Civil Law – Execution of Compromise Decree – Guideline Value Determination – High Court Exceeds Supervisory Jurisdiction under Article 227 – N.I.C.E. having failed to convey Schedule 'B' land to Decree Holder No. 2 as agreed under the Memorandum of Settlement dated 10.08.2007, became liable under Clause (xiii) thereof to pay the guideline value of the Schedule 'AA' land (3 acres 6 guntas in Sy. No. 122/272/2, Kengeri Village, Bengaluru) as prevailing on the date of compromise – Executing Court determined the value at Rs. 1,000/- per sq. ft. by applying the Karnataka Government Notification dated 17.04.2007 (base rate of Rs. 800/- per sq. ft. for converted sites within BBMP/municipal limits, enhanced by 25% for abutting State Highway) – High Court, exercising jurisdiction under Article 227, impleaded the State of Karnataka, accepted its spot inspection report, and reduced the value to Rs. 500/- per sq. ft. by applying Instruction No. 6 of the Notification – Held: High Court exceeded the limits of its supervisory jurisdiction; the interpretation adopted by the Executing Court was plausible and reasonable and not perverse; High Court in effect acted as an Appellate Court [Paras 30–37].

Article 227 – Scope of Supervisory Jurisdiction – Power Not to Be Exercised as Appellate Court – The power of superintendence under Article 227 does not permit the High Court to reappreciate evidence or substitute its own view merely because an alternative interpretation is possible – Supervisory jurisdiction is limited to cases of unwarranted assumption of jurisdiction, gross abuse of jurisdiction, unjustifiable refusal to exercise jurisdiction, or findings so perverse that no reasonable person could arrive at them – Held: High Court's impleadment of the State at a belated stage during a private lis, and acceptance of the State's self-serving interpretation of its own notification to influence the outcome, was impermissible [Paras 31–36].

Guideline Value – Karnataka Notification dated 17.04.2007 – Application of Special Instructions – Instruction No. 6 Inapplicable – The schedule land, bearing Sy. No. 122, falls within the jurisdiction of BBMP/Kengeri City Municipal Council and is expressly covered under Column 6 of the Notification attracting a base rate of Rs. 800/- per sq. ft. – Adding 25% under Instruction No. 2 for abutting a State Highway yields Rs. 1,000/- per sq. ft. – Instruction No. 6, which fixes industrial land at 50% of the residential site rate, operates only as a residual provision where no specific guideline value is prescribed; since a specific rate is prescribed under Column 6, the exclusionary phrase in Instruction No. 6 ("excluding these areas") squarely applies and the fallback 50% reduction never gets triggered – Applying Instruction No. 6 in the present facts would yield an anomalous result of valuing converted urban land lower than agricultural land [Para 37].

Compromise Decree – N.I.C.E.'s Contention Rejected – Judgment Debtors Cannot Approbate and Reprobate – N.I.C.E. consistently contended that the land, having been converted for industrial use in 2004 but remaining undeveloped, should be valued as agricultural land at approximately Rs. 350/- per sq. ft. – Held: Having agreed under the compromise that compensation would be payable at the guideline value prevailing on the date of settlement, and being fully aware that the schedule land stood converted for industrial use, N.I.C.E. cannot be permitted to resile from that position and seek valuation on an agricultural basis – Reliance on K.S. Shivadevamma (1996) 2 SCC 62 — a land acquisition case — held misplaced, as guideline value is a statutory benchmark not dependent on developmental potential [Paras 39–39.2].

Interest – Entitlement of Decree Holders – Interest at 6% p.a. Upheld – Compromise decree does not contain a specific interest clause; however, the order of this Court dated 09.04.2012 directed N.I.C.E. to pay the amount determined within eight weeks of determination by the Executing Court – N.I.C.E. deposited only the admitted amount and not the full amount determined – High Court in W.P. No. 25158 of 2012 (order dated 11.06.2013) separately allowed interest at 6% per annum from 20.08.2007 till payment – Held: That determination is binding and the direction for interest shall be subject to the outcome of any proceedings challenging that order [Para 39.3].

