Criminal Law – Quashing - Income Tax – Section 276C(1) of the IT Act – Complaint quashed – Settlement Commission granted immunity from penalty but not prosecution due to pendency of criminal proceedings – Held: In absence of wilful concealment and considering that the Settlement Commission accepted disclosure without suppression, prosecution cannot be sustained – High Court erred in refusing to quash complaint – Prosecution continued in violation of binding departmental circulars requiring ITAT-confirmed penalty and sanction by collegium for tax liability under Rs. 25 lakhs – Quashing of complaint justified [Paras 18, 33-38].

Binding Nature of Circulars – CBDT Circulars and Prosecution Manual – Department bound – Revenue bound by its own circulars governing initiation of prosecution – Lodging complaint without following guidelines amounts to abuse of process – Circulars held binding on authorities under the Act [Paras 20-31].

Settlement Commission – Section 245D and 245H – Immunity from penalty granted – No finding of suppression – Findings of Settlement Commission under Section 245-I held conclusive – Complaint continued despite no wilful attempt to evade tax – Violation of principle of fairness – Order of Settlement Commission takes precedence over procedural technicality of timing of complaint [Paras 34-37].

Criminal Law – Mens rea – Requirement of wilful attempt – Mere possession of unaccounted cash not sufficient – Burden lies on prosecution to prove wilful evasion – No such evidence shown – Continuation of complaint without mens rea unjustified [Paras 12, 18, 36].

Decision – Appeals Allowed – Order of High Court set aside – Complaint and criminal proceedings quashed – Costs of Rs. 2,00,000/- imposed on Revenue for unjustified prosecution [Para 38].

Constitutional Law - Presidential Reference under Article 317(1) - Public Service Commission – Meaning of Misbehaviour – Article 317 of the Constitution – Wider Interpretation Affirmed – The Court reiterated that ‘misbehaviour’ under Article 317 must be interpreted widely in the context of the constitutional position held by members of Public Service Commissions – It encompasses any act or omission that erodes public confidence or diminishes institutional credibility – However, misbehaviour must be proved in respect of the individual and not presumed on a collective basis – Held: The expression is of wide connotation and cannot be narrowly construed [Paras 19, 34, 37, 41, 63].

Misbehaviour – Paper Leak in APPSC Examination – No Individual Indictment – Removal Denied – Allegation against the Respondent was failure to prevent the 2022 AE (Civil) Mains Exam paper leak – The Court held that the Respondent was neither involved in setting or printing of papers, nor was there any evidence to show her connivance or negligence – Charge found unsubstantiated – Held: Allegation of misbehaviour not proved [Paras 52–58].

Misbehaviour – Responsibility for Past Irregularities – Appointment Post-dated Events – No Attribution – The Court held that the Respondent, appointed in August 2021, could not be held responsible for alleged irregularities or paper leakages occurring since 2017 – No evidence established her individual duty or failure in this regard – Held: Charges vague and unsubstantiated [Para 59].

Misbehaviour – Delay in Implementing New Guidelines – No Sole Responsibility – Charges Not Proved – Respondent was accused of failing to implement updated examination guidelines in 2022 – Court held that there was no exclusive duty assigned to her and changes were deferred by collective decision of the Commission – Held: In absence of specific role or act, no misbehaviour is proved [Paras 60–61].

Misbehaviour – Collective Responsibility – Not Attributable Under Article 317 – Individual Inquiry Mandatory – The Court clarified that Article 317 does not recognize the doctrine of collective responsibility for removal of PSC members – Reference must be based on individual acts of misbehaviour – Held: Allegations based on collective failures unsustainable in law [Paras 64–70].

Misbehaviour – Quasi-judicial Decisions – No Misbehaviour for Bona Fide Decisions – Respondent accused of not opposing decision to keep punishment orders against candidates in abeyance – Court held that such quasi-judicial functions cannot be termed misbehaviour if taken in good faith – Held: No misconduct in not opposing such collective decisions [Paras 72–73].

Misbehaviour – Presumption Without Evidence – Reference Based on Prejudice – Not Sustainable – The Court noted that the recommendation for Respondent’s removal was based on prejudice and unsupported assumptions by State authorities – Other members resigned and were later appointed to constitutional posts – Held: Reference was arbitrary and discriminatory [Paras 74–75].

