Company Law – Interim Stay of Investigation – The Supreme Court held that the High Court was not justified in staying the investigation and passing consequential directions at the interlocutory stage. The Court emphasized that Section 212(3) of the Companies Act 2013 is directory and not mandatory, and the investigation was within the jurisdiction of the Union Government [Paras 12-16].

Scope of Investigation – Related Companies – The Court noted that Section 219(c) of the Companies Act 2013 allows investigation into the affairs of related companies if their Board of Directors comprises nominees of the company or is accustomed to act in accordance with its directions. The High Court's stay on this ground was not warranted [Paras 13-14].

Jurisdiction and Reasoning – The Court observed that the Union Government provided sufficient reasons for exercising its jurisdiction under Sections 212 and 219, and it was inappropriate to expect elaborate reasons at the investigation stage. The High Court's finding on this ground was specious [Paras 14-15].

Decision: Appeals allowed – The High Court's orders dated 13 December 2021 and 5 January 2022 staying the investigation are set aside. The writ petitions before the High Court are to be disposed of expeditiously [Paras 17-19].

Foreign Trade – Insurance Claim – Interpretation of Shipment Date – Policy terms specified coverage beginning on 14.12.2012. Dispute arose over shipment date of 13.12.2012 vs. 15.12.2012, impacting claim validity. Supreme Court held that 'despatch' must mean the completion of handing over to the carrier (vessel departure date) not loading commencement date. Rejected reliance on DGFT Guidelines as they were not part of the contract terms, ensuring the appellant's claim within the policy period. Appeal allowed, directing ECGC to honor the claim with interest [Paras 1-22].

Business Common Sense – Commercial Contracts – Interpretation must consider the language used and the reasonable meaning understood by both parties at contract formation. Preference for construction consistent with business sense [Para 12-13].

Decision:

Appeal allowed – ECGC directed to pay the claim amount of Rs. 2.45 crores with interest at 9% p.a. from the date of claim rejection.

Land Acquisition – Lapsing of Proceedings – The respondents filed a writ petition claiming lapsing of the acquisition proceedings under Section 24(2) of the 2013 Act – High Court allowed the writ petition – Supreme Court held that the respondents cannot claim the benefit of Section 24(2) as they had obtained interim orders preventing the appellant from taking possession – The interim orders operated as an obstacle in the path of the acquiring authority – Judgment of the High Court set aside [Paras 1-26].

Principle of Restitution – The Court emphasized that advantages secured by a litigant on account of orders of the court should not be perpetuated – The conduct of the respondents in obtaining interim orders to prevent possession disentitles them from claiming lapsing of proceedings – Application of Section 24(2) does not extend to litigants who have prevented the taking of possession or payment of compensation due to their actions [Paras 11-22].

Decision: Appeal allowed – Judgment of the High Court set aside – Directions provided for respondents to file an application under Section 18 of the 1894 Act for enhanced compensation if not already done.

Criminal Law – Voluntarily Causing Hurt by Dangerous Weapons – Appellants were convicted under Section 324 IPC and Section 27 of the Arms Act for causing injuries using firearms. High Court modified the conviction from Section 307 IPC to Section 324 IPC, affirming the use of firearms. Conviction under Section 27 Arms Act was confirmed. Arguments concerning lack of evidence for firearm recovery and delay in FIR submission were dismissed. Minor contradictions in witness testimonies did not undermine the prosecution’s case. Appellants’ presence and actions at the scene were corroborated by multiple witnesses and medical evidence [Paras 1-23].

Principle of Corroboration – Testimonies of prosecution witnesses, including injured informant and medical officer, supported by material evidence, confirmed the appellants’ guilt. Minor inconsistencies do not detract from credibility when core facts are substantiated [Paras 17-19].

Decision- Appeals dismissed – Convictions and sentences under Section 324 IPC and Section 27 of the Arms Act upheld by the High Court are confirmed.

Criminal Law – Cancellation of Bail – The appeals arise from the High Court's orders granting bail to the accused-respondents, who are charged with multiple offenses including murder under Sections 143, 147, 148, 341, 307, 302, and 395 IPC. The Supreme Court scrutinized whether the High Court considered relevant material, the gravity of the offense, and societal impact before granting bail. Held that the High Court granted bail mechanically without considering essential factors like prima facie evidence, gravity of the offense, and potential threats to witnesses. Bail granted by the High Court set aside, and the accused-respondents directed to surrender [Paras 1-37].

Principles for Granting Bail – Reiterated that while granting bail, courts must consider factors such as the nature of the accusation, severity of punishment, prima facie evidence, risk of absconding, potential influence on witnesses, and overall impact on society. Emphasized that bail once granted requires significant justification for cancellation, particularly if the lower court ignored relevant material or legal principles [Paras 22-34].