Decision: Civil Appeal No. 1388 of 2013 (filed by N.I.C.E.) dismissed – Civil Appeal No. 1354 of 2013 (filed by Decree Holders) allowed – Impugned judgment and order dated 12.09.2012 of the High Court of Karnataka in W.P. No. 21068 of 2012 set aside – Order of the V Additional City Civil Judge, Bengaluru (Executing Court) restored – Schedule 'AA' land valued at Rs. 1,000/- per sq. ft., total Rs. 13,72,14,000/- – N.I.C.E. directed to pay balance of Rs. 8,79,95,250/- with interest at 6% p.a. as ordered in W.P. No. 25158 of 2012 – Parties to bear their own costs.

Criminal Law – Dowry Death – Section 498A IPC – Acquittal of Father-in-Law – Deceased sustained 55% burn injuries within nine months of marriage – Sessions Court convicted husband, father-in-law and mother-in-law under Sections 498A and 302 r/w 34 IPC – High Court acquitted all three accused under Section 302 IPC, upheld conviction under Section 498A, and reduced sentence to period already undergone – Father-in-law (Narendra Singh) challenged conviction under Section 498A before the Supreme Court – Held: No direct evidence on record to implicate the father-in-law for mental cruelty or to show his direct involvement in torturing the deceased or raising dowry demand — roping in of the father-in-law appeared to be an extension of roping in the husband, as is prevalent in certain Section 498A matters — conviction under Section 498A set aside [Paras 2, 27, 29].

Dying Declaration – Two Contradictory Dying Declarations – Evidentiary Value – First dying declaration (Ex. P-22) recorded by Executive Magistrate on 16.04.2001 stated that in-laws set the deceased ablaze due to insufficient dowry demand – Second dying declaration (Ex. P-30) recorded by DSP on 17.04.2001 wherein deceased changed her stance and stated she poured kerosene herself and set herself on fire – Cross-examination of the Executive Magistrate (PW-18) revealed that one of the persons present with the deceased had tutored her to depose in a particular manner – Variation in the two dying declarations cast doubt on veracity of both – Second declaration held more believable than the first – Held: First dying declaration appeared to have been recorded after tutoring of the deceased; conviction solely on the basis of such declaration not sustainable [Paras 23, 25].

Dying Declaration – Principles Governing Reliability – A dying declaration can form the sole basis of conviction without corroboration – However, each case must be determined on its own facts keeping in view the circumstances in which the declaration was made – A dying declaration recorded by a competent Magistrate in the form of questions and answers stands on a higher footing than one depending upon oral testimony – To test reliability, the court must consider: opportunity of observation, capacity to remember, consistency across multiple declarations, and whether the statement was not the result of tutoring by interested parties [Para 24] — Khushal Rao v. State of Bombay relied upon.

Witness Testimony – Interested Witnesses – Contradictions and Improvements – Family members of the deceased (PW-1 father, PW-2 mother, PW-3 uncle, PW-5 brother) stated before the court that the deceased was tortured and harassed for dowry and demand of a Maruti car – However, these facts were absent from their earlier statements recorded under Section 161 CrPC before the police – When confronted, all family members blamed the police for non-recording – Improvements across all witnesses appeared with jarring accuracy indicating afterthought – Neighbours (PW-7, PW-8, PW-9) turned hostile – PW-10 (neighbour) stated accused Narendra Singh and Leela Singh were on a walk at the time of the incident, corroborating the accused's version – No independent witness deposed anything pertaining to dowry demand – Held: Testimonies of interested witnesses unreliable; dowry demand not proved [Paras 17, 20, 22, 28].

Circumstantial Evidence – Panchsheel Principles – Standard of Proof – Circumstances from which guilt is to be drawn must be fully established – Facts established must be consistent only with the hypothesis of guilt – Circumstances must be of conclusive nature – Every possible hypothesis of innocence must be excluded – Chain of evidence must be complete leaving no reasonable ground consistent with innocence – Where two inferences are possible, the one in favour of the accused must be accepted – Held: Evidence on record insufficient to establish guilt under Section 498A; prosecution failed to prove the case beyond reasonable doubt [Paras 25–27] — Sharad Birdhichand Sarda v. State of Maharashtra and State of U.P. v. Ashok Kumar Srivastava relied upon.

