Civil Appeal – Entitlement to pensionary benefits – Appellants aggrieved by High Court's dismissal of their appeal – Validity of marriage between deceased Subedar Bhave and appellant No. 1 challenged – Decree of divorce between deceased and his first wife – Long cohabitation of appellant No. 1 and deceased – Presumption of marriage and legal validity invoked – Burden of proof on party challenging the relationship – Court's duty to weigh evidence – Appellant No. 1 declared entitled to pensionary benefits – Appellants No. 2 and 3 entitled to benefits until the age of 25.

Marriage Validity – Presumption of marriage when a man and woman cohabit continuously – Rebuttable presumption – Heavy burden on party challenging marriage – Court's reliance on precedents to establish the legal principle – Long cohabitation and recognition by society and authorities as husband and wife strengthens the presumption of marriage. [Para 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21]

Marriage and Cohabitation – Importance of continuous cohabitation to establish the presumption of a valid marriage – Law's recognition of the sanctity of long-term relationships – Analysis of precedents highlighting the significance of cohabitation. [Para 9, 10, 11, 12, 14, 15, 16, 18, 19, 20]

Burden of Proof – Party challenging the validity of a marriage bears the burden of proof – Examination of evidence and circumstances to determine the legitimacy of the marriage – Court's emphasis on assessing the strength of the presumption and countervailing evidence. [Para 12, 13, 14, 15, 16]

Pension Regulations – Eligibility for family pension under Army Pension Regulations – Interpretation of Regulation 219 – Requirements for entitlement to family pension – Widow's eligibility – Applicability of regulations to the case at hand. [Para 7, 22]

Judgment Reversal – High Court's dismissal of appeal set aside – Restoration of the judgment and decree of the trial court – Declaration of appellant No. 1's entitlement to pensionary benefits – Appellants No. 2 and 3's entitlement until age 25 – Costs to be borne by the parties – Pending applications disposed of. [Para 22, 23]

Legal Principles – Application of legal principles relating to marriage, cohabitation, and presumption – Judicial interpretation of Evidence Act provisions – Precedents guiding the court's decision – Importance of recognizing long-term relationships for legal purposes. [Para 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 19, 20, 21]

Company Law – Preferential Payments – Interpretation of Sections 529A and 530 of the Companies Act, 1956 – Application of Customs Act to government dues – Examination of conflict between Companies Act and Customs Act – Priority of government dues vis-à-vis other creditors – Determination of whether customs dues constitute preferential payments – Analysis of relevant statutory provisions and precedents – Resolution of legal issues arising from conflicting laws – Consideration of principles governing preferential payments. [Paras 1-10]

Statutory Interpretation – Meaning of "due and payable" – Interaction between Customs Act and Companies Act – Analysis of statutory language – Examination of relevant provisions of both Acts – Discussion of case law and principles of interpretation – Determination of the timing and nature of customs dues – Examination of creation of first charge on government dues under Customs Act – Interaction of Section 142A of the Customs Act with Section 529A of the Companies Act – Resolution of conflict between the two statutes. [Paras 11-26]

Company Liquidation – Application of Section 178 of the Income Tax Act, 1961 – Protection of tax dues during company liquidation – Interpretation of relevant provision – Exclusion of specified amount from distribution pool – Comparison with provisions of Companies Act – Examination of case law on similar provisions – Effect of Section 178 on priority of payments. [Paras 27-28]

Appeal allowed – Impugned judgment set aside – Company Application allowed – Sale proceeds to be distributed in accordance with Sections 529A and 530 of the Companies Act – Customs Act's Section 142A not applicable to overriding preferential creditors – No costs awarded. [Para 28]

Criminal Appeal – Acquittal in Sessions Trials – Appeal against the judgment and order of acquittal – Allegations of political influence, witness tampering, and abduction – Detailed examination of events leading to the trial and subsequent proceedings – Grave concerns regarding fair trial and witness protection raised – Consideration of statements by key witness Lalmuni Devi – Critique of investigation and supervisory role of police authorities – Observations on conduct of trial judge – Impact of abductions on trial process – Legal implications of abduction and intimidation on witness statements – Accused acquitted by Trial Court – High Court’s decision under challenge – Appeal filed before Supreme Court. [Paras 1-24]