Decision:

Appeals allowed – High Court's orders dated 08.02.2021 and 19.10.2020 granting bail to the accused-respondents are set aside. Accused-respondents directed to surrender before the trial court within two weeks.

Criminal Law – Murder – Delay in FIR and Statement Recording – The importance of promptly sending FIR to the Magistrate and recording witness statements to prevent the introduction of fabricated evidence. Delays must be explained to avoid doubts about the investigation's integrity. The Court emphasized that unexplained delays could be detrimental but must be evaluated on a case-by-case basis [Paras 1-21].

Evidence Act – Section 27 – Recovery and Admissibility – Focused on the need for prosecution to prove that recovery information is directly linked to the discovered fact. Section 27 allows partial admissibility of statements leading to discovery, ensuring credibility and preventing misuse by the police. The onus is on the prosecution to satisfy the Court about the authenticity of the recovery [Paras 22-34].

Decision:

Convictions confirmed and acquittals reversed – The High Court’s decision to overturn the Trial Court's acquittal of certain accused was justified based on evidence and witness testimonies, confirming their involvement under Section 149 IPC. However, the appellate jurisdiction requires careful scrutiny, especially concerning delay and recovery issues, ensuring adherence to legal principles and procedural fairness.

Criminal Law – Remission of Sentence – Judicial Review – The Court has the power to review the government's decision regarding the acceptance or rejection of an application for remission under Section 432 of the CrPC to determine whether the decision is arbitrary in nature. While the government has discretion to suspend or remit sentences, it cannot exercise this power arbitrarily. In this case, the presiding judge's opinion lacked adequate reasoning and failed to consider relevant factors for remission, such as the potential for re-offense and socio-economic conditions of the convict's family. The Court directed a re-evaluation of the remission application with proper consideration of these factors [Paras 1-25].

Principle of Fairness – Executive Discretion – Emphasized that executive power must be exercised in a fair, informed, and reasonable manner. The opinion of the presiding judge should guide the executive's decision but should not be followed mechanically if it lacks adequate reasoning. A well-reasoned opinion is necessary to ensure fairness in the remission process [Paras 11-24].

Decision- Petition allowed – Directed the Special Judge to provide a fresh opinion on the remission application within one month, with adequate reasoning considering all relevant factors. The State of Chhattisgarh must take a final decision on the application within one month of receiving the opinion.

Service Law – Dismissal – Submission of False Certificate – The respondent secured employment by submitting a forged SSLC, which was proved in a departmental inquiry. The High Court substituted the punishment of dismissal with reinstatement without back wages. The Supreme Court held that producing a fake certificate is a grave misconduct that justifies dismissal. Interference by the High Court in the disciplinary authority's decision was unwarranted unless the punishment was shockingly disproportionate or there was procedural irregularity, neither of which was found in this case. The Supreme Court restored the disciplinary authority's decision to dismiss the respondent [Paras 1-8].

Judicial Review – Proportionality of Punishment – Reiterated that judicial review of disciplinary actions is limited. Courts should not interfere with the quantum of punishment unless it is shockingly disproportionate. The disciplinary authority's decision is based on maintaining trust and integrity, which is paramount in employment, particularly in cases involving forged documents [Paras 7-7.5].

Decision- Appeal allowed – High Court's order quashed – Order of dismissal by the disciplinary authority restored. No costs awarded.

Criminal Law – Dowry Death – Presumption under Section 113B – The presumption under Section 304B IPC, read with Section 113B of the Indian Evidence Act, comes into play once it is shown that the woman was subjected to cruelty or harassment for dowry soon before her death. This presumption can be rebutted by the accused by demonstrating that the ingredients of Section 304B IPC have not been satisfied. The main ingredients to establish an offence under Section 304B IPC include: unnatural death within seven years of marriage, cruelty or harassment related to dowry demands, and such cruelty or harassment occurring soon before the death. The appellants failed to rebut the presumption against them [Paras 1-23].

Analysis of Evidence – Harassment and Dowry Demands – Evidence presented showed repeated dowry demands and harassment of the deceased by the husband and in-laws. The deceased's mother (PW-1) and other family members (PW-2 to PW-4) provided consistent testimonies about the dowry demands and harassment. The medical evidence indicated the death was not due to drowning, further supporting the case of dowry death [Paras 13-21].

Decision- Appeal partly allowed – Conviction and sentence of appellant No.1 (husband of the deceased) upheld – Conviction and sentence of appellants No.2 and 3 (sister-in-law and mother-in-law) set aside – Appellants No.2 and 3 to be released, and bail bonds cancelled – Appellant No.1 to surrender within two weeks to serve the remaining sentence.