Predicate Offence and PMLA Proceedings – Stay Request – Petitioner's pending appeal against conviction under the PC Act – Court holds no merit in argument to stay PMLA proceedings as conviction stands unless stayed by appellate court – Continued proceedings justified [Paras 18-20].

Proceeds of Crime – Definition and Existence – Argument that no 'proceeds of crime' exist as required under PMLA – Court defers to trial for determination – Special Court's cognizance and charge framing upheld [Paras 21-22].

Retrospective Application of PMLA – Contention of impermissible retrospective application pending higher court decisions – Court relies on Supreme Court's judgment permitting continuing application of PMLA provisions to past offences – No stay on current proceedings warranted [Paras 23-24].

Double Jeopardy Argument – Simultaneous prosecution under PC Act and PMLA – Court rejects argument, distinguishing between independent offences and elements of each statute – Continuation of PMLA proceedings upheld [Paras 25-27].

Decision – Applications Dismissed – Held – No grounds for staying trial court proceedings under PMLA – Petitioner's liberty to raise issues during trial preserved [Paras 28-29].

Motor Accident Claims – Quantum of Compensation – Appeals against Tribunal’s award for accident resulting in deaths and injuries during a pilgrimage walk – Tribunal found rash and negligent driving by the offending vehicle – Compensation enhanced for pain, suffering, medical expenses, and other heads – Dependency claims considered but adjusted for the actual age of the deceased – Application of the precedent for major earning legal representatives – Orders for deposition of enhanced compensation with interest [Paras 1-14].

Enhanced Compensation – Pain and Suffering – Tribunal’s award for pain and suffering, medical expenses, and other compensatory heads deemed insufficient – Appellate court recalculates and enhances compensation – Recognition of hospitalization, medical procedures, and duration of treatment – Comprehensive breakdown and reallocation of compensation heads [Paras 9-12].

Dependency and Legal Representatives – Assessment of Deceased’s Age and Dependency – Tribunal’s assumption on age and dependency of deceased adjusted – Legal precedents affirming entitlement of major and earning children as legal representatives for compensation – Tribunal’s approach critiqued and corrected for equitable compensation [Paras 11-12].

Decision:

Appeals Partly Allowed – Compensation Enhanced – The second respondent insurance company is directed to deposit the enhanced compensation, less the amount already deposited, with interest at 7.5% p.a. from the date of claim petition till deposit within four weeks. Enhanced compensation not entitled to interest for a specific delayed period. Deficit court fee to be paid by appellants if not already paid [Para 14].

Criminal Law – Conviction and Sentence – Evidence Assessment – Witness Credibility – Fardbeyan Credibility – Conviction for murder based on conflicting witness testimonies – High Court scrutinized witness statements and police procedures – Hostile witness evidence partially relied upon – Inconsistencies in prosecution case led to benefit of doubt – Convictions and sentences set aside due to reasonable doubt [Paras 1-49].

Witness Testimony – Reliability and Hostility – Sole eyewitness testimony by Pardeep Kumar (PW3) was supported by Urmila Devi (PW5) and Kusum Devi (PW7) – PW5A (Dhuri Mahto) declared hostile, his initial statement partially corroborated prosecution case – Other witnesses’ credibility questioned due to contradictions – High Court emphasized caution in accepting testimony of witnesses related to the deceased – Discrepancies noted in the positioning of signatures on fardbeyan and witness proximity to the deceased during the incident [Paras 10-13, 18-22, 25-27].

Inquest and Post-Mortem Reports – Procedural Gaps – Issues in the recording of fardbeyan and positioning of signatures raised suspicion – Post-mortem confirmed homicidal death but raised questions about assailant’s identity and shooting distance – No blackening or charring near the wound despite claim of close-range shooting – Absence of forensic examination of seized items weakened prosecution case – The investigator’s delayed visit to the crime scene and failure to examine key neighbors further compromised the investigation [Paras 39-41].

