SARFAESI Act – Mortgage – Discharge of Borrower’s Liability: The Supreme Court held that merely selling the mortgaged property or securing part of the outstanding dues does not discharge the borrower from the entire liability. The borrower’s liability with respect to the balance outstanding continues. The Division Bench of the High Court erred in directing the release of the mortgaged property and handing over possession along with the original title deeds to the borrower on the payment of Rs. 65.65 lakhs only​​.

Judicial Review – Section 13(8) of SARFAESI Act: The court reiterated that under Section 13(8) of the SARFAESI Act, the secured asset cannot be sold if the borrower tenders the entire dues of the secured creditor together with all costs, charges, and expenses incurred by the creditor before the publication of the auction notice. The High Court's order was contrary to this provision as the dues were much more than Rs. 65.65 lakhs​​.

Auction and Redemption: The High Court's decision to treat the highest bid received as the market value of the property and order its release upon payment was found erroneous. The auction must realize the entire amount due to the creditor. Any interim order directing release of the property against partial payment was held to be unjustified​​.

Decision: Appeal allowed – The judgment and order of the Division Bench of the High Court was quashed. The order of the learned Single Judge was restored. The bank was permitted to proceed with the auction of the mortgaged property to recover the outstanding dues. The DRT was directed to decide and dispose of the securitisation application on its own merits​​.

Constitution of India – Article 21 – Premature Release – Application for Premature Release: The Supreme Court held that the order rejecting the application for premature release lacked application of mind to relevant circumstances. The order merely noted potential resentment among the victim's side and the petitioner's extremist nature without considering the petitioner's conduct in jail or prior criminal history. The court emphasized the need for a considered application of mind to the specific facts of each case when deciding on premature release​​.

Judicial Review – Non-Application of Mind: The court quashed the order rejecting the application for premature release, noting it was devoid of relevant considerations and displayed a patent non-application of mind. General observations about possible resentment and potential danger to society were deemed insufficient grounds for rejecting the application​​.

Policy Consideration – Date of Conviction: The application for premature release must be considered based on the policy as it stood on the date of the petitioner’s conviction. The court directed the state to reconsider the application without requiring a new application, emphasizing adherence to the policy in place at the time of conviction​​.

Decision: Petition allowed – The impugned order dated July 30, 2021, was set aside. The court directed the state to reconsider the application for premature release based on the policy as it stood on January 17, 2005. The reconsideration was to be completed within two months from the date of the order​​.

Resignation – Constructive Dismissal – Sexual Harassment – Petitioner’s resignation from the post of Additional District & Sessions Judge, Gwalior, dated 15th July 2014, cannot be construed as voluntary. Order dated 17th July 2014 accepting the resignation quashed – High Court's acceptance of resignation found without proper consideration of the coercive circumstances – Reinstatement ordered without back wages, but with continuity in service and all consequential benefits [Paras 1-10, 13, 19].

Procedure and Judicial Conduct – Transfer Policy – The transfer of the petitioner was found irregular and not in compliance with the Transfer Guidelines/Policy of the Madhya Pradesh High Court – Recommendations for her reinstatement were based on findings of the Judges Inquiry Committee (JIC) which expressed that the transfer was unbearable and led to her resignation [Paras 7-9, 14, 48].

Judicial Review – Delay and Laches – Petitioner’s representation to the President and the Chief Justice of India soon after her resignation indicates her resignation was not voluntary but out of frustration and compulsion – Delay in seeking redress not a ground to deny relief considering the continuous follow-up actions taken by the petitioner [Paras 11, 47].

Judicial Discretion – Transfer of Judicial Officers – The petitioner's mid-term transfer without considering her request for deferral due to her daughter's education and without compliance with the Transfer Policy provisions constitutes arbitrary use of judicial discretion – Reinforces the need for strict adherence to transfer policies to prevent arbitrary actions against judicial officers [Paras 12, 44-45].

