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].

Criminal Law – Murder Conviction – Appeal against the conviction under Sections 120B and 302 IPC – Appellants convicted for the murder of the deceased based on circumstantial evidence and medical testimony – High Court reversed the Trial Court’s acquittal and sentenced the appellants to life imprisonment – Prosecution established the guilt of the appellants beyond reasonable doubt by proving motive, presence at the crime scene, and falsity of their defense – Held: Appeals dismissed – Conviction and sentences upheld [Paras 1, 21, 26, 29].

Motive – Illicit Relationship – The prosecution argued that the motive for the murder was an illicit relationship between Accused Nos. 1 and 2, which the deceased had discovered – This strained the relationship between the deceased and the accused, leading to her murder – The High Court accepted this motive as plausible, supported by witness testimonies and circumstantial evidence – Trial Court's rejection of the motive as implausible was found to be erroneous – Held: The prosecution successfully established the motive for the crime [Paras 3, 11, 25].

Medical Evidence – Postmortem Report – Medical evidence, including the postmortem report, revealed multiple ante-mortem injuries and a broken hyoid bone, indicating death by strangulation – Testimony from P.W.-10 confirmed that the deceased could not have ingested any liquid (such as paint) after sustaining these injuries, ruling out the possibility of suicide – Medical evidence corroborated the prosecution’s case that the death was homicidal and consistent with strangulation – Held: The medical findings strongly supported the prosecution's version [Paras 7, 8, 22].

Circumstantial Evidence – Chain of Events – Burden of Proof – The case rested on circumstantial evidence, including the appellants’ presence at the crime scene and their suspicious conduct before and after the incident – The prosecution established a complete chain of events that pointed conclusively to the guilt of the appellants – Under Section 106 of the Indian Evidence Act, the burden shifted to the appellants to provide an alternative explanation for the death, which they failed to do – False explanations offered by the appellants further strengthened the prosecution’s case – Held: Circumstantial evidence, coupled with the medical findings, pointed conclusively to the appellants' guilt [Paras 10, 19, 24].

Reversal of Acquittal – High Court's Intervention – The High Court overturned the acquittal granted by the Trial Court, noting that the Trial Court had failed to properly appreciate the circumstantial and medical evidence – The High Court found the view taken by the Trial Court to be unreasonable and perverse, justifying its reversal – Held: The High Court’s decision to convict the appellants was based on a thorough re-evaluation of the evidence, and the Trial Court’s findings were rightly set aside for misappreciation of the material on record [Paras 12, 13, 14, 28].

Decision – Appeals Dismissed – The prosecution proved the case beyond reasonable doubt by establishing motive, presence of the accused at the scene, and medical evidence confirming the cause of death – The appellants’ false defense further implicated them in the crime – Held: Appeals dismissed, conviction and life imprisonment sentences upheld [Paras 27, 29].

Service Law - Disciplinary Proceedings – Procedural Lapses – Quashing of Dismissal Order – The respondent, a storekeeper implicated in a misappropriation case involving government rations, was dismissed following departmental proceedings – The CAT found procedural deficiencies in the inquiry and set aside the dismissal, allowing for fresh proceedings – The High Court upheld the CAT's decision but denied the appellants the right to reinitiate proceedings – Held: The High Court erred in removing the liberty to conduct a fresh inquiry, as the gravity of the charges justified such action [Paras 11-13, 18-19].

Non-payment of Subsistence Allowance – Impact on Disciplinary Proceedings – The respondent claimed prejudice due to non-payment of subsistence allowance – Reiterated that non-payment does not inherently vitiate proceedings unless specific prejudice is shown – Reference made to Indra Bhanu Gaur and Ghanashyam Das Srivastava – Held: Proceedings were to resume from the stage where they stood vitiated, and allowance was ordered to be released with interest [Paras 10, 19-21].

Principles of Natural Justice – Right to Fair Inquiry – Inquiry Officer's adherence to procedural fairness is paramount in disciplinary proceedings – Departure from prescribed procedures can invalidate proceedings but allows for fresh inquiry depending on the misconduct's severity – Reinforced in Chairman, LIC of India & Ors. v. A. Masilamani [Paras 14-17].

Directive for Fresh Inquiry – Court's Powers and Time-bound Inquiry – Appellants permitted to resume disciplinary inquiry from the vitiated stage – Directions issued for a detailed procedure, including evidence submission, respondent's rights, and time frame for completion – Held: Appeal partially allowed, reinstatement ordered for limited inquiry purposes [Paras 24-25].

Decision: The Supreme Court partially allowed the appeal, granting the appellants the right to resume the inquiry from where it was vitiated. The respondent was to be reinstated solely for conducting the inquiry and placed under suspension, with entitlements to subsistence allowance and half salary for a specified period [Paras 23-26].

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].

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].

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].

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 – 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].

Service Law – Disciplinary Proceedings – Admonition – The appellant, an Airman in the Indian Air Force, was charged with insubordination and violation of good order after an incident at a railway crossing – The appellant was admonished and later sought quashing of the Admonition, arguing the proceedings were flawed due to lack of proper sanction under Section 83 of the Air Force Act – The Armed Forces Tribunal quashed the Admonition but did not grant compensation – Held: The Tribunal's order was upheld, and compensation of Rs. 1 lakh was awarded for the undue hardship caused by the long-drawn litigation and disproportionate punishment [Paras 1-12].

Vindictiveness – Handling of Minor Infraction – The Tribunal noted that the incident could have been handled more appropriately by the superior officer without escalating it – The conduct of the officer was decried as vindictive, resulting in the appellant’s unnecessary detention and punishment – Held: The disproportionate response to a minor infraction was inappropriate, and the appellant was entitled to compensation for the harassment and humiliation suffered [Paras 6.1-6.2, 8-12].

Compensation – Monetary Award for Loss of Dignity – The Court observed that while monetary compensation cannot fully restore lost dignity, it serves as a token of recognition of the appellant’s identity and rights – Rs. 1 lakh was granted as compensation for the emotional and financial distress caused by the unjust disciplinary action [Paras 10-12].

Decision: Appeal allowed – The Admonition order was quashed, and the respondents were directed to pay Rs. 1 lakh in compensation to the appellant within 30 days [Paras 12-13].