Criminal Law – House-breaking and theft at police office safe - Retracted Confession – Section 164 CrPC – Section 24 Evidence Act – Necessity of Corroboration – Acquittal Directed – The prosecution case rested substantially on the appellant’s confession recorded under Section 164, later retracted – The High Court in revision, while acquitting the co-accused, disbelieved the prosecution version of forcible opening with a crowbar and suggested access by keys, thereby undermining the substratum of the confession – Held: A retracted confession, shown untrue in substantial particulars and not corroborated on material points, cannot sustain conviction [Paras 5, 9–13].

Corroboration – “Recovery” of Currency Notes – Insufficiency – No Section 342 CrPC Put-Up – Acquittal – The High Court relied on trivial circumstances and did not address that alleged recoveries were not linked to the safe-cash apart from the confession; moreover, the appellant was not specifically confronted under Section 342 with the recovery circumstances – Such “corroboration” is legally infirm and inadequate to support a retracted confession [Paras 1–2, 11, 14].

Appellate/Revisional Scrutiny of Facts – Duty to Weigh All Material Evidence – Observation – While concurring in the result flowing from the High Court’s findings casting doubt on the very occurrence of theft, Fazl Ali, J. noted concern that critical prosecution evidence (e.g., early-scene observations of PW-23 about broken locks/staple) was not fully evaluated; nevertheless, given the revision findings, conviction could not stand [Para 1–2].

Proof of Theft – Prosecution Version Disbelieved – Where High Court found marks on safe were likely from investigation, padlock/crowbar not traced, small cash box left intact, and “alibi” of co-accused accepted, the occurrence as alleged became doubtful – In absence of proof of theft/house-breaking, conviction for offences whose main ingredient is theft is unsustainable [Paras 9–10].

Decision – Appeal Allowed – Convictions and sentences under Sections 457/380/461 IPC set aside; appellant acquitted and to be released – Question on Section 342 CrPC left open as unnecessary [Paras 13–15].

Arbitration Law – Jurisdiction of Arbitrators – Dispute as to Status of Party – Arbitration Clause Wide – Award Upheld – The appellants, described as “brokers” in sold/bought notes for jute, invoked arbitration on respondents’ default – Respondents objected that appellants were mere brokers and not principals, hence not parties to arbitration agreement – Held: Whether appellants were principals or brokers turns on construction of the contract, which is a dispute “arising out of or concerning” the contract – Such dispute falls within the arbitration clause – Arbitrators therefore had jurisdiction – Award valid [Paras 7–9].

Construction of Arbitration Clause – Test – If Recourse to Contract Necessary – Dispute Under Contract – Court applied test from Heyman v. Darwins Ltd. [1942 A.C. 356]: if resolution of dispute requires recourse to contract, it falls within arbitration clause – Here respondents’ plea of non-liability of appellants equally required reliance on contract – Hence arbitrable [Para 8].

Error of Law or Fact by Arbitrators – Court’s Role – Once dispute found within scope of arbitration clause, court cannot sit in appeal over arbitrators’ conclusions or omissions – High Court erred in setting aside award on ground appellants not competent to enforce contract [Paras 7–9].

Decision – Appeal Allowed – Division Bench judgment of Calcutta High Court reversed – Order of Sinha, J. dismissing respondents’ petition to set aside award restored – Appellants entitled to costs throughout [Paras 10–12].

Civil Writ - Constitutional Law - Fundamental Rights – Article 19(1)(g) – Bidi Manufacture Ban – Sections 3–4, 1948 Act – Reasonable Restrictions vs. Total Prohibition – Petitions under Article 32 by a proprietor and an employee assailing Deputy Commissioner’s orders prohibiting bidi manufacture in notified villages during agricultural seasons – Held: Sections 3–4, as applied, effect a total suspension of the trade, not a reasonable restriction – The ban bears no reasonable relation to the stated objective (securing agricultural labour) and is excessive in scope [Paras 1–9].

Reasonableness – Overbreadth and Lack of Nexus – Measure must strike a balance between individual freedom and social control – Statute prohibits manufacture by all residents including children, elderly, infirm, non-agricultural persons and even prevents manufacturers from employing labour from outside the notified villages – Such blanket, arbitrary prohibitions are beyond what the public interest requires and therefore unreasonable under Article 19(6) [Paras 8–9].

