Taxation Law - Freedom of Trade and Entry Tax – Constitutional Validity of Haryana Local Area Development Tax Act, 2000 – Article 301 and 304 – Reference to Constitution Bench – Appellants, industrial units in Haryana, challenged levy of entry tax under the Act as violative of Article 301, contending it imposed restriction on inter-state trade and was not protected under Article 304 – Act levied tax on entry of goods into local areas, revenue to be distributed among local bodies for “development of local areas” under Section 22 – Held: Precedents on compensatory tax concept inconsistent, particularly Bhagat Ram and Bihar Chamber of Commerce deviating from earlier decisions (Atiabari Tea, Automobile Transport, G.K. Krishnan etc.) – Compensatory tax must have nexus with trading facilities, not general revenue purposes – Since scope of “compensatory tax” blurred, issue requires authoritative pronouncement – Matters referred to Constitution Bench under Article 145(3) [Paras 2–27].

Compensatory Tax – Evolution of Concept – Distinction – Earlier rulings held compensatory levy must be commensurate with cost of facilities provided to traders (e.g., roads, transport infrastructure) – Later rulings expanded concept to include indirect or incidental benefits through developmental activities – Result: distinction between compensatory tax and general taxation diluted – Necessity for clarity through larger Bench [Paras 10–25].

Decision – Appeals and Special Leave Petitions allowed for reference – Constitutional validity of Act not decided by Division Bench – Questions on compensatory tax and validity of Haryana Local Area Development Tax Act, 2000 referred to Constitution Bench under Article 145(3) [Paras 26–27].

Tenancy Law - Rent Control – Delay in Deposit of Rent – Discretion of Court under Order 15 Rule 5 CPC – High Court Order Set Aside – The High Court reversed the trial court's order and struck off tenants' defence on the ground of delay in depositing rent – Supreme Court held that the power to strike off defence under Order 15 Rule 5 CPC is discretionary, not mandatory – Trial court had rightly exercised discretion in favour of tenants—Held: High Court erred in interfering under Section 115 CPC; orders set aside, suits remitted to trial court [Paras 1, 6, 14].

Tenancy Law – Meaning of “First Hearing” – Interpretation in Context of Rent Laws – Benefit of Reasonable Construction – Relying on Sham Lal and Bimal Chand Jain, Court held that “first hearing” does not mean date of appearance or return of summons—Held: First hearing implies the date when court applies its mind, i.e., issues are framed or evidence is considered—Rent deposited within reasonable time [Paras 3, 11].

Civil Procedure – Order 15 Rule 5 CPC – Tenant’s Representation under Sub-rule (2) – Representation Validly Considered – Trial Court accepted tenants’ representation for delay in deposit and found no mala fides – Held: Rent was deposited in bank earlier; no deliberate default—Court rightly accepted representation under Rule 5(2)—No justification for High Court to interfere [Paras 10, 12].

Revision Jurisdiction – Section 115 CPC – Interference with Trial Court’s Discretion – Not Permissible – Trial court’s refusal to strike off defence was a lawful exercise of discretion—Supreme Court held High Court’s revisional jurisdiction under Section 115 CPC was improperly exercised—Held: No jurisdictional error or perversity shown in trial court’s decision [Paras 13, 14].

Final Decision – Appeals Allowed – High Court Orders Set Aside – Cases Remitted to Trial Court – Supreme Court restored trial court’s orders refusing to strike off defence—Directed suits to proceed on merits—Parties directed to bear own costs [Paras 14–15].

Land Acquisition – Determination of Compensation – Reliance on Earlier Awards – Sections 4, 6, 18 of the Land Acquisition Act, 1894 – Compensation Fixed – Lands acquired in Gurgaon pursuant to 1990 Notification – Reference Court awarded Rs. 265 per sq. yard – High Court reduced to Rs. 212 per sq. yard relying on earlier awards in Standard Rubbers and Gunga Devi cases – Held: High Court justified in adopting mean value of Rs. 213, Rs. 160 and Rs. 106 fixed in earlier acquisitions – Method more favourable to claimants, who cannot be aggrieved – Appeals dismissed [Paras 2–7].

Sale Instances – Section 51A of the Land Acquisition Act – Evidentiary Value – Appellants relied on sale deeds to claim Rs. 500 per sq. yard – Held: Even though Section 51A permits acceptance of certified copies, Court not bound to rely on such evidence – Many sale instances included value of structures – Earlier judicially approved rates better guide – Reliance on V. Narasaiah reiterated [Para 6].

