Customs Law – Burden of Proof – Seizure of Gold and Currency – Voluntariness of Statements – Section 123 of Customs Act – Appeal by Revenue challenging CESTAT order which reversed confiscation of gold and Indian currency from respondent – Tribunal held the seized gold to be made from old jewellery and not smuggled – Tribunal accepted respondent’s retraction of statements made under Section 108 of Customs Act – Supreme Court’s principles on burden of proof and voluntariness of retracted statements examined – High Court reinstates adjudicating authority’s order, confirming confiscation and penalties, as respondent failed to prove lawful acquisition of seized gold and currency – Tribunal’s findings held to be perverse and contrary to Section 123. [Paras 1-27]

Statements under Section 108 of Customs Act – Retraction and Evidentiary Value – Analysis – Tribunal erred in dismissing respondent’s initial statements as involuntary without proper examination of retraction timing and consistency – Statements recorded in vernacular by respondent were voluntary – Reliance on Vinod Solanki’s case regarding the examination of retractions – Held, Tribunal’s acceptance of retraction without thorough scrutiny flawed. [Paras 17, 21-25]

Decision – Confiscation and Penalty – Upheld -  Restoration of Adjudicating Authority’s Order – High Court allows Revenue’s appeal – Sets aside Tribunal’s order – Restores the adjudicating authority’s order of confiscation and penalties – Confirms substantial questions of law in favor of Revenue – Respondent’s claim of gold sourced from old jewellery deemed unsubstantiated. [Para 27]

Criminal Law – Investigation Inadequacies – Final report submitted by IO in a rape case involving a minor, rejected by the trial court – Court directs further investigation considering multiple discrepancies and lack of thoroughness in the initial investigation – Emphasizes the need for IO to explore alternative leads and gather comprehensive evidence before concluding the investigation [Paras 1-22].

Prosecution Case – Investigation Failures – Revisionist provided alibi with supporting statements and Call Detail Record (CDR) locations – Trial court found the investigation lacking, particularly in verifying alternate mobile numbers and thorough cross-examination of alibi witnesses – Court criticizes superficial acceptance of alibi without exhaustive verification [Paras 4-10].

Delayed FIR – Impact on Credibility – FIR lodged after seven months from the incident date due to alleged inaction by authorities – Court notes delay does not invalidate FIR but necessitates careful examination of all evidence due to potential bias and enmity between parties [Paras 18-19].

Decision – Revision Allowed – Order rejecting final report set aside – Matter remanded for further investigation with specific directions to explore additional evidentiary leads and ensure comprehensive inquiry – IO instructed to submit detailed follow-up report [Para 21-25].

Civil Procedure – Rejection of Plaint – The petitioner challenged the Trial Court's decision under Order VII Rule 11 CPC, which dismissed the plaint for lack of jurisdiction, stating that the plaintiff had not provided documentary evidence of loan repayment and was thus barred under Section 34 of the SARFAESI Act – The Trial Court exceeded its jurisdiction by making observations on the merits of the case – Order by the District Judge affirmed the Trial Court’s decision, rejecting the application for status quo on the basis of no response from the respondents [Paras 1-10].

Jurisdiction – SARFAESI Act – The petitioner’s claim for the return of title deeds based on a no dues certificate, argued to remain valid until invalidated by a competent authority – The court emphasized the need for proper adjudication of the validity of the no dues certificate at the trial stage – Status quo granted until the next hearing date to maintain the position of the parties [Paras 6-9].

Decision: The writ petition was partly allowed – The court granted status quo until the next hearing date and mandated a proper examination of the no dues certificate during the trial [Para 10].

Criminal Law - Dishonour of Cheque - Criminal Revision Petition under Section 397 read with Section 401 Cr.P.C. - Conviction upheld by Special Judge (NDPS), Central District, Tis Hazari Courts, Delhi - Petitioner convicted under Section 138 N.I. Act for dishonour of cheque amounting to Rs.5,26,785/- - Sentenced to simple imprisonment for four months and fine of Rs.8,50,000/- with default clause - Fine amount directed to be paid to respondent.

