Maintainability of Review – High Court’s Power under Article 215 – Review Allowed - Petitioners sought review of an order dismissing their arbitration application under Section 11 of the Arbitration Act, arguing an error on the record in identifying R-Cube Energy’s legal structure – Respondents argued that the Arbitration Act lacks a review provision, precluding the High Court from considering such a petition – The Court held that since Section 11 powers are exercised by the High Court as a court of record post-amendment, inherent powers under Article 215 allow correction of record errors – Held: Review maintainable under Article 215 as the High Court is a court of record [Paras 13-17].

Error Apparent on Record – Legal Entity Misclassification – Grounds for Review - Petitioners contended that R-Cube Energy was inaccurately classified as a partnership instead of a private limited company, invalidating the trial court’s decision on partnership rules and arbitration eligibility – The Court noted that the initial dismissal was based on partnership requirements and found that R-Cube Energy’s registration as a private limited company altered the legal interpretation entirely – Held: Error apparent, warranting review and recall of previous order [Paras 18-21].

Revival of Arbitration Application – Procedural Limitations - Though petitioners urged the Court to proceed with the arbitration application, the Court held it would exceed its jurisdiction due to assignment limitations – Held: Arbitration application revived and remanded to appropriate Bench for reassessment [Para 22].

Decision: The petition is allowed, recalling the previous order dated 19/12/2023. The arbitration application is revived and will be placed before the appropriate Bench for disposal per assignment.

Bail Application – Cross-Versions of Events – Political Sensitivity – Bail Granted – Applicants sought bail in a case alleging their involvement in a mob violence incident that resulted in deaths on both sides – Held: Evidence showed cross-versions with multiple deaths and injuries; the applicants were not named in the original FIR and their roles emerged later – Supreme Court precedent and progress of trial weighed in favor of bail [Paras 45-50].

Speedy Trial – Prolonged Incarceration – Bail Justified – The trial involved over 114 witnesses, with only 7 examined – Held: Prolonged trial duration violates the applicants’ fundamental rights under Article 21 of the Constitution – Bail cannot be withheld merely due to the case's gravity [Paras 56-60].

Criminal History – Principle of Parity – Applicants Not Named in FIR – The primary accused had been granted bail by the Supreme Court – Held: The applicants' cases stood on better footing due to their absence from the original FIR – Observed: Bail cannot be denied solely on the existence of criminal antecedents when adequately explained [Paras 61-64].

Conditions for Bail – Non-Misuse of Liberty – Observations Regarding Trial – Bail Granted – Held: Conditions imposed to prevent misuse of bail – Applicants must ensure attendance at critical trial stages – Observations made during the bail order shall not prejudice the trial court's findings [Paras 65-70].

Decision: The court allowed bail applications for the applicants subject to strict conditions, including personal bond, sureties, and mandatory trial appearances. Observations made in the bail order are non-binding on the trial court.
 

Contract Law – Pledge of Shares – Dispute Over Invocation Notice – Status Quo Ordered – Appeal Disposed Of – The appellant challenged the Trial Court’s interim order directing maintenance of status quo on the pledged shares, claiming contractual rights for invocation – Held: The Trial Court’s order was not on the merits of the applications but to preserve rights until the applications are decided – Direction issued for prompt disposal of applications [Paras 3-5, 12-15].

Jurisdictional Issues – Commercial Court Jurisdiction Contested – Pending Resolution – The appellant argued lack of jurisdiction under the Civil Court due to the commercial nature of the dispute – Held: Jurisdictional challenge under Order 7 Rule 10 CPC pending before the Trial Court, to be addressed without premature adjudication [Paras 16-17].

Application of Contract Principles – Pledgee's Rights – Highlighted – Referring to Sections 176 of the Contract Act and precedents on pledgee's rights, the appellant emphasized the right to sell pledged shares in case of default – Court deferred substantial adjudication to Trial Court [Paras 8-9, 14-15].

Decision:

The appeal was disposed of with the following directions:

Status quo on the pledged shares to be maintained for 15 days from the date of the order.

Criminal Law - 498-A IPC – Cruelty Against Wife – Conviction Affirmed – The accused (husband and in-laws) were convicted under Section 498-A IPC for continuous harassment of the informant, including dowry demands and physical assaults – The court rejected the plea of double jeopardy, holding that prior compromise and acquittal under similar allegations in an earlier case did not bar prosecution for subsequent acts of cruelty – Evidence from the informant and witnesses corroborated the allegations despite minor inconsistencies – Conviction upheld [Paras 28-38].

Double Jeopardy – Section 300 CrPC – Inapplicability – The accused argued that the present case was barred under Section 300 CrPC due to acquittal in a prior case on similar allegations – Held: The earlier case ended in compromise without adjudication on merits, and subsequent acts of cruelty constituted a fresh offence, making Section 300 inapplicable [Paras 29-37].

Sentencing Policy – Modification of Sentence – In-laws and Husband – Considering the age of the in-laws and the suffering of the informant with her children, the sentence was reduced with enhanced fines to provide victim compensation – The father-in-law and mother-in-law were sentenced to one year RI and fined ₹50,000 each, while the husband’s sentence was reduced to 1.5 years RI with a fine of ₹2,00,000, payable to the informant [Paras 40-48].

