Criminal Law - Appeal Against Acquittal – Grant of Leave Under Section 378(3) CrPC – Judicial Parameters – The appellant challenged the High Court’s order refusing to grant leave in an acquittal appeal—Held: At the stage of granting leave, the High Court should not evaluate the entire evidence but determine if an arguable case exists—Prima facie review showed material justifying full consideration of the appeal—High Court’s refusal was erroneous—Leave granted and matter remitted for reconsideration [Paras 7-12].

Circumstantial Evidence – Standard of Proof – Role of High Court – The case was based entirely on circumstantial evidence—Trial Court extended benefit of doubt due to contradictions in witness testimony—Held: When an acquittal is based on circumstantial evidence, appellate courts must ensure proper evaluation of links forming the chain of circumstances—High Court failed to consider this aspect—Matter requires full re-examination [Paras 10-13].

Witness Credibility – Impact of Hostile Witness – The primary eyewitness, the deceased’s son, turned hostile—Trial Court discarded his testimony and relied on omissions in other witness statements—Held: A hostile witness’s statement is not entirely irrelevant; corroborated portions can be considered—This issue warranted deeper scrutiny by the High Court [Paras 14-16].

Final Decision – Appeal allowed—Leave granted under Section 378(3) CrPC—Matter remitted to the High Court for reconsideration of the acquittal appeal on merits—Appellant permitted to file an appeal under Section 372 CrPC, if desired [Paras 14-17].

Criminal Law - Dismissal of Criminal Appeal in Limine – Whether Justified – The High Court dismissed the appellant’s criminal appeal on the first day without calling for trial court records—Held: Appellate courts must examine trial records before deciding an appeal, especially in cases involving acquittals—Failure to do so constitutes a serious procedural lapse—Impugned order set aside.

Appreciation of Evidence – Whether High Court Erred in Ignoring Key Witnesses – The appellant argued that crucial witness testimonies, including those of the informant (PW-8) and the investigating officer (PW-10), were ignored—Held: Courts must consider depositions holistically—Selective reliance on evidence without examining the full record amounts to a miscarriage of justice—Remand warranted.

Impact of Acquittal in Arms Act Case – Whether Relevant to the Present Appeal – The High Court cited the acquittal of Respondent No. 5 under the Arms Act, 1959, as a basis for dismissing the appeal—Held: Acquittal in one case does not automatically invalidate evidence in a separate proceeding—Relevance of past judgments must be assessed in light of Sections 40-44 of the Indian Evidence Act—Failure to do so was a legal error.

Power Under Section 391 CrPC – Whether Additional Evidence Should Have Been Considered – The appellant cited Section 391 CrPC, seeking an opportunity to adduce additional evidence—Held: High Court should have evaluated whether further evidence was necessary before dismissing the appeal—Remanded for fresh consideration.

Final Decision – Appeal allowed—High Court’s order quashed—Criminal Appeal (DB) No. 573/2013 restored to its original number—High Court directed to hear the appeal on merits expeditiously—Parties directed to appear before the High Court on 24/03/2025

Partnership Property – Contribution of Property by Partner – Section 14, Indian Partnership Act – Property of the Firm – Appeal Dismissed - The appellant contended that the relinquishment deed executed by his late father did not validly transfer ownership to the partnership firm and that ownership could only be transferred through recognized modes under the Transfer of Property Act – The Supreme Court upheld the High Court's finding that when a partner contributes property to a firm, it becomes firm property under Section 14 of the Partnership Act – Held: The property in question, including land and hotel, became the property of the partnership firm once it was contributed by the appellant’s father, and the legal heirs could not claim independent ownership rights over it [Paras 11-15].

Effect of Relinquishment Deed – Partnership Assets – Legal Heirs' Claims Rejected – Partnership Property Distinguished from Individual Ownership - The appellant argued that a relinquishment deed was not a valid mode of transfer under the Transfer of Property Act – The Court held that this contention was irrelevant since the property already became partnership property once contributed – The relinquishment deed only confirmed this fact and did not independently effectuate a transfer – Held: The High Court correctly clarified that the firm alone was the owner-in-possession of the property, and legal heirs could only inherit the deceased partner’s share in firm profits, not the property itself [Paras 12-16].

