Taxation Law – Central Sales Tax Act, 1956 – Dispute over classification of transactions as Inter-State Sales or Stock Transfers – Challenge to assessment by State of Haryana imposing tax on transactions treated as inter-State sales – High Court examines whether movement of goods from Haryana to Bihar under an agreement constituted a sale or stock transfer – Held: Supply of goods pursuant to a prior contract with the Government of Bihar constituted an inter-State sale under the CST Act – Petitioners already assessed for local sales tax in Bihar cannot claim exemption from inter-State tax in Haryana – Dismissal of writ petitions, affirming the validity of Haryana’s tax demand. [Paras 1-16]

Inter-State Sales vs. Stock Transfer – High Court relies on precedents to determine that movement of goods occasioned by a contract of sale constitutes an inter-State sale – Reliance on Supreme Court’s ruling in Sahney Steel and Press Works Ltd. vs. Commercial Tax Officer, and Bharat Electric Ltd. vs. Union of India – The issuance of Form F by Bihar for stock transfer did not absolve the petitioner from the obligation to pay inter-State sales tax in Haryana – Tax Tribunal’s findings upheld – Claims of double taxation refuted. [Paras 8-14]

Decision – Dismissal of Writ Petitions – Held: Petitioner’s arguments regarding double taxation and erroneous classification as inter-State sales rejected – Haryana entitled to impose Central Sales Tax on transactions – Refund claims to be pursued per Tata Motors Ltd. vs. CST Appellate Authority ruling – Interim orders vacated – Final judgment dismisses all petitions and pending applications. [Paras 15-19]

Civil Law - Public Premises – Eviction of Tenant – Petition under Articles 226/227 of the Constitution – Petitioner challenged the eviction orders, claiming tenancy rights over land owned by the Municipal Committee, Mahendergarh, since 1963-64, and argued that eviction based on non-payment of rent was unjustified as he was willing to pay the arrears. The Court dismissed the petition, holding that no registered lease existed in favor of the petitioner, and his tenancy could be terminated without formal notice under the Public Premises Act – Petitioner’s long-standing possession at a meager rent of ₹150 per year, without payment of arrears, deemed insufficient to challenge the eviction. The Municipal Committee’s right to initiate eviction proceedings was upheld [Paras 1-11].

Termination of Tenancy – Public Premises Act Prevailing over Rent Act – The Court reaffirmed that under the Public Premises Act, tenancy could be terminated without prior notice, and mere filing of eviction proceedings sufficed as notice to quit. The petitioner's plea of being a lawful tenant was rejected, with the Court emphasizing that continued possession at such low rent for decades was prejudicial to the Municipal Committee’s right to recover prevalent market rent [Paras 6-10].

Decision: Petition dismissed – Eviction order upheld – No interference by the Court in the impugned orders, with the Municipal Committee entitled to recover possession and collect prevalent rent from the property.

Tender Process – Disqualification of Bidders – Judicial Review – Petitioners challenged their disqualification from a tender process for the supply of food kits during the Gauri-Ganpati Festival – The High Court upheld the decision of the Technical Evaluation Committee to disqualify the petitioners for failing to meet the eligibility criteria under condition PQ5 of the tender document – Court emphasized the limited scope of judicial review in tender matters, deferring to the expertise of the tendering authority in interpreting tender conditions unless there is clear evidence of irrationality, arbitrariness, or mala fides – The Court also highlighted the importance of public interest in the timely completion of the tendered project, which outweighed the petitioners' claims of unfair disqualification – Petition dismissed. [Paras 1-47]

Tender Conditions – Interpretation and Application – Judicial Deference – The High Court deferred to the tendering authority's interpretation of the term "providing manpower/labourers" under condition PQ5, holding that the tendering authority is best placed to understand and apply tender conditions – The Court found that the petitioners' contracts for meal preparation and related tasks did not meet the specific requirements of PQ5, which necessitated providing at least 300 labourers across 70 locations in Government and Semi-Government establishments – The Court refused to interfere with the authority's interpretation, citing the need to respect technical evaluations conducted by experts unless there is a clear case of procedural unfairness or arbitrary action. [Paras 19-41]

Public Interest – Judicial Intervention in Tender Matters – The High Court underscored the need for judicial restraint in interfering with tender processes, particularly when public interest is at stake – The Court noted that the subject matter of the tender, the distribution of food kits to over 1.5 crore beneficiaries before the Gauri-Ganpati festival, was time-sensitive, and interference would disrupt the intended public benefit – The Court held that even if the administrative decision was debatable, judicial intervention was unwarranted unless the decision was manifestly arbitrary or irrational – The petitions were dismissed in light of both the petitioners' failure to meet the eligibility criteria and the overriding public interest in the timely execution of the tendered project. [Paras 45-47]

