Sales Tax – Duty-Free Shops – Taxation of Sales – Appellant, operating duty-free shops at Bengaluru International Airport, challenged the imposition of sales tax by the State of Karnataka – Contended sales were in the course of import/export and occurred outside customs frontiers of India – Supreme Court held sales at duty-free shops occurred before goods crossed customs frontiers, thus exempt from state sales tax under Article 286 of the Constitution and Section 5 of the Central Sales Tax Act, 1956 [Paras 1-32].

Customs and Taxation – Legal Fiction of Customs Frontiers – Goods stored in bonded warehouses and sold at duty-free shops deemed outside customs frontiers – Transaction deemed in the course of import/export until goods cross customs frontiers – Supreme Court reaffirms legal position, clarifying sales at duty-free shops not subject to state sales tax [Paras 18-24].

Exhaustion of Remedies – Direct Approach to High Court – While generally required to exhaust alternative statutory remedies, direct approach to High Court justified in clear and settled legal positions – Supreme Court decides on merits to avoid delay, given settled legal context and facts [Paras 26-28].

Decision – Appeals allowed – Assessment orders quashed – Sales at duty-free shops exempt from state sales tax – No order as to costs [Paras 32-33].

Land Acquisition – Public Purpose – Housing Societies – Acquisition of land for a cooperative housing society – Requirement of approval of the housing scheme by the State Government before initiation of acquisition proceedings – Bangalore Development Authority (BDA) Act and Land Acquisition Act mandates such approval – Supreme Court held acquisition invalid as appellant failed to show approved housing scheme before issuing Section 4(1) notification – Acquisition not for a public purpose as mandated [Paras 1-32].

Writ Petition – Limitation and Delay – High Court’s jurisdiction under Articles 32 and 226 – Even without a fixed limitation period, petitioners should approach the court promptly – High Court should consider cogent explanations for delays – In this case, delay explained by ongoing government considerations – High Court justified in entertaining the writ petition despite the delay [Paras 9-10].

Judicial Review – Examination of Procedures – Examination of records revealed non-compliance with statutory requirements for land acquisition – Lack of prior approval for the housing scheme – Supreme Court emphasizes importance of compliance with procedural requirements to ensure acquisitions serve genuine public purposes [Paras 3.11-3.14].

Decision – Appeals dismissed – Acquisition proceedings quashed – Appellant required to return vacant land to respondents – Reaffirms need for compliance with procedural requirements and adherence to public purpose criteria in land acquisitions [Paras 32-33].

Constitutional Law – Allocation of Natural Resources – Fair and Transparent Process – Petition filed under Article 32 challenging the allocation of 2G spectrum by the DoT – Allegations of arbitrary and unconstitutional actions – Supreme Court held that natural resources must be allocated through a fair and transparent process – DoT’s actions in allocating spectrum licenses without auction held arbitrary and violative of Article 14 – Directions issued to cancel all licenses granted on and after January 10, 2008, and to conduct a fresh allocation process through auction [Paras 1-88].

Public Interest Litigation – Judicial Oversight – Role of Judiciary in Public Interest – Supreme Court emphasized its role in ensuring that executive actions conform to constitutional principles – Upheld the importance of judicial oversight in cases involving public interest and significant financial implications for the state – Acknowledged the role of public interest litigations in promoting transparency and accountability [Paras 45-60].

Policy and Governance – Recommendations of TRAI – Compliance and Implementation – Court scrutinized the recommendations made by TRAI on spectrum allocation and their non-compliance by the DoT – Highlighted the importance of adhering to regulatory advice and maintaining consistency with policy decisions approved by the Cabinet – Invalidated the policy of first-come-first-served for spectrum allocation as contrary to TRAI’s recommendations and principles of fairness [Paras 61-80].

Decision – Writ Petition allowed – Supreme Court quashes all 122 licenses issued on and after January 10, 2008 – DoT directed to conduct a fresh auction for allocation of 2G spectrum – Emphasized the need for transparency and adherence to constitutional norms in the allocation of natural resources [Paras 81-88].

