Criminal Law - Quashing of FIR - Bharatiya Nyaya Sanhita 2023 - Sections 316(2) and 318(4) - Code of Criminal Procedure 1973 - Section 482 - Constitution of India - Article 226 - Informant granted distributorship of camphor for Jharkhand by the Company for three years - Agreement executed and advance payments made - Disputes arose regarding product pricing and supplies - Company stopped supplies and terminated agreement - Informant filed FIR alleging cheating and criminal breach of trust - High Court dismissed writ petitions seeking quashing - Supreme Court held that FIR did not disclose ingredients of cheating as no dishonest intention at inception was alleged - held that money paid as advance under a contract does not constitute entrustment for criminal breach of trust - held that civil commercial dispute was given a criminal overtone - held that continuation of proceedings is an abuse of the process of the court - appeals allowed and FIR quashed - [Paras 1-26].

Criminal Law - Cheating - Bharatiya Nyaya Sanhita 2023 - Section 318(4) - Essential ingredients - Dishonest or fraudulent intention at inception - Promise of future advantage - Informant alleged false promises of gifts and benefits - Supreme Court held that a promise as to future advantage without intention to perform requires factual foundation showing inception dishonesty - mere breach of contract does not give rise to criminal prosecution for cheating - [Paras 8-16].

Criminal Law - Criminal Breach of Trust - Bharatiya Nyaya Sanhita 2023 - Section 316(2) - Essential ingredients - Entrustment of property - Money paid to supplier as price or advance for goods - Supreme Court held that money paid as advance passes to the supplier as consideration under a contract - supplier holds it as owner and is neither trustee nor bailee - absence of entrustment vitiates the charge - [Paras 18-20].

Decision: Both appeals are allowed - the common judgment and order dated 19.02.2025 passed by the High Court of Jharkhand at Ranchi is set aside - FIR registered as Kotwali P.S. Case No. 323 of 2024 and all proceedings arising therefrom stand quashed - [Paras 24-26].

Company Law - Insolvency and Bankruptcy - IBC 2016 - Sections 3, 5, 8, 9, 238A - Limitation Act 1963 - Section 18 - Appellant corporate debtor awarded EPC contract for 225 MW power station - work suspended in 2011 for non-payment - respondent issued legal notices in 2014 and 2015 and filed Section 9 application in 2018 after statutory demand notice - NCLT and NCLAT admitted application - Supreme Court held that the claim was barred by limitation as default occurred in 2011-2012 and limitation is not extended by mere subsistence of contract or unacknowledged legal notices - Held - Section 9 application was time-barred and appeal allowed - [Paras 1-102].

Civil Law - Contract Law - Indian Contract Act 1872 - Section 56 - Frustration of contract - EPC contract suspended due to non-payment - neither party terminated contract under termination clauses - Held - contract continued to subsist and doctrine of frustration does not apply to self-induced suspension arising from non-performance - [Paras 37-47, 89-91].

Civil Law - Insolvency and Bankruptcy - Insolvency and Bankruptcy Code 2016 - Section 5 - Operational debt versus damages - Amounts due under payment milestones of EPC contract constitute operational debt - suspension idling and demobilization charges are unliquidated damages requiring adjudication and cannot be treated as operational debt - [Paras 48-54, 92-93].

Civil Law - Insolvency and Bankruptcy - Insolvency and Bankruptcy Code 2016 - Sections 8 and 9 - Pre-existing dispute - Corporate debtor maintained total silence across multiple legal notices over seven years - Held - silence in such circumstances indicates absence of pre-existing dispute and defence raised for the first time in reply is an afterthought - [Paras 55-64, 94-96].

Civil Law - Limitation - Limitation Act 1963 - Section 18 - Starting point of limitation - Each default generates its own date and subsistence of contract does not provide continuing cause of action for unpaid debt - Held - silence on legal notices without written acknowledgment does not extend limitation under Section 18 - [Paras 65-88, 97-100].

