Taxation Law - Central Goods and Services Tax Act 2017 - Sections 2(52) 7 9 and 15 - Online Gaming and Actionable Claims - Revenue challenged common judgment of Karnataka High Court which quashed show cause notices issued to Gameskraft Technologies for allegedly misclassifying betting transactions as services instead of actionable claims - Revenue contended that staking money on any game including skill games transforms activity into betting and gambling taxable at twenty eight percent on face value - Assessees argued that online rummy and fantasy sports are games of skill protected under Constitution and only platform fees constitute consideration - Supreme Court observed that essential element of betting and gambling is staking value on uncertain outcomes regardless of underlying skill - Court held that once element of betting enters the activity it attracts characteristics of betting and gambling for GST - Held - Activities on online gaming platforms involving staking upon uncertain outcomes constitute supply of actionable claims within GST framework - Karnataka High Court judgment set aside - show cause notices restored - [Paras 1-86].

Civil Law - Goods - Central Goods and Services Tax Act 2017 - Section 2(52) - Interpretation of Actionable Claims - Assessees contended that actionable claims only arise from sovereign grants and must be enforceable in law - Supreme Court noted Section 2(52) includes actionable claims within definition of goods - Definition under Transfer of Property Act 1882 includes contingent beneficial interests in movable property - Online gaming involves participants acquiring contingent interests in prize pools upon staking - Held - Inclusion of actionable claims within definition of goods is constitutionally valid and covers interests arising from betting or gambling transactions - [Paras 51.1-52.13].

Civil Law - Interpretation of Statutes - Central Goods and Services Tax (Amendment) Act 2023 - Entry 6 of Schedule III and Rules 31B and 31C - Retrospectivity - Assessees argued that 2023 amendments introduced a fresh levy on online money gaming and casinos - Court found that taxability of such transactions already existed under pre-amendment framework through Rule 31A - Amendments merely provided specific valuation methods and statutory definitions to remove ambiguity - Held - Amendments introduced in 2023 are clarificatory and explanatory in nature and consequently operate retrospectively - [Paras 66-67.1].

Civil Law - Valuation - Central Goods and Services Tax Rules 2017 - Rules 31 31A and 31C - Casino Gaming - Casino operators challenged demand based on Gross Bet Value and absence of machinery provisions prior to Rule 31C - Revenue resorted to best judgment assessment using house advantage percentages - Supreme Court observed that GST is a tax on supply and not on profits or net revenue - Rule 31C refined valuation by linking it to amount paid for purchase of chips or tokens - Held - Recourse to Rule 31 and best judgment methodologies permissible in absence of records - actual computation for casinos must now be aligned with retrospective Rule 31C - [Paras 80-83.8].

Writ Law - Jurisdiction - Constitution of India - Article 32 and 226 - Alternative Remedy - Respondents argued that Special Leave Petitions were not maintainable due to availability of alternative remedy before Division Bench - Supreme Court noted the dimensions of nationwide constitutional controversy involving transferred cases and common questions of law - Held - In view of the commonality of interlinked issues and substantial revenue implications the Court exercised jurisdiction to provide final authoritative determination - [Paras 1-14].

Decision: Civil appeals preferred by Revenue allowed – Common judgment of Karnataka High Court set aside – Show cause notices restored – Writ petitions and Transferred Cases of assessees dismissed – 2023 amendments held retrospective – Valuation of online gaming and casinos to be governed by Rules 31B and 31C respectively – Time for submitting replies to show cause notices fixed at eight weeks.

Criminal Law - Murder and Rape - Indian Penal Code 1860 - Sections 34-201-302-376 and 376(2)(g) - Conviction for rape and murder of 55 year old woman based on circumstantial evidence - Trial Court awarded death sentence which was confirmed by the High Court - Prosecution case rested on the last seen together theory and recovery of incriminating articles - Supreme Court found that the two youths were only seen asking for directions and were not seen in the company of the deceased - Identity of the sketch artist was withheld and no Test Identification Parade was conducted despite the accused being strangers - Recoveries of a shirt pocket and ornaments were found to be suspicious and potentially planted - Forensic evidence was inconclusive as the blood group detected was common and the accused's group was not tested - Medical evidence suggested an inability of the accused to perform intercourse - Held - The chain of circumstances was not complete and could not exclude the hypothesis of innocence - Conviction set aside and appellants acquitted - [Paras 1-93].

