Criminal Law – Bail - Prolonged Undertrial Incarceration – Right to Liberty – Article 21 of the Constitution – Bail Granted with Conditions – The Appellant, a former Minister of West Bengal, sought bail citing prolonged incarceration of over two years, health ailments, lack of recovery of cash from him, and alleged mitigating circumstances, including parity with co-accused who were granted bail – The Court noted that prolonged undertrial detention without trial conclusion violates personal liberty under Article 21 – However, considering the gravity of the alleged offences, societal impact, and evidence linking the Appellant to proceeds of crime, the Court imposed stringent conditions for bail, including non-interference with witnesses and trial proceedings [Paras 13, 14, 16, 18].

Money Laundering Allegations – Role of High-Ranking Public Official – Bail Not Automatic – The Appellant was accused of laundering substantial sums of money through dummy companies and associates during his tenure as a Minister – Huge recoveries of cash and gold from the Appellant's associate’s premises and statements recorded under Section 50 of PMLA were considered prima facie evidence linking the Appellant to the crime – The Court clarified that official status neither entitles nor precludes special consideration for bail – Held: The allegations must be viewed through the lens of societal harm caused by corruption in public institutions [Paras 15-16].

Section 479 of BNSS – Conditions for Bail – Non-Applicability of "First-Time Offender" Exception – The Appellant’s claim for bail under the first proviso to Section 479 of the BNSS was rejected on the grounds that he was not a first-time offender due to multiple cases registered against him – Bail granted only after the completion of certain procedural safeguards, such as recording of statements of key witnesses and framing of charges, to ensure the trial’s integrity is preserved [Paras 11, 18].

Balance Between Personal Liberty and Public Interest – Conditional Bail Granted – While affirming that undertrial incarceration should not result in punitive detention, the Court balanced the Appellant’s rights against the risk of interference with the trial and witnesses – Directed the Trial Court to expedite framing of charges and recording of key witnesses' statements, post which the Appellant would be released on bail with conditions, including restrictions on public office appointments and cooperation with the trial – Any violation of conditions will lead to bail cancellation [Paras 13-18].

Decision: Bail granted with strict conditions – Trial Court directed to frame charges and record key witness statements before 31/12/2024; Appellant to be released on 01/02/2025 or earlier, subject to completion of procedural requirements [Para 18].

Land Acquisition – Validity of Notification – Non-Compliance with Procedural Safeguards – Compensation Delayed – Appellant Trust challenged the quashing of acquisition proceedings initiated under Section 52(1) of the Rajasthan Urban Improvement Act, 1959 – High Court held that failure to serve individual notices under Section 52(2) and delay in compensation invalidated the acquisition process – Held: Acquisition proceedings for Moongaska and Nangli Kota lands invalid due to procedural irregularities and delayed compensation, violating Section 60A(4) of the Act – Appeal dismissed [Paras 55–71].

Procedural Irregularity – Validity of Section 52(1) Notification – Appellant Trust failed to comply with mandatory requirements of serving individual notices and pasting notices conspicuously in the locality as required under Section 52(2) – Owners of Moongaska land were not provided an opportunity to be heard – High Court rightly quashed the Section 52(1) notification for Moongaska land – For Nangli Kota land, actual participation of owners implied notice under Section 52(2), saving the notification under Section 52(1) from invalidation on this ground alone [Paras 55–58].

Delay in Compensation – Breach of Article 300A – Appellant failed to pay compensation within the timeline stipulated under Section 60A(4) – Compensation for Nangli Kota lands was deposited 10 years after the 6-month statutory deadline, and possession was taken without prior payment, violating Section 52(7) – State’s failure to comply with statutory timelines rendered the acquisition invalid – Improper compensation procedure breached constitutional protections under Article 300A [Paras 60–71].

Right to Property – Human and Constitutional Right – Acquisition without timely payment of compensation amounts to deprivation of property without due process – Judicial precedents establish strict compliance with statutory requirements, especially in cases involving land acquisition under the power of eminent domain – Compensation delays and procedural lapses justify the High Court’s findings [Paras 68–71].