Decision: Appeal allowed – Impugned NCLAT and NCLT judgments set aside – Liberty granted to the respondent to approach the appropriate dispute resolution forum as provided in the EPC contract.

Banking Law - Banking and Debt Recovery - Recovery of Debts and Bankruptcy Act 1993 - Section 2(g) and Section 19(20) - Banking Regulation Act 1949 - Section 21A - Appellant-Bank filed OA before DRT for recovery of loan dues - DRT allowed OA partly - DRAT modified the amount payable - Respondent-Trust approached High Court which heavily relied on a bank certificate dated 24.12.2020 and ignored the interest component maintained in a separate suspense account since NPA classification - Supreme Court held that High Court oversimplified calculations by ignoring the suspense account and that interest forms part of debt under Section 2(g) - Held - High Court orders unsustainable - appeals allowed and DRAT order restored - [Paras 1-15].

Civil Law - Accounting Systems of Banks - Recovery of Debts and Bankruptcy Act 1993 - Section 19 - Separate suspense account - Interest component after NPA classification - Bank maintained separate suspense account for interest accruing after date of NPA classification - Certificate issued by bank did not reflect interest in suspense account - Held - borrowers cannot ignore standard banking accounting practices and rely selectively on certificates to reduce liability - [Paras 10-14].

Decision: Appeals allowed – High Court orders dated 11.01.2024 and 14.05.2024 set aside – Order dated 01.09.2023 passed by the Debts Recovery Appellate Tribunal restored – Parties to bear their own costs.

Civil Law - Torts - Constitution of India - Article 226 - Maintainability of writ petition - Electrocution cases involving disputed questions of fact - Appellant KPTC challenged High Court judgments holding writ petitions maintainable and awarding compensation for electrocution deaths and injuries - Supreme Court examined maintainability of writ petitions under Article 226 in tort actions and evaluated strict versus absolute liability standards - Held - where disputed questions of fact are involved in electrocution claims - a writ petition under Article 226 is not an appropriate remedy and parties must approach civil courts - High Court judgments set aside with liberty to pursue alternate remedies - [Paras 1-18].

Civil Law - Torts - Electricity Act 2003 - Section 57 - Standard of liability - Strict liability versus absolute liability - Electrocution caused by transmission of electricity - Supreme Court held that strict liability applies to electricity transmission boards and licensees subject to recognized exceptions - and absolute liability applies only to hazardous industries as contemplated in M.C. Mehta - Held - electricity board is subject to strict liability and not absolute liability - [Paras 10-14].

Civil Law - Torts - Motor Vehicles Act 1988 - Compensation yardstick - Multiplier method - Supreme Court held that the multiplier method under the Motor Vehicles Act 1988 cannot be applied mutatis mutandis to determine compensation in electrocution cases under the Electricity Act 2003 - Held - compensation must be governed by the overarching principle of just and reasonable fair compensation based on income and related claims - [Paras 15-16].

Decision: Appeals allowed – Impugned judgments of the Division Bench and Single Judge quashed and set aside – Respondents granted liberty to approach the appropriate forum in accordance with law.

Criminal Law - Rape - Indian Penal Code 1860 - Section 376 - Acquittal reversal - The appellant was tried for rape of a four-and-a-half-year-old victim - Trial Court acquitted citing insufficient prosecution evidence, discrepancies in witness depositions (PW1, PW2, PW3), and lack of injuries as per medical report - High Court overturned acquittal, convicted appellant to ten years rigorous imprisonment and fine of Rs 50,000 - Supreme Court found that High Court failed to consider the Final Medical Report and FSL report - Victim's mother (PW2) and victim (PW3) stated bloodstains on clothes and pain, but medical examination within twelve hours showed no injury, no inflammation, no redness, no bruising, no laceration, no seminal stain, no blood, and intact hymen - FSL report (Benzidine test) confirmed no blood or semen on victim's clothes or seized items (chatai, baithak) - Discrepancy in place of occurrence was also noted - Held - Grave doubt created about prosecution's version - Trial Court's acquittal was correct - High Court's judgment set aside - Appellant acquitted - [Paras 1-17].