Decision: Writ Petition Allowed – Held – Orders by the High Court accepting resignation set aside – Directions issued for the petitioner's reinstatement with continuity of service and all consequential benefits but without back wages [Para 19].

Civil Procedure Code (CPC) - Order II Rule 3 - Joinder of Causes of Action: Order II Rule 3 permits a plaintiff to unite different causes of action in the same suit. The failure to join all claims arising from a cause of action can lead to consequences as proclaimed in Order II Rule 2. However, non-joinder of necessary parties can be fatal to the suit if it impacts the substantive rights of the parties involved​​.

Partition Suit – Non-Inclusion of Properties – Non-Joinder of Necessary Parties: The Supreme Court held that in a suit for partition, all joint properties should ordinarily be included. Non-inclusion of certain properties and non-joinder of necessary parties can render the suit liable to be dismissed. However, exceptions can be made based on the facts of the case and the interests of justice​​.

Separate Properties – Admission in Pleadings: The appellant's admission in pleadings and evidence that the suit schedule properties were the self-acquired properties of R.M. Patil was decisive. The appellant's inconsistent claims regarding other joint family properties were not substantiated by evidence​​.

Decision – Appeal Dismissed: The appeals were dismissed, affirming the High Court's decision that the plaint schedule properties were the self-acquired properties of R.M. Patil, and no further joint family properties were available for partition. The issue of non-joinder of necessary parties did not warrant the dismissal of the suit in the facts of this case​​.

Criminal Law – Murder – Common Intention: The Supreme Court held that once the presence of the accused and his role of exhortation were established and proved, the High Court erred in acquitting the accused for the offence punishable under Section 302/34 of the IPC. The High Court committed a grave error by doubting the involvement of the accused despite the consistent and trustworthy testimony of the eye-witnesses and the established motive​​.

Judicial Review – Acquittal – Evidence Evaluation: The High Court's acquittal was found to be based on conjectures and surmises, contrary to the evidence on record. The Supreme Court emphasized that the prosecution's case was supported by three eye-witnesses whose evidence was found reliable and consistent by both the Trial Court and the High Court, which upheld the conviction of the co-accused​​.

Common Intention – Section 34 IPC: The court reiterated that for the application of Section 34 IPC, the prosecution must prove that the criminal act was done in furtherance of the common intention of all accused. In this case, the common intention to murder was evident from the exhortation by the accused and the subsequent killing by his son, justifying the conviction under Section 302/34 IPC​​.

Decision: Appeal allowed – The judgment and order of the High Court acquitting the respondent No. 1 (original accused No. 2) were quashed and set aside. The conviction and life imprisonment sentence imposed by the Trial Court were restored. Respondent No. 1 was directed to surrender within four weeks to undergo life imprisonment​​

Civil Procedure Code – Order 7 Rule 11(d) – Rejection of Plaint: A party to a consent decree based on a compromise must challenge the compromise decree in the same court that recorded the compromise. A separate suit challenging the consent decree is not maintainable under Order 23 Rule 3A CPC. The Trial Court was justified in rejecting the plaint on the ground that the suit for the reliefs sought challenging the Compromise Decree would not be maintainable​​.

Clever Drafting – Avoidance of Legal Bar: The court reiterated that a party cannot circumvent a legal bar through clever drafting. If the clever drafting of the plaint creates the illusion of a cause of action, the court will nip it in the bud at the earliest. The suit for reliefs that effectively challenge the Compromise Decree must be dismissed under Order 23 Rule 3A CPC​​.

Remand for Reconsideration: The High Court erred in not considering the maintainability of the suit and instead delved into the merits of the validity of the Compromise Decree. The proper course is to address the maintainability of the suit first, as the Trial Court correctly did by rejecting the plaint under Order 7 Rule 11(d) CPC​​.

Decision: Appeals allowed – The judgment and order passed by the High Court were quashed and set aside. The Trial Court's order rejecting the plaint was restored. The matter regarding the validity of the Compromise Decree is to be decided by the Court which passed the decree in an application under Order 23 Rule 3A CPC​​.