Auction of Developed Plots – Not Relevant – Appellants relied on 1989 auction of developed plots fetching Rs. 1,725 to Rs. 2,510 per sq. yard – Held: Auction rates after development cannot determine compensation for agricultural land acquired under Section 4 Notification – Submission rejected [Para 9].

Deductions for Development – Justified – Appellants contended deduction unnecessary as earlier awards already factored in development costs – Held: Absence of proof that earlier awards included deductions – Presumption against claimants as relevant judgments withheld – 20% deduction applied by High Court justified [Para 8].

Decision – Appeals Dismissed – Compensation fixed at Rs. 212 per sq. yard affirmed – No interference warranted – No order as to costs [Para 10].

Public Employment – Screening vs. Cut-off marks – Articles 16(4), 320, 335 – High Court Upheld; Appeals Dismissed – PPSC may conduct screening to shortlist candidates to 3–5 per post, but cannot fix minimum qualifying cut-offs that exclude otherwise eligible reserved-category applicants where selection is by interview – Efficiency standards under Article 335 and reservation implementation under Article 16(4) are policy matters for the State; Article 320(4) removes compulsory consultation in such matters – Commission’s 45%/40% cut-offs invalid; interview-based selection to proceed per merit without such cut-offs [Paras 2, 6–11, 13].

Commission’s Power to Shortlist – Shortlisting Permissible – When applications vastly exceed vacancies, Commission can hold a screening test purely to prune numbers to an interviewable ratio (3–5:1) – Shortlisting should be by drawing the top candidates in order of merit to the required count; no need to prescribe qualifying minima [Paras 7–8, 10].

Cut-off Marks at Screening Stage – Impermissible Where Mode is Interview – Prescribing 45% (general) and 40% (SC) as qualifying marks converts screening into an unauthorized selection stage and can exclude eligible candidates despite meeting notified qualifications—particularly egregious for reserved posts—hence arbitrary and discriminatory [Paras 8, 10–11].

Autonomy of Commission vs. State Policy – Limits Clarified – While PPSC is independent in conducting examinations/interviews, it must operate within constitutional/statutory limits and respect State policy on reservation and efficiency—Articles 16(4) & 335 lie in the State’s domain; by Article 320(4), consultation with PSC is not required on how those are implemented [Paras 9, 11].

State Instructions & Reservation – Consistency Required – Government circulars (14.05.1969; 05.05.1970) prohibit imposing additional tests that deprive SC candidates of reserved posts when they possess minimum prescribed qualifications; if numbers exceed posts, inter-se assessment among SC candidates is permissible—PPSC’s cut-offs violated the tenor of these instructions [Paras 3–5, 11].

Precedent Distinguished – Dr. Sadhna Devi – Concerned PG medical admissions and MCI-mandated standards; not authority for PSC imposing cut-offs in civil recruitment where the State controls reservation/efficiency policy—Commission’s reliance misplaced [Para 12].

Decision – Appeals Dismissed – High Court’s direction to interview eligible candidates (if not already interviewed) and finalize selection per merit affirmed; costs on PPSC [Para 13].

NDPS – Conscious Possession – Sections 15, 35, 54, 50 NDPS; Section 313 CrPC – Conviction Affirmed; Appeal Dismissed – Accused apprehended while sitting atop gunny bags containing poppy husk; physical possession proved, triggering presumption of conscious possession under Sections 35 & 54—no rebuttal by accused – Section 50 inapplicable since no personal search; search related to bags/containers – Co-accused acquittal/Avtar Singh distinguished on facts – Sentence maintained [Paras 2-4, 6-14, 16-18, 19].

Conscious Possession – Meaning & Proof – Possession is a polymorphous concept; may be constructive; “conscious” denotes awareness/intention – Once physical possession proved, burden shifts to accused to rebut presumption (Ss.35, 54 NDPS) – Accused sitting on contraband bags; no explanation offered – Held: conscious possession established [Paras 6, 9-14].

Section 50 NDPS – Limited to Personal Search – Statutory safeguard applies only to personal search of the body, not to search of vehicles, premises, bags or containers – Followed: Baldev Singh (Constitution Bench); Kalema Tumba; Gurbax Singh – Non-compliance plea rejected [Paras 15-16].

Co-Accused Acquittal / Avtar Singh – No Automatic Parity – Avtar Singh concerned multiple persons in a truck, doubtful possession, and defective Section 313; fact-specific – Present case involves clear possession by appellant; Section 313 infirmity not shown – Distinction upheld [Paras 4, 17-18].

Section 313 CrPC – Essence of Accusation – No prejudice demonstrated; conviction sustained on cogent evidence and unrebutted presumptions [Paras 3-4, 17].

