Criminal Law – Money Laundering – Appeal against quashing of proceedings under the PMLA – Respondent alleged to have handed over Rs.50,00,000 as bribe to a public servant – High Court quashed proceedings under PMLA on the ground that money assumed the character of proceeds of crime only upon receipt by the public servant – Supreme Court held that the intent to hand over the bribe is crucial and precedes the actual transfer – Respondent’s actions fall within the ambit of Section 3 of the PMLA as they knowingly assisted in the process connected with proceeds of crime – High Court’s decision set aside, and proceedings under PMLA to continue [Paras 1-21].

Money Laundering – Definition and Scope – Section 3 of PMLA includes anyone knowingly assisting or involved in the process connected with proceeds of crime – Money becomes proceeds of crime when intended to be handed over as bribe – Active participation in such transfer constitutes involvement in money laundering – Supreme Court emphasizes the broad scope of Section 3 to include pre-transfer intent and actions [Paras 15-18].

Intent in Money Laundering – The intent to hand over money as a bribe is key to determining its character as proceeds of crime – Such intent exists before the actual transfer, making the person involved in the transfer liable under PMLA – Supreme Court highlights that requisite intent is at the core of the offense [Para 16].

Decision – Appeal allowed – High Court’s judgment quashing proceedings under PMLA set aside – Respondent to continue to be arrayed and proceeded against in accordance with law – Proceedings under PMLA to continue based on prima facie involvement in money laundering activities [Paras 20-21].

Criminal Law – Rape and Murder Conviction – Appellant challenges the acquittal of the respondent for the rape and murder of the victim – The trial court had convicted the respondent, but the High Court acquitted him – Supreme Court restores the conviction and sentence, emphasizing the probative value of the dying declaration and the irrelevance of the victim’s sexual history – The court also criticizes the use of the "two-finger test" [Paras 1-70].

Dying Declaration – Admissibility and Probative Value – Statement of the deceased recorded by the police officer in the presence of a doctor – High Court erred in rejecting the dying declaration based on the doctor’s cross-examination – Supreme Court upholds the declaration as credible and voluntary, establishing the respondent’s guilt beyond reasonable doubt [Paras 32-48].

Two-Finger Test – Prohibited Practice – Court condemns the use of the "two-finger test" in cases of sexual assault – Test deemed regressive, invasive, and without scientific basis – Conducting such tests re-victimizes survivors and violates their dignity and privacy – Directions issued to Union and State Governments to ensure compliance with guidelines prohibiting the test [Paras 60-68].

Decision – Appeal allowed – High Court’s acquittal set aside – Conviction and sentence by Sessions Court restored – Directions issued for the implementation of guidelines against the "two-finger test" [Para 69].

Motor Vehicles (Fifth Amendment) Rules 2022 – Rule 30 – Motor Accident Claims – Claims Tribunal's duty to record evidence through a local commissioner when the insurance company disputes liability – Insurance company to bear the expenses of the local commissioner [Paras 60-61].

Motor Vehicles Amendment Act 2019 – Section 159 – Information regarding accident – SHO to take steps as per Section 159 on receiving accident intimation – Investigating Officer to submit First Accident Report (FAR) within 48 hours to the Claims Tribunal and follow subsequent procedures [Paras 62(ii)-62(iii)].

Decision – Appeal dismissed – Concurrent findings of the lower courts affirmed – Specific directions issued to ensure compliance with the Motor Vehicles Amendment Act and Rules [Paras 62-62(xvi)].

Environmental Law – Establishment of Wood-Based Industries – Appeal against NGT’s order quashing state notice for establishing new WBIs – NGT overstepped its jurisdiction by interfering with the expert assessment of the Forest Survey of India (FSI) – Supreme Court held that the estimation of timber availability by FSI was based on scientific methods and could not be lightly brushed aside – Courts should not enter into areas that are the domain of experts – Appeal allowed, NGT’s order set aside [Paras 1-95].

Sustainable Development – Balance with Environmental Protection – Importance of maintaining a balance between environmental protection and sustainable development – FSI’s assessment indicated sufficient timber availability for WBIs in Uttar Pradesh – Investment in WBIs would boost employment and rural economy, encouraging agro-forestry and reducing migration – State directed to ensure compliance with environmental norms [Paras 87-100].

Principles of Natural Justice – NGT’s failure to adhere to principles of natural justice – NGT did not grant a fair hearing to the provisional license holders – Lack of transparency in considering the credentials and bona fides of the applicants – Appeals against NGT’s orders allowed due to procedural impropriety [Paras 95-97].

Decision – Appeals allowed – NGT’s orders quashing state notice and provisional licenses set aside – State’s decision to grant licenses upheld – State directed to ensure compliance with environmental norms and promote sustainable development – No costs [Paras 100-101].

Criminal Law – Sentencing – Review Petition – Modification of Sentence – Appeal challenging the sentence of life imprisonment for offences under Sections 376(2)(i) and 376(2)(m) IPC and Sections 5(i) and 5(m) read with Section 6 of POCSO Act – Supreme Court modified the sentence to rigorous imprisonment for 20 years for each of these offences, to align with the sentence for the offence under Section 376A IPC – Life imprisonment was originally intended to be for the remainder of the appellant’s natural life – Petition allowed [Paras 1-8].