Criminal Law – Quashing of FIR – General and Omnibus Allegations: The Supreme Court held that in the absence of any specific role attributed to the accused-appellants, it would be unjust to subject them to trial. General and omnibus allegations without specificity do not warrant prosecution. The FIR was quashed, and the appeal allowed.

Misuse of Section 498A IPC – Matrimonial Disputes: The court highlighted concerns over the misuse of Section 498A IPC, noting the increased tendency to implicate relatives of the husband in matrimonial disputes without proper deliberation. False implication by general allegations must be discouraged to prevent abuse of legal process.

Judicial Precedents – Protection Against Vexatious Litigation: The decision references previous judgments emphasizing the need for caution in proceeding against distant relatives in matrimonial disputes. Prosecution based on non-specific and general allegations can lead to abuse of process and should be avoided.

Decision: Appeal allowed – The FIR No. 248/2019 dated 01.04.2019 against the appellants under Sections 341, 323, 379, 354, 498A read with Section 34 IPC was quashed. The judgment and order dated 13.11.2019 passed by the High Court of Patna were set aside.

Criminal Law – Penetrative Sexual Assault – Conviction of a 65-year-old accused for committing aggravated penetrative sexual assault on a four-year-old girl – Trial Court's judgment affirmed by High Court – Supreme Court rejects the appeal, upholding the application of Section 5(m) of the POCSO Act – Reducing the life sentence to fifteen years of rigorous imprisonment (RI) due to the accused's age and health condition [Paras 1-88].

Evidence Act – Testimony of Medical Expert – Reliance on deposition of PW-10, Dr. Vandana Sundriyal, who corroborated the victim’s account of the assault – Testimony deemed credible and substantial, supporting the conviction despite other witnesses turning hostile [Paras 57-61].

Legal Interpretation – Section 5(m) of POCSO Act – The act of inserting a finger into the victim’s vagina classified as penetrative sexual assault – The Court elaborated on the stringent application of the POCSO Act to protect children from sexual offences, emphasizing the seriousness of such crimes against minors [Paras 75-82].

Sentencing – Consideration of Mitigating Factors – Accused’s advanced age (70-75 years) and health issues (Tuberculosis) considered for reducing the sentence from life imprisonment to fifteen years RI – Court maintained that even in cases of severe crimes, mitigating factors must be taken into account for proportional sentencing [Paras 9.1-10.1].

Decision: Appeal partly allowed – Conviction under Sections 376(2)(i) IPC and 5/6 POCSO Act upheld – Sentence modified to fifteen years of rigorous imprisonment with a fine of Rs. 50,000, of which Rs. 30,000 to be paid to the victim as compensation.

Criminal Law – Default Bail – Right to Default Bail under Section 167(2) CrPC arises only if the charge-sheet has not been filed before the expiry of the statutory period – Supreme Court held that the filing of the charge-sheet within the stipulated period is sufficient compliance with Section 167(2) CrPC, and taking of cognizance is not material for this purpose – The High Court's decision to grant default bail based on non-taking of cognizance before the expiry of the statutory period was incorrect [Paras 9-10, 15].

Criminal Procedure Code – Indefeasible Right – The accused’s right to statutory bail under Section 167(2) CrPC ceases once the charge-sheet is filed within the statutory period – The custody of the accused continues with the Magistrate until cognizance is taken by the relevant court [Para 8].

Judicial Interpretation – Cognizance and Filing of Charge-Sheet – Clarified that the two stages (filing of charge-sheet and taking of cognizance) are distinct – Emphasized the continuity of custody from the Magistrate to the trial court upon filing of the charge-sheet [Paras 9-10].

Decision: Appeals allowed – High Court's order granting default bail set aside – The filing of the charge-sheet within the statutory period complied with the provisions of Section 167(2) CrPC, and the respondents were not entitled to default bail on the ground of non-taking of cognizance.