Misuse of Section 498A IPC – Courts' Concern – This Court has time and again issued directions to ensure that Section 498A is not misused as a tool to take grudges against all family members even in the absence of any specific role attributable to them – The legislature enacted Section 498A as a safeguard for women in their marital homes, not as a weapon against all members of the family indiscriminately [Para 27].

Decision: Criminal Appeal No. 302 of 2014 (filed by Narendra Singh/father-in-law) allowed — Conviction under Section 498A IPC set aside — Criminal Appeal Nos. 307 of 2014 (State of Madhya Pradesh) and 309 of 2014 (brother of deceased) challenging acquittal under Section 302 IPC dismissed [Para 29].

Execution Proceedings – Compromise Decree – Guideline Value – Determination – Supervisory Jurisdiction under Article 227 – N.I.C.E. entered into a Memorandum of Settlement with the Decree Holders whereunder, upon failure to convey Schedule 'B' land, N.I.C.E. became liable to pay the guideline value of Schedule 'AA' land (3 acres 6 guntas, Survey No. 122, Kengeri Village) as prevailing on the date of settlement – Executing Court fixed compensation at Rs. 1,000/- per sq. ft. based on the Karnataka Government Notification dated 17.04.2007 – High Court, invoking Article 227, impleaded State of Karnataka, accepted State's interpretation of the notification and reduced the valuation to Rs. 500/- per sq. ft. by applying Instruction No. 6 – Both parties challenged the High Court's order before the Supreme Court [Paras 1–3, 8–9, 24].

Article 227 – Scope and Limits of Supervisory Jurisdiction – High Court cannot act as Appellate Court – Power of superintendence restricted to cases of unwarranted assumption of jurisdiction, gross abuse of jurisdiction, or unjustifiable refusal to exercise jurisdiction – High Court cannot reappreciate evidence, substitute its own view for that of the inferior court, or correct every error of fact or law – Interference permissible only where finding is perverse or no reasonable person could have arrived at the same conclusion – Held: High Court exceeded its jurisdiction under Article 227 by acting as an appellate court [Paras 30–36].

Supervisory Jurisdiction – Impleadment of State Government – Impermissibility – During writ petition filed by N.I.C.E. under Article 227, the High Court impleaded State of Karnataka to obtain clarification on interpretation of the guideline value notification – Held: Such impleadment was impermissible since the lis was entirely between private parties arising from a compromise decree – Permitting the State to interpret its own notification during litigation and allowing that interpretation to influence a private dispute placed the State simultaneously as rule-maker, interpreter, and adjudicator, which is contrary to law – The executive cannot be allowed to explain away or reinterpret a statutory instrument during litigation to the prejudice of one of the parties [Paras 36.3.1–36.3.2].

Guideline Value – Interpretation of Notification – Instruction No. 6 – Applicability – Karnataka Gazette Notification dated 17.04.2007 prescribed Rs. 800/- per sq. ft. as guideline value for converted sites within City Municipal Council/BBMP limits under Column 6 – Instruction No. 2 mandated an addition of 25% for lands abutting a State Highway, resulting in Rs. 1,000/- per sq. ft. – Instruction No. 6 operates only as a residual provision for industrial layouts where no specific guideline value is prescribed – Since the land fell within municipal urban limits and a specific rate of Rs. 800/- per sq. ft. was prescribed, the exclusionary phrase "excluding these areas" in Instruction No. 6 applied and the fallback rule of 50% of residential site value was not triggered – Applying Instruction No. 6 in such circumstances would lead to the anomalous result of valuing converted urban land within BBMP limits lower than agricultural land, which is impermissible – Held: The interpretation adopted by the Executing Court was plausible and legally correct; Instruction No. 6 was not applicable [Paras 37, 40].

Compromise Decree – Guideline Value – Party Estopped from Contending Agricultural Valuation – N.I.C.E. consistently contended that the land, though converted for industrial use in 2004, remained undeveloped and ought to be valued as agricultural land at Rs. 1,56,25,000/- per acre – Held: At the time of entering the compromise, both parties were fully conscious that the land stood converted for industrial use – Having agreed to compensation on the basis of guideline value, N.I.C.E. cannot be permitted to contend that value ought to be determined by treating the land as agricultural – Reliance on K.S. Shivadevamma (land acquisition case involving developmental potential) held misplaced, as present case involves a statutory benchmark (guideline value) independent of factual considerations of potentiality or development [Paras 39–39.2].

