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].

Contempt of Court – Wilful Disobedience – Advertisement of Drugs – Patanjali Ayurved Limited continued to publish advertisements and hold press conferences making claims about their products curing certain diseases despite an assurance to the Supreme Court that no such advertisements would be published – The advertisements claimed complete cures for serious conditions such as diabetes, heart disease, and high blood pressure, which are listed in the schedule of the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 – Supreme Court held that Patanjali and its officials wilfully violated the Court's order and demonstrated bad faith – Contemnors tendered an apology, but the Court expressed reservations about accepting it, given the continued violations and attempts to evade responsibility – Court directed contemnors to publish public apologies and cease all such advertisements and statements [Paras 1-21, 30-37].

Apology – Acceptance – Apology tendered by contemnors found inadequate and conditional – Court emphasized the need for an unconditional and unqualified apology, stressing that contemnors must demonstrate genuine remorse and compliance with the Court's orders [Paras 14-21].

Sanctions – Supreme Court reserved the right to impose further sanctions in light of the contemnors' continued disobedience and lack of sincere compliance with its directions – Emphasized that contempt jurisdiction must be exercised with caution but is necessary to maintain the authority and dignity of the judiciary [Paras 22-29, 37].

Decision:

Apologies tendered were noted, but the Court decided to keep the contempt proceedings ongoing to monitor compliance. Further orders regarding sanctions and compliance were reserved.

Criminal Law – Conviction under Section 353 IPC – Appeal against conviction – Acquittal - Appellant acquitted on charges under the Prevention of Corruption Act but convicted under Section 353 IPC for allegedly obstructing public servants during trap proceedings – Appellant argued the evidence was insufficient to prove assault or criminal force – Supreme Court found the evidence insufficient to establish the necessary ingredients of assault or criminal force under Section 353 IPC – Held, pushing and jostling during the appellant's arrest attempt did not amount to the intentional use of criminal force – Conviction set aside, appellant acquitted [Paras 19-32].

Interpretation of Statutes – Section 353 IPC vs. Section 186 IPC – Contrasting elements – Court emphasized the specific requirements for a conviction under Section 353 IPC, noting the absence of intent to assault or use criminal force – Reference made to Section 186 IPC, highlighting its relevance to cases involving obstruction of public servants in the discharge of public functions, though not applicable here due to procedural prerequisites [Paras 30-31].

Decision: Appeal allowed – Conviction and sentence under Section 353 of the IPC set aside – Appellant acquitted.

Motor Accident Compensation – Assessment of Disability – The appellant, a pillion rider injured in a motor accident, was initially awarded compensation by the Tribunal, considering 25% disability. The High Court reduced this to 20% based on a re-assessment, leading to a reduction in the compensation amount. The Supreme Court reversed the High Court's reduction, reinstating the Tribunal's assessment of 25% disability, emphasizing that the High Court's re-evaluation lacked a basis in the evidence presented​.

Evidence – Disability Certificate – The Supreme Court highlighted the importance of medical evidence in determining compensation. The disability certificate, which assessed the appellant's disability at 50%, was key to the Tribunal's decision to fix the disability at 25%. The reduction by the High Court to 20% was found to be unjustified, leading to the restoration of the Tribunal's original assessment​.

Judgment – Appeal Allowed – The Supreme Court set aside the High Court's judgment, restoring the Tribunal's original award of compensation. The insurance company was directed to pay the compensation based on 25% disability within four weeks, with the appellant being permitted to withdraw the amount​.

Property Tax – Liability of Subsequent Owner – High Court directed Rajkot Municipal Corporation (Appellant) to refund a portion of property tax paid by Avenue Supermarts Limited (Respondent No. 2) related to arrears prior to the acquisition of ownership – Appellant's argument based on Sections 139 and 140 of the Gujarat Provincial Municipal Corporation Act, 1949 (GPMC Act) that the new owner should bear such liability – High Court upheld that Respondent No. 2 could not be held responsible for tax dues before 03.09.2015, the date of acquisition of ownership – Supreme Court dismissed the appeal, affirming that the High Court's order to refund the excessive tax amount with interest was justified in light of statutory interpretation and the factual context​.

Decision: Appeal dismissed – Order directing refund affirmed – No interference with the High Court's judgment​.

