Taxation Law - Corporate Insolvency – Resolution Plan and Tax Demands – Binding Effect under Section 31 of IB Code – Tax Demands Set Aside - The Supreme Court held that once a resolution plan is approved by the Adjudicating Authority (NCLT), all claims not part of the plan stand extinguished – Income tax demands for AYs 2012-13 and 2013-14, which were not submitted prior to approval and were not part of the resolution plan, were thus invalid – Held: Demands raised by the Income Tax Department post-approval are extinguished and unenforceable under Section 31(1) of the IB Code as interpreted in Ghanashyam Mishra [Paras 5-9].

Binding Nature of Resolution Plan – Extinguishment of Undisclosed Claims – Fresh Start Doctrine – Tax Claims Invalid - Court reinforced that successful resolution applicants are entitled to a “fresh slate” – The inclusion of belated or undisclosed claims would undermine certainty and business revival under the IB Code – Held: All statutory dues not claimed before CIRP and not part of the approved plan are extinguished [Paras 7-13].

Failure of NCLT and NCLAT – Ignorance of Binding Precedent – Orders Set Aside - The NCLAT erroneously refused to consider binding precedent from the Supreme Court merely because it was not cited before the NCLT – Supreme Court rebuked this approach as perverse and unjustified – Held: Orders of both NCLT and NCLAT set aside; costs imposed by NCLT also quashed [Paras 9-10, 14].
 

Criminal Law - Penal Code – Section 302 vs. 304 Part II – Medical Evidence Inconclusive – Conviction Altered – The Supreme Court upheld the High Court’s reduction of conviction from Section 302 read with 149 IPC to Section 304 Part II – Held: Post-mortem report and doctor’s deposition failed to conclusively establish death resulted from injuries caused by the accused – Death occurred 15 days after assault; no poison detected; cause of death noted as asphyxia but reason unknown [Paras 12–14].

Sentencing Policy – Age and Delay Considered – Sentence Reduced to Time Undergone – The High Court sentenced respondents to time already served (76 days) due to incident being over 28 years old at the time of judgment and advanced age of accused (70–80 years) – Fine of ₹16,000 each imposed, part of which directed as compensation – Held: In view of the long lapse of time and mitigating circumstances, no interference warranted [Paras 10, 14].

Criminal Appeals Management – Need for Prioritisation – Pendency and Accused on Bail – Court issued observations stressing need to prioritise old criminal appeals where accused are on bail – Held: Delayed disposal may result in impractical consequences of re-incarceration after decades – Appeals involving elderly or long-pending cases should also be heard expeditiously [Paras 15–16].

Decision – Appeal Dismissed – Conviction under Section 304 Part II IPC Sustained – Supreme Court found no error in High Court's reasoning or evaluation of medical evidence – Held: No justification to interfere with sentence or findings of fact; appeal stands dismissed [Para 16].
 

Criminal Law - Appeal against acquittal - Confessional Statements under TADA – Voluntariness and Procedural Safeguards – Rejection Upheld – The Supreme Court reaffirmed that strict compliance with Section 15 of TADA and Rule 15 of TADA Rules is essential to admit confessions – The confessional statements of three accused recorded by a single officer were held inadmissible due to failure to give reflection time, lack of questions and answers, absence of production details, and recording in custodial military settings – Held: Procedural violations rendered confessions inadmissible [Paras 22–26].

Issue Estoppel – Prior Acquittal in Separate Case – Confession Already Rejected – Confessional statement of Mohd. Salim Zargar had been previously rejected in an earlier trial and became final – The Court held that the principle of issue estoppel barred the prosecution from relying on the same confession in a fresh trial – Held: Statement rightly rejected by Special Court; its admission would disturb final finding of fact [Paras 22.3–24].

Evidence – Lack of Corroboration – Eyewitnesses Non-Identifying – Weapon Not Recovered – The eyewitnesses failed to identify the accused and the AK-47 rifle used in the murders was not recovered – Confessions being inadmissible, no independent evidence remained to support conviction – Held: Acquittal justified as prosecution failed to prove guilt beyond reasonable doubt [Paras 9–11, 28].