Evidence Law - Appreciation of Evidence - Indian Penal Code 1860 - Section 376 - Ocular versus medical/forensic evidence - Conviction based on weak evidence - Where testimonial evidence of victim and mother regarding bloodstains and injuries conflicted directly with medical officer's final report (no injuries, no penetration, intact hymen) and FSL report (no blood/semen on victim's clothes or scene of crime items, despite Benzidine test efficacy), such material discrepancies cannot be brushed aside - Held - The prosecution failed to prove its case beyond reasonable doubt, and the material on record created serious doubt about the prosecution's version - [Paras 10-16].

Decision: Appeal allowed – Judgment of the High Court set aside – Appellant acquitted of the offence under Section 376 of the Indian Penal Code – Bail bonds cancelled.

Civil Law - Arbitration - Arbitration and Conciliation Act 1996 - Section 9 - Interim Measures - Award Debtor's application - Prevention of Unjust Enrichment - High Court directed appellant (award debtor) to deposit Rs. 3.5 crores (amount from encashed bank guarantees provided as mobilisation advance) with the Registry, pending resolution of respondent's Section 34 application - Appellant argued Section 9 post-award is only for enforcing award, not for 'losing' party to claw back money, and that the arbitrator had declined claims for bank guarantee discharge and found fraudulent conduct - Respondent contended lack of counter-claim by appellant, arbitrator's failure to address discharge of bank guarantees, and that retaining money would be unjust enrichment - Supreme Court upheld the High Court's direction, noting previous undertaking by appellant not to invoke bank guarantees unless a recovery was found by the arbitrator, absence of counter-claim by appellant, arbitrator's apparent oblivion to bank guarantee encashment and non-determination of Issue No. 3 regarding bank guarantee discharge, and the prima facie finding that mobilisation advance was not proven to be unutilized - Emphasized that permitting appellant to retain the money would constitute unjust enrichment and contravene previous court orders - Applied principles from Home Care Retail Marts, Essar House, and Adhunik Steels affirming that Section 9 is available to an unsuccessful party (award debtor) in rare and compelling cases, provided standard interim relief parameters (prima facie case, balance of convenience, irreparable prejudice, expedition) are met - Held - The High Court's judicious exercise of power was warranted to prevent irreparable prejudice and preserve the efficacy of the Section 34 challenge - [Paras 1-26].

Civil Law - Arbitration - Arbitration and Conciliation Act 1996 - Section 9 - Maintainability for Award Debtor - Supreme Court reiterated that an application under Section 9 of the Act, at the post-award stage, by a party that has lost in the arbitral proceedings and has no enforceable award in its favour, is maintainable in 'rare and compelling cases' to prevent irreparable prejudice and preserve the efficacy of the challenge proceedings under Section 34 - The threshold for granting interim relief in such cases is higher, requiring a good prima facie case, balance of convenience, and likelihood of irreparable harm, along with reasonable expedition - Held - The distinction between a 'winning' and 'losing' party cannot solely govern access to Section 9 relief, especially where the award is under challenge - [Paras 15-24].

Civil Law - Contract Law - Unjust Enrichment - Arbitration and Conciliation Act 1996 - Section 9 - Interim measures - Retention of encashed bank guarantee amounts by an award debtor, in the absence of a counter-claim or a clear finding by the Arbitral Tribunal regarding the non-utilization of the mobilization advance for which the guarantees were issued, and where the Arbitrator was oblivious to the prior encashment - Held - Such retention would amount to unjust enrichment, warranting interim protective orders under Section 9 of the Arbitration and Conciliation Act, 1996 - [Paras 14, 23, 26(iv), 26(vi)].

