Criminal Law – Bail – Section 439 Cr.P.C. – Petitioner sought regular bail for being falsely implicated in the offense of possessing stolen mobile phones – Prosecution alleged that the petitioner was caught near an electricity pole with stolen mobile phones based on a secret informer’s tip – Held: The petitioner has been in custody for over 4 months, and no further recovery is pending – As per the principle of criminal jurisprudence, an individual is presumed innocent until proven guilty – Bail granted in light of prolonged detention and unlikelihood of early trial conclusion [Paras 3, 4, 5].

Presumption of Innocence – Article 21 of the Constitution – Court reiterated that the right to a speedy trial is an integral part of the fundamental right under Article 21 – Petitioner has already suffered incarceration for a significant period, and delaying bail would violate this constitutional right – Held: Bail should be the rule, and imprisonment the exception, unless there are compelling reasons to deny liberty [Paras 4, 5].

Previous Criminal Record – Relevance to Bail – The State opposed the bail on the ground that the petitioner was involved in nine other criminal cases – Held: Pendency of other cases cannot automatically preclude bail in the present case, as each case must be judged on its merits – The petitioner's criminal history will be considered during the trial, but it cannot be the sole ground to deny bail at this stage [Para 4].

Decision: Bail granted – Petitioner to be released on regular bail upon furnishing requisite surety and bail bonds to the satisfaction of the trial court – The trial court to ensure compliance with bail conditions – Nothing in this judgment should be construed as an opinion on the merits of the case [Para 5].

Civil Procedure – Application for Rejection of Plaint – Order VII Rule 11 CPC – Petitioners (defendants) filed an application seeking rejection of the plaint on the ground that the plaintiff (respondent) had not affixed ad valorem court fee on the value of the suit property – The plaintiff sought a declaration that the sale deed and transfer deed executed in favor of the petitioners were null and void due to fraud – Held: The trial court correctly dismissed the application as the plaintiff, being a non-executant of the deed, is not required to affix ad valorem court fee as per the law laid down in Suhrid Singh @ Sardool Singh v. Randhir Singh [2010(12) SCC 112] – Application dismissed [Paras 6-7].

Court Fee – Declaration and Injunction Suits – The plaintiff alleged fraud and misrepresentation in the execution of the sale deed and sought to declare it void – As the plaintiff was not the executant of the sale deed and was in possession of the property, a fixed court fee under Article 17(iii) of the Second Schedule was applicable – Held: The plaintiff is not required to affix ad valorem court fee as she did not seek possession of the property, only a declaration [Paras 6-8].

Fraud Allegation – Non-Executant of Sale Deed – The plaintiff claimed to have paid the sale consideration but the sale deed was executed in the petitioners' name – Held: As a non-executant, the plaintiff is entitled to seek a declaration of nullity without affixing ad valorem court fee, provided she is in possession of the property [Para 7].

Decision:

Revision petition dismissed – The trial court's order dated 24.11.2023 is upheld – The plaintiff is not required to affix ad valorem court fee on the market value of the property – Pending applications, if any, are disposed of [Paras 8-9].

Criminal Conspiracy – Section 120B IPC – Insufficient Proof of Conspiracy – The trial court convicted the appellants under Section 120B IPC for criminal conspiracy to wage war against the Government of India – The High Court set aside the conviction, holding that the prosecution failed to establish sufficient independent evidence proving a conspiracy beyond the accused's alleged association during imprisonment – The court ruled that the evidence based on the telephonic conversations and the accused’s jail meetings was not adequate to confirm the conspiracy [Paras 17-27].

Illegal Possession of Firearms – Section 25 & 26 Arms Act – Conviction Partly Upheld – The recovery of a 0.32 caliber revolver and ammunition from Accused No. 1 (Syed Abdul Rehaman) was confirmed, supporting the conviction under Sections 25 and 26 of the Arms Act – The High Court reduced the sentence under Section 25 from 7 years to 3 years, considering that the act fell under Section 25(1B) rather than the harsher penalties initially imposed [Paras 31-35].

Explosive Substances – Sections 4 & 5 Explosive Substances Act – Conviction Sustained – The High Court affirmed the conviction of Accused No. 1 for possession of explosive materials, including ammonium nitrate and gel explosives, recovered from a hidden location – The court concluded that the accused had control over the materials and intended to use them for unlawful purposes, justifying the conviction under Sections 4 and 5 of the Explosive Substances Act [Paras 32-33].

Acquittal of Co-Accused – Accused Nos. 2 and 3 Acquitted – The High Court found no credible evidence connecting Accused Nos. 2 and 3 to the conspiracy or possession of illegal arms or explosives – Their alleged involvement was based on inadmissible confessions and circumstantial evidence, which the court deemed insufficient for conviction – Both accused were acquitted of all charges [Paras 34-35].