Interest – Delayed Payment – Compromise Decree Silent on Interest – Decree Holders entitled to interest at 6% per annum – High Court in W.P. No. 25158 of 2012 (order dated 11.06.2013) had already granted interest at 6% per annum from 20.08.2007 till payment – That order neither set aside nor modified – N.I.C.E., instead of depositing the full amount determined by the Executing Court (Rs. 13,72,14,000/-), deposited only its admitted sum of Rs. 4,92,18,750/- – Held: N.I.C.E. was required to pay the balance amount with interest as directed; the interest award under W.P. No. 25158 of 2012 to remain binding subject to outcome of any challenge thereto [Paras 39.3].

Decision: Civil Appeal No. 1388 of 2013 (filed by N.I.C.E.) dismissed – Civil Appeal No. 1354 of 2013 (filed by Decree Holders) allowed – Impugned judgment of the High Court of Karnataka in W.P. No. 21068 of 2012 set aside – Order of the V Additional City Civil Judge, Bengaluru (Executing Court) restored – Value of Schedule 'AA' land determined at Rs. 1,000/- per sq. ft., aggregating Rs. 13,72,14,000/- – N.I.C.E. directed to pay balance of Rs. 8,79,95,250/- with interest at 6% per annum as per W.P. No. 25158 of 2012 – Parties to bear their own costs [Para 41].

Anticipatory Bail — Political Context — Press Conference — Forged Documents — BNS Sections 337, 338, 353 — Article 21 Constitution of India — Appellant, an office bearer of a national political party, displayed documents at press conferences alleging the complainant (wife of the Chief Minister of Assam) held passports of three foreign countries and owned undisclosed foreign assets — FIR registered under multiple sections of BNS — Gauhati High Court refused anticipatory bail — On appeal, Supreme Court finds that the surrounding circumstances, including inflammatory public statements made by the husband of the complainant (Chief Minister), prima facie indicate political rivalry rather than a situation warranting custodial interrogation — Held: A careful balance must be struck between the State's interest in fair investigation and the individual's fundamental right to personal liberty under Article 21 — Anticipatory bail granted with conditions [Paras 3–27].

Anticipatory Bail — Scope and Principles — Constitution Bench in Gurbaksh Singh Sibbia reaffirmed — Court held it cannot be laid down as an inexorable rule that anticipatory bail cannot be granted unless the accusation is actuated by mala fides — Equally, absence of flight risk alone does not mandate grant — Several considerations must guide judicial discretion, including nature and seriousness of charges, possibility of tampering with evidence, and larger public interest — Criminal process must be applied with objectivity so as not to imperil personal liberty in proceedings coloured by political rivalry [Paras 14–15, 25].

Custodial Interrogation — Necessity — Documentary Evidence — Where the matter is to be investigated primarily on the basis of documentary evidence already in the custody of the prosecution and there is no demonstrated necessity for custodial interrogation beyond scrutiny of records, anticipatory bail can be granted — Prosecution failed to establish that custodial interrogation of the Appellant was essential — Principle in Pradip N. Sharma applied [Para 16].

High Court — Erroneous Appreciation — Section 339 BNS — Shifting Burden on Accused — High Court's impugned order found to be not based on correct appreciation of material on record — Observations regarding Section 339 of BNS made on the basis of the Advocate General's statement without such offence being alleged in the FIR were held to be erroneous — High Court improperly shifted burden of proof on the accused [Para 27].

Decision: Appeal allowed — Appellant directed to be released on anticipatory bail in the event of arrest in Crime Branch P.S. Case No. 04/2026 subject to reasonable conditions imposed by the Investigating Officer — Appellant directed to cooperate in investigation, appear before police as and when required, not influence or tamper with evidence, and not leave India without prior leave of the competent Court — Observations made in the order are limited to the purpose of anticipatory bail and shall not influence the merits of the criminal case.

