Nature of Creditor Identification – Issue centers on whether entities providing security deposits with interest to a corporate debtor can be considered financial creditors or operational creditors under the Insolvency and Bankruptcy Code, 2016 – Financial Creditor Status – Insolvency and Bankruptcy Code, 2016 – Appeals challenging the NCLAT orders recognizing certain parties as financial creditors under Section 5(7) of the IBC – Corporate debtor involved is M/s. Mount Shivalik Industries Limited – Debates center on whether amounts advanced under service agreements qualify as financial debts due to the inclusion of interest terms and if these should render service providers as financial creditors – Supreme Court confirms NCLAT’s classification of the parties as financial creditors based on substantial monetary transactions under the guise of security deposits that bear interest and are treated as financial debts, invoking the comprehensive definition under Section 5(8) of the IBC – Impugned judgments upheld, confirming appellants as financial creditors. [Paras 1-21]

Definition and Interpretation of Financial Debt – Examination under Section 5(8) of the IBC – Supreme Court elucidates on what constitutes a financial debt, emphasizing the requirement of disbursal against the consideration for the time value of money, which includes interest – Discusses various clauses under Section 5(8) and the necessity for a transaction to have the commercial effect of borrowing – Finds that security deposits in question meet these criteria due to their structure and treatment in financial statements, hence qualifying as financial debt. [Paras 12-18]

Operational Debt vs. Financial Debt – Distinction clarified under Section 5(21) of the IBC – Discussion on the nature of debts arising from service agreements – Court determines that while the nominal service remuneration might constitute operational debt, the principal amounts with interest stipulated as security deposits are financial in nature due to their lack of direct correlation to the service provided and their characterization in business ledgers as loans or borrowings. [Paras 14-16]

Legal Impact and Procedural Continuation – Result of the judgment on ongoing Corporate Insolvency Resolution Process (CIRP) – NCLAT’s recognition of the appellants as financial creditors upheld, thus confirming their entitlement to participate in the CIRP under the existing resolution framework as stipulated by the IBC – Resolution Professional directed to proceed accordingly. [Para 21]

Decision – Appeals dismissed; no order as to costs. NCLAT judgments confirmed, enabling continuation of the CIRP with the involved parties recognized as financial creditors, thereby reinforcing the broader interpretation of financial debt within the realm of insolvency proceedings.

Resignation and Reinstatement – Maharashtra Employees of Private Schools (Conditions of Service) Regulation Act, 1977 – Challenge against wrongful termination following resignation withdrawal – Appellant contested the legitimacy of his termination after withdrawal of resignation; Tribunal found in favor of appellant, noting fabrication of documents by respondents; High Court reversed, noting no requirement for communication of resignation acceptance under MEPS Act and Rules [Paras 3-9, 14-15, 21-23].

Legal Interpretations and Applications – Acceptance and Communication of Resignation – High Court held non-communication of resignation acceptance does not invalidate the action if rules do not mandate such communication; Supreme Court affirmed, applying this interpretation to uphold the decision [Paras 14, 19, 22-23].

Document Authenticity and Management Decisions – Supreme Court examined claims of fabricated documents; upheld High Court’s conclusion that resolutions regarding appellant’s resignation were legitimate and not afterthoughts [Paras 13, 14, 19].

Decision – Appeal dismissed, High Court’s judgment upheld with no order as to costs; Supreme Court confirmed that management’s actions were within legal bounds and appellant’s claims of involuntary resignation unsubstantiated [Para 24].

Quashing of FIR – Insufficient Evidence Claims – High Court’s Decision Reversed – The High Court had quashed an FIR implicating Respondent No.1 for lack of direct evidence of bribery and monetary demand – The Supreme Court found this approach legally unsustainable, noting the premature dismissal of credible investigatory evidence including a pendrive indicating involvement [Paras 1, 5, 7].

Departmental Proceedings versus Criminal Accountability – Respondent No.1’s exoneration in departmental inquiry did not influence the criminal proceedings where distinct evidentiary standards and investigation materials, like the pendrive, substantiated the allegations – Sanction for prosecution was appropriately accorded despite departmental exoneration [Paras 3, 8-9].

Restoration of Criminal Proceedings – The Supreme Court set aside the High Court’s order, reinstating the FIR for continuing the investigation and trial based on all available evidence and the sanctioned prosecution, thereby distinguishing between departmental and criminal evidences [Para 10].