Decision:

The revision petitions were partly allowed with modification in sentences:

The father-in-law (Abdul Hanan) and mother-in-law (Razia Khatoon) were sentenced to one year rigorous imprisonment and fined ₹50,000 each, failing which the original sentence would apply.

The husband (Md. Nasiruddin) was sentenced to 1.5 years rigorous imprisonment and fined ₹2,00,000, failing which the original sentence would apply.

The fines are to be remitted to the informant (victim) for her and her children’s welfare.

Contractual Service – Annual Increment Entitlement – Appeal Allowed – The appellant and connected petitioners challenged the denial of annual increments for their contractual service despite its recognition for pension purposes under prior judicial decisions – Held: Contractual service shall also be counted for granting annual increments, in alignment with the principles in Ram Chand v. State of H.P. and similar precedents – Trial Court's judgment partially reversed, granting relief to appellants with retrospective notional benefits [Paras 17-18].

Pension and Incrementary Rights – Uniform Application – The judgment establishes uniformity in treating contractual service for both pension and incrementary rights, citing the decisions in Sheela Devi v. State of H.P., Jagdish Chand v. State of H.P., and affirming the scope for extending such service for broader benefits [Paras 9-11, 18].

Precedential Reliance – Role of Apex Court's Disposition – Clarified that the Supreme Court's disposition of related cases did not overturn increment entitlements established in prior High Court rulings – Consistent application affirmed [Paras 15-16].

Decision: The appeal (LPA No. 338 of 2024) and all connected writ petitions were allowed. Petitioners were granted benefits for annual increments during contractual service along with pensionary entitlements. Retrospective benefits were limited to three years prior to filing the petitions, with notional benefits beyond that.

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.

Hindu Succession Law – Rights of Daughters Prior to 1956 – Inheritance Excluded – The court held that under the Hindu Women’s Rights to Property Act, 1937, inheritance rights to daughters were excluded if the father died before 1956 leaving behind a widow – The 1937 Act granted limited ownership only to the widow; daughters were not included in inheritance under this framework [Paras 9, 20, 33].

Hindu Succession Act, 1956 – Retrospective Application – Rejected – The appellants contended for retrospective application of the 1956 Act to cases where inheritance opened before 1956 – Held: Provisions of the 1956 Act, including the 2005 Amendment, apply prospectively; pre-1956 cases are governed by existing laws of that time [Paras 10, 29, 30].

Jurisprudence – Reconsideration of Precedents – Limited Rights Confirmed – The court clarified conflicts in earlier decisions regarding the inheritance rights of daughters prior to 1956 and concluded that inheritance rights to daughters emerged only after the 1956 Act, further strengthened by the 2005 Amendment [Paras 10, 31].

Historical Context – Widow as Sole Heir Pre-1956 – Under Mitakshara law and the 1937 Act, widows were equated to sons for inheritance purposes; daughters were recognized only upon the widow's absence – The legal framework emphasized patriarchal structures limiting inheritance rights for daughters in cases preceding the 1956 Act [Paras 9, 20, 30].

Decision: The appeals were decided in favor of the respondents, holding that a daughter does not acquire inheritance rights in the property of her deceased father who died prior to 1956 if a widow survives.

Criminal Proceedings – Mischaracterization of Civil Dispute – Section 482 of Cr.P.C. – Cognizance Quashed – The petitioners challenged criminal proceedings initiated against them for alleged forgery and fraud in a property sale involving Waqf land – The respondents alleged the sale deed was based on a forged Waqf Board authorization letter – The petitioners argued that the funds were credited to the Waqf account and the dispute was purely civil – Held: As civil suits on the property and alleged forgery were pending, the criminal case was deemed premature and an abuse of process – Criminal proceedings quashed, with liberty to revive criminal remedies upon resolution of civil suits [Paras 18-22].

Execution of Will – Proof and Attestation – Section 63(c) of the Indian Succession Act – Will Upheld – The appellant challenged the Will (Ext.B2), alleging irregularities and suspicious circumstances – Held: The Will’s execution and attestation were duly proved by the attestor, satisfying legal requirements – The registration of the Will lends credence, though not conclusive proof – No material discrediting the attestor’s testimony was presented [Paras 9-14].

Suspicious Circumstances – Burden of Proof – Genuineness Established – The appellant argued that the Will excluded certain heirs without justifiable reasons and was fabricated – Held: Evidence confirmed the testator’s sound mind and deliberate exclusion of certain branches due to proximity and care received from other heirs – Appellant failed to substantiate claims of fabrication or undue influence [Paras 12-15].

Handwriting Expert and Fingerprint Analysis – Limited Weight – The appellant relied on expert opinions to dispute the testator’s signature – Held: Variations in signature over decades are natural and not conclusive; contemporaneous evidence was lacking – Fingerprint analysis affirmed the authenticity of the Will, bolstering its validity [Paras 16-17].

Exclusion of Heirs – Testamentary Intent – Not Suspicious – The exclusion of the appellant and her branch was contested as unjustifiable – Held: A Will’s purpose is to alter natural succession; exclusion of certain heirs, when supported by credible reasons, does not make the Will suspicious [Paras 18-19].

Decision: The appeal was dismissed. The trial court’s decision upholding the validity of the Will (Ext.B2) and dismissing the partition suit was affirmed.