Arbitration – Appointment of Arbitrator – The applicants sought the appointment of a neutral arbitrator, challenging the named arbitrator's eligibility on the grounds of a professional relationship with the respondent. The court held that an arbitrator's ineligibility under Section 12(5) of the Act, read with the Seventh Schedule, terminates the mandate of the arbitrator, and the appointment of a new arbitrator is warranted​​.

Arbitrator's Independence and Impartiality – Professional Relationship – The Court found that the named arbitrator's professional ties with the respondent created justifiable doubts about his independence and impartiality. The applicants' objections were valid under Section 12(5), which mandates the termination of the arbitrator's mandate in such cases​​.

Procedure for Challenging Arbitrator – The applicants had not previously raised objections before the arbitrator but approached the Court directly. The Court concluded that this approach was justified due to the ineligibility of the arbitrator under the Act, which allows for such direct applications in cases of clear ineligibility​​.

Decision:

The application was allowed. The appointment of the named arbitrator was set aside, and a new impartial, independent, and neutral arbitrator was appointed. The Court emphasized the importance of ensuring arbitrators' independence and impartiality to maintain the integrity of the arbitration process​​.

Partition Suit – Ex-Parte Ad-Interim Order – Appeal Against Dismissal of Application for Vacation – Appellant and Respondent No. 2 are Siblings, Dispute Over Family Properties – Consent Decree for Partition Previously Granted – Respondent No. 1 (Daughter of Respondent No. 2) Filed New Suit Suppressing Material Facts – High Court Set Aside Interim Order, Allowed Appeal, Directed Execution of Consent Decree [Paras 1-14, 25-31].

Suppression of Material Facts – Consent Decree Already Implemented – Respondent No. 2 Admitted Sale of Properties – Respondent No. 1’s Pleadings Contained False Assertions – High Court Found Abuse of Legal Process – Directed Notice for Suo Moto Criminal Contempt Proceedings Against Respondents for False Pleadings and Affidavits [Paras 27-47].

Recovery of Possession – License Fee – Execution Proceedings to Recover Possession and License Fee Pursuant to Consent Decree – Court Directed Immediate Execution [Paras 21-25].

Decision: Appeal Allowed – The impugned judgment dated 9th January 2023 was set aside, and the ex-parte ad-interim order dated 21st December 2018 was vacated. The appellant was permitted to proceed with execution proceedings to recover possession and license fees as per the consent decree. The respondent No. 2 was directed to deposit 2/3rd of the sale consideration with the Registrar General within four weeks to secure the interests of respondent Nos. 1 and 3.
 

Criminal Law – Conviction under Repealed Legislation – Accused convicted under sections 13(1)(d)(i) and 13(2) of the Prevention of Corruption Act, 1988 for an offence allegedly committed under sections 5(1)(d) and 5(2) of the Prevention of Corruption Act, 1947 – Appellant argued improper application of law post-repeal – High Court quashes conviction, holding that prosecution should proceed under the law in force at the time of the offence – Procedural error in applying the new Act retrospectively – Charges restored under the old Act [Paras 17-25].

Procedural Irregularity – Investigation by Informant – Appellant contested fairness of investigation led by the same officer who initiated the trap – High Court finds the dual role prejudicial and vitiates investigation – Investigation and subsequent proceedings held invalid – Appeal allowed, conviction and charges quashed [Paras 27-29].

Decision – Criminal Appeal Allowed – Conviction and sentence under sections 13(1)(d)(i) and 13(2) of the Act of 1988 and section 161 IPC set aside – Charges under sections 5(1)(d) and 5(2) of the old Act of 1947 and section 161 IPC quashed – Appellant acquitted – Personal and surety bonds discharged [Paras 30-33].
 

Criminal Law – Quashing of FIR – Petition filed under Section 482 Cr.P.C. to quash FIR alleging offence under Section 498A read with Section 34 IPC – Allegations in FIR and complaint disclose commission of cognizable offence – High Court emphasizes principles from State of Haryana v. Bhajan Lal and other decisions on exercise of inherent powers under Section 482 Cr.P.C. – FIR and complaint contain prima facie essentials for investigation – Petition dismissed with liberty to petitioner to defend case in accordance with law [Paras 1-35].

Quashing of FIR – Legal Principles – High Court outlines principles for quashing FIR under Section 482 Cr.P.C. – Exceptional and rare cases where FIR can be quashed at the threshold – Inherent power under Section 482 Cr.P.C. to be exercised sparingly and with caution – Continuation of investigation to collect evidence warranted in cases disclosing prima facie offence [Paras 7-35].

Decision: Criminal Miscellaneous Case dismissed – FIR to stand – Petitioner granted liberty to defend case as per law.
 

Criminal Law – Quashing of Final Report – Petition under Section 482 Cr.P.C. – Petitioner accused of offences under Section 15(1) of POCSO Act and Section 67B of IT Act – Allegations of sharing and transmitting pornographic material involving a child – No material evidence to show petitioner shared or transmitted such material – Mere possession or storing without intent to share or transmit not an offence under Section 15(1) of POCSO Act or Section 67B of IT Act – Petition allowed, final report quashed [Paras 1-16].

