IBBI Disciplinary Action – Suspension of Registration – Charges Against Petitioner – Multiple Allegations Including Influencing Valuers, Non-Refundable Fees, Appointment of Unregistered Valuers, Excess Fees to Related Entity – Disciplinary Committee Found Petitioner Guilty on Several Charges – Petitioner Contended No Violation of Regulations [Paras 1-14].

Non-Refundable Participation Fee – No Violation Found – Fees Imposed Before Relevant Provisions Came into Force – Court Held Petitioner Not Guilty of Misconduct for Imposing Non-Refundable Fees as Deterrence to Non-Serious Bidders [Paras 6-8].

Appointment of Unregistered Valuers – Minor Irregularity – Valuation Done by Registered Valuers in Individual Capacity Despite Bills in Firm’s Name – No Serious Misconduct Found [Paras 9-11].

Excess Fees to Related Entity – Misconduct Found – Petitioner’s Firm Paid More Than Liquidator – Attempt to Circumvent Fee Regulations – Petitioner’s Actions Contrary to Liquidation Process Intent [Paras 12-16].

Decision:
Petition Partially Allowed – The court upheld the Disciplinary Committee’s finding on the charge of excess fees to a related entity and misconduct. However, due to the petitioner already serving 20 months of suspension, the court modified the suspension to the period already undergone. The petition was disposed of with this modification.
 

Criminal Law – Quashing of FIR – FIR registered against petitioner for alleged misuse of machinery instead of manual labor under MGNREGA scheme – Petitioner retired and no charge-sheet filed till date – High Court quashes FIR based on Rule 9(3) of Pension Rules, 1976, which prohibits judicial proceedings after four years from cause of action – Departmental enquiry cleared petitioner of wrongdoing – FIR found to constitute an irregularity, not illegality [Paras 1-14].

Pension Rules, 1976 – Rule 9(3) – Application to Retired Government Servant – Judicial proceedings not initiated within stipulated time frame – High Court interprets ‘judicial proceeding’ as commencing with filing of charge-sheet – Provisions of Pension Rules, 1976 applied to quash FIR registered after permissible period [Paras 4-11].

Departmental Enquiry – Clean Chit – Impact on Criminal Proceedings – Petitioner given clean chit in departmental enquiry – High Court considers this significant in quashing criminal proceedings [Paras 6, 8].

Decision: Petition allowed – FIR registered at Crime No. 116 of 2014 and subsequent proceedings quashed – Petition disposed of with no costs [Paras 14-15].

Corruption Law – Quashing of FIR – Petitioners sought quashing of FIR for disproportionate assets – Allegations against petitioner No.1 of acquiring assets disproportionate to known sources of income – Preliminary enquiry not mandatory in all corruption cases – FIR upheld despite lack of preliminary enquiry – Supreme Court precedents on preliminary enquiry and FIR registration discussed – Petition dismissed [Paras 1-27].

Preliminary Enquiry – Requirement and Scope – Preliminary enquiry not always required before FIR in corruption cases – Sufficient material in source report justifying FIR registration – Petitioners argued lack of preliminary enquiry and challenged asset valuation – Court found source report detailed and prima facie case made out – Cites multiple Supreme Court judgments affirming FIR registration without preliminary enquiry [Paras 4-20].

Disproportionate Assets – Burden of Proof – Accused’s burden to explain disproportionate assets – Court emphasized investigating officer’s role limited to collecting evidence – Held preliminary enquiry not mandatory in all cases of disproportionate assets – Investigation and evidence evaluation to occur during trial, not at FIR stage [Paras 18-24].

Decision:

Petition dismissed – Court found FIR and subsequent investigation justified based on substantial material evidencing disproportionate assets – Preliminary enquiry deemed non-mandatory under current legal standards.

Examinations – Judicial Review – Appellants contested the accuracy of the CGLE 2023 answer key and sought re-evaluation – High Court emphasized limited judicial review scope in academic matters – Courts generally refrain from interfering with expert evaluation unless there's a glaring error or violation of natural justice – Appeals dismissed as no exceptional circumstances or manifest errors were found [Paras 14-27].

Answer Key – Expert Evaluation – Answer keys prepared by subject matter experts presumed correct unless proven otherwise – Appellants failed to demonstrate errors that warrant judicial intervention – Courts should avoid substituting their judgment for that of academic experts – Reliance placed on multiple Supreme Court judgments affirming limited scope for revaluation unless explicitly provided by examination rules [Paras 18-22].

Decision:

Appeal dismissed – No interference warranted with the Single Judge's decision or the SSC’s answer key – Pending applications disposed of – No orders as to costs [Paras 28-32].

Family Law – Transfer of Matrimonial Proceedings – Petitioner-wife sought transfer of husband's divorce petition for convenience and effective prosecution – Related criminal and maintenance cases filed by wife pending in Raibag – Respondent-husband opposed citing inconvenience due to work location – Court ordered transfer considering wife's existing cases and statutory provisions for jurisdiction [Paras 1-7].