Decision: Appeal dismissed – Appellant directed to deposit Rs. 3.5 crores with the Registry of the High Court of Delhi within 4 weeks, to be kept in a Fixed Deposit (FD) on auto-renewal basis till the disposal of the Section 34 application.

Criminal Law - Murder - Indian Penal Code 1860 - Sections 302, 307 and 498A - Appellant-husband convicted for murder of wife who died of acute burn injuries - Trial Court convicted and sentenced to life imprisonment which was affirmed by High Court - Supreme Court noted severe discrepancies in dying declarations and suspicious delay in registering FIR - Post-mortem showed 96 percent burns creating doubt on homicidal nature and victim fitness to give statements - Close relatives turned hostile and supported suicide theory due to ailments - Held - prosecution failed to prove a single incriminating circumstance and reasonable doubt exists regarding homicidal death - appeal allowed and appellant acquitted - [Paras 1-14].

Evidence Law - Dying Declaration - Indian Evidence Act 1872 - Section 32 - Reliability - Two inconsistent dying declarations recorded - First dying declaration recorded by a Head Constable whose signature was not proved by the Sub-Inspector and registered as FIR after an unexplained delay of 15 hours - Second dying declaration recorded by Executive Magistrate while medical evidence showed 96 percent burns casting doubt on consciousness and fitness of deceased - Held - dying declarations are highly suspicious and unreliable - [Paras 10-13].

Evidence Law - Hostile Witness - Indian Evidence Act 1872 - Section 154 - Testimony of close relatives - Sister, cousin, and mother of the deceased deposed in cross-examination that deceased committed suicide due to ailments and denied any marital discord - High Court brushed aside testimony assuming witnesses were won over without declaring them hostile or confronting them with Section 161 statements through the Investigating Officer - Held - testimony in court must be relied upon and High Court erred in rejecting their version - [Paras 7-9].

Criminal Law - Burden of Proof - Indian Evidence Act 1872 - Section 106 - Applicability - Death by burns occurring in the marital home - Prosecution relied on absence of explanation by husband under Section 106 - Held - burden under Section 106 does not shift until prosecution discharges initial burden of establishing foundational facts and circumstances proving guilt beyond reasonable doubt - [Paras 1-13].

Decision: Appeal allowed – Conviction and sentence set aside – Appellant acquitted of all charges and directed to be set free forthwith if not required in any other case.

Criminal Law - Quashing of Proceedings - Code of Criminal Procedure 1973 - Section 482 - Indian Penal Code 1860 - Sections 498-A, 304-B - Dowry Prohibition Act 1961 - Sections 3, 4 - Appellant accused of dowry death and cruelty of wife - FIR alleged cruelty and dowry demand, leading to death by hanging - Inquest report noted house and room locked from inside, broken open by police - Post-mortem report indicated death by ante-mortem hanging with a single ligature mark, no signs of struggle or homicidal violence - Appellant, a BSF personnel, presented official service certificate showing he was on duty at the Indo-Bangladesh border and only reached Delhi a day after the incident - Co-accused parents of appellant were acquitted after full trial on identical evidence for the same FIR, court found prosecution failed to prove cruelty or dowry demand beyond reasonable doubt - High Court dismissed appellant's S. 482 CrPC application, holding alibi was a question of fact for trial, relying on Rajendra Singh v. State of U.P. and Another - Supreme Court considered principles laid down in Bhajan Lal (supra) and the four-step test from Rajiv Thapar and Others v. Madan Lal Kapoor - Distinguished Rajendra Singh as alibi here rested on unimpeachable official BSF service record, not mere affidavits - Held - Medical evidence, inquest report, official BSF service record, and acquittal of co-accused parents on identical evidence collectively demonstrate that continuation of criminal proceedings against the appellant amounts to an abuse of the process of the court - High Court erred in not considering this unimpeachable material at the threshold - The case squarely falls within categories for quashing identified in Bhajan Lal - Held - High Court's judgment set aside and criminal proceedings quashed as against the appellant - [Paras 2-9, 11-13, 16-26, 31-36].