Evidence Law - Circumstantial Evidence - Indian Evidence Act 1872 - Section 3 - Principles of proof - In cases resting solely on circumstantial evidence the prosecution must prove each link beyond reasonable doubt and the chain must be so complete as to lead to the irresistible conclusion that the accused alone is the perpetrator - Mere suspicion cannot take the place of legal proof - Held - Prosecution failed to establish an unbroken chain pointing unerringly towards the guilt of the accused - [Paras 39-42].

Criminal Law - Identification - Code of Criminal Procedure 1973 - Section 161 - Test Identification Parade - Failure to conduct TIP when accused were strangers to witnesses - Witnesses were shown the accused while in police custody before dock identification - Held - Failure to hold TIP materially undermines the credibility of the prosecution version and diminishes the evidentiary value of dock identification - [Paras 55-57].

Evidence Law - Forensic Evidence and Chain of Custody - Indian Evidence Act 1872 - Section 27 - Recovery of articles - Delay in transmission of seized articles to Forensic Science Laboratory without explanation - Lack of evidence regarding safe custody in malkhana - Shirt pocket matching was found doubtful as the pocket appeared carefully unpicked and not violently torn - Held - Integrity of forensic samples becomes doubtful in the absence of a proved chain of custody and scientific reports based thereon lose evidentiary value - [Paras 70-80].

Criminal Law - Motive and Medical Evidence - Indian Penal Code 1860 - Section 376 - Medical condition of accused - Examining doctor deposed that Accused No 1 suffered from a medical condition making sexual intercourse impossible - No DNA profiling conducted to establish source of semen or connect it to the appellants - Held - Theory of motive for satisfying carnal desire becomes highly doubtful and fails to inspire confidence - [Paras 85-87].

Decision: Appeals allowed – Conviction and sentence passed by the Trial Court as affirmed by the High Court are set aside – Appellants acquitted of all charges and directed to be released from custody forthwith.

Criminal Law - Child Trafficking - Bharatiya Nyaya Sanhita 2023 - Section 143 - Monitoring of directions - Miscellaneous Application arising from judgment dated 15-04-2025 - Amicus Curiae reported that while States filed compliance in BIRD format the ground reality reflects rampant trafficking - NCRB 2024 report indicates 7.8 percent increase in missing children and over 6000 reported trafficking cases - Affidavits of States failed to address emerging trends or preparedness - Terms of reference for Review Committees remain unclear except in Gujarat - Held - Court directed Additional Solicitor General to study the Amicus note comprehensively and respond regarding the creation of a workable mechanism for prevention and rehabilitation - [Paras 1-8].

Writ Law - Emerging Trends in Trafficking - Assisted Reproductive Technology (Regulation) Act 2021 - Sections 3, 5, 6, 9 and 12 - Trafficking through IVF Centres - Delhi Police investigation revealed accused claiming to be egg donors associated with IVF Centres - Potential violation of the ART Act and Surrogacy Act highlighted - Absence of Standard Operating Procedure (SOP) for inter-state coordination in missing children cases - Vulnerability of couples seeking surrogacy exploited by organized crime networks - Held - Dire need for critical guidelines to prevent trafficking in ART and Surrogacy centers - Committee requested to prepare SOP for prevention and prosecution within eight weeks - [Paras 3-4, 19-21].

Criminal Law - Anti-Human Trafficking Units - Bharatiya Nyaya Sanhita 2023 - Section 143 - Institutional Efficacy - Review of AHTU functions across States and Union Territories - Variation in powers noted as AHTUs in several states perform only administrative functions without police station powers - Only 18 States and UTs empowered AHTUs to register FIRs - Importance of AHTU data for NCRB reporting - Held - Court emphasized that AHTUs must be granted full powers to register cases and investigate to effectively address organized crime - [Paras 11-13].

Decision: Matter listed for 19.08.2026 as Part-heard – Additional Solicitor General directed to submit detailed response to the Amicus note.