Power of the Supreme Court under Article 136 – No Scope for Interference – Appeal Dismissed - The Supreme Court reiterated that it does not interfere with concurrent findings of fact unless there is a grave legal error – Held: The findings of the High Court were legally sound, and there was no ground for interference under Article 136 of the Constitution – Appeal dismissed [Paras 17-18].

Quashing of FIR – Whether Complaints Were False and Motivated – The appellants, a married couple, challenged two FIRs filed against them in 2010 and 2011 for forgery, cheating, and criminal conspiracy—Held: Merely alleging that an FIR is false is insufficient for quashing—Both FIRs disclosed cognizable offences—No interference warranted at this stage [Paras 2-5].

Applicability of Priyanka Srivastava Judgment – Whether Mandatory Affidavit for Section 156(3) CrPC Applies Retrospectively – The second FIR was registered based on a complaint before the Magistrate under Section 156(3) CrPC without an accompanying affidavit—Held: The requirement of an affidavit, as laid down in Priyanka Srivastava vs. State of U.P., (2015) 6 SCC 287, applies prospectively—Since the complaint was filed before the 2015 ruling, its absence of an affidavit does not invalidate the FIR—Appeal dismissed [Paras 6-10].

Retrospective vs. Prospective Operation of Judicial Decisions – General Principles – The appellants argued that Supreme Court judgments are always retrospective unless otherwise stated—Held: Judicial pronouncements clarifying procedural law usually apply prospectively to avoid unsettling past actions—High Court’s interpretation correct—Appeal dismissed [Paras 3-6].

Final Decision – Appeals dismissed—FIRs not quashed—Appellants granted liberty to move for discharge if charges have not yet been framed—Pending applications disposed of [Paras 7-9].

Criminal Law – Taxation - Power of Arrest under GST Act – Interpretation of Sections 69 and 132 – Court examined the interplay between the power of arrest under Section 69 and the offenses classified under Section 132 of the CGST Act – Held: The power to arrest must be exercised cautiously and only when the Commissioner has “reasons to believe” that a person has committed a non-bailable offense – The procedural safeguards laid down in law must be strictly adhered to [Paras 1-5].

Arrest in Economic Offenses – Constitutional Safeguards – The Court recognized the importance of combating tax evasion but emphasized that the power of arrest should not be misused – Held: Arrests cannot be made routinely or as a means of coercion for tax recovery – The principles of personal liberty under Article 21 must be respected – The arresting officer must have clear and sufficient material before exercising power under Section 69 [Paras 6-8].

Judicial Review of Arrests – Limited Scope – Supreme Court reaffirmed that while High Courts have the power to review arrests under Article 226, judicial scrutiny is limited to ensuring compliance with statutory safeguards – Courts should not interfere merely because material supporting arrest appears inadequate – Judicial review is confined to examining whether the arresting officer had material to form a bona fide belief about the commission of an offense [Paras 9-10].

Judicial Restraint in Economic Offenses – Courts should be cautious in interfering with arrests under special economic laws like GST, PMLA, and Customs Act – Held: The power of arrest is an important tool to combat financial fraud, and courts should not act as appellate authorities over the subjective satisfaction of arresting officers – However, procedural safeguards must be enforced [Paras 12-13].

Power of Arrest under GST Act – Conditions and Limitations – Section 132 of CGST Act – Safeguards Emphasized – Supreme Court clarified that arrest under the GST law must be preceded by the Commissioner’s “reasons to believe” that a cognizable and non-bailable offense has been committed – Arrest cannot be made merely for investigation or suspicion – The Commissioner must rely on relevant and sufficient material before ordering arrest – Failure to meet these conditions renders an arrest illegal [Paras 55-57].