Hostile Witness – Legal Precedents – Hostile witness evidence can be relied upon if consistent with the prosecution’s case – Reference to Supreme Court rulings on handling hostile witnesses and assessing their testimony for corroborative value – Hostile witness (Dhuri Mahto) testified signing a blank paper and hearing deceased naming a different assailant (Chhotu) – High Court referenced precedents including Khuji @ Surendra Tiwari vs. State of Madhya Pradesh and others [Paras 19-23].

Benefit of Doubt – Contradictions and Lack of Evidence – Multiple contradictions in witness statements regarding presence and actions during the incident – No documentary evidence supporting land dispute motive – Lack of injury to other alleged eyewitnesses despite close proximity to the deceased – Doubts about prosecution’s narrative led to acquittal of all appellants [Paras 43-46].

Decision – Convictions Set Aside – Benefit of Doubt – High Court set aside convictions and sentences due to reasonable doubt – Appellants acquitted – Arvind Kumar @ Mathura Prasad directed to be released if not detained in any other case; Ranjit Kumar and Manjit Kumar discharged from bail liabilities [Paras 44-49].
 

Civil Law – Recovery of Money – Suit for recovery of ₹3,39,101/- – Commercial Court dismissed the suit – Appellant claims services rendered, respondent disputes cash payments – Held, respondent failed to establish cash payments – No credible evidence supporting cash payments – Appellant’s appeal allowed – Judgment and decree set aside – Respondent liable for principal amount and interest [Paras 1-36]. 

Evidence Law – Burden of Proof – Defendant’s burden to prove cash payments – No receipt or acknowledgment from appellant – Defendant’s testimony not supported by corroborative evidence – Court found testimony self-serving and unsubstantiated [Paras 24-33]. 

Interest on Due Amount – Appellant entitled to interest at 18% per annum on the outstanding amount from the date of legal notice till the institution of the suit – Further interest at 12% per annum from the date of institution till realization – Costs awarded to appellant [Paras 34-37]. 

Decision:   Appeal allowed – Judgment and decree by the Commercial Court set aside – Appellant entitled to recover ₹3,39,101/- with interest as specified – Costs awarded to appellant. 

Criminal Law – Summoning Order – Validity – Petition to quash summoning order for offences including fraud and conspiracy – Accused alleged to have falsely claimed educational qualifications to contest elections – Court found prima facie evidence supporting allegations – Magistrate’s procedure in conducting police investigation and recording preliminary evidence deemed appropriate despite procedural anomalies – Summoning order upheld [Paras 1-11].

Election Fraud – Educational Qualification – Allegations of presenting false educational certificates to meet election eligibility criteria – Complainant obtained information via RTI showing discrepancies in accused’s educational records – Civil court already set aside election on similar grounds – Criminal proceedings based on prima facie evidence of fraud and conspiracy sustained [Paras 2.1-2.7, 10].

Procedural Compliance – Section 202 Cr.P.C. – Examination of complainant and witnesses – Requirement of police investigation due to out-of-jurisdiction accused – Magistrate’s actions within permissible scope, retaining control over investigation and enquiry phases – No prejudice against accused established – Summoning order found legally valid [Paras 3-9].

Decision: Petition dismissed – Summoning order and criminal proceedings sustained – Court emphasized that at summoning stage, only prima facie case needs to be established, not final determination of guilt or innocence [Paras 10-11].

Criminal Law – Abetment of Suicide – Framing of Charges – Section 306 IPC – Allegations based on suicide note – Deceased allegedly committed suicide due to non-repayment of loan by petitioner – Suicide note does not indicate instigation or intent to abet suicide by petitioner – Mere refusal to repay loan insufficient to constitute abetment – Insufficient material to frame charges under Section 306 IPC – Order framing charges set aside – Petitioner discharged [Paras 1-37].

Evidence Law – Suicide Note – Role in Framing Charges – Suicide note alleging harassment due to unpaid loan – Forensic report inconclusive on handwriting – No direct or indirect evidence of instigation or intent to abet suicide – Charge under Section 306 IPC requires clear instigation or aiding of suicide [Paras 19-30].