Criminal Law - Dishonour of Cheque - Negotiable Instruments Act 1881 - Sections 138 and 141 - Insolvency and Bankruptcy Code 2016 - Sections 95 and 96 and 101 and 128 - Appellant-former Managing Director of Surana Power Ltd challenged High Court order refusing to quash Section 138 complaint despite pendency of personal insolvency and bankruptcy proceedings - High Court held Section 138 is a criminal enactment not stayed by moratorium under Section 96 IBC - Supreme Court observed conflict between P. Mohanraj ruling describing Section 138 as a civil sheep in criminal wolfs clothing and later judgments emphasizing the predominantly criminal nature of the offence - Supreme Court analyzed whether protection of moratorium under Part III IBC extends to natural persons undergoing personal insolvency - Held - Section 138 is a hybrid provision with a predominantly criminal objective intended to deter dishonour of cheques - matter referred to a larger Bench to resolve whether moratorium stays the entire proceeding or only the compensatory aspect - [Paras 1-212].

Criminal Law - Moratorium - Insolvency and Bankruptcy Code 2016 - Sections 96 and 101 - Negotiable Instruments Act 1881 - Section 138 - Tiered proceedings - Court bifurcated Section 138 into Tier I mandatory criminal punishment and Tier II discretionary compensatory aspect - Section 79 15 IBC defines excluded debt to include liability to pay fine imposed by a court - Held - moratorium provisions under Part III IBC do not stay the criminal impact or punishment under Tier I but apply to the compensatory aspect under Tier II to prevent depletion of the debtors assets - [Paras 141-158].

Insolvency Law - Personal Insolvency - Insolvency and Bankruptcy Code 2016 - Sections 96 and 101 - Negotiable Instruments Act 1881 - Section 141 - Pecuniary liability of directors - Whether moratorium in personal insolvency protects directors vicariously liable for corporate debt under Section 138 - Held - expression any debt in Sections 96 and 101 IBC is wide enough to include the compensatory liability assumed by a director for a corporate cheque dishonour - enforcement of such liability is stayed during the moratorium period - [Paras 185-209].

Decision: Matter referred to a larger Bench – Registry directed to place matters before the Hon’ble Chief Justice of India.

Criminal Law - Suspension of Sentence - Indian Penal Code 1860 - Section 149 - Appeal by de-facto complainant against Allahabad High Court order suspending life sentence of respondent-convict Raju in a double murder case - Prosecution alleged that on 9 July 2017 the deceased Arif and Shadab were shot dead at a salon in Meerut by convicts who hatched a conspiracy while in jail to eliminate them as they were witnesses in another murder case - Trial Court convicted respondent and others for double murder and sentenced them to life imprisonment - High Court suspended sentence and granted bail on the ground of conflict between ocular version and nature of injuries suggesting use of only one weapon - Supreme Court observed that Appellate Courts should be loath and circumspect to suspend sentences in murder cases unless there are palpable chances of acquittal - Court held that once Section 149 IPC is invoked the prosecution need not attribute specific overt acts to every member of the unlawful assembly - Court further noted that respondent had five serious criminal antecedents including murder and attempt to murder - Held - High Court order set aside and respondent directed to surrender within one week - [Paras 1-8 of main order and Paras 1-21 of conjoined order dated 25.05.2026].

Criminal Law - Unlawful Assembly - Indian Penal Code 1860 - Section 149 - Overt Act - Principle of constructive liability - Once an accused is found to be a member of an established unlawful assembly and his presence is proved there is no requirement to attribute a particular overt act on his part for conviction - Appellate Court must acknowledge that post-conviction the presumption of innocence no longer remains - Held - High Court erred in granting bail based on perceived conflict regarding the number of weapons used - [Para 15 of order dated 25.05.2026].

Criminal Law - Bail and Antecedents - Relevant considerations - Respondent-convict found to be involved in five serious criminal cases including rape and murder - Supreme Court emphasized that criminal history is a vital consideration for evaluating suspension of sentence applications - Held - Presence of serious antecedents combined with the gravity of the double murder offense warranted setting aside the bail order - [Para 8 and Page 7].

