Civil Law - Export Credit – Interpretation of Maximum Tenure – Paragraph 1.1.2(ii) of the Master Circular – Partial Relief Granted - The Borrowers challenged the reversal of subvention on export credit due to delays in submitting export documents despite fulfilling export obligations within the stipulated period of 450 days. Held: Submission of export documents is a procedural requirement aimed at proving exports. A minor delay in submission does not disqualify the advances as "export credit" when the export obligation is fulfilled within the prescribed period. [Paras 43-47, 56].

Subvention Reversal – Validity of Banking Ombudsman’s Decision – Set Aside for First Lot; Upheld for Second Lot - For the First Lot of export transactions, where exports were effected within 450 days, the reversal of subvention was held to be unjustified. For the Second Lot, where exports did not materialize within 450 days, the reversal of subvention and reclassification of advances as domestic credit were upheld. [Paras 50-56, 62-63].

Beneficial Instruments – Purposive Interpretation of Master Circular – Relief Granted for Procedural Lapses - The Court emphasized that the Master Circular is a regulatory instrument promoting export competitiveness and must be interpreted in letter and spirit to fulfill its objective. Procedural delays in document submission should not undermine the substantive compliance of export obligations. [Paras 23, 47, 55].

Rule of Compliance – Strict vs. Substantial – Beneficial Instruments - Distinguishing between strict compliance (exports within 450 days) and substantial compliance (delayed submission of documents proving exports), the Court held that substantial compliance suffices to uphold the advances as "export credit." [Paras 43, 66-67].

Decision of the Court – The reversal of subvention for the First Lot was set aside, and the Borrowers were entitled to the benefits under the Subvention Scheme. However, the reversal for the Second Lot was upheld due to failure to effect exports within the stipulated period. Directions issued for recalibration of accounts and compliance by the Bank. [Paras 72(a)-(l)].
 

Civil - Partition Law – Final Decree – Termination of Suit – Petitioners sought amendment of the preliminary decree in a partition suit post-final decree, invoking the retrospective effect of Vineeta Sharma v. Rakesh Sharma – Held: A partition suit terminates with the passing of the final decree engrossed on requisite stamp paper – Once the final decree is passed, no further orders, including modification of shares, can be entertained by the trial court [Paras 7-11, 21].

Hindu Succession Act – Rights of Coparceners – Limitation of Retrospective Application – Retrospective application of amended Section 6 of the Hindu Succession Act, 1956, is restricted to cases where the final decree has not been passed – Court emphasized that the partition is completed only when the final decree is drawn up and properties are divided by metes and bounds – Held: Petitioners cannot claim enlargement of shares under amended Section 6 post-final decree [Paras 12-19].

Execution Proceedings – Delivery of Property – Impact on Partition Suit – Petitioners argued that the partition suit remains pending as delivery of possession of properties had not occurred – Court clarified that delivery of possession is a matter for execution proceedings and does not affect the finality of the suit – Held: Partition suit is concluded upon passing of the final decree and engrossing it on requisite stamp paper [Paras 22-28].

Role of Preliminary Decree – Amendment Pre-Final Decree – A preliminary decree in a partition suit is interim in character and can be modified before the final decree – Court reiterated that subsequent legislative changes or intervening events can affect shares only before the final decree is passed – Held: Petitioners failed to act before the final decree, and their rights cannot now be reopened [Paras 12-18].

Decision: Revision dismissed – Final decree upheld – Petitioners cannot seek enlargement of shares post-final decree – Suit considered terminated upon passing and engrossing of the final decree [Paras 29].
 

Bail - NDPS Act – Procedural Safeguards – Non-compliance Raises Doubts - The prosecution failed to adhere to the procedural requirements under Sections 42, 50, 52, and 52-A of the NDPS Act. Notably, there was a delay in recording the daily diary entry and preparing the inventory panchanama, as well as discrepancies in witness accounts, undermining the credibility of the prosecution's case. [Paras 17-20, 28].

Bail on Parity – Co-accused Released - Co-accused No.2 (rider of the motorcycle) and Co-accused No.3 (alleged supplier) had been granted bail. The Court applied the principle of parity, observing similar circumstances. [Para 7].

Commercial Quantity – Reasonable Doubt in Prosecution Case - The prosecution alleged that the applicant was carrying 1300 grams of charas in a polythene bag while riding as a pillion passenger. The implausibility of this claim and the absence of corroborative evidence created a prima facie doubt in the case. [Paras 15-17, 27].

Article 21 – Prolonged Incarceration Violates Fundamental Rights - The applicant’s detention for 2 years, 11 months, and 5 days without trial commencement infringed upon the fundamental right to a speedy trial. The Court emphasized that prolonged incarceration, even under the NDPS Act, must be weighed against Article 21. [Paras 22, 29].

Twin Conditions Under Section 37 NDPS Act – Satisfied - The Court observed that:

The public prosecutor was heard.

There were reasonable grounds to believe the applicant was not guilty based on procedural lapses and lack of incriminating evidence. Further, there was no likelihood of the applicant committing any offense if released, given his clean antecedents. [Paras 23-24].