Constitutional Law – Hate Speech – Legislative Competence – Judicial Restraint – Separation of Powers – Batch of writ petitions seeking directions to the Union of India to examine international laws on hate speech and rumour-mongering, implement Law Commission Report No. 267, and enact specific legislation; petitioners contended that failure to act has caused a legislative vacuum — Held: Courts cannot create or expand criminal offences in the absence of legislative action; the doctrine of separation of powers reserves law-making to Parliament and State Legislatures; a writ of mandamus cannot be issued directing the Legislature to enact a particular law; the Court may, at best, record its opinion or recommendation on the desirability of legislative reform [Paras 18–36, 98.1].

Criminal Law – Hate Speech – Legislative Occupancy of Field – Existing Statutory Framework – Petitioners contended that the field of hate speech is legislatively unoccupied — Held: The contention is misconceived; the existing framework under IPC (Sections 153A, 153B, 295A, 124A, 298, 504, 505) and corresponding BNS provisions adequately addresses acts promoting enmity, outraging religious sentiments, and disturbing public tranquillity; the real problem is not absence of law but deficit in enforcement; such enforcement lapses cannot justify the Court assuming legislative functions — Law Commission's 267th Report on Hate Speech noted [Paras 37–45, 98.2].

Criminal Procedure – Registration of FIR – Mandatory Duty – Non-registration – Remedies – Section 154 CrPC (Section 173 BNSS) casts a mandatory duty upon the police to register an FIR upon disclosure of a cognizable offence; no preliminary inquiry is permissible as a matter of course before such registration — Held: The statutory scheme provides a comprehensive and layered remedy: aggrieved person may approach the Superintendent of Police under Section 154(3) CrPC (Section 173(4) BNSS), thereafter invoke Magistrate's jurisdiction under Section 156(3) CrPC (Section 175 BNSS), or file a complaint under Section 200 CrPC (Section 223 BNSS); this constitutes a complete statutory architecture — as settled in Lalita Kumari [Paras 47–65, 98.3].

Criminal Procedure – Section 156(3) CrPC – Prior Sanction – Cognizance – Stage of Applicability – Criminal Appeal partly allowed – The High Court of Delhi held that a Magistrate cannot direct registration of FIR under Section 156(3) CrPC in absence of prior sanction under Sections 196 and 197 CrPC — Held: This view is incorrect; an order directing investigation under Section 156(3) does not amount to "taking cognizance" within the meaning of Section 190 CrPC; the requirement of prior sanction under Sections 196 and 197 operates exclusively at the stage of cognizance and not at the pre-cognizance investigative stage; an order under Section 156(3) directing registration of FIR falls at the pre-cognizance stage; the High Court's impugned judgment set aside to that extent; on facts, no cognizable offence is made out from the speeches in question and the ultimate conclusion of the High Court is affirmed [Paras 100–138].

Constitutional Law – Continuing Mandamus – Judicial Oversight – Writ Petitions seeking continuing mandamus for judicial monitoring of hate speech incidents — Held: In the absence of any legislative vacuum or systemic failure of such magnitude as would warrant continuous judicial oversight, a continuing mandamus is neither justified nor consistent with the principle of judicial restraint; such a course would amount to micro-management of matters within the executive domain — National Federation of Indian Women (supra) followed [Paras 70–76, 98.4, 98.5].

Constitutional Values – Fraternity – Vasudhaiva Kutumbakam – The Court, in its epilogue, observed that hate speech is fundamentally antithetical to the constitutional value of fraternity enshrined in the Preamble of the Constitution; every citizen bears a constitutional duty under Article 51A to promote harmony and the spirit of common brotherhood; the ancient maxim of vasudhaiva kutumbakam (the world is one family) reflects India's civilisational ethos of inclusivity; public discourse carries a corresponding duty of restraint and responsibility — Court observed that issues of hate speech and rumour-mongering bear directly upon preservation of fraternity and it would be open to Parliament to consider whether further legislative or policy measures are warranted in light of the Law Commission's 267th Report [Paras 77–97, X].

Contempt Petitions – Compliance – Most contempt petitions either found to have been complied with or no case of contempt made out; certain contempt petitions directed to be listed separately for consideration on 19th May, 2026 after respondent-authorities file their response [Paras 141–164, 167–168].