Decision: Appeal allowed – Impugned order of the High Court of Allahabad set aside – Respondent No. 1 Raju directed to surrender before the Trial Court within one week from the date of the order.

Civil Law - Matrimonial Dispute - Constitution of India - Article 142 - Irretrievable breakdown of marriage - Parties married in 2017 and living separately for over eight years - Long standing acrimony between parties with multiplicity of civil and criminal proceedings initiated by both sides including maintenance under Army Act and CrPC - Settlement agreement reached in 2019 for mutual divorce but wife withdrew consent before second motion - Family Court disposed of proceedings and High Court upheld dismissal - Supreme Court observed ties of matrimony severed in every meaningful sense and marriage exists only on paper - Respondent wife opposed grant of divorce under Article 142 seeking to pursue contested petition on ground of adultery - Court found no possibility of reconciliation whatsoever - Held - appropriate case to invoke plenary powers under Article 142 to dissolve marriage despite lack of mutual consent at final stage to provide genuine finality and do complete justice - [Paras 7-12].

Civil Law - Permanent Alimony - Constitution of India - Article 142 - One time final settlement - Husband originally agreed to pay thirty two lakhs alimony but later returned twenty lakhs during proceedings - Court evaluated earning capacity and duration of separation and respondent wife needs for financial security - Held - sum of fifty lakhs fixed as fair and adequate amount for full and final settlement of all past and future claims arising from marriage - amount to be paid in two instalments - no further claims for maintenance under CrPC or Army Act and Rules shall survive - [Paras 8-12].

Civil Law - Closure of Proceedings - Constitution of India - Article 142 - Quashing of multiplicity of litigation - Directions for formal closure of all pending litigation including Domestic Violence Act complaint and maintenance proceedings and contempt cases - Registry directed to communicate order to respective Courts - Held - all cases pending between parties stand closed and disposed of and no further steps shall be taken therein by either party - [Paras 13-14].

Decision: Appeal disposed of – Marriage dissolved under Article 142 of the Constitution of India – Appellant directed to pay Rs. 50,00,000/- as permanent alimony in two instalments – All pending cases between parties stand closed.

Criminal Law - Externment - Chhattisgarh Rajya Suraksha Adhiniyam 1990 - Section 9 - Condonation of delay - Appellant was issued a show-cause notice by District Magistrate followed by an externment order dated 18.06.2025 directing removal from District Balodabazar-Bhatapara for one year - Statutory appeal under Section 9 was filed with a delay of approximately 50 days beyond the prescribed 30-day period - State Government dismissed the appeal on 03.10.2025 holding the delay was incapable of condonation under the statutory scheme - High Court in WPCR No. 548 of 2025 declined to interfere under Article 226 of the Constitution - Supreme Court examined Section 29(2) of the Limitation Act 1963 and noted that the Adhiniyam does not expressly or by necessary implication exclude Section 5 - Observed absence of restrictive expressions like but not thereafter or not exceeding - Held - High Court and State Government erred in treating the limitation period as absolute - Delay condoned and appeal restored for decision on merits - [Paras 1-27].

Criminal Law - Limitation - Limitation Act 1963 - Section 29(2) - Applicability to Special Laws - General rule is that Sections 4 to 24 of the Limitation Act apply to special or local laws unless expressly excluded - Exclusion can be inferred from the scheme and object of the statute - Restrictive phrases like not exceeding or but not thereafter indicate legislative intent to exclude Section 5 - Chhattisgarh Rajya Suraksha Adhiniyam lacks such phrases - Held - Mere prescription of a different limitation period does not automatically exclude Section 5 - [Paras 19-24.3].

Writ Law - Principles of Natural Justice - Constitution of India - Articles 19(1)(d) and 21 - Right of Appeal - Externment orders have serious civil and criminal consequences affecting liberty and movement - Appellate remedy is a procedural safeguard against arbitrary power - Technical grounds of limitation should not defeat the right to appeal unless the statute mandates strict exclusion - Held - Purposive interpretation favoring access to justice must be adopted for externment proceedings - [Paras 24.4-25].

Decision: Appeal allowed – High Court judgment dated 16.10.2025 set aside – Delay in filing the appeal before the State Government condoned – Appeal restored for decision on merits by 15.06.2026 – Appellant directed to appear before the State Government on 01.06.2026.