Decision – Appeals Dismissed – Acquittal Upheld – The Supreme Court upheld the Special Court's decision acquitting the accused – It held that confessions were improperly recorded and inadmissible, and prosecution failed to establish guilt through independent evidence – No case made out to reverse the order of acquittal – Held: Criminal Appeals 1681 and 1770 of 2009 dismissed [Paras 27–33].
 

Recording of Advocate Appearances – Restriction to Arguing and Assisting Counsel – The applicants sought modification of para 42 of the Supreme Court’s judgment dated 20.09.2024, which directed that only the names of arguing counsel and one assisting Advocate-on-Record (AOR) be recorded in the court proceedings – The Court clarified that the appearance slip should reflect only those advocates who are physically present and actively participating in the case – Held: The practice of marking multiple advocates in proceedings without verification undermines judicial discipline; Court Masters must ensure compliance with the amended rules [Paras 20-22].

Advocate-on-Record’s Role – Responsibility in Filing Vakalatnama and Representation – The Court reiterated that an Advocate-on-Record (AOR) is responsible for certifying that the Vakalatnama was executed in their presence or properly verified – Held: An AOR must remain accountable for filings, and Senior Advocates cannot appear in the Supreme Court without an AOR [Paras 14-16].

Judicial Oversight on Legal Ethics – Curbing Abuse of Process – The Court observed that the previous system allowed misuse, with advocates being listed in proceedings despite not appearing in court – The new system ensures transparency and accountability – Held: AORs must inform the Court Master of any changes in representation via a fresh appearance slip, preventing fraudulent claims of participation [Paras 24-26].

Impact on Bar Elections and Professional Growth – No Adverse Effect on Rights – The applicants argued that restricting recorded appearances would negatively impact junior advocates’ career progression, chamber allotments, and SCBA voting rights – The Court rejected this claim, stating that statutory rules must take precedence over unwritten practices – Held: The allocation of chambers and voting rights remain subject to established SCBA rules, and professional advancement should not depend on inflated appearance records [Paras 22-23].

Decision: Miscellaneous Applications partially allowed. The directions in para 42 of the judgment dated 20.09.2024 were modified to clarify that:

1. Only advocates physically present and arguing, along with one assisting AOR, shall be recorded.

2. AORs must verify and endorse Vakalatnamas properly.

3.Senior Advocates must always appear with an AOR in Supreme Court proceedings.

4. Court Masters shall strictly implement these directions.

Motor Accident Compensation – Enhancement of Award – The claimants, legal heirs of the deceased, sought enhancement of the compensation awarded by the Motor Accident Claims Tribunal (MACT) and partially increased by the High Court – The Supreme Court found that the High Court underestimated the deceased’s income, failed to apply an appropriate multiplier, and did not adequately compensate for future prospects – Held: Compensation revised based on Sarla Verma and Pranay Sethi principles, increasing the award from Rs.5,96,761/- to Rs.13,82,500/- [Paras 10-15].

Calculation of Monthly Income – Inclusion of Pension and Notional Wages – The High Court determined the deceased’s monthly income as Rs.5,819/-, excluding certain pension components – The Supreme Court found that the pension and homemaker services should be considered together, revising the monthly income to Rs.7,000/- – Held: When assessing loss of dependency for a deceased homemaker receiving pension, the combined value of pension and notional wages should be used [Paras 11-12].

Future Prospects – Application of Pranay Sethi Standard – The Court held that loss of future prospects should be granted at 25%, considering the deceased’s age of 45 years – Held: Future prospects of Rs.1,750/- per month added, following the standard laid down in Pranay Sethi [Paras 14].

Multiplier and Deduction for Personal Expenses – Correction of Errors – The High Court applied a multiplier of 9 and deducted 1/5^th of the income for personal expenses – The Supreme Court corrected the multiplier to 14 and the personal expenses deduction to 1/4^th, per Sarla Verma – Held: The correct application of the multiplier and deductions resulted in a higher loss of dependency calculation [Paras 15].

Loss of Love and Affection – Application of Magma General Insurance Standard – The Court increased compensation for loss of love and affection to Rs.2,40,000/-, applying Magma General Insurance Co. Ltd. V. Nanu Ram – Held: Compensation should be granted per claimant, considering familial relationships [Paras 15].

