Constitutional Law – Scheduled Castes/Tribes – Jurisdiction to Amend Presidential Orders – Supreme Court reaffirms that the power to include or exclude castes from the Scheduled Castes/Tribes list rests solely with the Parliament. State Governments cannot amend or modify the list through circulars or notifications. Any such amendments or inclusions by State Governments, even if implemented through administrative measures, are deemed ultra vires and without legal standing [Paras 7, 26].

Employment – Validity of Caste Certificates – Protection of Service – The Court held that employees who secured employment based on caste certificates issued under State Government circulars, which were later invalidated, are entitled to retain their positions under the General Merit category. This protection is conditional on the caste certificates being obtained through the due process at the time, without misrepresentation or fraud [Paras 25-29].

Service Law – Government Circulars – Effect and Applicability – The Karnataka Government's circulars dated 11th March 2002 and 29th March 2003, which provided protection to employees whose caste certificates were invalidated, are binding on state and central institutions. The Ministry of Finance’s communication dated 17th August 2005, which endorsed these circulars, reinforces this protection, barring disciplinary actions against such employees [Paras 28-35].

Decision:

Appeals allowed. The Court quashed the impugned judgments of the Karnataka High Court and set aside the show-cause notices issued to the appellants by their employers. The appellants’ services are to be protected, and they are to be reclassified as General Merit category employees without further disciplinary actions.

Compassionate Appointment – Nature of Employment – High Court’s determination of the appointment under the Dying in Harness Rules as permanent – Challenge before Supreme Court – Appointment found to be contractual under the preferential policy, not compassionate – Termination order for misconduct without inquiry held invalid despite contractual nature of employment – High Court orders partially set aside.

The Supreme Court examined the nature of the respondent's appointment, which the High Court had treated as permanent under the Uttar Pradesh Dying in Harness Rules, 1974. The Supreme Court held that the appointment was contractual under a preferential scheme for dependents, not compassionate under the Dying in Harness Rules. The Court further found that the termination for misconduct violated the Principles of Natural Justice due to the absence of a proper inquiry. Thus, while the High Court's quashing of the termination order was upheld, the characterization of the appointment as permanent was overturned. [Paras 1-22]

Principles of Natural Justice – Termination of Employment – Contractual Employee – Termination order stigmatic and passed without regular inquiry – Supreme Court upholds quashing of termination order despite the employee being on a contract basis – Clarification on employee’s right to claim regularization under the law.

The Supreme Court addressed the procedural impropriety in terminating the respondent’s contractual employment for alleged misconduct without holding a proper inquiry or providing an opportunity to be heard. The termination was found to be in violation of the Principles of Natural Justice as it was based on a stigmatic report that was not communicated to the respondent. The Court upheld the quashing of the termination order by the High Court but clarified that the employee's appointment was contractual, not permanent, thus leaving open the possibility for the respondent to seek regularization according to the law. [Paras 19-22]

Decision – Appeal Partly Allowed – Held – The Supreme Court partially allows the appeal by setting aside the High Court's finding that the respondent's appointment was under the Dying in Harness Rules and permanent in nature. However, it upholds the quashing of the termination order due to the violation of Natural Justice.

The Supreme Court allowed the appeal in part, setting aside the High Court’s determination that the respondent's appointment was under the Dying in Harness Rules and thus permanent. However, it upheld the High Court’s decision to quash the termination of the respondent due to the procedural irregularities in the termination process. [Para 22]

Demolition of School Building Without Approval – Staff Entitlement to Compensation and Re-employment – Supreme Court upheld the High Court's decision directing the New Delhi Municipal Council (NDMC) to pay the arrears of salary, pension, and other benefits to the staff of a school managed by Delhi Sikh Gurdwara Management Committee (DSGMC), which was closed without prior approval – The Court held DSGMC liable for reimbursement of these payments to NDMC. DSGMC's appeal was dismissed, and the NDMC was granted the right to seek reimbursement from DSGMC through appropriate legal remedies. [Paras 1-28]

Employment of Surplus Staff – Absorption Rights under Rule 47 – The Supreme Court clarified that the rights of surplus staff to be absorbed in other schools, as per Rule 47 of the Delhi Education Rules, only apply in cases where the school closure was legally compliant. Since DSGMC’s closure was illegal, NDMC was not obligated to absorb the staff or cover their salaries [Paras 17-19].