Service Law - Promotion - Recruitment Rules - Appellants being Head Constables in Andaman and Nicobar Police Department challenged the 2008 and 2010 Rules which introduced matriculation and selection tests for promotion to ASI-Executive - During litigation 2016 Rules were notified substituting previous rules and restoring 100 percent seniority-cum-fitness basis without educational hurdles - Tribunal dismissed the original application as infructuous noting that the 2016 Rules satisfied the appellants' prayers - High Court set aside the Tribunal's order holding that vacancies must be filled as per rules prevailing when they accrued while relying on Marripati Nagaraja - Supreme Court noted that the previous principle in Y.V. Rangaiah was expressly overruled in State of Himachal Pradesh v. Raj Kumar - Held - Public servants do not possess a vested right to be considered under old rules - Right to be considered for promotion is governed exclusively by rules in force at the time the promotion is considered - High Court judgment set aside - [Paras 1-32].

Service Law - Applicability of Rules - Vested Rights - Rule in force at time of consideration - Dispute over whether old vacancies must be filled under repealed 2010 Rules or new 2016 Rules - Court relied on Raj Kumar precedent - Held - There is no rule of universal application that vacancies must be filled on the basis of the law existing when they arose - Government is entitled to take a conscious policy decision to restructure cadres for efficiency - Candidates only have a right to be considered in light of the rule in force on the date consideration takes place - [Paras 18-24].

Service Law - Statutory Interpretation - Word Substitution - Effect of amendment by substitution - Analysis of the impact of 2016 Rules on 2010 Rules - Held - Substitution typically results in the repeal of the earlier provision and its replacement by the new provision - The process involves the old rule ceasing to exist and the new rule being brought into its place - Unless a contrary intention is shown the new rule becomes the sole legal basis for regular promotions - [Paras 28-30].

Service Law - Ad hoc Promotion - Vested Rights - Respondent Nos. 1 to 28 were promoted on an ad hoc basis subject to the outcome of litigation - Held - Ad hoc promotions with explicit riders denying seniority do not confer permanent rights - Such promotions are not completed acts and do not create vested rights to retain positions once rules are substituted - [Paras 27-29].

Decision: Civil Appeal allowed – Judgment of the High Court dated 10.08.2016 set aside – Existing vacancies of ASI-Executive directed to be filled under the 2016 Rules within two months.

Criminal Law - Death by Negligence - Indian Penal Code 1860 - Sections 279 and 304A - Appellant bus driver convicted for causing death of passenger who fell while alighting - Trial Court and Appellate Court found driver negligent for moving vehicle before passenger safely disembarked - High Court maintained conviction but set aside sentence under Section 279 IPC citing doctrine of merger - Supreme Court analyzed testimony of Conductor PW6 who stated he signaled the driver to move after passengers got down - Held - Driver is duty-bound to follow conductor's signals for stopping and starting the bus - Unreasonable to attribute negligence when driver acts bona fide on mandatory instructions - Conviction set aside - [Paras 1-11].

Criminal Law - Negligence and Rashness - Indian Penal Code 1860 - Section 304A - Culpable negligence - Distinction between carelessness and recklessness - Negligence involves failure to exercise care demanded by circumstances while rashness involves acting with consciousness of potential consequences but hoping they will not follow - Driver followed conductor's whistle to start bus - Held - Criminality arises from deliberation in mind risking life - Factor of deliberation absent as driver followed normal and natural conduct by relying on conductor - Case of res ipsa loquitur not made out - [Paras 5.5-5.7].

Evidence Law - Appreciation of Evidence - Common Sense Canon - Law as common sense - Truth often emanates from common sense in judging human conduct - Testimony of conductor PW6 remained intact during cross-examination confirming he signaled the driver to move - Held - Lower courts committed manifest error by failing to appreciate that the conductor ensures due movement and regulates passengers - Driver discharged his duty by acting on instructive signals - [Paras 6-8].

Decision: Appeal allowed – Judgment and order of conviction and sentence passed by the Trial Court and confirmed/modified by the High Court are set aside – Appellant acquitted of all charges and directed to be released forthwith.