Decision: All Writ Petitions and Civil Appeal arising out of SLP (Civil) No. 6913 of 2021 dismissed — Criminal Appeal arising out of SLP (Criminal) No. 5107 of 2023 partly allowed; impugned judgment of Delhi High Court set aside to the limited extent it holds that a Magistrate exercising power under Section 156(3) CrPC cannot direct registration of FIR in absence of prior sanction — Certain contempt petitions closed; remaining contempt petitions listed for 19th May, 2026 — Registry directed to transmit copy of judgment to all High Courts.

Insolvency and Bankruptcy Code, 2016 – NCLT – Systemic Delay in Approval of Resolution Plans – Suo Motu Cognizance – Court took suo motu cognizance of gross delays in approval of Resolution Plans pending before various Benches of the NCLT — As per report of the Registrar, NCLT Principal Bench, 363 applications awaiting approval with delays ranging from 48 days to 738 days and in some cases up to four years — Delays attributed to lack of adequate infrastructure, half-day sittings, interchange of bench combinations, large pendency of objections, and acute shortage of judicial and technical members — Held: In the prevailing state of affairs, the objective of time-bound resolution under the IBC is impossible to achieve — matter directed to be placed before the Chief Justice of India for further orders [Paras 1–13].

NCLT – Membership Strength – Shortage – Statutory sanctioned strength of NCLT is 63 members (1 President, 31 Judicial Members and 31 Technical Members) — As on 28.04.2026, only 28 Judicial Members and 26 Technical Members are posted across various NCLT Benches — acute shortage of ten members severely affecting efficiency and timely disposal of cases [Para 3].

NCLT – Infrastructure and Staffing – Contractual Appointments – Systemic Failures – Post of Registrar (barring few Benches) filled on contractual basis — none of the Benches have full-time permanent employees — staff including Secretary, Court Master, Stenographers and legal assistants appointed on contractual basis with services intermittently terminated — instances of non-payment of salaries leading to strike by NCLT Mumbai staff — Held: Such systemic deficiencies must be addressed on a war footing to prevent frustration of the very purpose and object of the IBC [Paras 7, 12].

IBC, 2016 – Section 31(2A) – Amendment – Thirty-Day Disposal Requirement – Amendment inserting Section 31(2A) requiring disposal of plan approval applications within thirty days has been enacted but not yet brought into force — Court expressed serious doubt whether true effect could be given to this amendment in light of the infrastructural and staffing deficiencies highlighted [Para 9].

Suggestions – Amicus Curiae – The Court recorded suggestions of Amicus Curiae including: recruitment of permanent staff for all NCLT Benches; filling of vacancies within defined timelines; ensuring full court hours; holding regular workshops; sequential disposal of issues (eligibility under Section 29A, challenge to claims, constitution of CoC) before plan approval; mandatory impleadment of key parties at the initial stage; de-linking of avoidance applications from plan approval under Section 26 of the IBC; and day-to-day hearing of plan approval applications after the initial stage [Para 8].

Decision: Suo motu cognizance taken — matter directed to be placed before the Hon'ble Chief Justice of India for further orders — merits of the appeals to await further directions — Amicus Curiae and Resolution Professional's counsel placed on record with gratitude for their assistance.

Insolvency and Bankruptcy Code, 2016 — Limitation — Section 7 Application — Date of Default — Computation — NPA Classification — The corporate debtors' loan accounts were declared NPA on 06.12.2016, constituting the date of default from which the three-year limitation under Article 137 of the Limitation Act, 1963 began to run — Limitation would have expired on 06.12.2019 — After excluding the period of DHFL's CIRP (03.12.2019 to 07.06.2021), the Covid-19 suo motu extension (15.03.2020 to 28.02.2022, plus 90 days), and the moratorium during the first CIRP of the corporate debtor (23.12.2021 to 29.07.2024) under Section 60(6) of the Code, only three days of limitation remained, expiring on 01.08.2024 — Petition under Section 7 filed on 23.09.2024 was therefore beyond limitation — Held: Application was time-barred [Paras 13-15].

