Arbitration Law – Jurisdiction under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996 – Scope of Interference – Division Bench of High Court erroneously interfered with concurrent findings of DRB, Arbitral Tribunal, and Single Judge – Limited scope under Sections 34 and 37 reiterated – Division Bench's interpretation of Clauses 51 and 52 as "unreasonable" held erroneous – Judgment of Division Bench set aside – Arbitral award restored – Held: Courts must exercise restraint to uphold the objectives of the 1996 Act [Paras 25-43].

Variation in Quantity – Clauses 51 and 52 of GCC and COPA – Variation must be instructed to attract Engineer's power to renegotiate rates – Provisions for uninstructed variations clarified – DRB and Arbitral Tribunal found no instructed variation or change in design – Increased geogrid quantity required due to erroneous estimate in BOQ – Contractual provisions for BOQ rates upheld – Division Bench's broader interpretation of "variation" rejected as contrary to contract [Paras 29-34].

Arbitral Tribunal – Findings and Interpretation – Arbitrators' interpretation of contractual clauses upheld as reasonable and plausible – Division Bench erred in overturning technical findings without justification – Courts emphasized not to sit in appeal over arbitral decisions unless findings are perverse or shock judicial conscience [Paras 22-26, 37-41].

Public Policy of India – Scope under Section 34(2)(b)(ii) – Public policy includes fundamental principles of law, justice, and morality – Interference justified only for patent illegality or perverse findings – Division Bench's conclusion of "shocking the conscience" unwarranted in the absence of evidence [Paras 36-42].

Decision: Appeal allowed – Judgment of Division Bench under Section 37 of the Arbitration and Conciliation Act, 1996 set aside – Arbitral award restored – No order as to costs [Paras 43].

Service Law – Promotion and Consequential Benefits – Validity of Disciplinary Proceedings – Challenge to Promotion Denial – Retrospective Promotion – Appellant, a bank employee, was denied promotion from MMG/S-II to MMG/S-III in 2001 due to disciplinary proceedings. High Court quashed the disciplinary proceedings, holding the enquiry officer was junior to the appellant, creating a likelihood of bias. Despite this, the appellant’s promotion result, kept in abeyance, was canceled, and no further action was taken to restore his promotional benefits. Held: Cancellation of promotion result directly arose from the now-quashed disciplinary proceedings. Appellant entitled to retrospective promotion with effect from July 28, 2001, with all monetary benefits. Cancellation of promotion is deemed covered under the "consequential benefits" directed by the Single Judge. [Paras 22, 26, 30]

Contempt Petition – Compliance with Court Orders – High Court dismissed the appellant’s contempt petition, holding the payment of Rs. 19,446/- (restoration of reduced pay) sufficient compliance with the Single Judge’s order. Held: Payment of reduced pay is insufficient; respondents failed to comply with the direction to grant all "consequential benefits." Court criticized the hyper-technical approach of the respondents in denying retrospective promotion and failing to interpret consequential benefits in a fair manner. Directed respondents to grant promotion from July 28, 2001, with 6% interest on monetary arrears. [Paras 28, 30, 32]

Promotion Denials for Higher Scales (2016-2018) – Appellant claimed entitlement to promotions beyond MMG/S-III (e.g., Scale-IV) in subsequent promotion exercises. Held: Determination of higher-scale promotions is beyond the scope of this appeal. Appellant at liberty to pursue available legal remedies, with protection against limitation or laches objections. [Paras 31]

Constitutional and Legal Observations – Fair Process in Disciplinary Action – Disciplinary proceedings were quashed due to procedural defects, which were not attributable to the appellant. Respondents failed to initiate a fresh enquiry or obtain liberty from the appellate court. Held: Denying retrospective promotion amounts to penalizing the appellant for the employer’s lapses. Fairness and justice demand rectification of the appellant’s service record to align with his entitlement. [Paras 24, 26, 29]

Decision: Appeal partly allowed – High Court’s dismissal of contempt petition set aside. Respondents directed to promote appellant from MMG/S-II to MMG/S-III with effect from July 28, 2001, along with all monetary benefits and interest at 6% per annum. Appellant free to pursue remedies for higher-scale promotions. No costs awarded.
 