Decision – Appeal Dismissed – Conviction under Section 15 NDPS and sentence (10 years RI + ₹1 lakh fine; default 1 year RI) affirmed [Paras 3, 19].

Criminal Law – Section 302 vs Section 304 Part-I IPC – Conviction Modified and Sentence Enhanced – The Supreme Court upheld the Madhya Pradesh High Court’s finding that the case did not fall under Section 302 IPC but under Section 304 Part-I IPC due to the existence of a free fight and sudden provocation – However, the Court found that the sentence of two years RI imposed by the High Court was grossly inadequate considering the gravity of the offence – Held: Conviction under Section 304 Part-I IPC sustained, but sentence enhanced to six years rigorous imprisonment with fine of ₹15,000/- upheld [Paras 4, 9, 10, 20].

Homicide – Nature of Offence – Section 302 IPC vs Exception 4 to Section 300 IPC – Conviction Modified – Respondent Ghanshyam Singh fired two shots during a sudden quarrel leading to death of one individual and injuries to others – High Court held offence was culpable homicide not amounting to murder under Exception 4 to Section 300 IPC – Supreme Court agreed – Held: No premeditation or cruelty – Conviction rightly altered from Section 302 to Section 304 Part-I IPC [Paras 4, 9].

Sentencing – Adequacy of Punishment under Section 304 Part-I IPC – Sentence Enhanced – Trial Court had sentenced respondent to life imprisonment, High Court reduced it to two years RI considering lapse of time – Supreme Court held such leniency undermines justice system – Held: Sentence of two years was shockingly low and disproportionate – Enhanced to six years rigorous imprisonment [Paras 10–15, 20].

Judicial Discretion – Sentencing Must Reflect Public Conscience – Delay No Ground for Leniency – Respondent argued that two decades had passed since offence – Supreme Court held that punishment must fit crime, not be diluted due to lapse of time – Held: Sentencing must balance societal interest, deterrence and justice – Delay cannot override gravity of crime [Paras 10, 11–14, 19].

Principles of Sentencing – Role of Courts – Protection of Society and Deterrence of Crime – Emphasis on Proportionality – Supreme Court reiterated that sentencing must serve societal interest and deter criminal conduct – Leniency in serious offences weakens public trust in justice system – Held: Sentence should be stern where warranted, with mercy only in deserving cases [Paras 11–14, 18–19].

Final Order – Conviction Under Section 304 Part-I IPC Affirmed – Sentence Enhanced to Six Years – Fine of ₹15,000 Maintained – Respondent Directed to Surrender – Miscellaneous Petition Dismissed – Supreme Court allowed appeal to the extent of enhancing sentence – Directed respondent to surrender and serve balance sentence – No separate order passed on pending criminal miscellaneous petition [Para 20].

Criminal Law – Acquittal for Culpable Homicide – Right of Private Defence – Acquittal Upheld – Appellant challenged High Court’s decision acquitting accused under Sections 304 Part-II and 323 IPC—Incident arose from long-standing land dispute—High Court held accused had acted in self-defence and had not exceeded legal bounds—Supreme Court affirmed findings—Held: Acquittal justified based on sustained injuries by accused and lack of premeditation—Right of private defence not exceeded [Paras 1, 4, 7].

Right of Private Defence – Legal Standard – Sections 96 to 106 IPC – Burden of Proof – The Court reiterated that the accused must prove private defence on preponderance of probabilities, not beyond reasonable doubt—Held: Even without formal plea, right can be inferred from prosecution evidence—Accused not required to prove to the hilt—Presence of injuries on accused and failure of prosecution to explain them relevant factors [Paras 6, 7].

Possession of Disputed Land – Relevance to Private Defence – Acquittal Under Section 447 IPC Considered Significant – Trial Court acquitted accused under Section 447 IPC, noting revenue records in their name—High Court treated this as material to establish accused’s lawful possession—Held: Acquittal under Section 447 supports claim that complainants were aggressors—Right of private defence available to accused [Paras 3, 4, 6].

Nature of Force Used – Whether Excessive – Lavali and Bewadi Blows – No Firearms – No Premeditation – Accused used wooden weapons during sudden altercation—No intention to kill—Held: Assault not disproportionate to threat faced—No excessive force used—Findings of trial and High Court accepted [Paras 4, 7].

Private Defence – Applicability Even Without Express Plea – Inferred from Circumstances – Supreme Court reiterated that right of private defence can be examined even if not expressly raised, so long as it emerges from record—Held: Material from prosecution evidence and injuries on accused sufficient to raise inference of lawful defence [Paras 6].