Sentencing Principles – Retributive and Restorative Justice – Court balanced retributive justice with restorative justice – Sentence modification aligns with the Court’s intent to not impose life imprisonment for the remainder of the appellant’s life for the offence under Section 376A IPC – Consistency in sentencing for similar offences [Paras 6-7].

Decision – Review petition allowed – Sentence for offences under Sections 376(2)(i), 376(2)(m) IPC, and Sections 5(i), 5(m) read with Section 6 of POCSO Act modified to rigorous imprisonment for 20 years – Judgment dated 19.04.2022 modified to the extent of sentence adjustment – Rest of the judgment remains unchanged [Para 7-8].

Motor Vehicles Act – Compensation Enhancement – Appeal against the High Court’s decision on compensation for the death of a housewife aged 25 years in a vehicular accident – Supreme Court held that the High Court erred in assessing the income of the deceased and in not considering future prospects – Income of the deceased should be considered at Rs. 7500 per month, with an addition of 40% towards future prospects – Appeal allowed, compensation enhanced [Paras 1-6].

Future Prospects – Calculation of Dependency – Court emphasized adding 40% of the income towards future prospects while considering loss of dependency – Contribution of a housewife to the family and her additional work, such as tuition, must be acknowledged – High Court failed to apply settled legal principles in calculating compensation [Para 5].

Compensation for Foetus and Consortium – The claimants entitled to Rs. 1 lakh for the loss of foetus instead of Rs. 50,000 as awarded by the High Court – Each claimant entitled to Rs. 40,000 for loss of consortium or loss of love and affection – Appropriate compensation must reflect the loss and suffering of the claimants [Paras 5.1-5.2].

Decision – Appeal allowed – High Court’s judgment modified – Appellants entitled to a total compensation of Rs. 32,82,000 with interest at the rate of 7.5% per annum – No order as to costs [Paras 6].

Criminal Law – Anticipatory Bail – Appeal against the High Court’s order granting anticipatory bail to the respondent accused of sexually assaulting his 12-year-old niece – Supreme Court held that the High Court erred in granting anticipatory bail given the seriousness of the allegations and the statutory presumptions under Section 29 of the POCSO Act – Observations made by the High Court suggesting the acts might be manifestations of affection were unwarranted – Investigating Officer requires a free hand to conduct a thorough investigation – Appeal allowed, anticipatory bail set aside [Paras 1-19].

POCSO Act – Presumptions under Section 29 – High Court overlooked statutory presumptions under Section 29 of the POCSO Act – Courts must consider these presumptions while dealing with bail applications in cases of sexual offences against children – Presumption of guilt unless proven otherwise [Paras 9-11].

Investigative Procedure – Custodial Interrogation – Importance of custodial interrogation in cases involving serious allegations – Mere absence of need for custodial interrogation not a sufficient ground for granting anticipatory bail – Courts must first consider the prima facie case against the accused and the nature of the offence [Para 17].

Observations on Conduct – High Court’s observations suggesting familial affection as possible motivation were inappropriate given the serious nature of the allegations – Specific allegations supported by the victim's statement under Section 164 CrPC should have guided the court’s decision [Para 11].

Decision – Appeal allowed – High Court’s order granting anticipatory bail to Respondent No. 1 set aside – Investigating Officer granted liberty to proceed according to law – No costs [Paras 19-21].

Land Acquisition – Enhancement of Compensation – Sale Exemplars – High Court erred in discarding sale exemplars Exs. P3 and P4 solely because they involved transactions with a company – Proper deduction required for smaller parcels of land – Compensation determined at Rs. 12,16,800/- per acre – Impugned judgment modified [Paras 6-9].

Compensation Calculation – Smaller Parcels – Development – High Court failed to appreciate the nature of transactions – Proper deduction of 35% applied considering the location and use for LPG plant – Reasonable compensation awarded [Paras 7-9].

Decision – Appeals partly allowed – Compensation modified to Rs. 12,16,800/- per acre – Appeals succeed in part – No order as to costs [Para 9].

Permanent Commission – Armed Forces – Indian Navy – Women Officers – Short Service Commission – High Court's judgment challenged – AFT dismissed applications challenging denial of Permanent Commission – Principle issue whether AFT could adjudicate validity of selection proceedings when relevant material disclosed only to AFT in sealed cover – Appeal allowed – Judgment of AFT set aside – Cases remanded for fresh adjudication [Paras 3, 21, 23, 31-32].

Sealed Cover Procedure – Natural Justice – Disclosure of Information – Material relied upon by AFT in sealed cover not disclosed to appellants – Grave prejudice caused – Sealed cover procedure deemed dangerous precedent affecting transparency and fairness – Appeals allowed – Directions issued for fresh adjudication by AFT with proper disclosure [Paras 24, 28-30].

Decision – Appeals allowed – Impugned judgment of AFT set aside – OAs restored for fresh adjudication by AFT – Interim orders protecting officers to continue during pendency of proceedings [Paras 32-33].