Jurisdiction – Section 19 of Hindu Marriage Act – Petition for divorce to be filed within jurisdiction where respondent resides at petition presentation – Petitioner's prior cases in Raibag and husband's attendance considered for convenience – Court supported effective prosecution by transferring divorce proceedings [Paras 6-7].

Decision:

Petition allowed – Divorce proceedings transferred from Family Court, Dharwad to Senior Civil Judge and JMFC, Raibag.

Recreational Activities – License Requirement – Petitioner club sought exemption from licensing for skill games like chess, rummy, and carom – Court directed installation of CCTV cameras and issuance of identity cards to members – Emphasized compliance with statutory regulations and prevention of unlawful activities – Petition disposed of with conditions to ensure lawful conduct and periodic police monitoring [Paras 1-9].

Judicial Precedent – Applicability of Previous Ruling – Referred to Division Bench decision in W.A.No.728/2020 concerning similar issues – Ensured consistent application of judicial principles regarding recreational club regulations and police oversight [Para 4].

Decision: Petition disposed of with specific conditions:

• Installation of CCTV cameras at access points and gaming areas within six weeks.
• Issuance of identity cards to members.
• No non-members or guests allowed to use premises for games.
• Prohibition on games of chance and gambling.
• Jurisdictional police permitted periodic inspections and action against unlawful activities.

Precautions against COVID-19 to be followed during recreational activities

Motor Vehicle Accident – Fitness Certificate and Insurance Liability – The appellants, owner and driver of the offending vehicle, contested the Motor Accident Claims Tribunal's decision to exonerate the insurance company from liability to pay compensation. The Court examined the legal requirements for a valid fitness certificate under Sections 39 and 56 of the Motor Vehicles Act. The absence of a fitness certificate on the date of the accident was deemed a fundamental breach of the insurance policy terms, justifying the insurance company's exoneration​​.

Legal Precedents – Applicability – The Court referred to previous judgments, including United India Insurance Company Ltd. v. Vinod and Others and The Oriental Insurance Company Ltd. v. Smt. Asha and Others, confirming that the absence of a fitness certificate constitutes a breach of the insurance policy, thereby exonerating the insurer from liability. The principle established in these cases was applied, rejecting the appellants' reliance on contrary precedents​​.

Insurance Policy Conditions – Interpretation – It was argued that the insurance policy did not explicitly mention the necessity of a valid fitness certificate. The Court clarified that compliance with legal requirements, such as maintaining a valid fitness certificate, is implicitly necessary for the insurance policy to be effective. The absence of such compliance constitutes a valid ground for the insurer's exoneration​​.

Decision:

The appeals were dismissed. The Court upheld the Tribunal's decision to exonerate the insurance company from liability to pay compensation due to the absence of a valid fitness certificate for the offending vehicle at the time of the accident. The principle of "pay and recover" applied by the Tribunal was affirmed​​.

Reassessment Action – Validity – Search Case – Petitioner Challenged Notice for AY 2013-14 Issued Post Search – Court Examined Timeframes Under Section 149(1) and 153C – First Proviso to Section 149(1) Requires Consideration of Pre-2021 Timelines – Reassessment Notice Held Beyond Limitation Period [Paras 1-13].

Block Period Computation – Section 153C – Legal Fiction Introduced by First Proviso to Section 153C – Six or Ten Year Block Period for Non-Searched Entity to be Computed from Handover of Material – AY 2013-14 Found Beyond Ten Year Block Period [Paras 10-19].

Legal Precedents – Interpretation of Relevant Assessment Year – Court Relied on Previous Judgments in Filatex India Ltd. and Ojjus Medicare Pvt. Ltd. – First Proviso to Section 149(1) Reaffirmed [Paras 3-11].

Decision: Petition Allowed – The court quashed the impugned notice dated 30 March 2023 and all consequential actions for being issued beyond the limitation period as per Section 149 read with Section 153C of the Income Tax Act. The court did not address the prayer regarding the reading down of Explanation 2(iv) to Section 148, as it is being considered in a separate case
 

Partition – Suit for Partition and Injunction – Plaintiff sought partition of two properties and an injunction against defendants from creating third-party interests – Properties were inherited from parents who died intestate – Defendant No. 1 proceeded ex-parte – Settlement reached among remaining parties for the sale of properties and division of proceeds – Plaintiff to receive Rs. 15 crores for renouncing her 1/3rd share in properties – Court appointed a Local Commissioner to facilitate sale and ensure compliance [Paras 1-30].

Settlement Agreement – Binding Terms – Detailed settlement terms recorded including lump-sum payment, responsibility for clearing liabilities, and sale procedures – Defendant No. 2 responsible for negotiating sale and clearing dues – Plaintiff to withdraw legal claims and provide necessary documents for sale – Local Commissioner to oversee execution of documents and sale process [Paras 9-30].

Decision: Suit decreed in terms of the settlement agreement – All interim orders vacated – Local Commissioner appointed to facilitate sale and compliance with settlement – Parties granted liberty to approach Court in case of impediments [Paras 28-30].