Criminal Law – FIR Quashing – HDFC Bank officials accused of violating a restraining order under Section 132(3) of the Income Tax Act, 1961 – FIR registered for offenses under Sections 34, 37, 120B, 201, 206, 217, 406, 409, 420, and 462 IPC – High Court dismissed the writ petition to quash the FIR – On appeal, Supreme Court held that the allegations did not prima facie disclose the commission of any offense or the presence of mens rea by the appellant-bank or its officials – Held: Continuation of the criminal proceedings would cause undue hardship, FIR quashed [Paras 1, 3, 6, 7, 16, 21, 24, 27, 31].

Mens Rea – Absence of Fraudulent Intent – Appellant-bank argued that the bank officials acted under a bona fide mistake, misinterpreting the revocation order as extending to bank lockers – No allegations of fraudulent intent or inducement were made in the FIR – Supreme Court held that for offenses under Sections 420 and 409 IPC, mens rea is essential – In this case, there was no dishonest intent, nor were the bank officials shown to have induced anyone fraudulently [Paras 5, 21, 22, 25].

Entrustment and Breach of Trust – Section 409 IPC – FIR alleged breach of trust concerning bank locker operations – The Court observed that there was no entrustment of property to the appellant-bank or its officials, and thus no criminal breach of trust under Sections 406 or 409 IPC – The misinterpretation of the revocation order did not amount to dishonestly misappropriating any property [Paras 22, 24].

Common Intention and Criminal Conspiracy – Sections 34, 120B IPC – The Court held that the FIR and complaint did not establish any common intention or conspiracy among the bank officials to intentionally violate the restraining order – As a result, the provisions of Sections 34, 37, and 120B IPC were found inapplicable [Paras 27].

Decision: Appeal allowed – Judgment of the Patna High Court set aside – FIR registered against the bank officials under various IPC sections quashed – Continuation of criminal proceedings deemed unnecessary as it would cause undue hardship to the appellant-bank [Paras 29-31].

Corporate Insolvency - Initiation of CIRP – Application under Section 7 of the IBC – Acknowledgment of Debt in Balance Sheet – Validity of Application Confirmed – The appellant challenged the initiation of CIRP on the grounds that the Section 7 application was barred by limitation, and the debt owed to UCO Bank was not specifically acknowledged in the Corporate Debtor's balance sheet. The Supreme Court held that the entries in the balance sheets of the Corporate Debtor for the years 2017 and 2019, along with the One-Time Settlement (OTS) proposal, amounted to a valid acknowledgment of debt under Section 18 of the Limitation Act, thereby extending the limitation period. The CIRP initiation was upheld as being within the limitation period [Paras 3-6, 10-13].

Acknowledgment of Debt – Balance Sheets and OTS Proposal – Section 18 of the Limitation Act – Extension of Limitation Period – The Court observed that the balance sheet entries and the OTS proposal issued by the Corporate Debtor acknowledged the existence of a debt, even without the specific mention of UCO Bank's name. Citing the judgment in Asset Reconstruction Company (India) Ltd. v. Bishal Jaiswal, the Court affirmed that balance sheet entries, coupled with an auditor’s note on outstanding liabilities, can serve as acknowledgment of debt sufficient to extend the limitation period under Section 18 of the Limitation Act [Paras 7, 10-11].

Corporate Debtor’s Liability – OTS Proposal Constitutes Acknowledgment – The Corporate Debtor’s proposal for a One-Time Settlement (OTS) to UCO Bank was found to be a clear acknowledgment of a subsisting debt. The Court held that the OTS proposal indicated the existence of a debtor-creditor relationship and reaffirmed the Corporate Debtor's liability, further supporting the application of Section 18 of the Limitation Act to extend the limitation period [Paras 11-12].

Decision – The appeal was dismissed, affirming the orders of the Adjudicating Authority and NCLAT. The Court found no merit in the appellant’s arguments concerning the limitation and acknowledgment of debt [Paras 13-14].

Service Law – Pay Discrepancy – Appellant, an Artificer III in the Indian Navy, challenged the lower grade pay granted to Artificers I, II, and III, compared to the non-technical Chief Petty Officers, despite their technical competence and relative ranks – The appellant contended this was discriminatory, arguing that Artificers of Class III and above should receive the same grade pay as non-technical Chief Petty Officers (Rs. 4200) based on Navy instructions and regulations – Held: The differentiation in grade pay based on the promotional hierarchy and responsibilities is neither arbitrary nor illegal [Paras 2, 4, 6, 12].

Navy Regulations – Command and Rank – Regulation 247 and other Navy instructions indicated that Chief Artificers hold command over Artificers I, II, and III – While the rank equivalency for seniority purposes was acknowledged between Artificers III and Chief Petty Officers, the Court emphasized the operational and hierarchical differences between these ranks – The promotional avenues available to Artificers and Chief Petty Officers justified the variance in grade pay [Paras 7, 9, 10].