Less Restrictive Alternatives – Regulatory Options Available – Objective could be achieved by restraining employment of agricultural labour for bidi work during the season or by regulating hours – A complete stoppage of the business is unnecessary and disproportionate, risking dislocation and ruin of the industry [Para 9].

Judicial Review – Legislature Not Final Judge of Reasonableness – Courts must scrutinize whether restrictions are reasonable; legislative judgment is not conclusive – Supreme Court, as guardian of Part III, may invalidate laws infringing fundamental rights [Para 10].

Outcome / Relief – Sections 3–4 Orders Void – Deputy Commissioner’s orders dated 13-06-1950 and 29-09-1950 declared void, inoperative and ineffective – State restrained from enforcing Section 4 against petitioners – Petitions allowed with costs [Paras 11–12].

Murder and attempt to murder - Homicide – Proof of Weapon/Manner – Necessity of Expert Evidence – Gap in Prosecution Case – The prosecution alleged two close-range firearm shots by two assailants (gun and rifle). Medical evidence disclosed puzzling wound patterns; ballistics opinion was inconclusive (no test-fire or comparison) – Held: In firearm deaths, prosecution must, through competent expert evidence, show that injuries could likely or at least possibly be caused with the alleged weapon(s) in the alleged manner; here a vital gap remained—whether a gun or rifle caused the injuries and if two shots at close range could produce the described wounds – Unsafe to rest conviction solely on uncorroborated ocular testimony of chance/partisan witnesses. Acquittal. [Paras 7, 11–13, 14].

Evidence – Chance/Interested Witnesses – Absence of Independent Locals – Caution – Occurrence near gurdwara/houses but no local witness examined; case rested on three witnesses (two chance, one partisan and himself injured). In such circumstances, absent confirming expert proof, conviction cannot stand [Paras 8, 13–14].

Plea of Alibi – Standard of Appraisal – Reasonable Standard Applies – Alibi supported by Naib-Tehsildar’s record (taccavi application bearing appellant’s thumb impression dealt with same day) and scribe’s testimony; prosecution’s service/process record beset with suspicious features; courts below misdirected themselves by not applying the same reasonable standard as to prosecution evidence and by overlooking material probabilities and documents [Paras 9, 15–16].

Section 342 CrPC – Accused’s Examination – Appellant denied presence; alibi set up – Though not decisive to disposal, Court notes the manner of dealing with defence was unsatisfactory in overall appraisal [Paras 9, 15].

Appellate Intervention – “Special and Exceptional” Category – Where material gaps exist in proof and substantial injustice results, Supreme Court will interfere – Applied the principle in Pritam Singh v. State; conviction set aside [Para 14].

Decision – Appeal allowed – Convictions under Sections 302 & 307/34 IPC set aside; appellant acquitted and to be released forthwith – No retrial ordered given prolonged death-row suspense [Paras 17–18].

Appeals from Common Judgment – One Suit, One Trial, One Decision – Two Decrees Drawn – Single Appeal Sufficient – Res Judicata Inapplicable – Plaintiffs’ suit for possession and mesne profits decreed; two sets of defendants filed separate first appeals; first appellate court allowed both by one common judgment and drew two decrees – Plaintiffs filed one appeal in time and a second, time-barred – Held: Where there has been one suit, one finding, and one decision, it is not necessary to file two separate appeals merely because two decrees were drawn – Estoppel/res judicata is predicated on judgments in different suits; it has no application when both decrees stem from the same judgment in the same suit – The determining factor is the matter in controversy and the common judgment, not the multiplicity of decree sheets [Paras 4–5].

Section 5 Limitation Act – Condonation Justified amid Conflicting Views – The High Court erred in refusing to extend time; given conflict of authority within the State High Court and across Indian High Courts on the necessity of multiple appeals from a common judgment, delay ought to have been excused under Section 5 [Para 5].

Precedents – Approval of Principle in Mst. Lachmi v. Mst. Bhuli – Lahore view followed – Even where two decrees exist, appeals need not be duplicated if they arise out of the same adjudication; estoppel flows from judgment, not the decree; reliance placed also on Appa v. Kachai Bayyan Kutti (Mad) as on all fours [Paras 4–6].