Criminal Law - Alibi - Code of Criminal Procedure 1973 - Section 482 - Indian Evidence Act 1872 - Section 11 - Quashing of proceedings - Consideration of defence material at threshold - Appellant presented an official BSF service certificate as proof of alibi, showing he was on duty at the Indo-Bangladesh border and absent from the place of occurrence on the date of the incident - High Court declined to consider this, stating alibi is a question of fact for trial - Supreme Court differentiated between a bare plea of alibi resting on affidavits (requiring trial evidence) and a plea resting on unimpeachable official material like service records from armed forces (whose authenticity is undisputed) - Applying Prashant Bharti v. State (NCT of Delhi) and Harshendra Kumar D. v. Rebatilata Koley, held that such sterling and unimpeachable defence material which completely demolishes the prosecution case can and should be considered at the pre-trial stage to prevent abuse of process - Held - Appellant's alibi, supported by official BSF records, constitutes unimpeachable material that must be considered at the threshold - [Paras 11, 13, 19, 25, 26, 27, 28, 30, 31, 35].

Criminal Law - Acquittal of Co-accused - Indian Penal Code 1860 - Sections 498-A, 304-B - Dowry Prohibition Act 1961 - Sections 3, 4 - Effect on proceedings against appellant - Appellant's parents, co-accused in the same FIR, were acquitted after a full-fledged trial, with the trial court finding the prosecution failed to establish cruelty or dowry demand beyond reasonable doubt - Supreme Court noted that while acquittal of co-accused does not automatically bind a differently situated accused, if the evidence against the appellant is identical to that found insufficient to convict the co-accused, and there is no distinguishing material, the substratum of the prosecution case collapses - The solitary additional element against the appellant, a telephonic demand, was unsubstantiated by call-detail records and neutralised by proven absence - Held - Acquittal of co-accused parents on identical evidence has a material bearing on the continuation of proceedings against the appellant, reinforcing the conclusion that further trial would be an abuse of process - [Paras 8, 9, 33, 34].

Decision: Appeal allowed – Impugned judgment and order dated 12.12.2025 passed by the High Court set aside – FIR/Case Crime No. 227 of 2016, Chargesheet No. 09A/16 dated 15.07.2017, and all consequent proceedings in Criminal Case No. 147 of 2018 (State v. Rahul) quashed insofar as they concern the appellant – The judgment dated 17.10.2025 acquitting the appellant's parents remains undisturbed.

Service Law - Verification Form and Criminal Antecedents - Industrial Disputes Act 1947 - Sections 323 and 504 - Appellant appointed as Technician(Process) submitted attestation form declaring no criminal case pending - Respondent later discovered a Non-Cognizable Report registered against appellant under Sections 323 and 504 IPC - Show cause notice issued and services terminated despite appellant establishing lack of knowledge and subsequent deletion of his name from the array of accused - Single Judge and Division Bench of High Court dismissed the challenge holding it as a disputed question of fact - Supreme Court held that termination was illegal as the two-pronged inquiry regarding truth of suppression and nature of offence/suitability was not undertaken - knowledge is a pre-requisite for suppression and the appellant had no knowledge of the NCR - Held - order of termination set aside and appellant directed to be reinstated with 50 percent backwages - [Paras 1-36].

Writ Law - Alternative Remedy and Jurisdiction - Constitution of India - Article 226 - Maintainability of writ petition - Respondents objected to writ jurisdiction contending appellant ought to have approached under Industrial Disputes Act 1947 - Supreme Court held that existence of alternative remedy is not an absolute bar to writ jurisdiction especially when challenging the legality of a termination order - Held - High Court erred in declining jurisdiction on ground of disputed questions of fact - [Paras 18-19].

Decision: Appeal allowed – Impugned judgments of the High Court and the termination order set aside – Appellant directed to be reinstated in service forthwith with all consequential benefits except backwages restricted to 50 percent.