Grade Pay Anomaly – Speaking Order – The 2009 speaking order clarified that while Artificers I to III are given relative ranks akin to Chief Petty Officers for seniority, they are not directly promotable to higher posts like Master Chief Artificers, unlike Chief Petty Officers – The appellant’s claim for equal grade pay was denied as Artificers I to III are positioned between Artificer IV and Chief Artificer in the pay structure, justifying the lower grade pay of Rs. 3400 compared to the Rs. 4200 granted to Chief Artificers [Paras 11, 12].

Decision: Appeal dismissed – The Court upheld the Tribunal's decision, affirming that the pay disparity between Artificers III to I and Chief Petty Officers is lawful and not discriminatory – No merit in the appeal [Paras 13, 14].

Land Acquisition – Compensation – Section 23 of the Land Acquisition Act, 1894 – Enhanced Compensation Restored – The appellants challenged the High Court's reduction of compensation, asserting that their lands in Mewat had immense potential due to strategic location near infrastructure developments. The Reference Court had enhanced compensation based on relevant sale exemplars – Held: The High Court erred in relying on sale exemplars executed after the Section 4 notification. The compensation granted by the Reference Court, based on pre-notification sale deeds, was fair and just, and the High Court's judgment was set aside [Paras 2-37].

Comparable Sale Instances – Smaller Plot Exemplars – Application of Development Charges – The Court acknowledged that smaller land parcels can command higher prices and held that such exemplars could be relied upon after appropriate deductions. A deduction of 46% to 50% was considered reasonable in the circumstances to estimate compensation for the larger tract of land under acquisition [Paras 26-34].

Market Value Determination – Highest Valued Exemplar – It was reiterated that when several sale exemplars are available, the highest bona fide transaction should be considered for determining compensation. The sale exemplar Ex. P5 was held to be the most suitable for determining the market value of the land, and compensation was based on this exemplar with relevant deductions [Paras 27-30].

Decision: Appeals Allowed – The Court set aside the impugned judgment of the High Court and restored the compensation awarded by the Reference Court. The respondents were directed to pay the compensation, along with all statutory benefits, within eight weeks [Paras 38-40].

Criminal Law – Acquittal – Section 498-A IPC – Appellant convicted for cruelty towards the deceased based on dowry demands – Trial court and High Court convicted appellant under Section 498-A IPC, sentencing him to three years of rigorous imprisonment – High Court modified the sentence to the period already undergone – Appellant argued he was falsely implicated, as his marriage occurred only months before the deceased’s death and no evidence specifically linked him to any acts of cruelty – Supreme Court found no direct evidence of cruelty or harassment against the appellant and held that over-implication was likely – Held: Conviction set aside, appellant acquitted [Paras 1, 9, 13, 14].

Witness Testimony – Over-Implication – Appellant argued that his conviction stemmed from over-implication, a concept previously acknowledged by the Supreme Court in Preeti Gupta v. State of Jharkhand – Court noted that no witness specifically implicated the appellant in the alleged dowry harassment or cruelty – Absence of complaints against the appellant prior to the FIR, coupled with vague allegations, supported the appellant's claim of over-implication – Held: Conviction of the appellant unsustainable due to lack of evidence [Paras 5, 9, 12].

Section 498-A IPC – Relative by Marriage – Appellant argued that his marriage to the second accused (the sister of the deceased's husband) occurred only months before the deceased’s death, limiting his interaction with her – Court acknowledged this fact and found no specific accusation or evidence tying the appellant to the alleged dowry demands – Held: Appellant not a "relative" involved in cruelty as per Section 498-A IPC – Acquittal granted [Paras 5, 9].

Decision: Appeal allowed – Conviction and sentence under Section 498-A IPC set aside – Appellant acquitted – Impugned judgments of the High Court and Trial Court, insofar as they relate to the appellant, set aside [Para 14].

Arbitration Clause – Applicability of Arbitration and Conciliation Act, 1996 – Public Premises Act, 1971 – The appellant raised a question whether the Public Premises Act overrides the Arbitration Act – Held: The dispute arises from the lease agreement containing a valid arbitration clause, covering issues of storage charges and lease renewal – The Public Premises Act governs eviction and possession post-expiry of lease but does not override or interfere with arbitration matters under the agreement [Paras 13-14].

Jurisdiction – Section 11 of the Arbitration Act – Appointment of Arbitrator – The High Court appointed an arbitrator for disputes under the agreement, including revised storage charges and the respondent's right to renew the lease – Held: The High Court correctly exercised its jurisdiction as the disputes fell under the arbitration clause, and the referral court’s role under Section 11 is limited to ascertaining the existence of a valid arbitration agreement [Paras 14-15].

Costs and Resumption of Arbitration – Appeal Dismissed – The appeal was deemed unnecessary and dismissed with costs imposed on the appellant – The arbitration proceedings, stayed during appeal, were directed to resume with the arbitral tribunal to expedite its award [Paras 15-17].

Decision: Appeal Dismissed – The Court rejected the appeal and upheld the High Court’s order appointing an arbitrator under Section 11 of the Arbitration Act. The appellant was ordered to pay costs of Rs. 50,000, and the arbitral proceedings were directed to continue without delay [Paras 15-17].
 

