages enhanced by ₹30,000 (in addition to ₹15,000 awarded by Trial Court) with 9% interest from date of appeal till realisation – Finding of negligence of MLO/MLA final; DTC not liable – Decree modified accordingly [Paras 45-49].

Specific Performance – Registered 1977 Agreement – Money-lending backdrop – Section 20 Specific Relief Act & Section 52 TPA – Decree Set Aside – Parties litigated over an alleged agreement to sell ancestral land in favour of deceased Ankush; Trial Court held the document was a sham/security for loans, First Appellate Court reversed – Held: On a holistic view of contemporaneous loan suits, decrees and receipts, the agreement operated as security and not a genuine sale agreement; appellate reversal ignored Trial Court’s reasoning and vital evidence – Decree for specific performance set aside; Trial Court decree restored [Paras 20-26, 32-34, 45-46].

Specific Relief – Discretion under Section 20 – Ancestral joint family property – Need to prove legal necessity/authority of manager – Discretion improperly exercised – First Appellate Court failed to frame/decide the issue of equitable discretion despite admitting the property was ancestral; no proof of legal necessity or authority to bind co-sharers – Grant of specific performance vitiated for want of proper application of Section 20 – Appeal allowed [Paras 27-29, 35, 45-46].

Evidence – Non-examination of principal and effect – Power-of-attorney testimony limited – Adverse inference – Plaintiff No.1, who signed on behalf of Ankush and allegedly made the payments, did not enter the witness box – Applying Vidyadhar and Man Kaur, adverse inference drawn; PA holder’s evidence could not substitute for principal’s personal knowledge – Appellate Court erred in overlooking this [Paras 30-33].

Appellate Practice – First appeal reversing facts – Duty to engage with Trial Court’s reasons – Santosh Hazari applied – Reversal cannot rest on defendant’s weaknesses or registration alone; appellate court must confront and displace trial reasons with cogent analysis – Failure here rendered the decree unsustainable [Paras 22, 25-26, 32-33].

Lis Pendens – Section 52 TPA – Registered cancellation deed by Class-I heirs during pendency – Not hit by Section 52 – Where Class-I heirs (widow/children of Ankush) executed a registered cancellation in 2020, they validly relinquished the right to seek specific performance; being a Class-II heir, the father alone could not sustain the decree – Exhibit X1 is admissible and operative inter partes and does not offend lis pendens; decree cannot survive only for Plaintiff No.1 – Suit agreement unenforceable – Appeal allowed [Paras 38-44, 46].

Decision – Second appeal allowed – First Appellate Court’s decree dated 24/08/1993 quashed; Trial Court’s dismissal dated 28/09/1987 restored; suit dismissed; no order as to costs [Para 46].

Criminal Law – Section 311 CrPC – Recalling and summoning of witness – Trial Court rejected prosecution’s application to summon Radiologist whose report formed basis of injury opinion by Medical Jurist – High Court held that rejection solely on ground of delay was unjustified – Application under Section 311 CrPC maintainable at any stage if evidence is essential to just decision – Held: Trial Court erred in ignoring necessity of Radiologist’s evidence to prove grievous injury under IPC Sections 326 and 307 – Absence of Radiologist's testimony would lead to miscarriage of justice – Petition allowed, Radiologist to be summoned and cross-examination permitted [Paras 1, 2.4, 3–5, 7–19]

Evidence – Medical Evidence – Admissibility of X-ray Reports – Doctor (PW-15) admitted giving opinion based on Radiologist's report without conducting X-ray himself – Held: In absence of examination of Radiologist and marking of X-ray plates, medical evidence is incomplete and cannot independently establish grievous injury – Precedents from various High Courts and Supreme Court followed to hold Radiologist’s testimony as essential for proving fracture or grievous injury under IPC [Paras 10–18]

Fair Trial – Judicial Discretion under Section 311 CrPC – Scope and Limits – Summoning of additional witness not to be treated as filling lacuna unless prejudice to accused is shown – High Court emphasized courts' participatory role to elicit truth and avoid miscarriage of justice – Delay or closure of evidence not a bar to exercise of powers under Section 311 CrPC [Paras 7–9.1]

Decision: Revision Petition allowed – Order of Trial Court dated 12.03.2025 quashed – Application under Section 311 CrPC allowed – Radiologist Dr. Son Singh to be summoned and examined – Trial to be concluded within 3 months [Para 19]

Arbitration Law - Arbitral Award – Hearsay Evidence – Rejection of Admitted Documents – Award Set Aside – Arbitral award allowed Respondent’s claim for refund due to allegedly defective packaging – Petitioner contended that the arbitrator relied on hearsay evidence from an expert witness (CW-2), and disregarded two SGS India lab reports that showed no odour or defect in the packaging – Held: Arbitrator wrongly disregarded admitted contemporaneous evidence in the form of SGS India reports and instead relied on CW-2’s report, based on hearsay statements from Respondent's staff in 2016 about goods received in 2013 – Such reliance constitutes a gross procedural error and offends basic notions of justice – Award shocks the conscience of the Court and is liable to be set aside under Section 34(2)(b)(ii) of the Arbitration Act [Paras 34–40, 47].

Public Policy – Section 34(2)(b)(ii) Arbitration Act – Violation of Basic Notions of Justice – The rejection of reliable and admitted laboratory evidence, coupled with acceptance of uncorroborated hearsay testimony, amounted to a breach of public policy and justice – The Award conflicts with Explanation 1(iii) to Section 34(2)(b)(ii) as it offends the most basic notions of fairness, reliability, and adjudicative reasoning – Held: The conduct of the arbitrator fell foul of judicial standards and vitiated the award [Paras 44–47].

Admissibility and Evidentiary Value – Marking of Documents and Cross-examination – Arbitrator erred in holding that SGS India reports had no evidentiary value for lack of author testimony, despite both parties having marked and admitted the documents – Court held that contemporaneous lab reports should have been preferred over retrospective hearsay-based expert opinion – No obligation on Petitioner to cross-examine when burden of proof not met by Respondent [Paras 36–43].

Decision – Commercial Arbitration Petition allowed – Arbitral Award dated 02/12/2019 set aside – Deposit of USD 165,000 made pursuant to earlier court order permitted to be withdrawn by Petitioner after 4 weeks [Paras 48–52].