Decision – Bail Granted with Conditions - The applicant was granted bail subject to stringent conditions, including attendance at the trial court, restrictions on travel, and cooperation with the investigation. [Paras 32-33].

Negotiable Instruments Act – Compounding of Offence – Joint Compromise Memo Filed – The petitioner was convicted under Section 138 of the NI Act for dishonor of a cheque for ₹20,00,000/-. During the pendency of the Criminal Revision, the parties amicably resolved the matter through a joint compromise memo, agreeing to settle the dispute for ₹19,00,000/-. The Court, exercising its inherent jurisdiction, permitted the compounding of the offence and annulled the conviction – Held: Offences under Section 138 of the NI Act, being primarily compensatory in nature, can be compounded even at the revisional stage to secure the ends of justice. Conviction annulled, and petitioner acquitted [Paras 6-10, 40-44].

Inherent Powers – High Court’s Jurisdiction under Section 401 CrPC – The Court, invoking its inherent powers, compounded the offence to secure the ends of justice despite the appeal confirming conviction – Held: High Court has discretion to quash convictions under Section 138 of the NI Act when the dispute is amicably resolved, irrespective of procedural restrictions in Section 320 CrPC [Paras 22-25].

Section 147 of NI Act – Overriding Effect on Section 320 CrPC – Section 147 of the NI Act, which permits compounding of offences, overrides restrictions under Section 320 CrPC. Compounding at any stage is permissible for offences under the NI Act, provided it aligns with the objective of compensatory justice [Paras 30-33].

Damodar S. Prabhu Guidelines – Applicability at Revisional Stage – Citing the Supreme Court’s decision in Damodar S. Prabhu v. Sayed Babalal H., compounding at the revisional stage is subject to appropriate costs to discourage undue delay. However, where compromise is bona fide, the Court may accept the settlement without imposing costs [Paras 10, 43].

Decision – Criminal Revision allowed based on the joint compromise memo – Conviction and sentence imposed by lower courts annulled – Petitioner acquitted [Paras 43-46].
 

Criminal Law – Bail Application – Protection of Children from Sexual Offences (POCSO) Act – Applicant accused under multiple provisions, including Sections 498-A, 323, 504, 506, 363, 366A, 376(2)(N) IPC, Sections 5(L)/6 of the POCSO Act, and Sections 3/4 of the Dowry Prohibition Act – Allegations include harassment of wife for dowry and engaging in illicit relations with minor sister-in-law (aged 17 years) – Application for bail rejected citing gravity of offense and societal implications [Paras 2-9].

Minor Victim – Consent Irrelevant – Court emphasized that the victim’s age (17 years) renders her consent immaterial – Applicant allegedly enticed the minor twice, showing persistent behavior – Prosecution's reliance on Section 29 of POCSO Act highlighted presumption against accused unless proven otherwise [Paras 6-7].

Societal and Familial Disruption – Court condemned applicant’s actions as a severe breach of marital trust and familial integrity – Acts caused emotional harm to the wife, strained relationships within the family, and disrupted societal harmony – Behavior unequivocally condemned by law and societal norms [Para 7].

Criminal History – Applicant previously involved in a similar case (Case Crime No. 37/2023 under Sections 363, 366A IPC) – Repeated actions weighed against granting bail – Conduct deemed as undermining legal and moral responsibilities [Paras 4-8].

Decision: Bail application rejected – Court found no grounds to release applicant considering severity of allegations, criminal history, and societal impact – Observations limited to bail and not to influence trial proceedings [Paras 8-10].

Criminal Law – Bribery – Demand and Acceptance – Importance of Corroboration – Appeal against acquittal of the accused for allegedly demanding and accepting a bribe – Held: Evidence of demand and acceptance must be proved beyond reasonable doubt; discrepancies in the prosecution's case, such as failure to corroborate the complainant’s version and procedural lapses in conducting the trap, render the case weak – Acquittal upheld [Paras 29, 31, 33].

Evidence Law – Deficiencies in Pre-Trap and Post-Trap Panchanamas – Evidence revealed discrepancies in the pre-trap and post-trap panchanamas, particularly regarding the amount recovered – Such inconsistencies cast serious doubt on the reliability of the prosecution’s evidence – Held: Benefit of doubt must be extended to the accused [Paras 32, 34].

Sanction for Prosecution – Application of Mind – Defense challenged the validity of the sanction order on grounds of non-application of mind by the sanctioning authority – Held: While the sanctioning authority's application of mind must be evident, the lapses in evidence on demand and acceptance were more critical to the case's failure [Paras 19, 25].

Defense Evidence – Rebutting Prosecution’s Case – Defense presented evidence of the accused being on sanctioned leave during the alleged incidents and produced logbook entries disproving the presence of the accused at the scene – Such evidence undermined the prosecution’s allegations – Held: Defense successfully rebutted charges [Paras 30, 33].

Decision: Appeal dismissed – Acquittal of the respondent upheld – Prosecution failed to prove the charges beyond reasonable doubt [Paras 35–37].
 