Contempt of Court – DSGMC’s Non-compliance – The DSGMC's failure to re-employ the displaced staff as directed by the High Court constituted contempt of court. The Supreme Court upheld penalties, including payment of salaries with interest, for non-compliance [Paras 14-15, 23].

Limitation Period – Right to Reimbursement – The Supreme Court affirmed NDMC's right to seek reimbursement from DSGMC for payments made to the school staff. Concerns about the limitation period were dismissed due to prior court directions that preserved NDMC’s right to reimbursement [Paras 23].

Decision: Appeals by DSGMC (Civil Appeal Nos. 7442-7444 of 2012) dismissed. Appeals by NDMC (Civil Appeal Nos. 7440-7441 of 2012) disposed of with instructions for NDMC to pay remaining dues to the staff and pursue reimbursement from DSGMC, with the possibility of joining ongoing contempt proceedings.

Contract Law – Interpretation of Force Majeure Clauses in Power Purchase Agreements (PPA) – Supreme Court’s appellate jurisdiction under Section 125 of the Electricity Act – Applicability of Force Majeure clause for extension of the Scheduled Commissioning Date (SCD) – Whether the delay in project commissioning due to delayed approvals from governmental authorities falls under force majeure – Held – Delay attributed to governmental authorities, not respondents, thus constituting a force majeure event – No reduction in tariff under the PPA warranted [Paras 1-16].

Scope of Supreme Court’s Appellate Jurisdiction – Examination of the substantial question of law under Section 125 of the Electricity Act – Whether a question of fact decided by the Appellate Tribunal for Electricity (APTEL) warrants interference by the Supreme Court – Held – No substantial question of law arises as the APTEL’s findings are neither illegal nor unreasonable, thereby affirming APTEL’s decision on the facts [Paras 7-8, 13].

Decision – Dismissal of Appeals – Held – The appeals are dismissed as no substantial question of law was presented, and the APTEL’s findings are upheld, including the application of the force majeure clause, the extension of SCD, and the restoration of the tariff rate to Rs. 8.40 per unit – The imposition of liquidated damages and reduction in tariff were not justified [Para 15-16].

Anticipatory Bail – SC/ST Act – Rejection of anticipatory bail by the High Court under Section 438 CrPC for offences under Sections 3(1)(r) and 3(1)(u) of the SC/ST Act – Appellant allegedly insulted and humiliated the complainant, a Scheduled Caste MLA, by publishing defamatory content on social media – Supreme Court held that Section 18 of the SC/ST Act imposes a bar on anticipatory bail where prima facie materials indicate the commission of the offence – Complaint sufficiently disclosed a prima facie case under Sections 3(1)(r) and 3(1)(u) – Anticipatory bail denied [Paras 1-89].

Prima Facie Case – Intent to Humiliate – Examination of whether the allegations against the appellant reveal an intention to humiliate the complainant on the grounds of his caste – Court emphasized that mere defamatory statements are insufficient unless connected with the victim's caste identity – Content in question implied insult on account of caste – Prima facie case established under SC/ST Act [Paras 53-59, 71-74].

Interpretation of Statutes – Section 18 of SC/ST Act – Court held that the bar on anticipatory bail under Section 18 is not absolute – Courts have the inherent power to grant anticipatory bail in exceptional cases where no prima facie case is made out – Balance between preventing misuse of the law and protecting the rights of the accused is essential – Judicial scrutiny must ensure that the complaint genuinely discloses the necessary ingredients of the offence under the SC/ST Act [Paras 23-38].