Railway Accident Claim – Death in Untoward Incident – Section 124A of Railways Act, 1989 – Appellant claimed compensation for the death of her brother who allegedly fell from a moving train – Railway Claims Tribunal and Gauhati High Court rejected the claim on grounds that the deceased was not a bona fide passenger and no ticket was found – Appellant argued that the absence of a ticket does not negate the claim as per Union of India v. Rina Devi – Tribunal and High Court failed to consider the report of the Investigating Officer and post-mortem findings indicating blunt force trauma consistent with a fall from a train – Supreme Court held that the burden of proof had shifted to the Railways once the appellant provided prima facie evidence through affidavits and investigation reports – Absence of a ticket does not rebut the presumption of being a bona fide passenger. [Paras 1-17]

Compensation and Interest – Quantum of Compensation – Entitlement under Amended Rules – Appellant entitled to compensation under the amended Railway Accidents (Compensation) Rules, 1990 – The Supreme Court awarded compensation of ₹8,00,000, the current amount specified in the rules, with interest payable from the date of the Supreme Court's order if not paid by the stipulated deadline – Union of India v. Radha Yadav followed. [Paras 18-21]

Decision – Appeal Allowed – Compensation Awarded – Supreme Court allowed the appeal, quashed the decisions of the Railway Claims Tribunal and Gauhati High Court, and directed the Union of India to pay ₹8,00,000 to the appellant by September 30, 2024 – Interest to accrue at 6% per annum if payment is delayed. [Paras 22-23]

Criminal Law – Bail under PMLA and IPC – Appeal against denial of bail by High Court – Supreme Court considers prolonged pre-trial detention and delay in trial – Right to speedy trial recognized as fundamental – Bail granted with conditions despite opposition citing seriousness of charges and risk of tampering with evidence – Court emphasizes need for trial courts to balance rights of the accused with the seriousness of the offense [Paras 1-59].

Constitutional Law – Article 21 Right to Liberty and Speedy Trial – Supreme Court underscores that pre-trial detention should not become a form of punishment – Courts urged to exercise caution in denying bail and recognize that prolonged detention without trial violates constitutional rights – Supreme Court finds that lower courts erred by not sufficiently considering the right to a speedy trial in bail decisions [Paras 27-29, 49-51, 53-54].

Decision – Appeals allowed – Held – Supreme Court quashes High Court's denial of bail and grants bail with stringent conditions to prevent tampering with evidence and ensure the appellant's presence during trial – Recognizes the undue delay in trial commencement as a significant factor justifying bail [Paras 58-59].

Criminal Procedure – Misrepresentation and Forgery in Supreme Court Proceedings – Allegation of forged signatures on Vakalatnama and SLP documents submitted before the Supreme Court – Court ordered inquiry into the conduct of the involved advocates and Notary – Notice issued to petitioner’s daughter and son-in-law – Matter adjourned for further hearing. [Paras 1-9]

Professional Misconduct – Serious allegations against advocates for submitting forged documents in Supreme Court – Court directs personal presence of the Notary and involved parties – Advocates warned of strict consequences – Notices issued to all involved for the next hearing. [Paras 5-8]

Decision – Adjournment and Summons – Held – The matter is adjourned to 23.08.2024, with directions for personal presence of all concerned parties, including advocates and the Notary involved, due to the serious nature of the allegations of forgery and misrepresentation. [Para 9]

Motor Accident Claims – Compensation – Enhancement of award – The Supreme Court enhanced the compensation granted by the High Court from ₹2,05,000 to ₹3,81,900, correcting the multiplier, personal expense deductions, and future prospects additions – The Court applied 30% towards future prospects instead of 25%, as per Pranay Sethi guidelines – Deduction for personal expenses reduced to 1/4th considering four dependents – Enhanced compensation includes Rs. 1,93,600 for loss of consortium, as per updated calculations of conventional heads [Paras 6-9].

Future Prospects – Calculation – Court adjusted future prospects from 25% to 30% in line with guidelines for individuals aged 40-50 – The High Court’s calculation on this aspect was corrected to align with the Pranay Sethi precedent [Para 6].

Deduction for Personal Expenses – Four Dependents – The Supreme Court reduced the personal expense deduction from 1/3rd to 1/4th, given the four dependents on the deceased – This adjustment resulted in a higher amount for loss of dependency [Para 5].

Conventional Heads – Loss of Consortium and Funeral Expenses – Updated amounts were calculated with a 10% increase every three years since 2017 – Court adjusted the compensation accordingly to Rs. 1,93,600 under loss of consortium, and Rs. 36,300 under loss of estate and funeral expenses [Paras 7-8].

Decision: Appeal allowed in part – Compensation enhanced to Rs. 10,06,900 from Rs. 8,30,000 – Interest rate modified to 7.5% p.a. from 6% p.a. on the enhanced amount.