Narcotics Law – Quashing of FIR – Petition to quash FIR and arrest memo in narcotics case – Seizure of LSD and ganja gummies through controlled delivery – Petitioner claimed possession for self-consumption, disputing invocation of Sections 22(c) and 28 of NDPS Act – Court found prima facie case and upheld investigation citing proper procedure and pending qualitative and quantitative analysis [Paras 1-34].

Commercial Quantity – Definition and Interpretation – Dispute over LSD quantity as small or commercial – Court emphasized importance of forensic analysis for determining drug content – Rejected argument based on assumptions of drug quantity per blotter paper – Followed Supreme Court precedents affirming consideration of total weight including carrier material for commercial quantity assessment [Paras 8-26].

Judicial Restraint – Interference in Investigation – Reiterated principles for limited exercise of power under Section 482 Cr.P.C. – Emphasized need for thorough investigation before final judicial determination – Petition dismissed to allow due process [Paras 27-34].

Decision:

Petition dismissed – Court upheld ongoing investigation and rejected petitioner's claims due to substantial material indicating commercial quantity of LSD and ganja gummies.

Income Tax – Charitable Purpose – Educational Activities – Assessee, NIIT Foundation, a society registered under the Societies Registration Act and granted registration under Section 12A of the Income Tax Act, engaged in educational and skill development activities for underprivileged youth – Revenue challenged tax-exempt status, claiming activities were commercial – Tribunal set aside CIT€’s order under Section 263 – Delhi High Court upheld Tribunal’s decision – Emphasized systematic instruction and training as “education” under Section 2(15) – Activities aligned with the charitable purpose of education – Appeal dismissed [Paras 1-20].

Application of Section 263 – Scope and Validity – High Court found that CIT€ exceeded jurisdiction under Section 263 – Original assessment order by AO after thorough scrutiny justified – CIT€’s conclusion of activities being commercial based on TDS and service tax deductions was flawed – Revenue’s failure to demonstrate any specific error or prejudice in AO’s assessment [Paras 21-35].

Procedural Compliance – Enquiry and Verification – AO had conducted detailed verification of NIIT Foundation’s activities, compliance with regulatory requirements, and documentation of charitable educational programs – High Court emphasized importance of procedural fairness and adequate enquiry by CIT€ under Section 263 [Paras 36-48].

Decision: Appeal dismissed – Tribunal’s order upheld – NIIT Foundation’s activities recognized as charitable educational activities under Section 2(15) – Directions for Revenue to grant exemption under Sections 11 and 12 of the Income Tax Act [Para 49].
 

Criminal Procedure – Bail – Section 326A IPC – Appellant accused of throwing acid on his wife during a matrimonial dispute – Injuries confirmed to be erythema with no burn injuries or loss of vision – Petitioner in judicial custody for 80 days – Investigation complete – Bail granted with stringent conditions [Paras 1-10].

Judicial Discretion – Bail Principles – Reference to Sanjay Chandra v. CBI and Dataram Singh v. State of U.P. – Emphasis on presumption of innocence and principle that bail is the rule, jail is the exception – Consideration of Article 21 of the Constitution [Paras 7-9].

Conditions of Bail – Directed to appear before Investigating Officer periodically – Restrictions on travel and contact with witnesses – Surrender of passport – Provision for cancellation of bail upon violation of conditions [Para 10].

Decision: Bail granted – Conditions imposed for periodic reporting to Investigating Officer, restrictions on travel, surrender of passport, and non-tampering of evidence.
 

Criminal Law – Anticipatory Bail – Fraud and Misappropriation: Petitioners accused of fraudulently securing a loan amounting to Rs.30,00,000/- using documents without the knowledge or consent of the defacto complainant’s husband – Petitioners sought anticipatory bail – Court emphasized necessity of custodial interrogation for thorough investigation – Bail denied considering gravity of allegations and potential impact on investigation [Paras 1-19].

Burden of Proof and Custodial Interrogation: Petitioners contended their innocence and improper framing of charges under Section 409 IPC – Court noted ongoing investigation and necessity for custodial interrogation to uncover material information – Pre-arrest bail considered inappropriate at this stage [Paras 6-16].

Grant of Anticipatory Bail – Exceptional Circumstances: Court reiterated that anticipatory bail should only be granted in exceptional circumstances where misuse of liberty is unlikely – Emphasized potential threats to witnesses and importance of detailed investigation [Paras 8-15].

Decision: Criminal petition dismissed – No relief of anticipatory bail granted – Court allowed for investigation to proceed without pre-arrest bail protections potentially hindering interrogation [Paras 17-19].

Bail – Cancellation – Grounds for Revocation – Accused granted bail for offences under IPC, IT Act, and POCSO Act – Subsequent complaint by victim’s mother alleging threats and pressure to withdraw the case – Special Court canceled bail for violation of conditions – High Court upheld the cancellation, emphasizing that interference with witnesses and threats are valid grounds for revocation [Paras 1-10].

Legal Standards for Cancellation – Established parameters for bail cancellation include misuse of liberty, interference with the investigation, and attempts to intimidate witnesses – Detailed examination of legal precedents upholding these principles – High Court confirmed that violation of any bail condition warrants revocation [Paras 8-13].