Preconditions for Arrest – Distinction Between Cognizable and Non-Cognizable Offenses – Court reaffirmed that only offenses specified under clauses (a) to (d) of Section 132(1) CGST Act, with tax evasion exceeding Rs. 500 lakhs, are cognizable and non-bailable – Officers cannot arrest individuals in cases of bailable offenses – Compliance with statutory safeguards is mandatory before making an arrest [Paras 56-58].

Voluntary Tax Payment – Protection Against Coercion – The Court took note of allegations that taxpayers were coerced into making tax payments under the threat of arrest – Held: Taxpayers cannot be forced to pay tax unless assessed and adjudicated – Coercion and threats by tax officers violate constitutional rights – Directed the Central Board of Indirect Taxes and Customs (CBIC) to issue guidelines ensuring that no taxpayer is compelled to pay under duress [Paras 63-65].

Legislative Competence of Parliament – Constitutional Validity of Sections 69 and 70 of CGST Act – Court rejected the challenge to the validity of the provisions, holding that the power to arrest, summon, and prosecute under GST is incidental and ancillary to taxation – Parliament has the authority under Article 246-A of the Constitution to enact provisions preventing tax evasion, including criminal penalties – The power to prosecute tax evaders is an essential part of the taxation regime [Paras 72-75].

Procedural Fairness in Arrests – Reference to CBIC Guidelines – The Court directed that all arrests under GST law must comply with procedural safeguards outlined in CBIC circulars and Supreme Court judgments – Any deviation would render the arrest illegal and invite disciplinary action [Paras 62-65].

Final Decision – Challenge to the constitutional validity of Sections 69 and 70 of CGST Act dismissed – Held: The power of arrest under GST law is valid, but subject to strict procedural safeguards – Directed CBIC to ensure compliance with arrest guidelines and prevent coercion in tax recovery – Matters listed for final hearing on 17.03.2025 [Paras 77-78].

Legal Representative – Determination under Order XXII Rule 5 CPC – Appellant sought substitution as the sole legal representative of the deceased plaintiff based on a registered will – Trial Court rejected the application citing absence of a legal heir certificate and presence of other legal heirs – High Court upheld the dismissal but allowed liberty to implead other legal heirs – Supreme Court restored the application for reconsideration, emphasizing that non-impleadment of legal heirs was not a valid ground for dismissal [Paras 4-5].

Impleadment of Legal Heir – Order I Rule 10(2) CPC – Respondent No.1, daughter of the deceased plaintiff, sought to be impleaded as a defendant – Appellant objected, claiming exclusive right based on a will – Trial Court allowed impleadment, citing dispute over title and necessity of hearing all legal heirs – High Court upheld the order – Supreme Court affirmed the decision, stating that a fair trial requires all interested parties to be heard and the Appellant’s opposition lacked legal basis [Paras 6-12].

Will Contest – Relevance in Substitution and Impleadment – The Appellant relied on a registered will executed by the deceased plaintiff in his favor – Respondent No.1 alleged forgery and fabrication – Supreme Court held that the validity of the will must be adjudicated during trial and does not preclude impleadment of other legal heirs as necessary parties [Paras 10-12].

Final Decision – Appeal dismissed – Supreme Court upheld the High Court and Trial Court orders allowing impleadment of Respondent No.1 as a defendant – Held: All necessary parties must be heard to reach a fair decision [Paras 12-13].

Land Law - Slum Redevelopment – Eviction Under Sections 33 & 38 of Maharashtra Slum Act – No Illegality in Notices Issued - The Slum Rehabilitation Authority (SRA) issued notices to slum dwellers under Sections 33 and 38 of the Maharashtra Slum Areas Act, directing them to vacate their premises for redevelopment—Appellants contended that the plot was a MHADA layout and should be redeveloped by MHADA—Held: The land was classified as a "censused slum" under Regulation 33(10) of the Development Control Regulations (DCR), making SRA the appropriate authority—Decision: Eviction notices upheld; appeals dismissed [Paras 9-17].