Motor Vehicle Accident – Compensation for Disability – Reduction Challenged – The appellant, injured in a motor vehicle accident, suffered serious head injuries, including temporal and parietal bone fractures, resulting in 70% disability – Tribunal awarded compensation of ₹21,35,000, applying the multiplier method for loss of income – High Court reduced compensation to ₹6,69,017, awarding ₹3,000 per percentage of disability without applying a multiplier – Held: Determining compensation based on ₹3,000 per percentage is unsustainable – Loss of income due to disability and employability constraints requires awarding a lump sum of ₹7,50,000 under the head of loss of earning capacity – Total compensation recalculated as ₹12,09,017 with interest at 7.5% per annum [Paras 3, 10–12].

Compensation – Loss of Future Income – Application of Multiplier – The High Court erred by entirely rejecting the multiplier method for calculating loss of future income – Held: While the Tribunal’s blanket application of the multiplier was excessive, the High Court’s alternative of awarding ₹3,000 per percentage lacked justification – The Supreme Court adopted a reasonable lump sum approach, awarding ₹7,50,000 under the head of loss of earning capacity, consistent with the principles of National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, and New India Assurance Co. Ltd. v. Urmila Shukla [Paras 7–12].

Pain and Suffering – Reassessment of Compensation – The High Court increased the compensation under pain and suffering from ₹25,000 to ₹50,000 – Held: Enhanced amount retained as reasonable considering the extent of injuries and prolonged suffering of the appellant [Paras 8, 12].

Counsel Representation – Prejudice in High Court Proceedings – During High Court proceedings, the appellant’s counsel withdrew representation, resulting in inadequate presentation of the appellant’s case – Held: This procedural lapse led to an error in the High Court’s determination of compensation – The Supreme Court reexamined the matter to ensure justice to the appellant’s legal representatives [Para 10].

Decision: The Supreme Court partly allowed the appeals, redetermining the total compensation at ₹12,09,017, inclusive of ₹7,50,000 for loss of earning capacity. Interest at 7.5% per annum was directed from the date of the claim petition until payment. The respondent-insurer is directed to deposit the balance compensation within six weeks, with credit given for amounts already paid [Paras 12–14].

Criminal Law – Conviction and Sentencing – Section 498A IPC and Section 4 of the Dowry Prohibition Act (DP Act) – Modification of Sentence – Appellant convicted under Section 498A IPC and Section 4 of DP Act for subjecting his wife (PW-4) to harassment with unlawful demands for dowry – Trial Court sentenced the appellant to three years imprisonment under Section 498A IPC and one year imprisonment under Section 4 of DP Act – High Court upheld the conviction but reduced the sentence to two years imprisonment for Section 498A IPC and one year imprisonment under Section 4 of DP Act, both to run concurrently – Supreme Court sustained the conviction but substituted the sentence with the period already undergone – Directed payment of Rs. 3,00,000/- as compensation to PW-4 – Appeal partly allowed (Paragraphs 2, 12, 14 to 17).

Dowry Demands – Evidence of Harassment – Credibility of Witnesses – PW-1 (Family Friend): Confirmed demands for 100 sovereigns of gold before and after the engagement – Appellant’s family demanded additional gold as a condition for participation in the marriage reception – Harassment due to unmet dowry demands established (Paragraph 6).

PW-2 (Bride's Sister): Testified that the appellant refused to participate in the reception unless additional gold was presented – Confirmed coercion by the appellant and his family (Paragraph 7).

PW-4 (Wife/De Facto Complainant): Corroborated the claims of dowry demands and mental trauma – Highlighted coercion for dowry and suppression of appellant’s first marriage (Paragraph 9).

PW-7 (Bride's Mother): Supported prosecution case – Confirmed harassment due to dowry demands, leading to severe mental hardships for PW-4 (Paragraph 10).