Decision – Appeals allowed – Judgment of the High Court set aside – Matter remanded to the High Court for decision on merits – Costs to abide result [Para 7].

Muslim Law - Execution Proceedings – Widow’s Claim of Dower – Priority Question – Widow not Secured Creditor – A widow in possession of her husband’s estate in lieu of unpaid dower raised objection to attachment by a decree-holder creditor – The executing court upheld her claim, treating her position as analogous to a secured creditor – Held: Dower is a debt payable pari passu with other unsecured debts and has no priority over other creditors – Widow’s possession gives her no preferential right against unsecured creditors [Paras 1–4, 6–8].

Dower under Muslim Law – Nature and Status – Dower is consideration for marriage and ranks as a debt – While it has priority over inheritance and bequests, it does not rank above other unsecured contractual debts – Only where the husband creates a charge in favour of the wife can it enjoy security – A widow’s possession of estate does not convert her claim into a secured debt [Paras 2–4].

Widow’s Lien – Qua Heirs v. Qua Creditors – Against heirs, widow may retain possession until dower is satisfied, but as against creditors, she cannot claim priority – Her lien is not a charge in the strict legal sense but only an equitable right against heirs – Hence, creditors’ claims must be satisfied rateably along with her dower [Paras 5–6].

Precedents – Conflicting Views – Allahabad and Hyderabad High Court decisions giving preference to widow’s dower over creditors’ claims not accepted – Correct rule laid down in Madras decision in Ameer Ammal v. Sankaranarayanan Chetty, holding widow’s dower claim ranks equally with other creditors – Supreme Court affirms this view [Paras 5–7].

Decision – Widow’s objection rejected – Appeal allowed – Judgments of courts below set aside – Execution to proceed with sale and distribution of proceeds rateably among all creditors including widow – No order as to costs [Paras 8–9].

Constitutional Law – Civil Writ - Freedom of Speech and Press – Pre-censorship order – Article 19(1)(a) & 19(2) – Section 7(1)(c), East Punjab Public Safety Act, 1949 – Prior restraint on “Organizer” requiring pre-publication scrutiny of specified classes of matter – Held: Pre-censorship is a restriction on freedom of speech and of the press – Section 7(1)(c) authorizing such restraint is not within the saving of Article 19(2) as then framed – Impugned order quashed – Petition allowed [Paras 1, 3–5].

Meaning and scope – “Public order” and “public safety” – Legislative competence and constitutional limits – While the Act aims at public safety and maintenance of public order, the authorized restraint must fall within Article 19(2) – Majority applying Romesh Thappar v. State of Madras holds that mere “public order” grounds do not satisfy Article 19(2)’s narrower categories – hence Section 7(1)(c), to the extent it permits prior restraint on that basis, is unconstitutional [Paras 2, 5].

Liberty of the Press – Prior restraint doctrine – Blackstone’s formulation adopted – Liberty of the press consists in freedom from previous restraints, without immunity for punishment for criminal matter post-publication – Pre-censorship therefore prima facie infringes Article 19(1)(a) [Para 4].

Dissent – Fazl Ali, J. – “Public safety” ≈ security of the State; “public order” ≈ public tranquillity – Section 7(1)(c) confined to particular subjects connected with public safety/order – Article 19(2) intended to cover sedition-like threats to State security; public disorder undermines State security – Hence law is within Article 19(2); Chief Commissioner’s order intra vires; petition should be dismissed [Paras 6–14, 15–22, 25–26].

Decision – Writ petition allowed – Order dated 2 March 1950 of the Chief Commissioner, Delhi set aside – Majority per Patanjali Sastri, J.; Fazl Ali, J., dissenting [Paras 5, 27].

Taxation Law - Income from Property – Section 9(1)(iv) – “Annual charge not being a capital charge” – Deductibility of Bombay municipal property tax and urban immovable property tax – The assessee, an investment company, claimed deduction of municipal property tax and urban immovable property tax paid during the year – Held: Both levies are annual liabilities assessed year-to-year on annual value and are statutorily charged on the property under the Bombay Acts – They qualify as “annual charge not being a capital charge” within Section 9(1)(iv) – Appeal allowed – Questions answered in the affirmative [Paras 4–16].