Decision – Reference Dismissed – Charges Not Proved – The Court held that none of the six charges of misbehaviour were individually attributable to the Respondent or proved through cogent evidence – Held: Allegations not substantiated; reference answered in negative – Recommendation sent to the Hon’ble President that Respondent is not guilty of misbehaviour – Suspension to be revoked and all consequential benefits restored [Paras 78–80].

Civil Law - Priority of Provident Fund Dues – Conflict between EPFO and Secured Creditors – Section 11(2) of PF Act vs. Section 35 of SARFAESI – Writ Petition Restored - EPFO sought recovery of statutory dues from auction proceeds of borrower’s properties sold by appellant (EARC) and Axis Bank – Appellant argued it already deposited ₹75 lakhs in proportion to sale value and balance recovery should be directed from Axis Bank which sold property for higher value – Held: Priority of charge under Section 11(2) of PF Act vis-à-vis Section 35 of SARFAESI requires determination – Writ petition restored to High Court for fresh adjudication after impleading Axis Bank – All parties free to raise contentions before High Court [Paras 2–13].

Criminal Law - Appeal against Conviction and Death Sentence – Sections 302, 376(2)(g), 201 IPC – Entire case based on circumstantial evidence, recoveries of victim’s belongings, DNA reports, and alleged suspicious conduct of accused – Court held investigation marred by serious lapses, recoveries were planted, DNA evidence inadmissible for want of chain of custody and proof, and witnesses’ versions exaggerated – Suspicion cannot substitute proof – Held: Conviction and death penalty set aside – Accused acquitted by granting benefit of doubt [Paras 2–4, 24–82].

Circumstantial Evidence – Sections 302, 376(2)(g), 201 IPC – Conviction Set Aside – Prosecution failed to establish unbroken chain linking accused with offence – Conduct relied upon was natural and not incriminating – Held: Circumstantial links insufficient to sustain conviction [Paras 25, 27–35, 69–72].

DNA Evidence – Chain of Custody – Section 313 CrPC – First DNA report inconclusive – Supplementary DNA report produced belatedly without proving through expert or confronting accused – Serious contradictions regarding number of samples and absence of documentation – Held: DNA reports inadmissible and unreliable [Paras 60–67, 75–76].

Recovery of Articles – Evidence Planted – Victim’s underwear and belongings allegedly recovered from accused’s field – Not mentioned in FIR, not identified by parents, and not sent to FSL – Held: Recovery suspicious and likely planted by Investigating Officer – Not relied upon [Paras 28–29, 42–43, 56–57].

Dog Squad and Comb Evidence – Reliability – Witnesses contradicted colour of comb – No unique identification – Dog squad procedure undocumented – Held: Evidence artificial and inadmissible [Paras 36–39, 55].

Suspicious Conduct – Not Incriminating – Accused Putai allegedly washed hands, changed clothes and showed indifference – Court held conduct normal and not sufficient to infer guilt – Version of PW exaggerated and inconsistent – Not incriminating [Paras 30–35, 71–72].

Investigation Lapses – Failure to examine neighbours, secure forensic samples, or prove transmission of seized articles – Forensic exhibits not forwarded to FSL – Held: Investigation lacked fairness and thoroughness – Created serious doubts on prosecution story [Paras 73–75].

Decision – Acquittal – Appeals allowed – Conviction and death sentence set aside – Prosecution failed to prove guilt beyond reasonable doubt – Appellants entitled to benefit of doubt – Directed to be released forthwith if not wanted in any other case [Paras 77–82].

Civil Law - Suit Against Proprietary Concern – Substitution of Proprietor – Maintainability of Suit – Appeal Allowed - Appellants, landlords, had leased premises to “Aditya Motors”, a sole proprietorship concern of respondent Pilla Durga Prasad – Upon expiry of lease, eviction suit was filed, initially against Aditya Motors and others – Later, through amendment, Aditya Motors was substituted with Pilla Durga Prasad as its proprietor – High Court allowed respondent’s revision under Order 7 Rule 11 CPC, holding that plaint disclosed no cause of action against the substituted party – Held: Proprietary concern not being a juristic person, substitution of proprietor was proper – Cause of action remains against proprietor who had signed lease – Order 30 Rule 10 is enabling and does not restrict such substitution – Trial Court rightly rejected the application under Order 7 Rule 11 – High Court erred in adopting hyper-technical approach [Paras 3–5].