PW-11 (Photographer): Testified to non-cooperation by the appellant’s family during the marriage reception due to unmet dowry demands (Paragraph 11).

Concurrent Findings on Conviction – Applicability of Section 498A IPC and Section 4 of DP Act: Court held that harassment and coercion for dowry demands were proved – Ingredients of the offenses under Section 498A IPC and Section 4 of DP Act fully satisfied (Paragraphs 12 and 13).

Modification of Sentence – Special Considerations: Appellant had undergone three months in custody – Case pertains to an incident from 2006, and both parties have moved on in life – Prolonged litigation over 19 years considered – Supreme Court exercised discretion to substitute the remaining sentence with a direction to pay compensation (Paragraphs 14 to 16).

Compensation in Lieu of Sentence: Supreme Court directed the appellant to deposit Rs. 3,00,000/- in the Trial Court for payment to PW-4 as compensation – Trial Court to ensure disbursement upon proper identification – Compliance report required within six months (Paragraphs 16 to 18).

Decision: Conviction under Section 498A IPC and Section 4 of DP Act upheld – Sentence modified to the period already undergone – Compensation of Rs. 3,00,000/- directed – Appeal partly allowed (Paragraphs 17 and 18).

Quashing of Criminal Proceedings – Section 482 CrPC – Lack of Prima Facie Case – Proceedings Quashed – Allegations of harassment, physical assault, and criminal intimidation during wrongful termination – Held: Prima facie ingredients of offences under Sections 323, 504, 506, 509, and 511 IPC not disclosed – Discrepancies in complaint and chargesheet indicate a mala fide intent to convert a civil dispute into a criminal matter – Criminal proceedings quashed as abuse of legal process [Paragraphs 15-16, 27, 40, 48, 51, and 53].

Employer-Employee Dispute – Nature of Allegations – Civil versus Criminal – Allegations of wrongful termination and confiscation of laptop involve civil disputes – No material suggesting intent to cause bodily harm, insult modesty, or intimidate – Criminal proceedings initiated with mala fide intent to coerce settlement, resulting in abuse of law [Paragraphs 22-26, 30, 48, and 51].

Section 509 IPC – Insulting Modesty of a Woman – Scope and Application – Ingredients not satisfied – Mere use of "filthy language" without contextual details or gestures insufficient to establish intent or knowledge required to insult modesty – No prima facie case made out [Paragraphs 28-32].

Section 506 IPC – Criminal Intimidation – Legal Threshold – Absence of Specific Threats – Allegations of threats related to termination deemed insufficient to constitute intent to alarm – Prima facie ingredients of Section 506 IPC not established [Paragraphs 33-35].

Legal Principles – Quashing of Criminal Proceedings – Exercise of Powers under Section 482 CrPC – Courts to ensure no misuse of process – Held: Allowing the continuation of criminal proceedings in absence of prima facie evidence would result in travesty of justice – Principles reiterated [Paragraphs 47-48, 52-53].

Final Decision – High Court Order Set Aside – Entire criminal proceedings, including the chargesheet, quashed – Pending labour dispute unaffected – Appeals allowed [Paragraphs 54-55].

Civil Law - Stamp Duty Refund – Applicability of Amended Limitation Period – Section 48(1), Maharashtra Stamp Act – Retrospective Inapplicability of Amendments – Appellants entitled to claim refund under the unamended provision providing a two-year limitation from execution of the cancellation deed – Held: The amendment reducing the limitation period to six months could not retrospectively affect the accrued rights of the appellants, especially when the deed was executed prior to the amendment – Refund claim reinstated under the earlier regime [Paragraphs 3.1 to 3.9, 5, 8].

Quasi-Judicial Authority – Absence of Statutory Review Power – CCRA’s Recall of Refund Order Invalid – Quashing of Subsequent Orders – Authority acted beyond jurisdiction in reviewing its own earlier order allowing refund – Participation in an erroneous procedure cannot confer jurisdiction – Held: The subsequent orders reversing the refund sanction lacked statutory backing and were thus vitiated [Paragraphs 9, 10, 15, 16, 18].