Decision:

The appeal by Accused No. 1 (Syed Abdul Rehaman) was allowed in part – His conviction under Sections 120B and 122 of IPC, Sections 13, 17, 18, and 18B of UAPA, and Section 6 of the Explosive Substances Act was set aside – His conviction under Sections 25 and 26 of the Arms Act, and Sections 4 and 5 of the Explosive Substances Act was upheld with a reduced sentence under Section 25 of the Arms Act – Accused Nos. 2 and 3 were acquitted of all charges and were ordered to be released – Accused No. 2, a Pakistani national, was ordered to be deported to Pakistan after his release [Paras 34-37].

Land Acquisition – Continuation of Proceedings under Repealed Act – No Error in Award - The appellants contested the land acquisition proceedings under the repealed Jammu and Kashmir Land Acquisition Act, 1990, claiming that the Right to Fair Compensation and Transparency in Land Acquisition Act, 2013 should have applied. The court upheld the validity of the proceedings, stating that the Supreme Court’s decision in Bharat Petroleum Corporation Ltd. vs. Nisar Ahmed Ganai clarified that the provisions of the 2013 Act do not apply to acquisitions initiated under the 1990 Act. [Paras 9-10].

Per Incuriam Doctrine – Application to Supreme Court Judgment – Not Established - The appellants argued that the judgment in Nisar Ahmed Ganai was per incuriam, as it failed to consider certain provisions of the Jammu and Kashmir Reorganization (Removal of Difficulties) Order, 2019. The court rejected this argument, emphasizing that the Supreme Court had addressed all relevant provisions, and its ruling remained binding under Article 141 of the Constitution. [Paras 10-14].

Final Decision: The appeal was dismissed, and the court found no merit in the challenge to the writ court's decision. [Para 14].

Vicarious Liability – Section 141 of the NI Act – Quashing of Proceedings – Petition Allowed – The petitioners, wives of the directors of M/s RBT Pvt. Ltd., were summoned for the dishonour of cheques issued by the company. They sought quashing of the complaint on the grounds that they were merely described as managers without any specific averments of their role in the business's functioning. Held: For vicarious liability under Section 141, there must be clear averments regarding the specific role of the accused in the conduct of the company's business. In the absence of such averments, the complaint cannot be sustained. The petitions were allowed, and the summoning orders quashed [Paras 12-15, 19, 21].

Managerial Role – Insufficient Averments – Section 141 NI Act – The court emphasized that a person can only be held liable under Section 141 if they are in charge of and responsible for the company’s business. Merely being named as a manager or being related to the directors is not enough to establish liability. In this case, the complaint did not specify the petitioners' role or involvement in the day-to-day functioning of the company. As such, the complaint lacked sufficient details to invoke vicarious liability [Paras 13, 20-22].

Strict Interpretation of Penal Statutes – Vicarious Liability – The court reiterated the strict construction of penal provisions and vicarious liability under Section 141 of the NI Act. Summoning someone in a criminal case requires a clear link between the accused's actions and the offence. In this case, no direct involvement of the petitioners in the dishonour of cheques was established [Paras 17, 23-25].

Decision:

The petitions were allowed, and the summoning orders dated 26.05.2022 were quashed. The court found that the complaint lacked sufficient allegations to implicate the petitioners under Section 141 of the NI Act. No costs were imposed [Paras 26-28].

Arbitration – Extension of Arbitrator's Mandate – Dispute regarding compensation for land acquired under the National Highways Act, 1956 – Petitioner challenged the arbitral award from 2018 – Arbitrator's mandate expired due to delay in proceedings without obtaining an extension under Section 29-A of the Arbitration and Conciliation Act, 1996 – High Court noted repeated adjournments by the Arbitrator without valid reason – Held: Arbitrator directed to conclude proceedings by 25.03.2025, failing which mandate may be terminated – Petition allowed with directions to expedite the arbitration process [Paras 1-7].

Arbitration Proceedings – Compliance with Statutory Timelines – Court emphasized that statutory timelines under Sections 23(4) and 29-A of the Arbitration Act must be strictly adhered to – Arbitrator had a duty to complete proceedings within the prescribed time, and delays must be justified – Failure to follow the prescribed procedure resulted in the expiration of the Arbitrator's mandate, necessitating judicial intervention to extend the timeline [Paras 5-7].

Extension of Limitation – Supreme Court Precedent – Benefit of exclusion of the period from 15.03.2020 to 28.02.2022 due to the COVID-19 pandemic as per the Supreme Court’s direction in Cognizance for Extension of Limitation (2022) was applied – This exclusion granted the petitioner additional time to challenge the arbitral award and seek a remedy through the court [Paras 6-7].