Meaning of “Annual charge” and “Capital charge” – Section 9(1)(iv) – “Annual charge” means a charge securing an annual or recurrent liability – “Capital charge” means a charge securing a liability of a capital nature, not merely a charge on the corpus – Variability or contingency of the amount or half-yearly mode of collection does not destroy the “annual” character if the liability recurs annually [Paras 6–11, 15].

Municipal Property Tax/Urban Immovable Property Tax – Nature and statutory charge – Under the City of Bombay Municipal Act, 1888 (ss. 143–168 determine annual liability; s. 197 permits half-yearly payment; s. 212 creates first charge) and the Bombay Finance Act, 1932 (s. 22 levy; s. 24(2)(b) charge), the taxes are annual impositions secured by a first charge on the property – Liability and charge co-exist and are co-extensive notwithstanding collection mechanics – Hence deductible under Section 9(1)(iv) [Paras 10–12].

Statutory Interpretation – Primacy of text – In construing Section 9(1)(iv), the court must give effect to legislative intent expressed in the provision itself – Comparisons with Section 9(1)(v) (land revenue) or Section 10 (business deductions) are inapposite absent ambiguity since land revenue is of a different, paramount character and municipal taxes may or may not be a charge depending on local law [Para 13].

Precedents – Conflicting High Court views – Bombay view in CIT v. Mahomedbhoy Rowji and Madras view in Mamad Keys not followed – Allahabad view in Gappumal Kanhaiya Lal approved – English authorities (Moss Empires; Cunard Trustees) affirm that contingent/variable payments can still be “annual” – Bejoy Singh Dudhuria (PC) noted as background to 1939 insertion of “annual charge” limb in Section 9(1)(iv) [Paras 6–9, 13–16].

Decision – Appeal allowed – High Court’s negative answers set aside – Municipal property tax and urban immovable property tax are deductible as “annual charges not being capital charges” under Section 9(1)(iv) – Costs to the appellant [Paras 15–16].

Constitutional Law – Civil Writ - Freedom of Speech and Press – Ban on entry and circulation of newspaper – Article 19(1)(a) & 19(2) – Section 9(1-A), Madras Maintenance of Public Order Act, 1949 – Majority per Patanjali Sastri, J. – Order prohibiting entry/circulation of “Cross Roads” directly restricts freedom of speech and expression as circulation is integral to that freedom – A law authorising restrictions for the broad purposes of “public safety” or “maintenance of public order” is outside Article 19(2) (as it then stood), which permits restrictions only where the security of the State is undermined or its overthrow is threatened – Section 9(1-A) unconstitutional – Impugned order quashed – Petition allowed [Paras 4–5, 10, 12].

Article 32 – “Guaranteed” remedy – Maintainability before Supreme Court in first instance – Preliminary objection rejected – Article 32 confers a fundamental right to move the Supreme Court for enforcement of Part III rights and constitutes the Court the protector of those rights – No requirement to first approach the High Court under Article 226 – American and procedural analogies inapposite [Para 3].

“Public safety” and “public order” – Constitutional limits – Expressions are wider than “security of the State” – In the absence of limiting words, statutory power framed to secure public safety/order can extend to minor breaches of peace and thus exceed Article 19(2) – Constitution draws a line between aggravated disorders endangering State security and lesser public order breaches [Paras 5–9].

Severability – Existing law partly consistent with Article 19(2) – Where a statute authorises both permissible and impermissible restrictions in wide terms, and unconstitutional application cannot be ruled out, the provision is not severable and must be struck down wholly – Section 9(1-A) void in entirety [Para 11].

Dissent – Fazl Ali, J. – “Public safety” equated to State security – Disturbances menacing peace and tranquillity undermine State security – Impugned law falls within Article 19(2) – Petition should be dismissed [Paras 13–15].

Decision – Petition allowed – Order of Government of Madras dated 1 March 1950 banning entry/circulation of “Cross Roads” quashed – Majority (Patanjali Sastri, J.); Fazl Ali, J., dissenting [Paras 12, 13–15].