Decision – Restoration of FIR – Supreme Court allows the appeal, quashes the High Court's judgment, and restores FIR for continuation of investigation and trial – Highlights discrepancy in evidence considered in departmental versus criminal proceedings – Emphasizes need for thorough examination of all factual and legal aspects at trial. [Paras 8-11]

Marriage and Misappropriation of Assets – Maya Gopinathan (Appellant) appeals against High Court’s partial reversal of Family Court’s judgment which had favored her claims of misappropriation of jewelry and a monetary gift by Anoop S.B. (First Respondent) and his late brother (Second Respondent) – Family Court had originally awarded compensation for 89 sovereigns of gold and Rs. 2,00,000 with interest [Paras 2-6, 34-37].

Family Court’s Findings and High Court Reversal – Family Court found for appellant including misappropriation of jewelry and monetary gift, which High Court reversed citing insufficient evidence of misappropriation and questioning credibility of appellant’s testimony [Paras 12-14, 27-34].

Supreme Court’s Revaluation – Supreme Court criticized High Court’s overly stringent standard of proof akin to criminal trials, reinstated findings of Family Court based on preponderance of probabilities – Recognized misappropriation of appellant’s jewelry and inappropriate conduct of respondents [Paras 16-35].

Standard of Proof in Civil Cases – Supreme Court criticizes High Court’s erroneous approach requiring proof beyond reasonable doubt in civil dispute over Stridhan – Affirms ‘preponderance of probabilities’ as the correct standard. [Paras 16-21]

Entrustment and Misappropriation – Appellant entrusted gold jewellery to the husband for safekeeping – Family Court’s finding of misappropriation by husband upheld by Supreme Court after High Court’s error in judgment. [Paras 30-35]

Final Judgment – Supreme Court set aside High Court’s judgment, upheld Family Court’s decision with modification – Increased compensation to Rs. 25,00,000 recognizing time lapse and cost escalation, under Article 142 of the Constitution for justice and equity [Paras 36-39].

Medical Negligence and Consumer Protection – Civil Appeal – Seeking Enhanced Compensation for Medical Negligence under Consumer Protection Act, 1986 – Appellant experienced severe post-operative complications and pain following appendectomy surgery, leading to discovery of a retained surgical needle – District Forum awarded Rs. 5,00,000; State Commission reduced compensation to Rs. 1,00,000; NCDRC enhanced to Rs. 2,00,000 – Supreme Court restores District Forum's award citing medical negligence and deficiency in service. [Paras 1-18]

Application of the Eggshell Skull Rule – Review – Supreme Court scrutinizes application of the Eggshell Skull Rule, noting absence of evidence for pre-existing conditions in the appellant that would justify its application – Restores District Forum's compensation award, emphasizing the need for just compensation under consumer protection principles. [Para 17]

Quantum of Compensation – Determination – Supreme Court criticizes lower commissions' reduction of compensation, emphasizes need for balance between claimant's demands and respondents' liabilities – Restores original compensation awarded by District Forum with additional interest and litigation costs, highlighting the ongoing suffering and deficient post-operative care faced by the appellant. [Paras 12-18]

Decision – Restoration of District Forum Award – Court restores initial compensation of Rs. 5,00,000 with 9% interest from the date of the original award and additional litigation costs, ruling in favor of appellant and citing continuous pain and deficient service by the hospital as justification for enhanced compensation. [Para 18]

Consumer Law - Promotional Trailers – Legal Nature – Analysis – Supreme Court clarifies that promotional trailers, including those for movies, are unilateral communications and do not constitute offers or contracts enforceable by law. Promotional trailers designed to entice potential viewers do not create a contractual relationship or obligations akin to it. [Paras 1, 13-14]

Unfair Trade Practice – Consumer Protection Act, 1986 – Findings – Held that the facts do not support a finding of unfair trade practice under the Consumer Protection Act, 1986. A promotional trailer lacking a specific component in the actual movie, such as a song, does not amount to a deceptive practice unless a promise to include it in the movie is explicitly made. [Paras 16, 18]

Consumer Protection – Entertainment Services – Application – Supreme Court finds no deficiency of service in the context of entertainment services where a song shown in a movie's promotional trailer was not included in the movie. The mere inclusion of a song in a trailer does not constitute a promise that it will be featured in the movie, nor does it form an implied contract with the viewers. [Paras 9, 10, 14]

Judicial Approach to Promotional Content – Court emphasizes that promotional content in artistic services, like movies, inherently involves artistic freedom and discretion, which should be considered when assessing claims of misleading or deceptive practices. [Paras 19-20]

Decision – The Supreme Court sets aside the lower courts' findings of deficiency of service and unfair trade practice, vindicating the appellant film producer. Finds that no contractual obligation was formed based on the promotional trailer, and the trailer's content not appearing in the film does not constitute an unfair trade practice. [Paras 20-21]