Decision: Appeals dismissed – High Court's quashing of acquisition proceedings upheld – Notifications under Section 52(1) declared invalid due to procedural lapses and failure to timely compensate landowners – Pending applications disposed of.

Criminal Law – Murder Conviction – Acquittal – Appellant convicted for the murder of the deceased by inflicting a fatal knife injury to the neck – High Court upheld conviction under Sections 294(b), 341, and 302 IPC while acquitting the appellant under Section 506(ii) IPC – Appellant challenged the reliance on sole testimony of PW-1, an interested witness – Held: Conviction based on the same testimony of PW-1 that was disbelieved for co-accused Nos. 2 and 3 is impermissible – Evidence found unreliable due to lack of corroboration and contradictions – Recovery of knife from an open place insufficient to prove guilt beyond reasonable doubt – Appeal allowed, appellant acquitted [Paras 11–17].

Witness Testimony – Credibility of Sole Witness – PW-1 (father of the deceased) was the sole eyewitness – High Court disbelieved his testimony regarding co-accused Nos. 2 and 3, citing improbability of witnessing the act as the incident occurred 300 meters from the Church – Despite this, High Court relied on the same testimony to convict the appellant – Held: Such selective reliance on the testimony is impermissible – Testimony of an interested witness must be scrutinized with greater caution – Conviction based on conjectures and surmises cannot be sustained [Paras 9–14].

Circumstantial Evidence – Recovery of Knife – Knife allegedly used in the crime recovered based on the appellant’s confession – Recovery was made from an open place accessible to the public – Held: Recovery from an open area, without corroboration, does not substantiate guilt – Cannot be the sole basis for conviction [Para 15].

Decision: Appeal allowed – High Court judgment dated 1st November 2019 quashed – Appellant acquitted of all charges under Sections 294(b), 341, and 302 IPC – Appellant to be released forthwith unless required in any other case. Pending applications disposed of [Paras 17–18].

Civil Law - Contempt of Court – Non-Compliance of Supreme Court Order – Willful Defiance – Petitioner sought contempt proceedings against borrowers and transferees for failing to deliver possession of the secured asset and title deeds, despite a Supreme Court order – Held: Non-compliance by borrower and transferee constitutes contempt – Directions issued to ensure physical possession and title deeds are handed over promptly – Penal measures initiated [Paras 99–112, 200–208].

SARFAESI Auctions – Symbolic and Physical Possession – Auction under SARFAESI Act conducted on symbolic possession basis – Borrower argued non-compliance with notice timelines under Rule 8(6) and Rule 9(1) – Supreme Court held statutory notice period requirements were met for re-auctions and upheld the validity of the sale – Directed enforcement of physical possession through Section 14 proceedings – Borrower and transferee restrained from interference [Paras 110–122, 223].

Lis Pendens – Unregistered Transfers During Litigation – Invalidity – Transfer of secured assets by the borrower during pending litigation without registering a notice of lis pendens under Section 52 of the TPA (Maharashtra Amendment) – Supreme Court held such transfers void against auction purchaser – Applied doctrine of lis pendens despite lack of formal notice, safeguarding judicial process [Paras 154–176].

Good Faith Transactions – Rights of Subsequent Transferees – Subsequent transferee claimed bona fide purchase based on High Court’s prior order – Supreme Court held that High Court order invalid post its own decision – Transferee lacked good faith as pendency of appeal was known – Ordered transferee to vacate premises [Paras 68–71, 166–171].

Right of Redemption – SARFAESI Act Section 13(8) – Cut-Off Point – Borrower’s right of redemption extinguished upon issuance of auction notice under Section 13(8) – Supreme Court affirmed extinguishment occurs upon issuance of auction notice and overruled contrary High Court interpretation – Confirmed auction purchaser’s title through sale certificate [Paras 83–104, 181].

Henderson Doctrine – Re-litigation Barred – Applied the principle to bar re-litigation of issues decided by the Supreme Court in main appeals – Borrower estopped from raising fresh challenges to SARFAESI proceedings under doctrines of merger and election – Actions amounted to abuse of process [Paras 152–154].