Insolvency and Bankruptcy Code, 2016 — Interim Resolution Professional — Admission of Claim — Not an Acknowledgment under Section 18, Limitation Act, 1963 — The IRP/RP's admission of a secured financial creditor's claim in the first CIRP is a purely administrative and clerical function under Section 18 of the Code, involving collation and induction of claims — The IRP has no adjudicatory powers — Such admission does not evince a conscious and unequivocal intention to admit a subsisting jural relationship or existing liability — It is akin to a mere recital or reference to a debt and does not constitute an acknowledgment capable of extending limitation under Section 18 of the Limitation Act, 1963 — Further, even if it were an acknowledgment, it must be made within the subsisting period of limitation to extend it, which was not the case here — Held: IRP's admission of claim on 02.05.2022 does not amount to acknowledgment under Section 18 of the Limitation Act, 1963 and does not enure to the benefit of the secured financial creditor [Paras 16-17].

Decision: Appeals allowed — Impugned judgment dated 15.10.2025 of NCLAT and order dated 22.01.2025 of NCLT quashed and set aside — No order as to costs.

Insolvency and Bankruptcy Code, 2016 — Corporate Guarantee — Financial Debt — Financial Creditor — SBI Consortium extended rupee loans to RCOM and RTL, secured by corporate guarantees executed by the Corporate Debtor (RITL) on 03.03.2017 — NCLT rejected claim holding guarantees unverified and undocumented — NCLAT affirmed, doubting timing, disclosure, and stamping of guarantees — On appeal, Supreme Court finds concurrent findings perverse — Held: Corporate guarantee constitutes "financial debt" under Section 5(8) of the Code; appellants entitled to recognition as financial creditors; impugned orders quashed; Resolution Professional directed to reconstitute Committee of Creditors [Paras 22, 31–32].

Financial Debt — Corporate Guarantee — Section 5(8), IBC — Liability under Corporate Guarantee — Essential ingredient of financial debt is disbursal against consideration for the time value of money — Liability arising from a corporate guarantee squarely falls within the ambit of "financial debt" under Section 5(8) — Amount of any liability in respect of guarantees for money borrowed against payment of interest qualifies as financial debt — Guarantor incurs coextensive liability with that of the principal borrower, enforceable in law [Para 22].

Corporate Guarantee — Timing of Execution — NPA Classification — Corporate Debtor's account declared NPA on 22.08.2016, subsequently restructured, whereafter CD executed corporate guarantees on 03.03.2017 — Per RBI Master Circular dated 01.07.2015 (Clause 17.2.6), asset classification of restructured NPA reckoned from the date it first became NPA — Account declared NPA w.e.f. 26.08.2016 — Held: Guarantees were executed before NPA declaration took effect on account of restructuring; timing and manner of corporate guarantees cannot be questioned on the ground that CD and holding company were already in default [Paras 24].

Disclosure in Financial Statements — Non-Disclosure — Effect — Corporate Debtor's counsel acknowledged disclosures in financial statements on an ongoing basis — Even if guarantees were not reflected in financial statements for FY 2016-17 and 2017-18, such non-disclosure cannot deprive the consortium lenders of their right to claim — Held: Non-disclosure, at best, amounts to a default by the Corporate Debtor and does not invalidate the guarantee or defeat the claim [Para 25].

Verification of Claims — Regulation 13, IBBI Regulations, 2016 — IRP/RP may call for evidence or clarification to substantiate claims — CD's counsel admitted execution of guarantees — Security Trustee confirmed possession of executed and stamped guarantees — RP verified guarantees by visiting Security Trustee's office in New Delhi — Held: Finding of NCLAT that there was no pleading on record establishing verification by IRP/RP is perverse [Para 26].

Documents — Admissibility — Production at Appellate Stage — Appeal is a continuation of original proceedings — Documents relevant to the lis can be produced at appellate stage — Corporate guarantees were produced before NCLAT — Held: Mere non-production before NCLT cannot lead to adverse inference regarding genuineness of corporate guarantees [Para 27].

Stamp Duty — Insufficiently Stamped Document — Effect — Corporate guarantees executed in New Delhi office of Security Trustee; stamp duty paid as per New Delhi rates — Production before NCLAT Principal Bench at New Delhi does not attract Maharashtra Stamp Duty Act, 1958 — Defect of insufficient stamping is curable and does not render instrument void or unenforceable — Non-stamping or improper stamping does not result in instrument becoming invalid; non-payment of stamp duty is a curable defect — Stamp Act is a fiscal measure and cannot be used as a weapon to defeat a party's cause — Held: Contention regarding non-payment of stamp duty under Maharashtra Stamp Duty Act is without substance [Para 28].