Legal Principles – Framing of Charges – Judicial Review – Section 227 Cr.P.C. – Court’s duty to sift and weigh evidence to determine prima facie case – Charges should not be framed on suspicion alone – Application of principles from Prafulla Kumar Samal and Kanchan Kumar cases [Paras 31-34].

Decision: Petition allowed – Order framing charges under Section 306 IPC set aside – Petitioner discharged in the criminal case arising out of FIR No. 355/2020.
 

Insolvency and Bankruptcy – Recovery Proceedings Against Personal Guarantors – Petitioners, personal guarantors of term loans and working capital facilities granted to M/s Asian Colour Coated Ispat Limited (ACCIL), challenged the recovery actions initiated by respondents post-approval of a resolution plan by the National Company Law Tribunal (NCLT). The main contention was that with the assignment of the principal borrower's debt and issuance of No Due Certificates, no liability remained against the petitioners​​.

Assignment of Debt and Personal Guarantees – Petitioners argued that the assignment of debt to M/s Hasaud Steel Limited and the issuance of No Due Certificates to the principal borrower extinguished their liability as guarantors. They contended that only the assignee of the debt could enforce the personal guarantees​​.

Excluded Rights in Resolution Plan – The resolution plan approved by the NCLT included provisions for "excluded rights" that allowed financial creditors to pursue legal remedies against personal guarantors. The NCLAT upheld the financial creditors' rights to proceed against the guarantors, stating that such rights were explicitly safeguarded in the resolution plan​​.

Supreme Court's Affirmation – The Supreme Court dismissed the appeals against the NCLAT's decision, affirming the financial creditors' rights to recover from the personal guarantors despite the approval of the resolution plan and assignment of debt​​.

Decision: The court dismissed the writ petitions, holding that the financial creditors retained the right to pursue recovery actions against the petitioners as personal guarantors. The petitioners' claims were found to be without merit in light of the comprehensive framework of the IBC and the specific provisions of the resolution plan​​.

Income Tax – Registration of Charitable Trust – Appeal against ITAT Order – Respondent trust’s registration under Section 12AA cancelled by Commissioner of Income Tax (Exemption) (CIT€) due to non-commencement of activities – ITAT set aside the cancellation, holding that activities need not commence for registration eligibility – High Court upheld ITAT’s decision, referencing precedents that registration can be granted based on proposed activities aligning with charitable objectives [Paras 1-13].

Procedure for Registration under Section 12AA – Requirements – High Court held that CIT€ must assess the genuineness of trust’s objects and proposed activities – Non-commencement of activities alone not a ground for refusal – Cited cases include Ananda Social and Educational Trust vs. CIT (2020) and Director of Income Tax vs. Foundation of Ophthalmic & Optometry Research Education Centre (2013) affirming registration eligibility based on objectives [Paras 5-12].

Decision – Appeal Dismissed – High Court found no merit in the revenue’s appeal, affirmed ITAT’s order – Held that the CIT€ improperly refused registration based solely on non-commencement of activities without doubting the genuineness of charitable objectives [Para 13].

SARFAESI Act – Agricultural Land Exemption – Writ Jurisdiction: Petitioner challenged the initiation of SARFAESI Act proceedings against its agricultural land, arguing that such land is exempt under Section 31(i) of the Act. The High Court reiterated that the classification of land in revenue records alone does not determine its status under SARFAESI; actual use and intention of the parties are crucial. The court emphasized that such determinations are within the jurisdiction of the appropriate tribunal and not for writ courts unless exceptional circumstances exist [Paras 1-9].

SARFAESI Act – Alternative Remedy – OTS Proposal: High Court dismissed the petition, stressing the availability of statutory remedies under SARFAESI Act. The court noted the petitioner's request for a new OTS did not warrant interference in SARFAESI proceedings. It reaffirmed the principle that borrowers do not have a vested right to an OTS, citing the Supreme Court’s precedent [Paras 10-12].

Decision: Writ petition dismissed - Petitioner directed to pursue remedies under SARFAESI Act. The court allowed for the possibility of a mutually acceptable settlement between the parties, clarifying no opinion on the merits [Paras 13-14].