Just Compensation – Beneficial and Welfare Legislation – The Court emphasized that the Motor Vehicles Act, 1988 is a welfare legislation and that courts must award ‘just compensation’ – Held: Courts must ensure that compensation adequately reflects the loss suffered by claimants while adhering to settled legal principles [Para 14].

Decision: Appeal allowed. Compensation increased to Rs.13,82,500/- with 7.5% interest per annum from the date of claim petition.

Motor Accident Compensation – Enhancement of Award – Future Prospects Considered – The appellant suffered quadriplegia (100% disability) due to a motor accident and sought enhancement of the compensation awarded by the High Court – The Supreme Court found that the High Court erred in not considering future prospects while calculating loss of income – Held: Future prospects should be added at 40%, increasing the loss of income calculation – Compensation enhanced from ₹15,25,600/- to ₹36,84,000/- [Paras 10-12].

Income Assessment – Minimum Wages as Basis for Calculation – Proper Multiplier Applied – The High Court assessed the income at ₹5,600/- per month, which was below even the minimum wage for an unskilled worker (₹6,447.75/- per month in 2014) – The Supreme Court corrected this and set income at ₹7,500/- per month, applying multiplier of 18 – Held: Revised loss of income calculation: ₹22,68,000/- [Paras 9-10].

Pain and Suffering – Compensation for Special Diet, Attendant Charges, and Future Medical Expenses – The appellant, a state-level volleyball player, required lifelong assistance and continuous medical care – The Supreme Court enhanced compensation for pain and suffering from ₹15,000/- to ₹1,00,000/-, special diet from ₹25,000/- to ₹1,00,000/-, and awarded ₹5,00,000/- for attendant expenses and ₹2,00,000/- for future medical expenses – Held: Compensation for permanent disability must reflect actual suffering and lifelong dependency [Paras 10-12].

Physiotherapy and Loss of Marriage Prospects – Judicial Recognition of Life Altering Impact – The appellant required continuous physiotherapy, but lacked documentary proof – The Court took judicial notice of the need for physiotherapy and granted ₹50,000/- in lump sum – Additionally, ₹2,00,000/- awarded for loss of marriage prospects due to permanent disability – Held: Disability compensation must account for social and emotional impact on life [Paras 11-12].

Digital Payment System for Compensation – Direct Bank Transfers Ordered – The Supreme Court issued landmark directions for reforming compensation disbursement – Held: Motor accident compensation must be directly transferred to claimants' bank accounts instead of being deposited with tribunals, avoiding unnecessary delays and procedural hassles – Directed all tribunals to collect bank details at the time of filing claims and mandate direct transfers – Held: The new system ensures faster and more efficient disbursal of compensation [Paras 17-20].

Decision: Appeal Allowed – Compensation enhanced to ₹36,84,000/- with interest at the same rate as awarded by the High Court – Insurance company directed to transfer the enhanced amount directly to the appellant’s bank account within six weeks – Directions issued for nationwide implementation of direct bank transfer of accident compensation [Paras 12-13, 17-21].

Education Law – Eligibility Criteria for Admission – Subsequent Fulfillment of Requirements – Relief Granted – The appellant secured admission to a B.A.M.S. course despite not meeting the eligibility requirement of passing English in the 10+2 examination – His college was later de-recognized, and students were transferred, but he was denied transfer on eligibility grounds – The appellant, acting on a provisional admission letter, reappeared for the 12th class examination, passed English, and completed almost the entire B.A.M.S. course – Held: Given the peculiar facts, including the appellant's substantial completion of the course and compliance with eligibility criteria during his studies, he should be allowed to complete the course and internship, and be issued his degree [Paras 7-9].

Doctrine of Actus Curiae Neminem Gravabit – Court Should Not Prejudice a Party Due to Its Own Actions – The appellant pursued the course under interim orders for nearly six years and completed part of his mandatory internship – The High Court's decision to deny relief disregarded the principle that a court’s action should not cause undue hardship to a litigant (actus curiae neminem gravabit) – Held: Since the appellant had substantially complied with the eligibility requirements and invested significant time and effort, denying him relief would be unjust [Para 8].