Complaint under Section 138 N.I. Act - Allegation of dishonour of cheque issued in discharge of legal liability - Cheque issued for payment of goods received - Petitioner contested stating cheque particulars filled by clerical staff and goods returned due to defect - Legal notice served but payment not made.

Evidence and Trial Court Findings - Respondent presented evidence including bill, cheque, bank return memo, legal notice, and postal receipt - Petitioner admitted signatures on cheque but contested liability - Defence of return of goods not substantiated - No examination of transporter to confirm return - Trial Court presumed service of notice under Section 27 of General Clauses Act and held cheque issued for legally enforceable debt - Appellate Court upheld conviction and sentence.

Decision - Petitioner's defence of defective goods and return not proven - Failure to stop cheque payment or respond to legal notice considered indicative of liability - Distinguished from cases where cheques issued as advance payments for undelivered goods - Revisional Court found no perversity or jurisdictional error in concurrent findings - Revision petition dismissed.

Civil Procedure – Power to Amend and Strike Out Issues – Petition challenging the trial court’s order deleting certain issues in a civil suit and denying further cross-examination – High Court examined the validity of the trial court's suo moto deletion of issues and refusal to recall a witness for cross-examination on additional documents – Court reinstated two issues considering their relevance to the dispute but upheld the denial of further cross-examination – Jurisdiction under Article 227 explained as supervisory, not appellate [Paras 1-35].

Adoption and Property Dispute – Suit for possession and mesne profits of property involving complex family and adoption claims – Petitioner contested the suit claiming oral family settlement and disputed the adoption of respondent – Trial court deleted issues related to the adoption and nature of the property – High Court reinstated the issues concerning adoption and property characterization due to their critical role in resolving the dispute [Paras 1-5, 28-31].

Evidentiary Procedure – Application for further cross-examination denied – Trial court refused to recall respondent for cross-examination on new documents related to a will and probate order – High Court upheld the decision, finding no relevance or necessity for additional cross-examination on those documents [Paras 3, 13, 32-33].

Decision – Petition Partially Allowed – Held – The impugned order was set aside to the extent of deleting issue nos. 4 and 5, as they were deemed relevant to the case – The application for recalling the respondent for further cross-examination was rightly dismissed – High Court emphasized the limited scope of Article 227 jurisdiction for correcting grave errors rather than reassessing factual matters [Para 34-35].

Criminal Law – Acquittal under Sections 302 and 120-B IPC – Leave to appeal dismissed by High Court – Prosecution failed to establish motive and link in the chain of circumstantial evidence – Alleged harassment for dowry not substantiated by evidence – No eye witnesses, case relied on circumstantial evidence – Last seen theory and recovery of material exhibit (chunni) deemed unreliable – Medical evidence indicated hanging, not strangulation – Delay in FIR registration unexplained [Paras 1-16].

Evidence Evaluation – High Court upheld trial court’s finding of doubt on the testimony of key witnesses – Material improvements and inconsistencies in statements – Medical evidence did not conclusively support prosecution's theory of strangulation – PMR indicated hanging as cause of death – No supporting forensic evidence to link accused with the crime [Paras 9-13].

Decision – Dismissal of Appeal – Held – Application for leave to appeal is dismissed – High Court found no illegality or perversity in trial court’s judgment – Prosecution’s evidence insufficient to overturn acquittal – Appellate court emphasized on limited scope of interference with acquittal unless findings are perverse or wholly unsustainable [Paras 14-16].

Criminal Law – Conviction under Section 6 of POCSO Act, Section 506 IPC, and Section 323 IPC – Appeal against Trial Court’s Acquittal – High Court Reversal of Acquittal based on Victim's Testimony and Corroborative Evidence – Victim's consistent testimony, supported by medical evidence and corroborative witnesses, held sufficient for conviction despite delay in FIR – Reversed acquittal due to Trial Court’s misinterpretation of evidence and undue emphasis on minor contradictions [Paras 1-23, 25-106].