Witness Statements – Inconsistent Statements of Prosecution Witnesses – Cross-examination of witnesses and inconsistencies in their statements – Efforts to protect accused by changing statements – Witness PW-1, PW-2, PW-4, PW-5, PW-6, and PW-7 declared hostile – Contradictions in their statements – Failure of Police to record statements properly – Affidavits filed by witnesses reiterating their earlier statements. [Para 41-45]

Medical Evidence – Examination and Post-mortem reports – Witnesses PW-10 and PW-11 – Medical conditions of the injured – Referral to better treatment – Lack of proper recording of statements by Police – Unconscious state of the injured – Contradiction with original statements and strengthening defense's case. [Para 47-48]

Tainted Trial and Compromised Proceedings – Multiple procedural lapses and malice – Failure to adhere to evidentiary standards and fair trial principles – Insufficient and unreliable evidence – Judgments marred by inconsistencies and irregularities – Convictions cannot be sustained based on compromised proceedings – Need for de novo trial to ensure justice is served. [Para 67]

Dying Declaration - FIR as a Dying Declaration - Deceased's Bayan Tahriri (FIR) treated as a dying declaration - Legal relevance and admissibility of dying declaration discussed - Importance of dying declaration as an exception to the rule against hearsay evidence - Admissibility of dying declaration under Section 32(1) of the Evidence Act - Discussion on the weight to be given to a dying declaration in forming the basis of conviction. [Para 95]

Inaccurate High Court Conclusion - High Court's erroneous conclusion regarding CW-1's testimony - Failure of the High Court to assess the sensitivity and merits of the case - Appellants' argument against the High Court's conclusion on the tutored nature of CW-1's statement and lack of corroboration - Importance of considering all aspects in a fair and comprehensive manner. [Para 99]

Admissibility of Dying Declaration – Conversion of Fard Bayan into FIR – Court's determination of admissibility – Reliability and legal validity of dying declaration – Conversion of initial statement into FIR – Acceptance of Fard Bayan as a dying declaration in line with legal principles. [Para 114(a)]

Tainted Investigation and Abuse of Power – Highhandedness of accused MP – Examination of investigation quality – Implication of political power – Allegations of abuse of power by accused-Respondent no.2 – Appraisal of investigative conduct and its influence on the case. [Para 114(b)]

Evaluation of Witness Testimony – Reliability of hostile witnesses – Assessing identity of assailants – Adverse inference against accused – Corroboration of date, time, and place of incident – Examination of post-mortem reports – Conclusions drawn from witness testimonies. [Para 114(c-d)]

Subsequent Conduct of Accused – Inference from subsequent behavior – Adverse inference drawn from accused's conduct – Relevance of Section 8 of the Evidence Act – Implication of accused's actions on guilt – Examination of post-incident conduct. [Para 114(e)]

Role of Major Stakeholders – Failures of Investigating Officer, Public Prosecutor, and Judiciary – Critique of major stakeholders in criminal justice system – Judicial remarks on roles of police, prosecutors, and courts – Highlighting inadequacies and responsibilities for ensuring justice. [Para 107-113]

Conviction upheld for accused-respondent no.2 – Others acquitted due to lack of evidence – Failure of state machinery, judicial insensitivity, and biased conduct highlighted – Accused-respondent no.2 to be taken into custody for sentencing – Further hearing scheduled for determination of sentence. [Para 115, 116, 117]

Criminal Appeal – Conviction under Sections 302 and 201 of the IPC – Appellant convicted and sentenced to life imprisonment – Impugned judgment of the High Court challenged – Prosecution based on extra-judicial confession, recovery of dead body, and weapon – Appeal allowed, and appellant acquitted due to lack of legal evidence and reasonable doubt on the prosecution's case. [Para 1]

Extra-judicial Confession – Weakness of extra-judicial confession as evidence – Criteria for accepting an extra-judicial confession – Voluntariness, truthfulness, and absence of inducement – Lack of faith and familiarity between appellant and the person to whom confession was made – Appellant's confession made more than two months after the incident – Suspicion on genuineness of the confession. [Para 6-10]