Decree Execution – Dispute over Execution of Compromise Agreement – Civil Appeal against the High Court’s decision allowing objections under Section 47 CPC, claiming the decree was inexecutable and void – The High Court set aside the executing court’s decision, allowing the objections, which stemmed from the alleged joint ownership of property and lack of participation by Defendant No. 2 in the compromise – Supreme Court reverses the High Court’s ruling, finding the compromise valid and the execution objections baseless – Restores Executing Court’s order. [Paras 2-15]

Property Ownership and Compromise Agreement Validity – Involvement of Defendant No. 1 and Plaintiff in a valid compromise to execute a sale deed, affirmed by past and present court findings – Dismissal of claims regarding Defendant No. 2’s ownership rights, as he acknowledged lack of ownership and was not a necessary party to the agreement – High Court’s errors in interpreting joint ownership and compromise agreement validity corrected. [Paras 9-12]

Finality of Court Decisions and Abuse of Legal Process – Legal challenges to compromise and execution repeatedly dismissed, including a Special Leave Petition – Current objections by Respondent No. 1, based on similar grounds previously dismissed, deemed an abuse of process of law – Reinforces principles of finality and legality in court decisions and agreements. [Paras 13-14]

Judgment – Supreme Court allows appeal, sets aside the High Court judgment, and restores the Executing Court’s order, rejecting objections under Section 47 CPC – Establishes that the compromise was legally sound and executable, upholding the original terms of the compromise agreement. [Para 15]

Condonation of Delay & Grant of Leave – Special leave petition delayed by 2461 days; delay condoned due to lack of legal knowledge and assistance while in incarceration; leave granted to appeal High Court's judgment [Paras 1-4].

Challenged Judgment – High Court upheld trial court's life sentence for murder under Section 302 IPC dated back to 2001; Supreme Court examined potential reduction to Section 304 IPC [Paras 5, 8, 9].

Factual Background – Accused allegedly killed Dasmet Bai by striking her with stones during a sudden quarrel; reliance on medical evidence and eyewitness accounts to challenge the degree of criminal liability [Paras 6-7, 10-16].

Medical Evidence – Single fatal injury not conclusively sufficient to cause death in the ordinary course of nature, challenging the intent required for Section 302 IPC [Paras 17-20].

Murder Charge Evaluation – Section 302 IPC – Appeal against High Court's affirmation of trial court conviction under Section 302 IPC for the death of Dasmet Bai. Reevaluation based on medical testimony and eyewitness accounts suggesting a sudden quarrel and a single fatal injury without premeditation. [Paras 5-18]

Modification of Conviction – Substantial reevaluation of the intent and circumstances of the injury leading to death, resulting in the reduction of the charge from Section 302 IPC (Murder) to Section 304 Part II IPC (Culpable Homicide not amounting to Murder). Conviction altered due to lack of evidence for intention to cause death, aligned with the infliction of a single, impulsive injury during a quarrel. [Paras 19-22]

Decision – Modification of Conviction – Supreme Court modifies the conviction from Section 302 IPC (murder) to Section 304 Part II IPC (culpable homicide not amounting to murder). Sentence reduced to seven years of rigorous imprisonment, acknowledging the 17 years already served by the appellant. [Paras 21-23]

Cancellation of Bail – Criminal Appeals against High Court orders granting bail – Assault and murder case involving accused Vivek Pal and Punit Pal – High Court granted bail which was challenged by the original complainant in Supreme Court – Supreme Court considers the severity of the crimes, the influence of the accused, and potential threat to the judicial process – Held, bail granted by the High Court set aside, accused to be taken into custody immediately. [Paras 1-22]

Seriousness of Offense – Analysis of criminal charges – Accused charged under Sections 147, 148, 149, 323, 504, 506, 427, 394, 411, 302, and 120B IPC – Allegations of market closure and influence on local area following the crime – Supreme Court stresses the severity and impact of the crime committed in broad daylight, leading to the reversal of bail. [Paras 18-19]

Judicial Discretion in Bail – Application of judicial principles for bail – Supreme Court cites precedents on proper bail consideration – Highlights lack of appropriate discretion in bail granting by High Court given the serious nature of the allegations and evidence against the accused – Orders for cancellation of bail and immediate custody of the accused. [Paras 15-20]

Decision – Sets aside High Court's bail orders, citing improper exercise of judicial discretion in light of the accused's conduct and the gravity of the crime – Orders immediate custody of the accused and expeditious trial [Paras 19-21].