Decision: Petition allowed – Arbitrator directed to complete proceedings by 25.03.2025 – Court warns Arbitrator of possible termination of mandate if further delays occur – Petition disposed of along with pending applications [Paras 7-9].

Absence of Prayer for Cancellation of Sale Deed – Not Fatal to Plaintiff’s Case – The defendant argued that the plaintiff’s failure to seek cancellation of the sale deed under Section 31 of the Specific Relief Act was fatal to the case – The Court held that the plaintiff’s prayer for declaration that the sale deed was executed as security was sufficient, and no specific prayer for cancellation was necessary since the plaintiff did not claim the deed was void or voidable – Held: The absence of a prayer for cancellation did not bar relief to the plaintiff [Paras 5-11].

Presumption of Validity of Registered Sale Deed – Rebutted by Evidence – Although a registered sale deed carries a presumption of validity, the plaintiff successfully proved that the sale deed was a sham transaction executed as security for a chitty payment – The defendant failed to prove that consideration was paid, or that the document was intended as an actual transfer of title – Held: The presumption of the validity of the sale deed was rebutted [Paras 12-14, 30].

Contradictory Defense by Defendant – Weakening of Credibility – The defendant claimed that he had rented out the property to the plaintiff's brother immediately after the sale but produced no credible evidence to support this – Additionally, the defendant’s statements in a related eviction suit contradicted his claims in the present case, further undermining his credibility – Held: Defendant’s inconsistent arguments and lack of evidence supported the plaintiff’s case [Paras 16-20].

Sham Document – Oral Evidence Admissible – Suit for Declaration Maintainable – The Court relied on the Supreme Court’s ruling that a party can prove that a document is a sham and not intended to be acted upon, using oral evidence – In this case, the plaintiff established that the sale deed was never meant to convey title but was only executed as security – Held: The suit for a declaration was maintainable without a prayer for re-conveyance [Paras 27-29].

Decision: Appeal dismissed – The sale deed was held to be a sham, and the plaintiff's suit for declaration was justified – No need for a reconveyance prayer – No costs awarded [Paras 31].

Civil Procedure – Appeal Dismissed on Grounds of Limitation – Article 227 of the Constitution – Petitioners challenged the dismissal of their appeal, which was filed 8 years and 8 months after the preliminary decree for partition – They argued that they were unaware of their legal rights and alleged fraud on part of the respondents – Held: The petitioners were aware of their legal remedies as they had previously filed applications under Order 9 Rule 13 CPC and objections in the execution proceedings – The plea of fraud was raised for the first time in appeal, and the delay was unjustified – Dismissal of appeal upheld [Paras 6-7].

Fraud Allegation – Raised for the First Time in Appeal – Petitioners argued that the partition decree was obtained by fraud and collusion between the respondents – However, no such plea was raised in their application under Order 9 Rule 13 CPC or during earlier proceedings – Held: The allegation of fraud was an afterthought and cannot be entertained at this stage [Para 6].

Delay and Laches – Appeal Filed After 8 Years and 8 Months – The appeal was filed with an application for condonation of delay, citing unawareness of legal remedies – Held: The petitioners actively participated in earlier proceedings and were aware of the decrees – The delay in filing the appeal is inordinate and unjustified [Paras 6-7].

Decision: The revision petition is dismissed – The First Appellate Court’s order dismissing the appeal on the ground of limitation is upheld – Pending applications, if any, are disposed of [Para 7].

Eviction Suit – Default in Payment of Rent – No Default Found - The appellant, a tenant, was accused of failing to pay rent for two consecutive months, October and November 2012. He contended that he had attempted to pay the rent in person and later sent it via money order, which the landlord refused. The appellate court found him to be in default; however, the High Court held that the refusal of rent by the landlord and the subsequent remittance through money order discharged the tenant's statutory obligation. – Held: The appellant was not in default of rent [Paras 4-6].

Bonafide Personal Necessity – Requirement for Office Space – Eviction Upheld - The plaintiff sought eviction on the grounds of personal necessity, claiming that the premises were needed for his son's Fly Ash Brick business. The High Court upheld the appellate court's finding that the need was genuine and that the premises were suitable for the business. – Held: The personal necessity of the plaintiffs was bonafide and justified the eviction [Paras 8-10].

Partial Eviction – Tenant's Burden of Proof – No Evidence Produced - The defendant argued that partial eviction would suffice to meet the plaintiffs' needs, but he failed to plead or provide any evidence to support this. – Held: The onus to prove partial eviction was on the tenant, which he failed to discharge [Paras 11-12].

Decision: The Second Appeal is dismissed. The eviction on the grounds of bonafide personal necessity is upheld, but no costs are awarded.