Criminal Appeal – Conviction Partly Set Aside – Goa Children’s Act – Probation of Offenders Act – Appeal Partly Allowed - The appellant was convicted by the Children’s Court for offences under Sections 323, 352, and 504 IPC and Section 8(2) of the Goa Children’s Act, 2003, which were later partly modified by the High Court – The Supreme Court found that the allegations did not amount to “child abuse” under the Goa Children’s Act and further held that conviction under Section 504 IPC was unsustainable – The Court upheld conviction under Sections 323 and 352 IPC but extended the benefit of probation under Section 4 of the Probation of Offenders Act – Appeal partly allowed and appellant released on probation for one year [Paras 1–22].

Child Abuse – Definition under Goa Children’s Act – Conviction Set Aside - The act of hitting a child with a school bag during a quarrel was held not to constitute “child abuse” under Section 2(m) of the Goa Children’s Act – The Court emphasized that such isolated and minor acts lacking cruelty or sustained maltreatment fall outside the scope of the Act – Conviction under Section 8(2) set aside [Paras 13–15].

Medical Evidence – Possibility of Injury from Fall – Credibility Undermined - Medical Officer (PW-2) admitted that the injuries on the child could have been caused by a fall – This raised doubts about the prosecution case and supported the defence’s version of the events [Para 16].

Intent to Provoke Breach of Peace – Section 504 IPC – Conviction Set Aside - The Court held that mere verbal abuse or insults without intent to provoke breach of peace do not attract Section 504 IPC – No such intention was established in the present case – Conviction under Section 504 IPC quashed [Para 18].

Probation – Minor Offences – Relief under Probation of Offenders Act – The Court held that for minor offences under Sections 323 and 352 IPC, the benefit under Section 4 of the Probation of Offenders Act should be extended – The appellant was directed to be released on probation for one year upon furnishing bonds before the trial court [Para 19].

Decision – Appeal Partly Allowed – Conviction under Section 8(2) of the Goa Children’s Act and Section 504 IPC set aside – Conviction under Sections 323 and 352 IPC confirmed – Appellant released on probation for one year with condition of maintaining peace and good behaviour [Paras 20–22].

Civil Law - Partition Suit – Presumption of Valid Marriage – Evidence of Long Cohabitation – Appeal Dismissed - The plaintiffs claimed partition of ancestral properties as sons of the deceased Dasabovi from his first wife – Defendants denied the plaintiffs’ legitimacy and marriage between their mother and Dasabovi – The Trial Court dismissed the suit – The High Court reversed, relying on oral evidence and presumption of marriage based on prolonged cohabitation – Supreme Court affirmed High Court's decision – Held: Marriage can be presumed under Section 50 of the Evidence Act where cohabitation and social recognition exist; plaintiffs proved their status as legal heirs [Paras 1-2, 17-25, 34-42, 60-61].

Evidence – Section 50 of the Evidence Act – Oral Testimony of Long-Time Acquaintance – Valid Proof of Relationship - The only key witness (P.W.2 Hanumanthappa) had special means of knowledge and testified credibly to the marriage and relationship – His testimony was rooted in personal knowledge and consistent with the genealogical chart – Held: Evidence of a competent witness under Section 50 is sufficient to prove familial relationship in absence of documents [Paras 20-25, 28-33].

Presumption of Marriage – Long Cohabitation – Legal Recognition Favoured – Burden on Denier - Deceased Dasabovi was shown to have regularly visited and cohabited with plaintiffs’ mother – No contrary evidence was led by defendant – Held: Law presumes legitimacy from long-standing cohabitation – Burden to rebut lies on denier – Mere denial insufficient to dislodge presumption [Paras 34-42].

Adverse Inference – Defendant Failed to Enter Witness Box – Section 114(g) Evidence Act – Witness Avoidance Penalized - Defendant No.1, central to the dispute, failed to depose – Despite attending court, she didn’t enter the witness box or seek commission under Order XXVI Rule 1 CPC – Held: Adverse inference drawn against her – Her silence interpreted as evasion – Strengthened plaintiffs’ case [Paras 50-58].