Recovery of Dead Body and Weapon – Circumstances surrounding the recovery of the dead body and the alleged weapon – Accessibility of the burial site to others, doubts on the accuracy of the recovery locations – Inconsistent testimony of witnesses – Failure to establish a credible link between the appellant and the recovery of the evidence. [Para 11-14]

Last Seen Theory – Inadequate evidence to establish the last seen together theory – Hostile witnesses and lack of corroboration – Prosecution's failure to prove this crucial element of the case. [Para 15]

Reasonable Doubt – Legal principle of proving guilt beyond a reasonable doubt – Serious doubts raised on the authenticity of the prosecution's case – Lack of legal evidence to convict the appellant – Acquittal granted due to failure of prosecution to establish guilt beyond a reasonable doubt. [Para 16]

Decision – Appeal allowed, judgments of lower courts set aside – Appellant acquitted of the charges – Bail bonds of the appellant cancelled. [Para 17-18]

Civil Suit - Property Dispute - Sale Deed and Reconveyance Agreement - Question of whether the transaction constituted an absolute sale or a mortgage - Appellant challenging the judgment and decree of the trial Court - High Court dismissing the appeal - Core issue pertains to the nature of the transaction - Sale Deed executed by the appellant's father followed by a Reconveyance Agreement on the same day - Whether the transaction was a mortgage or an absolute sale - Interpretation of Section 58(c) of the Transfer of Property Act, 1882 - Court's duty to consider the language of the documents, the intention of the parties, and the overall circumstances. [Para 14-32]

Interpretation of Documents - Distinction between mortgage by conditional sale and sale with condition of repurchase - Consideration of the terms "mortgage", "mortgagor", "mortgagee" under Section 58 of the Transfer of Property Act, 1882 - Requirement for condition to be embodied in the document to be treated as a mortgage - Analysis of precedents and legal principles governing such transactions - Reading the contents of Sale Deed and Reconveyance Agreement - Examination of intention of the parties and overall circumstances. [Para 23-32]

Legal Precedents - Reference to relevant case law - Bishwanath Prasad Singh's case and Umabai v. Nilkanth Dhondiba Chavan's case - Previous judgments discussing the interpretation of Section 58(c) of the Transfer of Property Act, 1882 - Importance of considering the entirety of the documents and parties' intentions in determining the nature of the transaction. [Para 25-31]

Appeal dismissed - No order as to costs - Sale Deed and Reconveyance Agreement do not establish a mortgage but indicate an absolute sale followed by a right to repurchase - Intention of the parties and the terms of the documents considered in reaching this conclusion. [Para 32]

High Court's decision to dismiss the appellant's appeal upheld - No error in the interpretation of the Sale Deed and the Reconveyance Agreement - The nature of the transaction is determined to be an absolute sale with a subsequent right to repurchase.

Criminal Appeal – Grant of Bail – Appellant’s appeal challenging the bail condition imposed by the High Court – Appellant, a foreign citizen, had been under incarceration for around nine years and three months – High Court’s condition required a certificate of assurance from the High Commission of Nigeria – Appellant’s counsel argued that this condition was causing prejudice as the High Commission was unlikely to grant the certificate – Appellant’s roots in Indian society emphasized – Consideration of bail conditions and principles of dignity and liberty discussed – Precedents highlighting the right to speedy trial and challenges of prolonged incarceration – Supreme Court allowed the appeal, directing appellant’s release on bail subject to all conditions except the condition requiring the certificate from the High Commission. [Para 2-11]

Civil Appeal – Employees Provident Fund 

Appeal against the judgment of the High Court of Punjab and Haryana – Appellant, the Assistant Provident Fund Commissioner, sought to challenge the stand taken by the respondent regarding the calculation of provident fund contributions based on the 'basic wage' – Appeal dismissed for lack of merit. [Para 1, 2, 6]

Statutory Interpretation – Definition of 'Basic Wage' 

Appellant urged the Court to consider the definition of 'minimum rate of wages' under Section 4 of the Minimum Wages Act, 1948, to interpret 'basic wage' under the EPF Act – Court held that no such interpretation was warranted as the EPF Act itself provides a definition for 'basic wage' under Section 2b. [Para 3, 4]