Sale Confirmations – Judicial Intervention Post Confirmation – Courts directed not to interfere with confirmed auction sales except on grounds of fraud, collusion, or procedural irregularities affecting the core of the sale – SARFAESI sale declared valid, rejecting borrower’s objections as belated and inconsequential [Paras 211–218].

Contempt Principles – Absence of Explicit Prohibitory Order – Court emphasized contempt jurisdiction extends to any conduct aimed at frustrating its decision or manipulating litigation – Borrower and transferee found guilty of contempt despite lack of specific prohibitory direction [Paras 195–208].

Decision: Contempt petitions allowed – Borrower and transferee granted final opportunity to comply with the judgment and surrender possession/title deeds – Failure to comply would invoke penal action – Pending applications disposed of.

Consumer Law – Final Relief Granted by Interim Order – Jurisdictional Error – Interim Order Invalidated – The State Consumer Commission erred by granting final relief to the respondent on an interlocutory application, directing the Indore Development Authority to accept the outstanding amount with interest and hand over possession of the plot – Held: Granting final relief through an interim order contravenes procedural propriety – Such an order undermines the substantive determination of rights and is not sustainable [Paras 10-11].

Delay in Performance of Contractual Obligations – Effect on Allotment Rights – Lapse of 28 Years – The respondent failed to comply with the terms of the allotment and judicial directions requiring payment of the full outstanding amount within stipulated timelines – Held: Inordinate delay of 28 years nullifies the enforceability of any claim for the plot – The appellant was justified in refusing acceptance of payments after such a prolonged period [Paras 9-11].

Powers of Consumer Commissions – Overreach in Intervening in Contractual Defaults – The National Commission acted beyond its jurisdiction by directing the appellant to accept payments and hand over possession of the plot despite the respondent’s repeated defaults and non-compliance with judicial orders – Such a direction is untenable, particularly in light of the respondent's failure to meet the terms of the allotment [Paras 11-12].

Remedy Through Fresh Tender Process – Public Interest and Fairness Upheld – In view of the respondent’s default and the prolonged delay, the Court directed the appellant to initiate a fresh tender process for the plot – Held: Any re-allotment should follow a due process, ensuring fairness and adherence to rules and regulations [Para 11].

Decision: Appeal allowed – Orders of the State Commission dated 15/12/2017 and National Commission dated 29/03/2023 set aside – Indore Development Authority directed to issue a fresh tender for the plot and allot it through auction or as per applicable rules [Paras 11-12].

Civil Law - Eviction Proceedings – Scope of Writ Jurisdiction – Article 226 and 227 of the Constitution – Writ Petition Not Maintainable – The High Court’s interference with the Inquiry Officer's jurisdiction in eviction proceedings under Section 105B of the Mumbai Municipal Corporation Act, 1888, was challenged – Held: Judicial orders of civil courts cannot be quashed under Article 226 but are amenable to supervisory jurisdiction under Article 227 – The High Court exceeded its jurisdiction by framing points for determination for a quasi-judicial proceeding, effectively overstepping its limits and undermining procedural autonomy of the Inquiry Officer [Paras 14-18, 22].

Public Premises – Institutional Bias Allegation – Doctrine of Nemo Judex in Causa Sua – Bias Not Attributable – Allegation of bias against the Inquiry Officer, being a delegate of the Municipal Commissioner, was rejected – Held: Mere employment of the Inquiry Officer with the Municipal Corporation does not establish personal bias unless proven otherwise – The Inquiry Officer’s quasi-judicial capacity ensures impartiality, supported by precedents from this Court affirming similar delegations in analogous statutory schemes [Paras 27-31].

Natural Justice and Quasi-Judicial Authority – Section 105H Regulations – Proceedings Valid Despite Lack of Regulations – The absence of specific regulations under Section 105H does not invalidate eviction proceedings – Adherence to principles of natural justice suffices for the Inquiry Officer to proceed – Procedural adherence is mandatory, but the absence of regulations does not stall the Inquiry Officer’s jurisdiction [Paras 33-34].