Judicial Review – Power to Intervene in Academic Matters – Exceptional Circumstances Justifying Relief – Courts generally do not interfere in academic matters unless there is manifest injustice – The appellant’s admission was initially irregular, but subsequent compliance with eligibility norms and completion of studies justified intervention – Held: Exceptional circumstances warranted setting aside the High Court’s order, ensuring that the appellant is not unfairly deprived of his degree [Para 9].

Decision: Appeal Allowed – The Supreme Court set aside the Madhya Pradesh High Court’s orders dated 18.06.2014 (W.P. No. 10267 of 2012) and 01.08.2014 (Review Petition No. 236 of 2014) – The appellant shall be allowed to complete his course and internship at Shaskiya Swasashi Dhanwantari Ayurvedic Medical College, Ujjain – The concerned authorities shall issue the appellant his B.A.M.S. degree upon completion – No order as to costs [Para 9].

Service Law – Seniority Dispute – Promotion vs. Direct Recruitment – Applicability of Special Rules, 1960 and Subordinate Service Rules, 1966 – Seniority Upheld for Promoted Engineers – The dispute pertained to the seniority of Assistant Engineers in the Kerala Water Authority, where the appellants, promoted from Draftsman-Grade I, challenged the High Court's decision granting seniority to directly recruited engineers – The High Court erred in applying Rule 4(b) of the Special Rules, 1960 at the stage of appointment to Assistant Engineer, as the rule only applies for further promotions – The Supreme Court clarified that once an individual becomes an Assistant Engineer, they can opt for either the degree or diploma quota for further promotion – The seniority list prepared by the Kerala Water Authority was held to be valid – Appeals allowed, and the High Court's judgments set aside [Paras 16-27].

Statutory Interpretation – Avoidance of Absurdity – Harmonious Construction – The interpretation by the High Court created an anomalous situation where a junior employee with a diploma who later acquired a degree could leapfrog a senior employee with both qualifications – The Supreme Court applied the presumption against absurdity, holding that statutory provisions must be construed to avoid irrational results – The Court reiterated that the legislature's intent must be honored through a rational and just interpretation [Paras 28-30].

Precedents – Inapplicability of Chandravathi P.K. Case (2004) 3 SCC 734 – The respondents relied on the Supreme Court's ruling in Chandravathi P.K., which dealt with weightage for service before acquiring a degree – The Court held that the ruling was not relevant to the present case, as it addressed a different issue – The private respondents' reliance on the case was misplaced [Paras 31].

Decision – Appeals Allowed – High Court Judgment Overturned – The Supreme Court ruled in favor of the appellants, restoring their seniority as per the original list prepared by the Kerala Water Authority – The judgments of the Single Judge and the Division Bench were set aside [Para 32].

Criminal Law – Copyright Infringement – Expert Report – Appellant alleged that respondents copied the design of its bookbinding machine, leading to registration of FIR under Copyright Act, IPC, and IT Act – High Court initially ordered expert opinion by FSL with involvement of an engineer – FSL and IO submitted a report dated 21.03.2019 – Respondents dissatisfied and sought further directions [Paras 3-7].

Procedural Law – Maintainability – Application in Disposed Petition – Second application filed in disposed Special Criminal Application held improper – Supreme Court held that the High Court erred in entertaining the second application post disposal of the main petition and ordering additional expert opinion [Paras 8-14].

Investigation – Validity of Multiple Expert Opinions – Supreme Court held that once the High Court accepted the initial expert report, it was improper to direct IO to obtain a fresh expert opinion – The direction would prejudice the investigation and parties – Investigation should proceed on existing report subject to objections by the accused before the IO [Paras 13-16].

Investigation – Discretion of Investigating Officer – Supreme Court granted liberty to respondents to raise objections before IO regarding expert report – IO to exercise discretion whether further expert opinion is required under applicable laws without mandatory direction from High Court [Para 16].

Decision – Appeal Allowed – High Court’s direction for additional expert opinion quashed – Liberty given to respondents to raise objections before IO – IO permitted to proceed as per law without compulsion to seek second opinion [Paras 16-17].