Reservation Law – Horizontal Reservation and Unreserved Category – Misapplication of Reservation Rules for MBBS Admission – Challenge in Supreme Court – The appellants, who were meritorious reserved category students, challenged the allocation of MBBS seats in the Unreserved Category Government School (UR-GS) quota in Madhya Pradesh. The State had sub-classified the GS quota into further categories (UR-GS, SC-GS, ST-GS, OBC-GS, and EWS-GS) and erroneously denied the appellants admission in the UR-GS quota, despite their merit, by restricting their allocation to their respective reserved categories. The Supreme Court ruled that such compartmentalization was unsustainable and violated established legal principles on horizontal reservation. The appellants were entitled to seats in the UR-GS quota based on merit [Paras 1-7, 10-16].

Admissions – Relief for Denied MBBS Admission Due to Misapplication of Reservation Policy – Held: Admissions for Next Academic Session Directed – The appellants, having been deprived of admission due to the misapplication of the reservation policy, were granted admission for the next academic session. The Court emphasized the need to correct such errors by ensuring meritorious candidates receive their rightful place, even if it necessitates admission in the following academic year. The appellants were directed to be admitted to the 2024-25 academic session against seats reserved in the UR-GS category [Paras 18-20].

Decision – Appeals Allowed – High Court Judgments Set Aside – Directed Admission in Next Academic Session – No Costs – The Supreme Court allowed the appeals, set aside the High Court's judgments, and ordered the respondents to admit the appellants in the next academic session for the MBBS course against the UR-GS seats. Pending applications were disposed of, and no costs were imposed [Para 21].

Criminal Law – Child Custody – Supreme Court’s ruling in favor of natural guardian (father) – High Court’s denial of habeas corpus petition for custody of minor daughter set aside by the Supreme Court – The Court emphasized the paramount welfare of the child and the natural guardian’s right to custody – Allegations against the father were deemed afterthoughts, not sufficient to deny custody – Custody ordered to be handed over to the father immediately [Paras 1-17].

Legal Guardianship – Habeas Corpus Petition in Child Custody – Supreme Court clarified the maintainability of habeas corpus petitions under Article 226 in child custody matters, emphasizing that each case should be judged on its unique facts and circumstances – Reaffirmation that the welfare of the child remains the central consideration [Paras 9-16].

Decision – Appeal Allowed – Held – The Supreme Court quashed the High Court's order and directed the immediate transfer of custody of the minor child to the appellant (father) – The Court allowed visitation rights to the respondents (sisters-in-law) but emphasized the child's welfare and the right of the natural guardian [Para 17].

Service Law – Transfer Orders – Non-Compliance by Employees – Quashing of Transfer Orders – The appellants (Tamil Nadu Agricultural University) challenged the quashing of transfer orders by the High Court – Supreme Court held: Transfer is an exigency of service and employees have no right to refuse compliance once relieved from their original posting – Employees must comply with transfer orders while simultaneously pursuing legal remedies – Refusal to join at the new posting would jeopardize administrative functioning and cause financial burden on public institutions [Paras 2-6].

Unauthorised Absence – Non-Payment of Salary – The Court found that four respondents who had interim relief were entitled to their salaries and regularisation of service, whereas two respondents (Nos. 4 and 7) were not entitled to salary for the period of unauthorized absence – Their period of service was, however, to be treated as continuous without salary for the period of absence [Paras 16-18].

Decision – Appeals allowed in part – The transfer orders quashed by the High Court were restored – Salaries for respondent nos. 1, 2, 3, and 5 to be cleared for the period of absence, and regularisation ordered – Respondents nos. 4 and 7 to be regularised but not entitled to salary during the period of unauthorized absence [Paras 17-19].

Preventive Detention – Non-supply of documents – Detenue challenged the detention order on grounds of non-supply of WhatsApp chats which were relied upon by the detaining authority – High Court dismissed the writ petition despite a Coordinate Bench quashing detention orders for co-accused on similar grounds – Supreme Court held that non-supply of such documents vitally affected the detenue's right to make an effective representation, thereby vitiating the detention order [Paras 7-11].

Judicial Discipline – Consistency in Judgments – Supreme Court criticized the High Court's departure from the earlier judgment of a Coordinate Bench that quashed detention orders on similar grounds – Reiterated that judicial discipline requires that a Coordinate Bench must follow the precedent set by another Bench unless referred to a larger Bench for reconsideration [Paras 13-17].

Decision: Appeal allowed – Detention order dated August 24, 2021, and its confirmation on May 24, 2022, quashed and set aside – Emphasized the importance of adhering to judicial discipline and respecting the detenue's constitutional rights.

Service Law – Stepping Up of Pay – Applicability of Rule 21 of 2002 Pay Rules – Appellants, senior to certain Assistant Professors (1984-95 Group), sought stepping up of their pay to match the pay granted to these juniors under the Career Advancement Scheme, which included ad hoc service. Supreme Court held that Rule 21 of the 2002 Pay Rules was inapplicable as the alleged pay anomaly was not a direct result of Rule 21, but rather due to counting ad hoc service for pay fixation – Appeals dismissed [Paras 31-39].

Ad Hoc Service – Counting for Senior Scale/Selection Grade – The Court noted that the juniors had higher pay due to their previous ad hoc service being counted for Senior Scale and Selection Grade under the Career Advancement Scheme. The anomaly in pay was not due to the application of Rule 21, making the rule inapplicable. [Paras 30-32].

Precedents and Application – The Court referenced prior judgments, including R. Swaminathan v. Union of India and M. Suryanarayana Rao v. Union of India, confirming that differences in pay due to previous ad hoc service do not warrant stepping up under Rule 21 [Paras 36-37].