Final Decision – Appeals Dismissed – Acquittal Confirmed – No Interference Warranted – Supreme Court found no error in High Court’s evaluation of evidence or application of private defence doctrine—Held: No reason to interfere with acquittal of accused persons—Appeals dismissed [Para 7].

Criminal Law – Appeal against Reversal of Acquittal – Two-Views Rule Reaffirmed – High Court reversed acquittal for murder; SC found prosecution evidence riddled with omissions, improvements, contradictions (FIR timing/fitness, non-mention of injuries, non-examination of injured eyewitness), and credible defence of contemporaneous cross-case with injuries to DW – Held: trial court’s view was a reasonable possible view; High Court not justified in overturning acquittal – Appeals allowed; acquittal restored; non-appealing co-accused also acquitted [Paras 21, 23-25, 29-31, 33-36, 37].

FIR – What Constitutes Information u/s 154 CrPC – Report need only disclose commission of a cognizable offence – not necessary to narrate full manner/participants – On facts, Court proceeded on PW-2’s statement as FIR while clarifying legal position and rejecting High Court’s premise that “manner” is essential [Para 21].

Alleged Conspiracy – Improvements – Credibility – PW-2 introduced a prior “diwali gambling” conspiracy in deposition absent from FIR and admitted lack of prior disclosure – Held: improvement unsupported; conspiracy case rejected; acquittal of co-accused Hans Raj proper [Para 23].

Omissions/Improvements – Injuries to PWs Not Stated in FIR – PW-2 omitted own and PW-3’s injuries in FIR, later claimed otherwise; shifted stand about reading over FIR; contradicted himself on post-occurrence vandalism – Held: omissions and contradictions undermine credibility [Paras 24, 29].

Non-Examination of Material/Injured Witnesses – Adverse Inference – Injured father (Ram Lal) and another eyewitness (Rajinder) not examined though available; records showed Ram Lal injured/treated – Held: prosecution withholding best evidence dents case; presence of PW-2 doubtful [Paras 18, 33-34].

Defence Version & Cross-Case – Injuries to DW-2 – Significance – Medico-legal record proved sharp-edged head injury to Anil Kumar (DW-2) at same time/place; PW-2 facing 324 IPC in cross-case – Non-explanation of such injury, coupled with hospital notes of “street/ group fight”, supports defence free-fight narrative; prosecution genesis doubtful [Paras 25, 35].

FIR Timing & Medical Fitness – Contradictions – IO said statements recorded after doctors certified fitness at 9–10 a.m. on 02.05.1989, contradicting claim of recording at 10–10:30 p.m. on 01.05.1989; inconsistencies on inquest presence/site plan preparation and PW-3’s medical examination – Held: serious doubt on prosecution timeline [Paras 15, 30-31].

Appellate Interference with Acquittal – Standard – If two reasonable views are possible and trial court adopts one favouring accused, appellate court should not substitute its view unless trial view is perverse – Applied to restore acquittal [Para 36].

Decision – Appeals Allowed – Appellants acquitted of all charges – Co-accused Baldev Raj (who did not appeal) also acquitted on parity – Release ordered if not required in any other case [Para 37].

Education – Mass Copying – Cancellation of Result – Principles of Natural Justice – Article 226 of the Constitution – Cancellation Upheld – Respondent’s result withheld in 1984 for mass copying – Provisional marks-sheet wrongly issued by Principal – Board cancelled result in 1985 after hearing – Respondent pursued higher studies and secured employment suppressing facts – High Court set aside cancellation citing equity – Held: In cases of mass copying, strict compliance with natural justice not required – Cancellation valid – Fraud vitiates all acts – No equity in favour of candidate who suppressed facts [Paras 1-3, 8-10, 20-21, 26-27].

Fraud and Suppression – Fraudulent Marks-Sheet – Respondent beneficiary of fraudulent issuance of provisional marks-sheet without “W.B.” endorsement – Presumed party to fraud – Fraud unravels everything – Fraudulent advantage cannot be protected by writ jurisdiction – Suppression of material facts disentitles equitable relief [Paras 10, 13-15].

Equity – No Relief – Respondent knowingly pursued B.A., M.A. and employment despite withheld result – No equity arises – Career advancement based on fraud cannot be protected – High Court erred in granting relief on equitable considerations [Paras 2, 24, 26].

Remedy – No Direction to Reappear – Court declined to permit fresh appearance in Intermediate Examination absent rules – However, liberty reserved that if law permits, respondent may take exam – Appeal allowed – Orders of High Court set aside [Paras 25, 27].

Decision – Appeal Allowed – High Court judgment and order quashed – Cancellation of Intermediate Examination result of 1984 upheld – No order as to costs [Para 27].