Perversity — Concurrent Findings — Interference by Supreme Court — This Court would ordinarily not re-appreciate facts when concurrent findings of NCLT and NCLAT exist — Exception arises where findings are perverse — NCLT had already rejected respondents' plea regarding preferential transactions and fraud under Sections 43 and 66 — Non-filing of guarantees with Form-C not sufficient to negate claim — Held: Perversity of tribunals' findings glaring and manifest; interference warranted under Section 62 of the Code [Para 30].

Decision: Appeal allowed — Orders dated 14.10.2022 (NCLAT) and 02.03.2021 (NCLT) quashed and set aside — Appellants recognised as "financial creditors" of the Corporate Debtor — Resolution Professional directed to reconstitute Committee of Creditors by including appellants and proceed with CIRP in accordance with law — No order as to costs [Paras 32–33].

Service Law — Curtailment of Tenure — ICAR — Whistleblower Allegation — Appeals Dismissed — Appellant, appointed as ADG-ARIS at ICAR for a period of five years or until further orders, was reverted to the post of Senior Scientist on the basis of unsatisfactory Annual Assessment Reports for 1998-99 and 1999-2000 — Appellant alleged retaliatory motive on account of his complaints regarding financial irregularities in procurement contracts worth Rs. 200 crores and anomalies in the Rs. 1000 crore NATP — CAT and High Court upheld the reversion — Supreme Court affirmed — Held: Allegations of mala fides and colourability must be supported by clear, cogent and specific material and cannot be inferred merely from the sequence of events or surrounding circumstances — Appeals dismissed [Paras 1, 3, 16, 21].

Article 311 — Applicability — Autonomous Body — ICAR not a Civil Post — Appellant's claim of protection under Article 311(2) on the ground that he could not be reduced in rank without a formal enquiry — Held: Article 311 applies only to civil servants holding a civil post under the Union or State — ICAR functions as an autonomous Society governed by its own rules and bye-laws — Article 311 is not attracted in the present case [Para 9].

Tenure Post — No Enforceable Right to Complete Full Term — Reversion Not Punitive — At the time of appointment, the competent authority had expressly reserved the power to curtail tenure before the completion of five years — Appellant contended that as ADG-ARIS was a Research Management Position under the ARS Rules, reversion to Senior Scientist (two ranks below) was punitive in effect — Held: The ARS Rules contemplate transfer to a matching position in research work only on completion of tenure and depending on ICAR's needs — Since tenure was curtailed and not completed, the said provisions were inapplicable — Reversion to Senior Scientist was not shown to be a non-matching position in research work [Paras 10, 11, 12].

Stigma — Annual Assessment Reports — Language of Order — The reversion order characterised appellant's performance as "unsatisfactory" and "below average" — Appellant contended the AARs were antedated, did not reflect actual performance, and were communicated belatedly — Held: Following Pavanendra Narayan Verma, use of language such as "unsatisfactory work and conduct" in a service order does not amount to stigma — The order in the present case did not cast any stigma beyond an unexceptional assessment of unsuitability — Appellant was afforded opportunity to represent against the AARs and the same were duly considered before reversion [Paras 13, 14, 16].

Judicial Review — Scope — Administrative Discretion — Transfer and Reversion — Held: Judicial review is an evaluation of the decision-making process and not the merits of the decision itself — Courts cannot sit in appeal over orders of transfer or reversion — Interference is warranted only where the action is arbitrary, irrational, tainted by mala fides, or colourable, or imposes penal and stigmatic consequences without following due process — No such threshold met in the present case [Para 10].

Enquiry Report — Exoneration — No Bar to Tenure Curtailment — An enquiry was instituted against the appellant for alleged misconduct including approaching the press — The Enquiry Officer exonerated the appellant of all thirty-three charges describing them as "baseless and motivated" — Held: The enquiry pertained to specific charges of misconduct and could not stand in the way of curtailment of tenure based on overall performance assessment — The two proceedings operate independently [Para 18].

Decision: Civil Appeals dismissed — No interference with concurrent findings of CAT and High Court — Pending applications disposed of.