Amendments to Limitation Provisions – Impact on Vested Rights – Principle of Non-Retrospective Application – The court reiterated the settled legal principle that limitation laws cannot retroactively extinguish accrued substantive rights – Such amendments are procedural but cannot bar a vested cause of action when applied retrospectively [Paragraphs 11, 13, 14].

Equitable Considerations – Technical Delay in Filing Refund Claim – Bona Fide Conduct – Court emphasized fairness in the refund scheme and directed refund along with simple interest @6% per annum due to the State's wrongful retention of funds – Directed the disbursement within four weeks, failing which an enhanced interest @12% p.a. would apply [Paragraphs 19, 20, 21].

Decision – Appeal allowed – Refund application upheld under the unamended provision – Orders recalling the refund were quashed – Refund with interest directed [Paragraphs 22, 23].

Dowry Harassment – Demand for Gold – Section 498A IPC and Section 4 DP Act – Conviction Upheld – The appellant married the complainant (PW-4) on 31.03.2006, but the marriage lasted only three days – It was alleged that the appellant and his family demanded 100 sovereigns of gold, failing which the appellant refused to participate in wedding ceremonies – The High Court confirmed the appellant’s conviction under Section 498A IPC and Section 4 DP Act while modifying the sentence – The Supreme Court found that the evidence from prosecution witnesses, including PW-1, PW-2, PW-4, PW-7, and PW-11, sufficiently established that the appellant harassed the complainant with the intent of coercing her family to meet unlawful dowry demands – Held: The conviction under Section 498A IPC and Section 4 of the DP Act is upheld [Paras 15-20].

Sentencing – Reduction of Sentence – Special Circumstances Considered – Period Already Undergone – The appellant was originally sentenced to two years imprisonment under Section 498A IPC and one year under Section 4 DP Act – The Supreme Court considered the special circumstances, including the prolonged litigation of 19 years, the fact that both parties had moved on in life, and the possibility of community service as an alternative punishment – The Court relied on Samaul Sk. v. State of Jharkhand & Anr., 2021 INSC 429, in reducing the sentence to the period already undergone – Held: Sentence modified to the period already undergone, with an additional direction to deposit Rs. 3,00,000/- as compensation to the complainant within four weeks [Paras 25-30].

Compensation in Dowry Harassment Cases – Discretionary Power of Court – Considering the prolonged litigation, impact on the complainant, and fairness in awarding relief, the Supreme Court exercised its discretion under the Dowry Prohibition Act and imposed a monetary compensation of Rs. 3,00,000/- to be paid by the appellant to the complainant – Held: Compensation to be deposited in the Trial Court within four weeks, failing which the appeal would be treated as dismissed and the appellant would have to undergo the remaining sentence [Paras 32-35].

Micro, Small, and Medium Enterprises Development Act, 2006 – Writ Petition under Article 226 – Maintainability – Appellant challenged the order of the Micro and Small Enterprises Facilitation Council (MSEFC) under Section 18 of the MSMED Act in a writ petition – Issue of whether a writ petition can be entertained against MSEFC orders/awards – Held: Writ jurisdiction under Article 226 is plenary and discretionary – Rule of alternative remedy is not an absolute bar, especially where there is a violation of natural justice, lack of jurisdiction, or a challenge to the vires of legislation – Referred to larger bench to determine the extent of writ jurisdiction against MSEFC orders/awards [Paras 12–15, 19].

Arbitration and Conciliation Act, 1996 – Applicability – Section 18 of MSMED Act – Statutory Arbitration – Conciliators under MSEFC acting as arbitrators – Conflict with Section 80 of the Arbitration and Conciliation Act (A&C Act), which bars conciliators from acting as arbitrators in the same dispute unless agreed otherwise – Larger Bench to decide whether this conflict affects the validity of MSEFC orders/awards when its members act as arbitrators after failed conciliation [Paras 6–7, 19(iii)].