Criminal Law – Discharge Application – Admissibility of Confessional Statements – Applicant’s name appeared solely in the voluntary confessions of co-accused recorded during recovery proceedings – Held: Confessional statements of co-accused are inadmissible under Section 30 of the Evidence Act in the absence of corroborative evidence – Prosecution failed to provide independent evidence linking the applicant to the crime – Rejection of discharge application quashed [Paras 11–14, 22–23].

Evidence Law – Confessions Before Police – Applicability of Sections 26 and 30 of the Evidence Act – Confessions made to police, even if voluntary, are inadmissible under Section 26 unless corroborated – Statements of co-accused cannot solely justify framing charges – Prosecution’s reliance on uncorroborated confessions was misplaced [Paras 13–14, 21–22].

Doctrine of Caution – Testimony of Co-Accused – Confessional statements of co-accused carry limited evidentiary value and must be corroborated by substantive evidence – Courts must be cautious in using such evidence to implicate others – Absence of corroboration warranted interference [Paras 11, 22].

Decision: Revision allowed – Impugned order of Sessions Court rejecting the discharge application set aside – Applicant discharged from Crime No. 26 of 1993 – Revision disposed of [Paras 23–24].
 

Civil Procedure – Rejection of Plaint – Order VII Rule 11 CPC – Application filed by Defendant Nos. 3 to 5 seeking rejection of plaint for cancellation of registered Sale Deed – Trial Court rejected application – Plaintiffs had prima facie raised triable issues based on registered transactional documents and alleged collusion between Defendants – Held: Cause of action disclosed – Issues require adjudication through trial – Application for rejection of plaint rightly dismissed by Trial Court [Paras 5-7, 18-19, 22].

Injunction Order – Impact on Subsequent Transactions – Injunction issued in RCS No.669 of 2015 restraining Defendant No.1 from dealing with Suit property – Defendant Nos. 3 to 5's transactional documents executed despite subsisting injunction order – Plaintiffs argued this affected the legality of Defendants' Sale Deed – Court found this a significant triable issue requiring adjudication [Paras 11-13, 18].

Registered Sale Deeds – Discrepancies in Consideration – Discrepancy noted in payments recorded in Sale Deed of Defendant Nos.3 to 5 – Total payment recorded as Rs.2,15,00,000/-; however, documents showed payments amounting to Rs.1,32,85,000/- – Whether full consideration paid and title transferred to be determined through trial – Plaintiffs' cause of action based on earlier Agreement for Sale and Sale Deed upheld [Paras 14-17, 19-20].

Cause of Action – Plaint Prima Facie Discloses Right to Sue – Court observed that Plaintiffs' claim based on registered Agreement for Sale dated 24.07.2014 and Sale Deed dated 28.06.2018 disclosed a substantive cause of action – Not a case of clever drafting – Issues raised by Plaintiffs required trial for resolution [Paras 21-22].

Decision – CRA Dismissed – Order dated 17.10.2019 passed by Trial Court upheld – Suit to proceed to trial – Trial Court directed to expedite hearing – Observations made by High Court to have no bearing on the merits of the trial [Paras 23-27].

Civil Law – Injunction – Dispute Over Vahivat Road – Plaintiffs seeking injunction to prevent Defendants from using or obtaining NA permission for vahivat road allegedly curated for Plaintiffs' exclusive use – Trial Court granted injunction in favor of Plaintiffs – Appellate Court reversed Trial Court order – Held: Plaintiffs' claim based on prescription not substantiated with prima facie evidence – Vahivat road recorded as public road in Gram Panchayat records and maintained with public funds – Balance of convenience and irreparable harm favor Defendants as road provides sole access to Gat Nos. 720/1 and 720/2 – Trial Court order overturned [Paras 10-11, 18-23].

Ownership Claim – Prescription and Long Use – Plaintiffs claimed exclusive right over vahivat road citing long use and conversion into private road – No evidence of perfected legal title or ownership presented – Held: Plaintiffs' claim to ownership of road not substantiated – Gram Panchayat records indicate road as public – No prima facie case for exclusive use established [Paras 15-20, 23].

Public vs. Private Road – Evidence of Public Use – Defendants demonstrated vahivat road as public road based on Gram Panchayat records, Tahasildar’s report, and history of maintenance using public funds – Plaintiffs’ assertion of private ownership conflicted with public records – Held: Status of road as public road likely, subject to trial [Paras 18-22].

Balance of Convenience – Road Access to Defendants – Vahivat road is sole access for Defendants' properties – Restriction on Defendants' use of road would render properties landlocked – No alternate access established – Appellate Court rightly balanced equities in Defendants' favor while preserving Plaintiffs’ usage rights until trial [Paras 23-24].

Decision – Writ Petitions Dismissed – Appellate Court orders in MCA Nos. 48 and 50 of 2024 upheld – Status quo maintained for eight weeks to allow Plaintiffs to approach Superior Court – Observations made in judgment to have no bearing on final trial outcome [Paras 25-27].