Banking Law - SARFAESI Proceedings – Loan Default and Auction – Challenge to Sale Notice – Stay and Set Aside – Respondent defaulted on loan repayment after mortgaging properties – After compromise failed, sale notices were issued and challenged – DRT initially granted stay, later refused extension – Ultimately, auction held, but set aside by DRT due to procedural lapses – Fresh auctions challenged again, but without final adjudication [Paras 2, 5, 9, 13-14].

One-Time Settlement (OTS) – SBI OTS 2020 Scheme – Eligibility Criteria – Upfront Payment Mandatory – Application Incomplete – Application by borrower under OTS 2020 Scheme was not accompanied by 5% of proposed settlement amount as required by Clause 4(i) of Scheme – Held: Failure to deposit upfront rendered application invalid and not liable to be processed [Paras 25-27, 39-40].

Judicial Review – Grounds of Rejection – Validity of Administrative Orders – Additional Grounds Permissible if Fairness Ensured – Though SBI’s rejection letter did not cite failure to pay upfront amount as a reason, the Court held that where alternative valid grounds appear from record and parties are put to notice, orders may be upheld on such grounds in the interest of justice – Principles in Mohinder Singh Gill case harmonized with fairness doctrine [Paras 34-38, 42].

Mandamus – Writ Jurisdiction under Article 226 – No Positive Right to OTS – Direction Limited to Reconsideration – Courts below erred in issuing directions to reconsider respondent’s OTS application without examining eligibility under Clause 4(i) – Courts should not compel grant or reconsideration unless statutory duty exists – High Court’s interference unjustified [Paras 21, 23-24, 29, 43].

Final Decision – Appeal Allowed – High Court’s direction for reconsideration of OTS application set aside – Respondent permitted to submit fresh proposal not under 2020 Scheme – Appellants may proceed to enforce security interest as per law [Paras 44-47].

Criminal Law - Section 8(c), 20(b)(ii)(C) NDPS Act  – Direction for Re-trial – Procedural Lapses in Admitting Electronic Evidence – High Court Order Set Aside – In a prosecution under the NDPS Act, the Trial Court convicted the appellant based on oral evidence and video recordings supported by a certificate under Section 65B of the Evidence Act – The High Court allowed the appeal partly and ordered a re-trial citing failure to properly admit the CD and to examine the Chemical Analyst – The Supreme Court held that the video was already admissible with a valid certificate and that failure to explain it through witness testimony or prepare a transcript was not fatal – Further held that CA’s report was admissible under Section 293 CrPC and non-examination of the CA was not fatal in the absence of objection – Re-trial can only be ordered in exceptional cases of miscarriage of justice, which was not established here – Appeal allowed, High Court order set aside, and matter remanded for fresh consideration of appeal on merits by High Court [Paras 1, 18-21, 36].

NDPS Trial – Admissibility of Video Evidence – Compliance with Section 65B of Evidence Act – Re-trial Unwarranted – High Court erred in holding video inadmissible due to absence of witness-specific narration or transcript – Once certificate under Section 65B(4) is submitted, CD is admissible – Video corroborated oral testimony and was viewed by the Court, counsels, and accused – No prejudice established – Re-trial on this ground unjustified [Paras 18-20].

Chemical Examiner’s Report – Section 293 CrPC – Not Mandatory to Examine CA in Every Case – High Court incorrectly held non-examination of CA as a fatal flaw – Under Section 293, CA’s report is admissible without oral evidence unless specifically disputed – Report was exhibited and not objected to during trial – No legal error found [Paras 21, 24].

Production of Contraband – Importance of Inventory and Sampling – Section 52A NDPS Act – While seized ganja was not physically produced, prosecution proved preparation of inventory certified by Magistrate, proper sampling, and FSL report confirming intact seals and presence of ganja – Evidence sufficient to establish seizure and identity – Failure to open samples during trial was curable defect, not warranting re-trial [Paras 25-32].

