Contempt of Court – Suo Motu Proceedings – Allegations Against Judicial Officer – Respondent’s petition under Section 482 Cr.P.C. contained remarks about Magistrate’s reluctance to pass orders and frequent adjournments – Examination of zimni orders revealed adjournments requested by respondent’s counsel – Court examines whether the remarks constitute criminal contempt – Reference to various Supreme Court judgments on criticism and contempt – Remarks not amounting to contempt when made without malice and in good faith – Court accepts respondent’s unconditional apology – Criminal contempt proceedings dropped [Paras 1-25].

Judicial Criticism – Limits and Legal Framework – Criticism permissible if in good faith and without imputing improper motives – Courts open to reasonable public scrutiny – Statements against judicial officers considered within the bounds of fair criticism when made without malice – Reference to Section 6 of Contempt of Courts Act protecting good faith criticism – Respondent’s criticism aimed at seeking expeditious disposal of case not considered contemptuous [Paras 10-24].

Decision:

Criminal contempt proceedings against the respondent dropped. The Court emphasized that remarks made in good faith concerning judicial conduct, without malice, do not constitute contempt. The respondent’s apology was accepted, and the proceedings were concluded without further action​​.

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].

Civil Procedure - Rebuttal Evidence - Handwriting Expert: Petitioners contested the trial court's order allowing respondents to examine a handwriting expert in rebuttal. The petitioners argued that this would fill the lacuna in the respondents' evidence. The High Court affirmed that under Order XVIII, Rule 3 CPC, a party can lead rebuttal evidence on issues where the onus is on the opposite party if reserved at the close of its evidence. Given the dispute over the authenticity of a Will, the court upheld the trial court’s decision to allow rebuttal evidence for a fair adjudication [Paras 1-14].

Evidence Act - Expert Testimony - Authenticity of Will: The court highlighted that the authenticity of a disputed Will is crucial and that expert testimony from both parties would assist the court in reaching a just decision. The petitioners' failure to specifically deny the signatures on the Will in their written statement justified the respondents' right to examine a handwriting expert in rebuttal [Paras 3-12].

Decision: Revision petition dismissed - The trial court's order allowing the examination of a handwriting expert in rebuttal upheld. The court found no illegality or perversity in the trial court’s decision, emphasizing the necessity for a just determination of the dispute [Paras 14-15].

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].

Registration Act, 1908 – Section 17 – Transfer of Property Act, 1882 – Section 53A – Agreement to sell – Transfer by way of affidavit with possession – The Court held that an affidavit does not amount to relinquishment of title and must be registered under Section 17 of the Registration Act, 1908. However, the affidavit can be treated as an agreement to sell with delivery of possession, protected under Section 53A of the Transfer of Property Act. The Court found that the ingredients of Section 53A were fulfilled as the defendant had paid the total consideration and was in continuous possession [Paras 9-10].

Section 53A of the Transfer of Property Act – Protection of possession – The Court noted that Section 53A protects the possession of the proposed purchaser if the transferee has taken possession or continued in possession and has performed their part of the contract. In this case, the defendant's possession was protected as the plaintiff had received the entire sale consideration and acknowledged the defendant's possession [Paras 9-10].

Plaintiff's Conduct – Estoppel – The plaintiff's conduct, including remaining out of the village and not contesting the mutation of the property in favor of the defendant, supported the defendant's claim. The Court applied the rule of estoppel under Section 53A, preventing the plaintiff from denying the defendant's rights [Para 9].

Decision: The appeal is allowed, the judgment of the First Appellate Court is set aside, and the trial court's judgment is restored. The plaintiff is not entitled to the decree of possession of the suit property.

Civil Procedure – Production of Additional Documents – Petitioner challenged the order of the Trial Court that partially allowed the application under Order VII Rule 14 CPC – Contention that documents were highly relevant for adjudication of the matter and were improperly excluded – Trial Court found the reasons for delay in preparing documents irrelevant – High Court dismissed the petition on grounds of unreasonable delay in filing and lack of cogent explanation for not producing documents earlier [Paras 1-37].

Petition under Article 227 – Timeliness and Diligence – Petition filed 21 months after the impugned order without sufficient explanation for delay – Court emphasized need for timely filing and reasonable explanations for delays – Petitioner’s conduct and lack of urgency noted as factors against them [Paras 22-26, 37].

Order VII Rule 14 CPC – Requirements and Discretion – Rule mandates that documents should be produced with the plaint unless leave of court is obtained – Petitioner’s failure to justify delay and improper reasons for document preparation highlighted – Court stressed that discretion under Rule 14 must be exercised judiciously with sound reasons [Paras 27-28, 36].

Decision: Petition Dismissed – Held – No interference with the Trial Court’s order – Petitioner’s explanations deemed insufficient and their conduct noted as not diligent or vigilant in pursuing the case [Paras 37].

Execution of Decree – Back Wages Liability – Petitioner, an Education Officer, challenged orders directing her to pay back wages to the decree holder, a terminated Assistant Teacher – School Tribunal's judgment reinstating the teacher with back wages became final – High Court held State Government primarily liable for payment, not the individual officer – Orders of Executing Court directing personal recovery against Education Officer modified to impose liability on State Government – Petition dismissed with directions for the State to comply with the Tribunal’s judgment [Paras 1-35].

Superintendence of High Court – Article 227 of the Constitution – High Court's power to vary orders of the Executing Court – Emphasized need for prompt compliance with judicial orders to prevent frustration of decrees – Directed State Government to pay outstanding dues promptly and granted liberty to recover amounts from School Management [Paras 31-35].

Decision – Writ Petition dismissed – Held – Executing Court’s orders modified – State Government directed to pay full back wages to the decree holder and recover from the School Management if necessary – No stay on the judgment despite request from State Government [Paras 28-36].