Statutory Remedies – Alternative Remedy vs. Writ Jurisdiction – Deposits under Section 19 of MSMED Act – Requirement of 75% pre-deposit to challenge MSEFC awards – Supreme Court emphasized that while statutory remedies must usually be exhausted, onerous conditions like pre-deposit could justify exercise of writ jurisdiction in exceptional cases – Reiterated principles from Radha Krishan Industries v. State of Himachal Pradesh and Shyam Kishore v. Municipal Corporation of Delhi [Paras 13–18].

Judicial Precedents – Conflict in Interpretation – Divergent views between Jharkhand Urja Vikas Nigam Ltd. (writ petition maintainable in certain circumstances) and M/s India Glycols Ltd. (writ petition barred) – Larger Bench reference required to reconcile precedents and clarify the law [Paras 10–12, 19].

Decision: Questions referred to a larger Bench of five judges:
(i) Whether a writ petition can be entertained against MSEFC orders/awards.
(ii) Under what circumstances the principle of alternative remedy does not bar writ jurisdiction.
(iii) Whether MSEFC members acting as conciliators can also act as arbitrators under Section 18 of the MSMED Act, in light of Section 80 of the A&C Act [Para 19].

Civil Writ - Judicial Officers – Super-Time Scale and Selection Grade – Delay in Implementation – Directions Issued – The Supreme Court approved the SNJPC recommendations for increasing Selection Grade District Judges to 35% and Super-Time Scale District Judges to 15% of cadre strength, effective from 01.01.2020 – Several High Courts delayed implementation citing procedural review of service records – Held: All High Courts/States directed to implement the recommendations within four weeks – A retired District Judge to be appointed as a Nodal Officer with Rs. 75,000/- monthly remuneration for grievance redressal [Paras 1-19].

Constitution of Monitoring Committees – High Courts Directed to Ensure Regular Meetings – Grievance Redressal Mechanism Institutionalized – Supreme Court directed each High Court to constitute a Committee for Service Conditions of the District Judiciary (CSCDJ) to oversee implementation – The committee to include two High Court Judges, the Law Secretary, Registrar General, and a retired judicial officer – The State Governments to clear arrears within three months – Failure to comply will entitle aggrieved officers to directly approach the High Court [Paras 20-27].

Judicial Pay and Allowances – Special Judicial Magistrates Entitled to Revised Remuneration from 01.04.2019 – Directions Clarified – The court had earlier enhanced Special Judicial Magistrates’ minimum remuneration to Rs. 45,000/- per month plus Rs. 5,000/- as conveyance allowance, effective from 01.04.2019 – Andhra Pradesh High Court wrongly interpreted the order and refused retrospective payment – Held: The arrears must be paid within three months, and all High Courts/States must comply [Paras 3-13].

Judicial Allowances – Risk Allowance and Higher Qualification Benefits – States Directed to Implement Recommendations – The States of Nagaland and Manipur sought clarification on risk allowance and additional increments for higher qualifications – Held: The risk allowance issue to be decided by respective CSCDJ Committees, and higher qualification increments must be granted at every ACP stage, as previously held in State of Maharashtra v. Tejwant Singh Sandhu, 2022 SCC OnLine SC 2286 [Paras 1-11].

Pension Discrepancies – Committee to Address Judicial Pension Issues – Telangana High Court Directed to Expedite Resolution – A retired judicial officer receiving Rs. 7,160/- per month as pension filed a contempt petition alleging violation of Supreme Court orders – The High Court of Telangana directed to address the issue within eight weeks and communicate the resolution to the Supreme Court [Paras 1-5].

Decision: Supreme Court directed all High Courts and State Governments to implement the SNJPC recommendations as per its orders dated 19.05.2023 and 04.01.2024. High Courts must establish a grievance redressal mechanism within four weeks, ensuring timely payment of arrears and enforcement of judicial allowances. The Special Judicial Magistrates are entitled to arrears from 01.04.2019, and the Committee for Service Conditions of the District Judiciary must convene at regular intervals. The Telangana High Court to address pension grievances within eight weeks. Failure to comply will permit affected judicial officers to directly approach the High Court for redressal.