Detailed Case Analysis – Review of records showed prima facie evidence supporting allegations of threats by the accused – Court noted the importance of examining supervening circumstances and conduct of the accused post-grant of bail – Affirmed the necessity for courts to carefully consider allegations and protect the integrity of the judicial process [Paras 7-14].

Decision: Petition dismissed – Bail cancellation order upheld – Directions issued for immediate surrender of the petitioner, failing which coercive steps to be taken for arrest and detention [Paras 9-11].

Criminal Contempt – Unruly Behavior by Advocates – Members of the Kottayam Bar Association were found guilty of criminal contempt for disrupting court proceedings, shouting slogans, and hurling abusive remarks at the Chief Judicial Magistrate in Kottayam. The court emphasized the seriousness of such behavior, which interfered with the administration of justice and tended to lower the authority of the court. The apologies submitted by the respondents were deemed insufficient by the court [Paras 1-4].

Acceptance of Apology – Conditional Service – Despite the respondents’ unconditional apologies conforming to Rule 14(a) of the Contempt of Courts (High Court of Kerala) Rules, the court decided not to discharge them solely based on their apologies. Instead, the court mandated that the respondents provide free legal aid to the poor and needy for six months as a form of purging the contempt [Paras 4-6].

Order – Conditional Discharge – The court ordered the respondents to render their services to the District Legal Services Authority, Kottayam, for six months, while allowing them to continue their legal practice. The Secretary of the District Legal Services Authority was tasked with assigning legal aid work to the respondents and submitting a report on their performance at the end of the six-month period [Para 6].

Decision: Apologies accepted conditionally – Respondents to provide free legal aid for six months. The court retains the right to monitor compliance through reports from the District Legal Services Authority, Kottayam.
 

Octroi Duty – Valuation Methodology – Petitioner challenges the levy of octroi based on MRP less ad hoc deductions as per Rule 2(7)(b) of Octroi Rules, 1965 – Argument that determination should be based on invoice value under Rule 2(7)(a) – Court finds Petitioner's protest against levy from 2001 and subsequent Small Causes Court appeals favoring Petitioner’s contentions – However, Petitioner's failure to protest from 1995 to 2001 without any reservation weakens the claim for retrospective relief – Relief sought for refund considered unjust enrichment due to burden likely passed to consumers – Petition dismissed but leaves open issues of law for future determinations [Paras 1-42].

Unjust Enrichment – Equity Considerations – Constitutional Bench precedents cited against refund of taxes or duties passed on to consumers – Principle applied to deny refund to Petitioner despite possible misapplication of valuation rules – Court emphasizes that equity prevents recovery of such refunds when it leads to unjust enrichment of the claimant [Paras 32-39].

Decision:

Petition dismissed – Rule discharged – Issues of law regarding valuation under clauses (a) or (b) of Rule 2(7) kept open for case-by-case determination – Interim relief vacated due to GST subsumption of octroi – No order as to costs [Paras 40-42].

Will – Proof and Validity – Dispute over property between mother-in-law and daughter-in-law – Appellant claimed exclusive ownership based on a Will executed by the deceased son – Respondent contested the Will as forged – Trial Court and First Appellate Court found the Will shrouded in suspicious circumstances – Scribe of the Will was a milkman with minimal education, and witnesses were closely related to the appellant, raising doubts – The Will was not produced for two years after the death of the testator – Both Courts rejected the Will and dismissed the appellant's suit – Appeal dismissed [Paras 1-10].

Suspicious Circumstances – Court found multiple suspicious circumstances surrounding the Will – Non-registration of the Will, delayed production, and the exclusion of the respondent (wife) from the estate despite a love marriage with the deceased were key factors – The appellant failed to dispel these suspicions or prove the Will as the last valid testament of the deceased [Paras 7-9].

Legal Principles – Reiterated that in cases where a Will is surrounded by suspicion, the onus is on the propounder to remove all doubts – Cited principles from Supreme Court judgments emphasizing the heavy burden on the propounder to prove the validity of a Will in the presence of suspicious circumstances [Paras 8-9].

Decision:

Appeal dismissed. The Court found no substantial question of law requiring its determination, and upheld the judgments of the Trial Court and First Appellate Court, dismissing the appellant’s claim to the property.

Service Law – Regularization and Seniority – Petitioners’ initial appointments on a contractual basis – Claimed regularization from the date of initial appointment and counting of contract service period towards seniority – High Court held that initial appointments were valid, and petitioners were entitled to have their contract service counted towards seniority and other benefits – Orders rejecting such claims were quashed [Paras 1-50].

Recruitment Rules – Statutory Interpretation – 1997 Rules did not bar contract appointments and did not specify the Public Service Commission as the recruiting agency – Regularization under 2004 Rules valid – Petitioners’ continuous service entitled them to seniority from initial appointments [Paras 27-38].

Doctrine of Acquiescence – State’s regularization of petitioners under 2004 Rules deemed acceptance of valid initial appointments – Petitioners not estopped from claiming seniority and other service benefits [Para 34].

Necessary Parties – Non-joinder – Petition maintained despite non-joinder of all affected parties – Private respondents adequately represented interests of others in the cadre – Procedural objections overruled [Paras 41-45].

Decision: Writ Petition Allowed – Impugned orders quashed – Directed to consider contract service period for seniority and related benefits – Arrears to be paid within eight weeks [Paras 49-50].