Delay in Reporting – High Court held delay in filing FIR not fatal – Explained delay due to victim’s fear and familial pressure – Victim’s testimony found credible and consistent despite delay – Case law cited to support that delay in sexual assault cases, particularly involving family members, can be condoned if satisfactorily explained [Paras 24-43].

Credibility of Testimony – High Court found victim to be a witness of sterling quality – Testimony consistent with initial statements and corroborated by mother and brother – Minor discrepancies considered trivial and not undermining the overall credibility – Legal precedent cited supporting reliance on victim’s sole testimony in sexual assault cases [Paras 44-96].

Acquittal Reversed – High Court found Trial Court’s judgment based on conjectures and misinterpretation of evidence – Guilt of accused established beyond reasonable doubt based on credible and corroborative testimony of the victim – Appeals allowed and respondent convicted under relevant sections [Paras 97-106].

Decision – Conviction Ordered – Held – The appeal is allowed, and the acquittal is reversed. Respondent convicted under Section 6 of POCSO Act, Sections 506 and 323 IPC. Sentencing arguments scheduled – Directions for victim impact report and confirmation of interim compensation [Paras 107-111].

NDPS Act – Regular Bail – Petitioner, accused of possessing 8.25 grams of MDMA, sought bail under Section 439 of Cr.P.C. – Arrested on 30.3.2024, currently in judicial custody – Petitioner claimed innocence and alleged false implication – No previous criminal antecedents and no apprehension of absconding if granted bail [Paras 2-4].

Considerations for Bail – Court considered the quantity of the substance (intermediate quantity) and the period of custody – Noted that the prosecution raised no concerns of the petitioner absconding or tampering with evidence – Emphasized on the right to liberty and due process while ensuring conditions to prevent misuse of bail [Paras 5-6].

Decision: Bail application allowed – Petitioner granted bail subject to conditions to ensure cooperation with investigation and prevent tampering with evidence [Para 7].

Master Circular on Wilful Defaulters – Interpretation and Application – Forensic Audit Report – Validity and Reliance – Writ petitions challenging the decision of the Willful Defaulter Identification Committee and the Review Committee (RC) of the Central Bank of India declaring the petitioners as willful defaulters. The main evidence relied upon by the First Committee was a Transaction Audit Report (TAR) prepared by M/s. Deloitte Touche Tohmatsu India, LLP. The TAR contained disclaimers regarding its conclusiveness, and its findings were not independently verified. NCLT and NCLAT had previously dismissed the reliance on the TAR in related insolvency proceedings. – Held that reliance solely on the TAR, which itself was inconclusive and discredited by judicial authorities, was improper and untenable. The Central Bank of India could not independently declare the petitioners as willful defaulters when the lead Bank, Punjab National Bank, had dropped the charges. – Decisions of both the First Committee and the RC set aside and quashed. [Paras 2-36]

Reliance on Forensic Audit Report – Inadequate Basis for Willful Defaulter Declaration – Analysis – Held – The sole reliance on the TAR by the First Committee and RC was unjustified. The TAR itself contained multiple disclaimers, stating that it was not conclusive, not independently verified, and not suitable for legal proceedings. The NCLT and NCLAT had rejected the TAR’s findings in related insolvency proceedings, making it untenable for the Central Bank to rely on it for declaring the petitioners as willful defaulters. [Paras 6-14, 15-18, 20, 22-24]

Procedural Irregularities – Natural Justice – Review Committee’s Decision – Held – The RC’s decision was grossly mechanical, clubbing twenty-one entities together without individualized reasoning, and was primarily based on the discredited TAR. The Supreme Court’s guidelines in State Bank of India vs. Jah Developers Private Limited were not followed, as no reasoned order was provided to the petitioners. – RC’s decision set aside for lack of adherence to due process and principles of natural justice. [Paras 31-34]

Decision – Quashing of Willful Defaulter Declaration – Court quashes the decisions of the Willful Defaulter Identification Committee and the Review Committee declaring the petitioners as willful defaulters. All consequential actions, including the uploading of the petitioners’ names as willful defaulters, to be reversed immediately. [Paras 35-36]