Res Judicata and Limitation – Bar on Re-Litigation – High Court’s framing of issues on ownership status and limitation were redundant due to res judicata from prior judicial determinations – Limitation Act’s application to quasi-judicial eviction proceedings under Section 105B was unwarranted, as these are administrative in character [Paras 24-25].

Decision: Appeals allowed – High Court’s order framing points for determination is set aside – Inquiry Officer directed to independently adjudicate issues based on evidence, adhering to natural justice principles – Proceedings to be conducted expeditiously [Para 35].

Quashing of Criminal Proceedings – Applicability of Section 197 CrPC – Protection to Public Servants Limited to Official Duties – Public officials allegedly colluding to create false evidence and fabricate an alibi for the accused in a murder trial – Held: The acts of collusion cannot be said to be part of the discharge of official duty; no sanction under Section 197 CrPC is necessary for prosecution – Trial court’s cognizance upheld – High Court’s quashing of proceedings overturned – Supreme Court clarifies that criminal acts outside official purview do not attract Section 197 protection [Paras 39, 55-59].

Alibi and Fabrication of Evidence – Abuse of Process – The accused fabricated an FIR and an arrest record to claim a false alibi – Evidence showed public servants’ involvement in deliberate acts of manipulation – High Court erroneously quashed proceedings for want of sanction under Section 197 CrPC – Supreme Court holds that such acts are not protected as part of official duty [Paras 38, 42].

Conspiracy and Official Duty – Reasonable Connection Doctrine – Misconduct by public officials, including falsifying evidence and granting improper bail, falls outside the scope of their official duties – Absence of direct connection between misconduct and legitimate duties negates protection under Section 197 CrPC [Paras 41-44].

Reasonable Connection Test – Parameters to Apply Section 197 CrPC – Clarified that the protection requires a reasonable nexus between the act and the official duty – Emphasized the "quality" of the act and the necessity for an honest discharge of official functions – Held: Misconduct or acts carried out as a facade of official duties will not attract Section 197 CrPC [Paras 62–65, 70, 74].

Timing of the Sanction Decision – Stage-Specific Inquiry – Noted that the necessity of sanction can arise at various stages of proceedings – Allowed the trial court to revisit the requirement for sanction if evidence during trial demonstrates an official connection to the act – Held: Criminal trials must not be prematurely quashed without sufficient inquiry [Paras 68, 69, 72, 74, 85].

Quashing of Criminal Proceedings – Limited Role of High Courts in Preliminary Stages – Stressed that quashing proceedings prematurely hampers justice – High Courts must evaluate if sufficient prima facie evidence exists before quashing – Held: High Court erred in quashing proceedings in this case as the trial court had rightly taken cognizance of the charge sheets [Paras 84–85].

Trial Court’s Authority – Reassessment of Sanction at a Suitable Stage – Directed the trial court to proceed with the trial and determine the necessity of sanction based on evidence adduced – Protection under Section 197 CrPC can be invoked if sufficient connection with official duties is established during the trial – Held: The question of sanction is left open for respondents 3, 4, and 5 to rebut during the trial [Paras 83, 85].

False FIR and Malicious Prosecution – Accountability of Public Officials – Acts of lodging a false FIR cannot fall under the discharge of official duty – Held: Officials accused of fabricating evidence or engaging in collusion cannot claim protection under Section 197 CrPC [Paras 67, 75, 83].

Decision:

Respondent No. 1 – Sanction not required as he was not acting in discharge of official duty during the alleged false FIR registration due to absence from the Murar Police Station at the relevant time – Directed: Trial Court to examine evidence regarding involvement in conspiracy to determine culpability [Para 83].

Respondents Nos. 3, 4, and 5 – Sanction to be determined based on evidence adduced during the trial – Directed: Trial Court to proceed with the trial, permitting the defence to present evidence to establish connection with official duties – Trial Court to decide the question of sanction at an appropriate stage [Paras 83, 85].