Service Law - Revision of Pension – Government-Aided College Staff Entitlement – Rule 6 of the Haryana Civil Services (Revised Pension) Part I Rules, 2009 – The appellants, retired from government-aided private colleges before 01.01.2006, claimed entitlement to revised pension under Rule 6 on par with government college staff – Held: Revised pension is payable to the appellants as per the Rule 6 guidelines, in alignment with orders passed for government college retirees; however, interest on delayed payment was not warranted [Paras 8-10].

Interest on Delayed Pension Payment – No Entitlement for Interest Based on Fence-Sitting – Rule 6 of the Haryana Civil Services (Revised Pension) Part I Rules, 2009 – The appellants contended they were entitled to interest on delayed pension as the State initially committed to pay such interest through oral instructions in court – Held: The High Court correctly ruled that the appellants, who waited until previous litigations resolved, could not claim interest by simply following the outcomes; the absence of written commitment from the State negates entitlement to interest [Paras 17-18].

Oral Instructions in Judicial Proceedings – Caution Advised – The Court emphasized the importance of government counsel relying solely on written instructions to avoid misrepresentations that can mislead judicial proceedings – Observed: Future representations by government officials should be substantiated with written documentation to ensure accuracy and accountability; failure to provide truthful information may result in penalties [Para 22].

Decision: Appeals are dismissed, with no costs awarded.

Land Acquisition – Section 5A of the Land Acquisition Act – Compliance with Procedure – Objections Dismissed – The respondents challenged the acquisition of their land, asserting that their objections under Section 5A were not duly considered and that similarly situated lands were exempted from acquisition – Held: The State Government complied with the mandatory procedure of Section 5A, including hearing and report stages, and was entitled to disagree with the Collector's recommendation based on a High-Powered Committee's findings. The objections were not automatically binding on the Government [Paras 11-18].

Discrimination – Article 14 of the Constitution – Claim of Discriminatory Treatment – The respondents alleged discrimination in the acquisition, claiming that similarly situated lands were exempted – Held: The High Court’s finding of discrimination was erroneous as the State had acquired 99.78% of the notified land, including the exempted land at a later stage. Negative equality cannot be claimed to invalidate the acquisition [Paras 27-31].

Doctrine of Merger – Appeals Dismissed for Non-Prosecution – Whether the present appeals are maintainable – Held: The doctrine of merger does not automatically apply in cases of dismissal for non-prosecution. The Supreme Court invoked its powers under Article 142 to ensure complete justice, holding that the previous dismissal did not bar the present appeal [Paras 47-53].

Settlement Between Parties – Agreement to Release Land – State’s Decision to Release the Land During Appeal Scrutinized – Held: The decision to release the land was arbitrary, lacked due consideration of public interest, and was not accepted by the Court. The land was ordered to be acquired for the intended public purpose [Paras 32-46].

Decision: Appeal Allowed – The Supreme Court set aside the impugned judgment of the High Court and directed the acquisition of the respondents' land to proceed in accordance with the original notifications under the Land Acquisition Act. The Court further directed the State to take possession and utilize the land for public purposes, with appropriate compensation to be awarded. The Court also granted liberty to the respondents to seek higher compensation under Section 18 of the Act, if applicable [Paras 54-57].

Criminal Law – Remand of Trial – Appeal against acquittal – Appellant challenged the order of the Allahabad High Court, which had remanded the case back to the Trial Court for retrial from the stage of testimony of PW 2 – The High Court found the trial process unfair due to the admission of prosecution documents without formal proof – Directed the retrial, allowing the defence to cross-examine witnesses and the prosecution to call formal witnesses – Held: High Court erred in ordering remand as the genuineness of documents had been admitted under Section 294 CrPC, rendering formal proof unnecessary – Appeals allowed, and the High Court's judgment set aside [Paras 1, 2, 8, 22, 23].

Section 294 CrPC – No formal proof of admitted documents – The prosecution's documents, including autopsy reports and police memos, were admitted by the defence during trial, making formal proof unnecessary – Trial Court had rightly relied on these documents under Section 294(3) CrPC – Reliance on judgments in Sonu v. State of Haryana, Shamsher Singh Verma v. State of Haryana, and Akhtar v. State of Uttaranchal to uphold the validity of reading such documents into evidence without formal proof – High Court’s reliance on Munna Pandey v. State of Bihar was misplaced, as it dealt with different legal issues [Paras 14-21].

Witness Testimony – Cross-examination of PW 2 – High Court’s order directing the cross-examination of PW 2 and summoning of additional witnesses was unnecessary since the defence had already admitted the genuineness of crucial documents – No compelling reason to remand the case for a retrial from this stage – High Court should have decided the appeals based on the evidence already on record [Paras 10, 16, 17].

Decision: Appeals allowed – The judgment and order of the Allahabad High Court are set aside – The criminal appeals are restored to the High Court for fresh consideration on the merits, based on the existing record – Respondents to surrender within six weeks, and may apply for suspension of sentence before the High Court [Paras 23-25].