Evidence Evaluation – Prima Facie Case under SC/ST Act – Supreme Court examined whether the content in the video published by the appellant insulted or humiliated the complainant on account of his caste – Court concluded that the allegations did not reveal an intent to humiliate the complainant based on his caste identity – The video content appeared to target the complainant's actions and conduct rather than his caste – Held, the appellant could not be denied anticipatory bail merely on the basis of the complainant's caste [Paras 51-81].

Decision: Appeal dismissed – Anticipatory bail application denied – Supreme Court upheld the High Court's order, emphasizing the necessity to prevent misuse of the SC/ST Act while also ensuring protection of the rights of individuals against whom allegations are made under the Act [Paras 88-90].

Arbitration – Award Interpretation – Contractual Terms – The Arbitrator awarded claims for uneconomic utilization of machinery, interest on delayed payments, and pre-reference interest under Section 31(7) of the Arbitration and Conciliation Act, 1996. The High Court set aside certain claims, emphasizing the need to adhere to specific contractual prohibitions. The Supreme Court partially restored the Arbitrator's award, holding that the High Court exceeded its jurisdiction under Section 37 by substituting its interpretation for that of the Arbitrator and District Judge, particularly regarding claims where the contract did not explicitly bar the award of interest. [Paras 7-10]

Interest – Pre-Reference and Pendente Lite – Arbitration Discretion – The Arbitrator's power to award interest under Section 31(7) was upheld, reaffirming that unless explicitly barred by the contract, an Arbitrator may grant pre-reference, pendente lite, and post-award interest. The High Court erred in modifying the award by disallowing pre-reference interest, which the Arbitrator had lawfully awarded. [Paras 9.4-9.6]

Decision – Appeal Partially Allowed – Held – The appeal was partially allowed with the following outcomes: The award of claim no. 3 (relating to labor charges for uneconomical stoppage of work) was set aside as it violated the Special Terms and Conditions of the contract; the award of claim no. 4 (interest on delayed payment of running account bills) was upheld; and the award of claim no. 6 (interest) was modified to reinstate pre-reference interest as originally granted by the arbitrator. Costs were not awarded, and each party was ordered to bear their own expenses. [Para 10]

Criminal Law – Suo Motu Proceedings in Supreme Court Concerning Rape and Murder of Doctor – Investigation Ordered and Guidelines Issued – The Supreme Court of India initiated suo motu proceedings regarding the alleged rape and murder of a 31-year-old postgraduate doctor at RG Kar Medical College, Kolkata. The Court addressed the lack of institutional safety for medical professionals and issued directives for the formation of a National Task Force (NTF) to create protocols ensuring the safety and well-being of medical professionals in healthcare institutions across India. The investigation was transferred to the Central Bureau of Investigation (CBI), and detailed guidelines were issued to prevent violence, including gender-based violence, against healthcare workers. [Paras 1-18]

Institutional Safety in Healthcare – Supreme Court Identifies Systemic Failures and Mandates Reforms – The Supreme Court highlighted the systemic failures in providing a safe working environment for medical professionals, particularly in relation to sexual and non-sexual violence. The Court noted that existing state legislations were inadequate as they did not address underlying institutional safety issues. It constituted a National Task Force (NTF) to draft enforceable national protocols aimed at preventing violence and ensuring safe working conditions for medical professionals, with a specific focus on preventing gender-based violence. [Paras 6-12]

Judicial Directions – National Task Force Constituted for Healthcare Worker Safety – The Supreme Court directed the formation of a National Task Force (NTF) comprising medical professionals and government officials to formulate recommendations on preventing violence against healthcare workers and providing dignified working conditions. The NTF was instructed to submit an interim report within three weeks and a final report within two months. Additionally, the Court ordered all state governments and union territories to provide detailed information on the safety measures implemented in their respective healthcare institutions. [Paras 10-16]