Trial Directions – Ordered the Trial Court to proceed with criminal trials in Case Nos. 67 of 2008 and 67A of 2009 without further delay – Directed: Trials to be concluded within one year, allowing re-examination of sanction at any stage if evidence demonstrates a reasonable connection with official duties [Para 85].

High Court’s Order – Set aside the High Court’s quashing of criminal proceedings in Case Nos. 67 of 2008 and 67A of 2009 – Held: Quashing at a preliminary stage without thorough examination was erroneous [Para 86].

Criminal Law – Proceedings under NDPS Act – Section 58 – Notice and adverse observations against appellant (a police officer) by Special Judge for alleged vexatious and false actions in drug case – High Court upheld Special Judge’s order to open and pronounce sealed order despite procedural lapses – Supreme Court held that adverse findings and subsequent notice violated principles of natural justice and statutory safeguards – Summarily conducted proceedings under NDPS Act contrary to law – Appeal allowed, proceedings quashed [Paras 17, 38–40].

Interpretation of NDPS Act and Cr.P.C. – Section 58 – Proceedings against the appellant were for offenses punishable with a maximum of two years imprisonment – Held: Such offenses under Section 58 must be tried summarily under Section 36-A(5) of the NDPS Act – Special Judge erred in assuming jurisdiction and not following Cr.P.C. provisions for summary trials (Sections 251–259) – Procedure adopted was illegal and without jurisdiction [Paras 18–26].

Protection of Good Faith – Section 69 of the NDPS Act – Immunity for actions taken in good faith – Appellant acted in official capacity forwarding an application alleging a false implication in a drug case – No cogent evidence of mala fides or malice established – Held: Action presumed to have been taken in good faith under Section 69 of the NDPS Act – Immunity not rebutted by substantive material [Paras 27–31].

Violation of Principles of Natural Justice – Adverse findings against appellant recorded in judgment dated 22nd/24th February 2007 without notice or opportunity of hearing – Special Judge acted in undue haste issuing notice under Section 58 on 26th February 2007, followed by proceedings conducted at an expedited pace – Procedural lapses, including ignoring appellant’s valid exemption requests, demonstrated bias – Dictating an order after receiving transfer orders undermined the fairness of proceedings – Justice neither done nor seen to be done [Paras 32–37].

Decision: Appeal allowed. High Court judgment dated 14th October 2010 quashed and set aside. Observations against the appellant in judgment dated 22nd/24th February 2007 quashed.Notice dated 26th February 2007 and subsequent proceedings, including the sealed order dated 30th May 2008, quashed.

Restoration of Appeal Under Order 23, Rule 3 CPC – Applicability of Statutory Remedies – Restoration Directed - The High Court's dismissal of the restoration application was based on the absence of specific liberty to restore in its prior order recording the compromise. The Supreme Court clarified that statutory remedies under the CPC are independent of judicial permission – Held: Restoration application must be decided on merits; appeal allowed, and the High Court’s order set aside [Paras 11, 16].

Fraud and Non-Compliance in Compromise Agreements – Validity of Compromise Decree – Recall Permissible - The appellant alleged fraud and failure to fulfill the terms of the compromise, rendering it voidable under the Indian Contract Act. The Court affirmed that such disputes could be raised under a recall application per Order 23, Rule 3 – Held: Compromise decrees can be challenged for legality even post-order; matter remanded to the High Court for fresh consideration [Paras 11, 12].

Public Policy and Legal Remedies – Statutory Rights Cannot Be Curtailed – Agreements Restricting Remedies Void - The Court emphasized that agreements restraining access to legal remedies are void under Section 28 of the Indian Contract Act. Provisions in the compromise deed recognizing the right to restoration aligned with this principle – Held: Statutory remedies ensure access to justice; appeal allowed with directions to consider application on merits [Para 16].

Error in High Court Reasoning – Misinterpretation of CPC Provisions – Order Set Aside - The High Court failed to consider the statutory framework governing compromise decrees and dismissed the restoration application on incorrect grounds. The Supreme Court directed the High Court to decide the matter on its merits – Held: Impugned order set aside and matter remanded [Para 16].