Decision – Dismissal of Petitions – Held – Both writ petitions are dismissed, and no costs are awarded. The Court found no grounds for judicial interference, upholding the tendering authority's decision to disqualify the petitioners based on their non-compliance with condition PQ5. The Court also emphasized the public interest in ensuring the timely distribution of food kits, which outweighed the petitioners' challenges. [Para 47]

Tender Process – Judicial Review – Kerala High Court quashed the award of tender due to preferential treatment: Challenge to the award of a tender by the Thrissur Municipal Corporation to the sixth respondent. The petitioner, the only technically qualified bidder initially, argued that the fifth respondent unlawfully granted the sixth respondent additional time to submit required documents, resulting in the award of the contract to the sixth respondent. The Kerala High Court held that the tender process was vitiated by arbitrariness and preferential treatment. It quashed the award and directed the fifth respondent to negotiate with the petitioner or initiate a new tender process to avoid further delays. [Paras 1-10]

Judicial Scrutiny – Fairness in Public Contracts – Adherence to Tender Conditions: The Kerala High Court emphasized the importance of fairness and adherence to tender conditions in public contracts. The court reiterated that judicial review of tender processes focuses on the decision-making process, ensuring that public authorities do not act arbitrarily or with favoritism. The case highlighted the necessity of applying essential conditions uniformly and justifiably, leading to the quashing of the tender awarded to the sixth respondent due to deviations from these principles. [Paras 9-10]

Decision – Writ Petition Allowed – Tender Award Quashed: Held – The writ petition is allowed, quashing the tender awarded to the sixth respondent. The court directed the fifth respondent to consider the petitioner’s bid or restart the tender process while adhering to all relevant specifications and legal standards. [Para 13]

Income Tax Law – Reopening of Assessment – Sections 147 and 148 of the Income Tax Act, 1961 – Whether reopening based on "change of opinion" without new tangible material is valid – Held, reopening was invalid due to lack of new material. The Court referred to CIT v. Kelvinator of India Ltd., noting that mere change of opinion cannot justify reopening an assessment under Section 147 without tangible material – [Paras 29-31]​.

Reassessment and Change of Opinion – Difference Between Short-Term Capital Gain and Adventure in the Nature of Trade – The Assessing Officer initially treated the income as short-term capital gain, but later classified it as "adventure in the nature of trade" without any fresh notice or valid reasoning – The Court found this change arbitrary and unsustainable as there was no new material to substantiate the reassessment – [Paras 35-40]​.

Constitutional Law – Article 226 – The Court exercised its discretion to entertain the writ petition under Article 226 despite the existence of an alternative remedy, as the reassessment proceedings were arbitrary and without jurisdictional basis. The alternative remedy rule does not apply when reassessment is based on procedural irregularity or arbitrary exercise of power – [Paras 14-16]​.

Decision: Writ petition allowed – Reassessment proceedings quashed – All orders dated 29.09.2021, including the demand notice, were set aside – [Paras 41-42]​.

Criminal Procedure – Quashing of Criminal Proceedings – Petition under Section 482 CrPC seeking quashing of a complaint filed by the Drug Inspector against the directors of Tidal Laboratories Private Ltd. for manufacturing drugs of substandard quality – Held that for criminal proceedings to continue against directors, the company must also be arraigned as an accused – Prosecution without impleading the company is unsustainable – Complaint quashed [Paras 1-50].

Directors' Liability – Drugs and Cosmetics Act – No allegations in the complaint that the petitioners, as directors, were in charge of the day-to-day affairs of the company – Impleadment of the company is mandatory for prosecution of its directors – Mere appointment as directors without specific involvement in the offence does not attract criminal liability under Section 18(a)(i) of the Drugs and Cosmetics Act [Paras 35-40].

Inherent Powers of High Court – Exercise of inherent powers under Section 482 CrPC justified to prevent abuse of process where the complaint does not disclose any material connecting the accused to the offence – Continuation of trial against the directors without arraigning the company would be an abuse of process of law [Paras 20-30].

Decision: Petition allowed – Complaint and order issuing process quashed – Petitioners acquitted of all charges.

Criminal Law – Appeal Against Acquittal in Dowry Death Case Dismissed – The Patna High Court dismissed a criminal appeal challenging the acquittal of the respondents for charges under Sections 498A, 304B, and 34 IPC – Appellant alleged dowry harassment and murder of the deceased by her in-laws – Trial court acquitted Respondent Nos. 2 to 5 due to lack of direct evidence proving their involvement – High Court upheld the trial court’s reasoning, citing insufficient evidence to implicate distant relatives in dowry death cases without clear material support [Paras 1-17].