Decision – Directions Issued for Investigation and Institutional Reforms – The Supreme Court, while expressing concern over the safety of medical professionals, ordered the CBI to submit a status report on the ongoing investigation by 22 August 2024. The Court also required the West Bengal government to report on the acts of vandalism at RG Kar Medical College Hospital following the incident. The matter was scheduled for further hearing on 22 August 2024. [Paras 17-18]

Consumer Law – Real Estate Transaction – Appeal under Section 67 of the Consumer Protection Act, 2019 against NCDRC Order – Supreme Court upheld NCDRC's decision directing refund of Rs. 7,16,41,493 with interest to the respondent for deficiency in service and unfair trade practices – Allegation of double allotment of the flat substantiated, leading to confusion and improper termination of allotment – Appeal dismissed with directions for payment within specified timeline [Paras 1-22].

Definition of Consumer – Clarification of ‘Consumer’ under Section 2(7) of the Consumer Protection Act, 2019 – Supreme Court reaffirmed that a company purchasing a flat for the residential use of its director and family is a consumer, not involved in commercial activity – NCDRC's reliance on precedents including Lilavati Kirtilal Mehta Medical Trust and Crompton Greaves Ltd. deemed appropriate [Paras 11-17].

Unfair Trade Practice – Double Allotment of Flat – Court found the appellant guilty of adopting unfair trade practices due to the double allotment and wrongful forfeiture of deposit – Supreme Court validated NCDRC’s findings of deficiency in service, leading to the cancellation of the allotment and order for refund with interest [Paras 18-20].

Decision – Dismissal of Appeal – Held – The appeal lacks merit and is dismissed with no order as to costs – Directed partial immediate refund with balance to be paid by December 31, 2024, or to be recovered as arrears of land revenue [Para 22].

Criminal Law – Quashing of Summoning Order – Distinction between Civil and Criminal Proceedings – Held – Summoning order under Section 406 IPC by the Magistrate was quashed by the Supreme Court – No prima facie case of criminal breach of trust established against the appellants – Supreme Court emphasized that mere non-payment of dues arising from a commercial transaction does not constitute a criminal offence unless there is clear evidence of dishonest intent at the inception – Remedy lies in civil litigation for recovery of dues, not criminal prosecution – High Court’s dismissal of the petition under Section 482 CrPC was overturned as there was no legal basis for the criminal proceedings [Paras 1-4, 31-40].

Judicial Scrutiny – Issuance of Process – Importance of Prima Facie Case – Held – Issuance of summons is a serious matter and must not be done mechanically – Magistrate must apply mind to ensure allegations constitute an offence before issuing summons – Supreme Court criticized the lower courts for not properly scrutinizing the complaint and evidence before initiating criminal proceedings – Highlighted the need for meticulous examination of the complaint's contents to distinguish between criminal breach of trust and civil breach of contract [Paras 13-23, 41-43].

Criminal Procedure – Powers of the Magistrate under Section 202 CrPC – Explained – Limited scope of inquiry under Section 202 CrPC was reiterated – The Magistrate must ascertain the existence of a prima facie case without delving into the merits or demerits of the case at this stage – The Supreme Court emphasized that the inquiry is not to determine guilt but to decide if there is sufficient ground to proceed with the case – Faulty application of these principles by the Magistrate and High Court led to the quashing of the summoning order [Paras 6-12].

Difference between Criminal Breach of Trust and Cheating – Legal Principles – Clarified – The Supreme Court reiterated the distinction between the two offences – Criminal breach of trust involves entrustment of property with dishonest misappropriation, while cheating involves deception from the inception – The Court ruled that these offences cannot coexist under the same set of facts, as they are mutually exclusive – The judgment underscores that the transaction in question did not meet the criteria for either offence under the IPC [Paras 24-30].

Final Decision – Appeal Allowed – Orders of the High Court and Magistrate quashed – Supreme Court directs the Registry to send copies of the judgment to the Principal Secretary, Ministry of Law & Justice, and the Home Department to ensure better legal training and understanding of these offences across the country [Paras 44-47].