Revenue Records – No Conclusive Proof of Title or Heirship – Mere Mutation Entries Irrelevant - Defendants relied on revenue entries excluding plaintiffs – Held: Such entries are for fiscal purposes and do not determine legal title or legitimacy – Only competent civil court can decide heirship – Reliance misplaced [Para 49].

Appeal – Dismissal Confirmed – High Court Decree Sustained – The Supreme Court upheld the decree of the High Court granting partition – Found no infirmity in reasoning or findings – Held: Plaintiffs proved their entitlement to half share – Appeal dismissed [Paras 60-61].

Arbitration Law - Arbitration Agreement – Validity of Unsigned Contract – Arbitration Clause Enforceable - The appellant sought reference to arbitration under Clause 32.2 of a contract which was not signed by respondent No.1 – Supreme Court held that the contract was nevertheless acted upon: goods were supplied, Letters of Credit issued, and email confirmation exchanged – Held: Arbitration clause valid and binding – Signature is not mandatory when conduct establishes mutual consent [Paras 5-21, 29-30].

Prima Facie Standard – Section 45 of the Arbitration Act – Court Must Refer to Arbitration - Reaffirming Shin-Etsu and Govind Rubber Ltd., Court held that referral courts under Section 45 are required only to make a prima facie determination of the existence of an arbitration agreement, not conduct a mini-trial – Delhi High Court erred in delving into factual analysis and rejecting the arbitration clause on lack of signature [Paras 24, 28-30].

Email Communication – Formation of Contract – Implied Acceptance - Email exchanges between the parties clearly showed ad idem – Respondent proposed a price revision which was accepted and incorporated into the formal contract – Conduct of parties including furnishing of Standby Letters of Credit and acceptance of deliveries confirmed agreement to contractual terms including arbitration clause [Paras 6-13, 18-21].

Relief – Orders Set Aside – Matter Referred to Arbitration - Supreme Court set aside orders of both Single Judge and Division Bench of Delhi High Court – Application under Section 45 allowed – Disputes to be referred to arbitration under LCIA Rules with seat at London, as per Clause 32.2 of contract [Paras 29-30].

Electricity Act - Power Purchase Agreement – Delay in Transmission Infrastructure – No Automatic Relief – Appeal Allowed - Appellant invoked bank guarantee for delay in project commissioning by Respondent Developer due to non-readiness of transmission lines by KPTCL – Held: Contractual provisions require formal extension request under Article 5.7 or Force Majeure notice under Article 14.5 – No such compliance by Developer – Hence, invocation of bank guarantee by CESC valid and lawful – Delay attributable to KPTCL does not qualify as Force Majeure under the PPA [Paras 36-40].

Force Majeure Clause – Notice Mandatory – Delay Not Covered – Finding Reversed - Supreme Court held that Article 14.5 of the PPA mandates a Force Majeure notice within 7 days – No such notice was issued – Delay in transmission readiness does not fall within defined Force Majeure events – Developer’s plea rejected – APTEL and State Commission erred in granting relief despite non-compliance [Paras 39-40].

Jurisdiction of State Commission and APTEL – No Power to Rewrite Contract – Appeal Allowed - Held: Regulatory authorities cannot alter risk allocation, renegotiate tariffs, or order refund of performance guarantees outside contract – Interpretation must follow express terms of the PPA concluded through competitive bidding – Equity or fairness cannot override commercial contract [Paras 42-43].

Contingent Contract – Completion of Transmission Work Not Condition Precedent – Developer Obligated – Developer’s failure to commission project due to KPTCL’s delay does not convert PPA into a contingent contract – Relief lies only through mechanisms provided in PPA – Not availed – No exemption from obligation [Paras 41-42].

Judgment – Relief – APTEL and State Commission Orders Set Aside - Supreme Court set aside orders granting extension, restoring bank guarantee and allowing tariff renegotiation – Held: Invocation of performance guarantee by CESC was in line with Article 4.4 of PPA – Appeal allowed [Paras 44-45].