Legal Status of Censused Slums – No Requirement for Separate Notification – Redevelopment by SRA Valid - Appellants argued that no government notification had declared the land as a slum—Court held that a "censused slum" is already recognized under DCR and does not require a separate notification under Section 4 of the Slum Act—Held: The redevelopment process initiated by SRA is legally sound—Decision: No infirmity in the rehabilitation scheme; appeals dismissed [Paras 16-18].

Delay in Challenging Rehabilitation Scheme – Failure to Approach Courts in Time – Laches Applicable - The appellants had challenged the slum rehabilitation project only after the second eviction notice was issued in 2022, despite a prior order in 2019 affirming the project—Held: The appellants had ample opportunity to challenge the AGRC order earlier but failed to do so—Decision: Writ petition rightly dismissed by the High Court; Supreme Court refused to entertain the appeal [Paras 12-15].

Majority Consent of Slum Dwellers – More Than 70% Approval – No Basis for Individual Objections - Over 70% of the eligible slum dwellers had consented to redevelopment—Appellants refused to vacate despite being offered alternative accommodation—Held: Individual objections cannot override the majority decision of the slum dwellers—Decision: No relief granted to appellants; appeals dismissed [Paras 17-19].

Labour Law – Revision of Pay Scales – Validity of Industrial Court’s Interference – The appellant, MSRTC, revised employees' pay scales in 2015, reducing wages fixed in 2010—Employees challenged the revision before the Industrial Court, which ruled in their favor—High Court upheld the decision—Held: The 2015 revision was not justified as it attempted to retrospectively apply Maharashtra SRTC vs. Premlal to a settled pay structure—Pay scales granted in 2010 were upheld—Appeal dismissed [Paras 10-16].

Premlal Judgment – Whether Applicable to 2015 Revision – MSRTC relied on Maharashtra SRTC vs. Premlal (2007) 9 SCC 141 to justify revision—Held: Premlal only clarified the distinction between daily wage workers' eligibility for time-scale pay and their absorption into permanent service—It did not mandate retrospective revision of wages—2015 revision was an incorrect application of Premlal—Findings of Industrial Court and High Court upheld [Paras 17-22].

Industrial Court’s Jurisdiction – Whether Interference Was Justified – MSRTC contended that the Industrial Court overstepped its jurisdiction—Held: When wage revisions are made arbitrarily without consultation, courts can intervene under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act—Industrial Court acted within its powers [Paras 23-25].

Final Decision – Appeals dismissed—2015 wage revision struck down—2010 pay fixation restored—Pending applications, if any, disposed of [Paras 26-27].

Criminal Law – Quashing - Prevention of Corruption – Demand and Acceptance of Bribe – Proof Required – Appeal Allowed - The appellant, a former Gujarat minister, was accused of corruption for allegedly granting fishing contracts without a tender process – The High Court upheld the criminal proceedings, but the Supreme Court held that no prima facie material indicated demand or acceptance of bribe – Held: Under Neeraj Dutta v. State (NCT of Delhi) (2023) 4 SCC 731, proof of demand and acceptance of illegal gratification is a sine qua non for conviction under the Prevention of Corruption Act – Since no evidence established such demand or receipt of a bribe by the appellant, the case could not be sustained [Paras 11-12].

Misuse of Authority – Mere Violation of Policy Does Not Constitute Corruption – No Presumption Under Section 20 - The prosecution argued that deviation from the official tendering process indicated corruption – The Court held that mere violation of government policy does not automatically constitute corruption under the Prevention of Corruption Act – Held: A presumption of corruption under Section 20 requires proof of illegal gratification, which was absent in this case – The High Court erred in sustaining the charges in the absence of requisite proof [Paras 16-17, 22].

Quashing of Criminal Proceedings – Lack of Evidence Against Appellant – Discharge Ordered - The investigation report did not contain allegations of bribery against the appellant, and the complainant’s statements primarily referred to the first accused, not the appellant – The Special Court and High Court failed to analyze the absence of material implicating the appellant – Held: When no prima facie case exists, continuing criminal proceedings would be an abuse of process – Appeal allowed, and proceedings against the appellant quashed [Paras 23-25].