Precedent – Previous Decisions Not Contested 

Court observed that a similar issue was considered in a previous order dated 23rd May, 2002, passed under Section 7A of the EPF Act – Said order was not appealed by the appellant, indicating acceptance of the principle involved. [Para 5]

Decision – Dismissal of Appeal 

Court found no merit in the appeal and dismissed it without awarding costs. [Para 6]

Civil Appeals - Land Acquisition - Enhancement of Compensation - Appellants challenged the common judgment and order of the High Court of Punjab and Haryana - The High Court enhanced the market value of acquired land and granted statutory benefits - The appellants contested the enhancement of compensation based on market value and deductions - The appellants' contentions primarily focused on the valuation of the land, applicability of development charges, and consideration of sale instances. [Para 1]

Market Value Determination - Factors influencing market value determination - Guiding principles for assessing the market value of land at the date of the publication of the notification under Section 4(1) of the Land Acquisition Act - Process of predicting a price a willing vendor would offer to a willing purchaser - Consideration of existing condition, location, user, proximity to residential, commercial, or industrial areas, size, and nature of the acquired land. [Para 8]

Deductions for Development Charges - Assessment of deductions for development charges - Importance of analyzing the nature of land, area under acquisition, whether the land is developed or not, purpose of acquisition, and other relevant factors - Variation in the percentage of deduction based on the specific characteristics of the land - Principles established through various judicial precedents. [Para 11]

Applicability of Sale Instances - Consideration of sale instances as evidence for determining market value - Relevance of sale instances executed in close proximity to the date of acquisition - Preference for sale instances of lands situated in the nearby area - The need for suitable deductions in the value of lands to account for development charges. [Para 10]

Extraordinary Jurisdiction of the Supreme Court - Article 136 of the Constitution of India - Exercise of extraordinary jurisdiction under Article 136 - Necessity for exceptional circumstances and careful consideration - Extraordinary jurisdiction to be exercised with great care and caution. [Para 7]

Decision - The appeals challenging the enhancement of compensation and deductions for development charges are dismissed - The High Court's assessment of market value and deductions based on the established legal principles is upheld - Appellants' contentions regarding valuation and deductions not found to be meritorious. [Para 16]

Income Tax – Principle of Mutuality – Taxability of interest income earned on fixed deposits made by social clubs in banks – Applicability of triple test for mutuality – Interplay between previous Order in Cawnpore Club case and Bangalore Club judgment – Determination of point at which mutuality ends and trading begins – Relationship between contributors and participators – Impact of third-party intervention on mutuality – Dismissal of appeals and parties bearing respective costs.

Facts:

The case pertained to the taxation of interest income derived from fixed deposits made by appellant clubs. The core issue was whether the principle of mutuality applied to exempt this interest income from taxation.

Issues:

Whether the principle of mutuality could be extended to interest income earned by appellant clubs on fixed deposits.

Examination of the effect of the previous Cawnpore Club order on the applicability of the mutuality principle as elaborated in the Bangalore Club judgment.

Determining the threshold at which mutuality transitions into trading due to third-party involvement and fixed deposit investments.

Observations:

The Court analyzed the triple test for applying the principle of mutuality outlined in the Bangalore Club judgment. This test required:

(i) Complete identity between contributors and participators.

(ii) Contributors' and participators' activities aligned with the club's objectives.

(iii) No room for contributors to profit from a fund they created.

The Court determined that the mutuality principle applied until funds were placed as fixed deposits in banks. Commercial banking operations with club funds disrupted the contributors' and participators' identity crucial for mutuality.

Differentiating transactions with club facilities extended to members and non-members, the Court highlighted that extending facilities to members preserved mutuality, while catering to non-members for profit commercialized the transaction.

Decision:

Held that the principle of mutuality did not encompass interest income from fixed deposits in banks, thus making the interest income taxable under the Income Tax Act, 1961. The Court upheld the position presented in the Bangalore Club judgment. The Court dismissed the appeals, with each party bearing their respective costs.