Offence Under Section 15(1) of POCSO Act – Ingredients – Mere possession or storing of child pornographic material without intention to share or transmit not an offence – Intent to share or transmit essential [Paras 8-9].

Offence Under Section 67B of IT Act – Ingredients – Automatic or accidental downloading of child pornographic material without intention to share or transmit not an offence – Material evidence must show intentional downloading and sharing [Paras 10-13].

Decision: Criminal Miscellaneous Case allowed – Final report and all further proceedings in Crime No. 911 of 2020 of Payyannur Police Station, Kannur, quashed.
 

Refund of Security Deposit – Limitation Period – Kerala Municipality Act – Suit for refund of ₹2,06,287/- as security deposit from Kannur Municipality – First Appellate Court found claim barred by limitation under Section 544 of Kerala Municipality Act, requiring suit within six months of cause of action – High Court overrules, stating wrongful retention of security deposit by the municipality does not fall within actions done under the Act – Statutory notice requirement and six-month limitation period inapplicable – Ordinary limitation period for recovery of deposits under the Indian Limitation Act applies [Paras 11-19].

Notice Requirement – Kerala Municipality Act – Detailed analysis of Section 544 requirements for prior notice and special limitation period for suits against municipal authorities – High Court clarifies that wrongful acts not done under the Act do not attract Section 544 protection – Regular civil court procedure and limitation period govern the refund claim [Paras 12-18].

Decision:

Appeal allowed – Judgment of Additional District Court-I, Thalassery reversed – Decree of Sub Court, Kannur for realization of security deposit restored – Suit not barred by limitation under Section 544 of Kerala Municipality Act [Paras 19-21].

Custodial Death – Enquiry and Compensation – Writ Petition seeking directions for proper enquiry into custodial death and compensation – Allegation of torture by police resulting in death – Petitioner’s son died while in police custody – Post-mortem report indicated injuries – Respondents argued the death was due to an attempt to escape – NHRC had ordered compensation on humanitarian grounds – Supreme Court’s precedent on compensating next of kin for unnatural deaths in custody cited – High Court directed payment of Rs. 3 Lakhs as compensation to the next of kin after proper verification and identification – Compensation to be deposited before District & Sessions Judge, Dhemaji.

**Enquiry into Custodial Death – Analysis – Held – Post-mortem report indicated injuries inconsistent with the respondent’s narrative – Torture by police personnel suspected – Authorities failed to initiate proper enquiry or compensation – NHRC ordered compensation recognizing the humanitarian aspect. [Paras 3-10]

Decision – Compensation for Custodial Death – Court orders compensation of Rs. 3 Lakhs to be paid to the next of kin of the deceased – Compensation to be deposited before District & Sessions Judge, Dhemaji for disbursement after proper verification and identification – Directions issued for compliance within two months. [Paras 14-17]

Certificate of Residence – Issuance and Cancellation – Petitioner challenged the cancellation of her Resident Certificate by the Sub-Collector, Balasore, which was initially issued by the Tahasildar after proper inquiry – Sub-Collector’s order was based on the claim that the petitioner’s family is native to village-Bhimpur – High Court found the cancellation unjustified, emphasizing that residency can be established by continuous residence and other supporting documents [Paras 1-13].

Procedure under Miscellaneous Certificate Rules – Inquiry and Evidence – High Court reviewed the inquiry report by the Revenue Supervisor, confirming petitioner’s residency in Paikasta – Documentary evidence such as RoR, Voter ID, and other records were considered sufficient – Court highlighted the need for procedural fairness and the proper assessment of evidence by authorities [Paras 11-13].

Decision – Writ Petition Allowed – Held – Sub-Collector’s order cancelling the Resident Certificate set aside – Resident Certificate issued by Tahasildar restored – Emphasized the validity of residency claims based on continuous residence and documentary evidence as per the Miscellaneous Certificate Rules [Para 17].

Counterfeit Currency – Acquittal Appeal – State appealed against the acquittal of accused charged with possession and trafficking of counterfeit currency under IPC Sections 489(A), (B), (C), and (D) – High Court upheld the trial court's judgment acquitting the accused – Emphasized the requirement of mens rea and the prosecution's failure to establish knowledge of counterfeit nature [Paras 1-21].

Evidence and Procedure – Hostile Witnesses – Panch witnesses turned hostile, and no concrete evidence was provided to connect accused with the counterfeit currency – Investigating officer's failure to verify currency authenticity independently criticized – Court noted procedural lapses and lack of corroborative evidence [Paras 11-15].

Mens Rea and Legal Standards – Court reiterated the necessity of proving mens rea for offenses under IPC Sections 489(B) and (C) – Prosecution failed to prove that accused knew or had reason to believe the currency was counterfeit – Relied on Supreme Court precedents emphasizing mens rea as essential element [Paras 13-14].

Uniform Impersonation – Allegations under Section 171 IPC – Court found no evidence that accused impersonated police officers – Presence of khaki dress insufficient to prove impersonation – Emphasized need for clear proof of intent to deceive [Para 18].

Decision: Appeal dismissed – Acquittal confirmed – Trial court's judgment upheld, citing lack of evidence and procedural errors by prosecution [Paras 19-21].