Decision:

Appeals dismissed. Rule 21 of the 2002 Pay Rules held inapplicable. No relief granted to the appellants. Pending applications disposed of accordingly.

Criminal Law – Appeal against Conviction under Section 304 Part II IPC – Alteration of Sentence – High Court altered the conviction of the appellant from Section 304 Part I to Section 304 Part II IPC and sentenced him to five years of rigorous imprisonment – The appellant argued for complete acquittal, claiming self-defense, while the State supported the High Court’s decision – Supreme Court concurred with the High Court on altering the conviction but further reduced the sentence to the period already undergone by the appellant – Held: The sentence was modified due to the incident occurring in the heat of the moment without premeditation, and the appeal was partly allowed [Paras 1-27].

Evidence Evaluation – Eyewitness Testimonies and Self-defense Claims – Appellant argued that eyewitnesses were interested witnesses, and the incident occurred due to the aggressive behavior of the deceased and his family – The Court analyzed testimonies and medical evidence, finding that the attack by the appellant was not premeditated but occurred in a highly charged emotional state – The Court emphasized the importance of considering the mental state and circumstances leading to the incident when evaluating the evidence [Paras 10-17, 23-26].

Decision – Part Allowance of Appeal – Held – The appeal was partly allowed – The Supreme Court maintained the conviction under Section 304 Part II IPC but reduced the sentence to the period already undergone – The appellant was ordered to be released forthwith if not required in any other case [Paras 27-28].

Prospective Overruling – Doctrine of – Applicability – Supreme Court rejected the plea to apply the doctrine of prospective overruling to the decision in MADA v. Steel Authority of India, which overruled India Cement Ltd. v. State of Tamil Nadu – Held, MADA decision shall not operate prospectively, as applying it prospectively would invalidate legislation enacted by States under their plenary powers and cause unjust outcomes – Prospective application of MADA rejected [Paras 13-24].

Financial Impact on Assesses – Staggered Payment of Tax – Considering the financial burden on assesses due to the retrospective application of the MADA decision, the Court directed that payment of tax demands for the period prior to April 1, 2005, be staggered over twelve years from April 1, 2026 – Directed waiver of interest and penalty on tax demands for the period before July 25, 2024 [Para 25].

Tax Legislation – Validation Act – The Court noted that Parliament enacted the Cess and Other Taxes on Minerals (Validation) Act, 1992, to validate taxes collected under State legislation before 1991 – Discussed the balance between the financial interests of States and the commercial expectations of assesses in light of conflicting precedents [Paras 20-22].

Decision: Doctrine of prospective overruling not applied to MADA decision. Payment of tax demands for transactions before April 1, 2005, to be staggered over twelve years starting from April 1, 2026. Waiver of interest and penalty on tax demands for the period before July 25, 2024.

Negotiable Instruments – Dishonor of Cheque – Presumption under Sections 138, 139, and 118(a) N.I. Act – Once the issuance of the cheque is admitted or established, a presumption arises that the cheque was issued for a legally enforceable debt or liability – The burden is on the drawer to rebut this presumption – The Supreme Court found that the respondent failed to adequately rebut the presumption even after adducing additional evidence – Appellate Court’s reliance on discrepancies in interest rates to disbelieve the appellant’s claim was held erroneous [Paras 8-18].

Criminal Procedure – Section 391 Cr.P.C. – Additional Evidence – Appellate Court allowed the respondent to adduce additional evidence which purportedly showed partial repayment – However, the Supreme Court held that this evidence was insufficient to dislodge the presumption under the N.I. Act that the cheque was issued towards a legally enforceable debt [Paras 6-16].

Interest Rate – Tamil Nadu Act – The discrepancy in interest rates charged (1.8% vs. 3% per month) was found insufficient to negate the legal enforceability of the debt – The Supreme Court emphasized that such disputes over interest rates should not overshadow the primary issue of whether the cheque represented a legitimate debt or liability [Paras 16-17].

Decision: Appeal allowed – Orders of the Appellate Court and the High Court set aside – The order of the Trial Court convicting the respondent under Section 138 of the N.I. Act is restored with modifications – Respondent directed to pay Rs.28,50,000/- (Rupees Twenty-Eight Lakhs and Fifty Thousand) as a fine – Sentence of imprisonment waived subject to payment within eight months; failing which, the sentence of one-year simple imprisonment shall revive [Paras 18-19].

UAPA – Bail – Allowed - Prima Facie Case – Appellant sought bail after rejection by the Special Court and High Court. Accused under Sections 13, 18, 18A, 20 of UAPA. The Supreme Court evaluated whether there were reasonable grounds to believe the accusations were prima facie true. Held that there was insufficient material linking the appellant to the terrorist activities of PFI, particularly considering the distorted and unreliable nature of the evidence presented by the prosecution, including the testimony of protected witnesses and other circumstantial evidence [Paras 1-19].

Evidence – Protected Witness Testimony – Paragraph 17.16 of the charge sheet was found to misrepresent the testimony of protected witness Z, with significant discrepancies between the actual statement and what was presented in the charge sheet. The court emphasized the need for accuracy and fairness in investigation and documentation by the prosecuting agency [Paras 10-12].

Bail under UAPA – Stringent Conditions – Despite stringent provisions under Section 43D(5) of UAPA, the court held that bail should be granted if the accusations are not prima facie true. The court reiterated the principle that "bail is the rule, and jail is the exception," particularly under Article 21 of the Constitution [Paras 20-22].

Decision: Appeal allowed. The appellant was granted bail, with the Supreme Court directing the Special Court to set appropriate terms and conditions for release [Para 22].