Election Law – Booth Capturing – Allegation of Booth Capturing – Appellant declared elected in the election to Arunachal Pradesh Legislative Assembly – Respondent filed election petition alleging booth capturing at 8 polling stations – High Court directed the production of voters' counterfoils for verification – Supreme Court held that production of such records should be sparingly ordered and only when sufficient material is placed before the court – Evidence revealed no prima facie case of booth capturing or impersonation – High Court’s order set aside [Paras 1-27].

Pleading and Evidence – Requirement of Material Facts – Election petitions must plead material facts at the outset – Failure to plead material facts is fatal – New allegations or evidence not allowed at later stages – Supreme Court emphasized the need for precise pleadings and corroborative evidence in election petitions [Paras 16-18].

Inspection of Election Papers – Limited Scope – Rule 93 of Conduct of Elections Rules, 1961 – Inspection of election papers allowed only under court order and in exceptional circumstances – Supreme Court reiterated that orders for inspection should not facilitate fishing inquiries and must respect the sanctity and secrecy of the electoral process [Paras 21-24].

Decision – Appeal allowed – High Court’s order quashed – Election petition directed to proceed based on existing records and evidence – Reinforces judicial scrutiny and adherence to procedural requirements in election disputes [Para 26].

Judicial Service – Reversion and Compulsory Retirement – Appellant, a judicial officer, challenged the High Court’s decision to revert and compulsorily retire him – Appellant’s explanation for alleged misconduct in granting bail accepted by the High Court, but later reversion and compulsory retirement initiated on same grounds – Supreme Court held reversion unjustified as charges were already addressed and closed by the High Court – Compulsory retirement also set aside due to improper consideration of service records and discrepancy in adverse entries [Paras 1-34].

Administrative Law – Double Jeopardy in Disciplinary Proceedings – Initiation of departmental proceedings after acceptance of earlier explanations constitutes double jeopardy – Supreme Court emphasized that once an explanation is accepted and proceedings are closed, reopening on same charges is unwarranted and amounts to harassment [Paras 27-28].

Compulsory Retirement – Subjective Satisfaction – Judicial Review – Compulsory retirement must be based on valid, relevant material – Selective and incorrect reflection of service records invalidates the decision – Supreme Court reiterated that subjective satisfaction must be backed by comprehensive and accurate service records [Paras 29-32].

Decision – Appeal allowed – Orders of reversion and compulsory retirement quashed – Appellant entitled to all monetary benefits from the date of notional posting as Chief Judicial Magistrate till notional retirement on attaining superannuation age [Para 34].

Criminal Law – Unlawful Assembly – Conviction under Section 149 IPC – Appellant convicted for murder under Section 302 read with Section 149 IPC – Supreme Court examines whether the assembly had a common object of murder or knew murder was likely – Evidence showed the common object was to prevent fence erection, not murder – Conviction under Section 302/149 IPC set aside, while convictions under Sections 143, 148, 323, and 325 IPC upheld [Paras 1-31].

Restorative Justice – Compensation to Victims – Reduction of Sentence – Appellant offered to compensate victims, considered in light of prolonged trial and no prior criminal history – Supreme Court reduces sentence to period already undergone and orders compensation to victims – Emphasizes judicial discretion in awarding compensation under Section 357 CrPC [Paras 25-31].

Judicial Review – Vicarious Liability – Analysis of Section 149 IPC – Clarified that mere membership in an unlawful assembly does not justify murder conviction unless common object or knowledge of likelihood is established – Importance of assessing intent and actions of assembly members individually [Paras 17-24].

Decision – Appeal partly allowed – Conviction under Section 302 read with Section 149 IPC quashed – Convictions under Sections 143, 148, 323, 325 IPC affirmed – Sentence reduced to period already served – Appellant directed to pay compensation to victims within two months, failing which original sentence for Section 325 IPC would revive [Para 31].