Evidence Evaluation – No Direct Evidence Against Distant Relatives – The prosecution's witnesses, including family members of the deceased, provided general allegations of dowry harassment but were not eyewitnesses to the incident – Post-mortem report indicated death due to burn injuries, but the court found no specific evidence linking Respondent Nos. 2 to 5 to the crime – The court noted the absence of the respondents at the scene, supported by documentary evidence of their residence elsewhere [Paras 12-16].

Legal Principle – Liability of Distant Relatives in Dowry Death Cases – Court relied on precedents including Kans Raj v. State of Bihar and Monju Roy v. State of West Bengal – Held that in-laws or distant relatives cannot be implicated solely based on proximity to the husband unless there is substantial proof of their involvement in the crime – Naming distant relatives in dowry death cases without concrete allegations risks diluting the prosecution’s case against the actual perpetrators [Paras 15-17].

Decision – Appeal Dismissed – Held – The High Court affirmed the trial court’s acquittal of Respondent Nos. 2 to 5, finding no merit in the appeal – It was determined that the prosecution failed to provide sufficient evidence of the respondents' role in the death of the deceased [Para 17].

Abetment of Suicide – Non-payment of Dues – Petitioners alleged to have abetted the suicide of the deceased by not paying outstanding amounts owed to him – The deceased committed suicide and named the petitioners in his suicide note – Held: Mere refusal to repay debts or non-payment of dues, without any overt act of instigation or intentional aiding, does not constitute abetment under Sections 306 and 107 IPC – Petitioners’ actions do not meet the legal threshold for abetment of suicide [Paras 8, 14, 17].

Proximate Link in Suicide Cases – For a charge under Section 306 IPC, there must be a proximate and live link between the act of the accused and the subsequent suicide – In this case, no such direct or intentional act on the part of the petitioners was established – The deceased's decision to commit suicide appeared to be based on his hypersensitive nature, not the actions of the petitioners [Paras 14, 17].

Quashing of FIR – Applicability of Bhajan Lal Guidelines – Applying the principles laid down in the Bhajan Lal case, the Court held that the FIR and all subsequent proceedings should be quashed – The allegations did not prima facie constitute an offence under Section 306 IPC – The case was an abuse of the process of law, as no direct instigation or culpable involvement of the petitioners was evident [Paras 16, 19].

Decision: FIR No. 357 dated 15/07/2023, registered under Sections 306 and 34 IPC, and all subsequent proceedings arising therefrom quashed – The petitioners were not found culpable of any offence under Sections 306 and 34 IPC [Paras 19-20].

Income Tax – Final Assessment Order – Draft Assessment Order Requirement – Petitioner contended that the final assessment order passed by the Assessing Officer (AO) was invalid as it was not preceded by a draft assessment order, violating Section 144C of the Income Tax Act, 1961 – Court held that the failure to issue a draft assessment order during remand proceedings as mandated by Section 144C rendered the final assessment order invalid – Assessment and demand notices quashed [Paras 1-6, 14].

Jurisdictional Error – Procedural Compliance – Court emphasized the mandatory nature of the procedural requirement under Section 144C, underscoring that any final assessment order passed without adherence to this process, particularly in remand cases, is legally untenable [Paras 4-5, 51-52].

Procedure under Section 144C – Scope of "In the First Instance" – The respondents argued that the expression "in the first instance" in Section 144C obviates the need for a draft assessment order upon remand – The Court rejected this argument, affirming that the draft order requirement is mandatory regardless of whether the proceedings are initiated anew due to remand by the Tribunal [Paras 14-16, 19-23].

Comparative Analysis – Section 144B vs. Section 144C – The Court found that Section 144C establishes a distinct and comprehensive assessment regime for eligible assessees, which differs fundamentally from the earlier Section 144B. Section 144C involves multiple levels of review and corrective mechanisms that are not merely procedural but essential to ensuring a fair assessment process [Paras 36-45].

Limitation and Remand – Statutory Period – The Court rejected the respondents' contention that the assessment could be remanded for fresh proceedings despite the lapse of the statutory period under Section 153. The Court held that extending the limitation period or condoning the delay in such cases would be impermissible [Paras 54-60].

Decision:
Writ Petition allowed. The impugned final assessment orders and consequent demand and penalty notices were quashed due to non-compliance with Section 144C. The petitioners were entitled to all consequential reliefs.