Criminal Procedure – Delay in Investigation and Trial – High Court Stay Orders – Appellant challenged prolonged delays in criminal proceedings due to repeated stay orders by the High Court – Supreme Court emphasized the need for expeditious disposal of cases where stay orders are issued – Highlighted that stay orders should be used sparingly and disposed of preferably within six months – Directed High Courts to periodically review and expedite cases with stay orders to uphold justice and public confidence [Paras 1-62].

Judicial Administration – Pendency and Backlog – Measures to Address Delay – Examination of reports on pending criminal cases with stay orders across various High Courts – Analysis revealed significant delays, with some cases pending for decades – Supreme Court directed High Courts to implement systems for tracking and expediting such cases – Suggested creation of additional courts and infrastructure improvements for effective administration of justice [Paras 7-60].

Access to Justice – Fundamental Right – Timely Justice as an Integral Aspect – Supreme Court reaffirmed the right to timely justice as part of the fundamental right to access to justice under Article 21 – Delays in criminal proceedings undermine the rule of law and public trust – Urged prompt action by judiciary and government to ensure timely resolution of cases [Paras 33-45].

Decision – Appeals allowed – High Courts directed to dispose of cases with stay orders within six months – Law Commission to examine measures for reducing delays and suggest improvements – Supreme Court to review implementation in follow-up hearings [Paras 60-62].

Criminal Law – Negotiable Instruments Act – Compounding of Offences – Appellants contended that the approval of a scheme under Section 391 of the Companies Act should result in the automatic compounding of offences under Section 138 of the Negotiable Instruments Act – Supreme Court held that compounding requires explicit consent of the complainant and cannot be deemed or assumed under any scheme – Scheme under Section 391 cannot override the statutory provisions for compounding in criminal law [Paras 1-74].

Company Law – Scheme of Compromise – Legal Binding – Approval of a scheme under Section 391 of the Companies Act binds all creditors, but does not extend to automatic compounding of criminal offences – Offences committed prior to the scheme remain actionable and cannot be dismissed solely based on scheme approval [Paras 11-14, 18-19].

Statutory Interpretation – Non-obstante Clause – Interpretation of Section 147 of NI Act – Supreme Court clarifies that Section 147 of the NI Act making offences compoundable does not nullify the procedural requirements of Section 320 of CrPC for compounding – Importance of maintaining the legislative intent and statutory procedures [Paras 47-74].

Decision – Appeals dismissed – High Court's decision upheld – Offences under Section 138 of the NI Act not automatically compounded by approval of scheme under Section 391 of the Companies Act – Emphasized need for explicit consent for compounding of offences [Paras 74-75].

Criminal Procedure – Territorial Jurisdiction – Foreign Nationals – Offences involving foreign nationals – Appellants challenged the criminal proceedings initiated in India on the grounds of territorial jurisdiction – Supreme Court held that the physical presence of the accused in India is not necessary for launching criminal prosecution if the offence involves effects within India – Territorial jurisdiction under Sections 179, 181, 182, and 482 CrPC includes any act or consequence of the offence within India – Complaint cannot be quashed merely because a civil suit is pending [Paras 16-22].

International Law – Jurisdiction over Foreign Nationals – Application of Indian Penal Code – Supreme Court referenced principles of international law and prior judgments, affirming that foreign nationals can be prosecuted in India for acts that have an impact within Indian territory – Physical absence from India does not preclude criminal liability for acts committed outside but having consequences within India [Paras 17, 24-32].

Fraud and Cheating – Contractual Obligations – Criminal Complaint – Allegations of dishonesty and fraudulent breach of contract in an international commercial transaction – Court emphasized that contractual disputes with elements of fraud or cheating can attract criminal prosecution independently of civil proceedings – Proper inquiry and trial essential to uphold the rule of law [Paras 7-16, 22].

Decision – Appeal dismissed – Criminal proceedings to continue in the competent court in Ghaziabad – Supreme Court reaffirmed jurisdiction and necessity of addressing criminal elements in commercial disputes, ensuring compliance with legal processes and international norms [Para 22].