Re-trial – Exceptional Remedy – Not to Cure Curable Procedural Lapses – Court reiterated settled law that re-trial is permissible only in cases of serious miscarriage of justice – High Court’s reasons (procedural missteps in admitting electronic and scientific evidence) did not meet threshold for re-trial – Proper course was to remand for additional evidence or dispose of appeal on merits – High Court’s approach was legally flawed [Paras 16-19, 34].

Final Decision – Appeal Allowed – High Court’s Order for Re-trial Set Aside – Criminal Appeals Restored – High Court directed to decide both appeals afresh on merits within six months – Appellant to continue on bail – Supreme Court made no comment on merits of case [Paras 35-38].

Criminal Law – Quashing of FIR – FIR for Cheating and Criminal Conspiracy – Civil Dispute Given Criminal Colour – FIR Quashed – FIR was filed nearly five years after a failed commercial transaction involving alleged defective machinery supplied under a sale agreement – Supreme Court found that allegations, even if taken at face value, did not disclose any fraudulent or dishonest intention at inception – No ingredients of cheating under Section 420 IPC or conspiracy under Section 120B IPC made out – FIR, chargesheet, and proceedings quashed [Paras 1, 5-10, 15-17, 21, 23].

Quashing of Proceedings – Section 482 CrPC – Allegations Vague and Mala Fide – Continuation of Proceedings an Abuse of Process – High Court erred in dismissing application under Section 482 CrPC despite absence of mens rea and presence of mala fide intent in filing FIR – Criminal process cannot be used as substitute for civil remedies or personal vendetta – Parameters of Bhajan Lal case applied – FIR quashed [Paras 10, 16-21].

Mens Rea – Fraudulent Intention at Inception – Essential for Offence of Cheating – Breach of Contract Not Cheating – Failure to perform contractual obligations or deliver goods of agreed specification, without more, does not amount to criminal offence – Culpable intention must exist at the inception – Such intention not established from FIR or chargesheet – Allegations held to be civil in nature [Paras 14-18].

Delay in Filing FIR – Impact on Credibility – FIR Filed Five Years After Transaction – Complainant failed to justify delay – Supreme Court viewed delay as a factor casting doubt on bonafides of prosecution – Held: Delay further supports inference of civil dispute being dressed as criminal complaint [Para 17].

Misuse of Criminal Law – Courts Must Be Vigilant – Observations in Vishal Noble Singh Case Followed – Supreme Court cautioned against use of criminal justice system to achieve oblique motives or settle personal scores – Judicial system must not be burdened with mala fide criminal complaints [Para 22].

Final Decision – Appeal and Writ Petition Allowed – High Court’s Order Set Aside – FIR No. 11/2023 dated 14.02.2023, Chargesheet dated 27.07.2023, and all consequential proceedings quashed – No prima facie case made out for cheating or conspiracy – Criminal law not a tool for enforcement of private contracts [Paras 23-24].

Waqf Amendment Act, 2025 – Constitutional Challenge – Interim Relief Denied – Multiple petitioners challenged constitutional validity of provisions of Waqf (Amendment) Act, 2025 alleging arbitrariness, discrimination, and infringement of fundamental rights – Supreme Court rejected prayer for stay of entire statute but granted limited interim relief in respect of certain provisions – Held: Presumption of constitutionality stands, no prima facie case made out for total stay – Certain clauses stayed or limited pending rulemaking or final adjudication [Paras 1, 120, 209].

Definition of Waqf – Five-Year Practice of Islam Condition – Section 3(r) – Provision requiring dedication by a person showing Islamic practice for at least 5 years held not arbitrary – However, implementation stayed pending rulemaking to define mechanism for ascertaining practice – Purpose is to avoid misuse via fraudulent conversions – No stay on entire definition, only limited part stayed [Paras 132–140, 209(i)].

Waqf by User – Deletion of Clause (i) of Section 3(r) – Validity Upheld – The deletion of concept of ‘waqf by user’ upheld prospectively – Court observed that for decades, registration was mandatory and waqfs could have complied – Held: Concept prone to misuse; legislature’s power to amend statute upheld – No retrospective impact on vested waqf rights [Paras 143–152].

Wrongful Declaration of Waqf – Section 3C – Partial Stay Granted – Court upheld inquiry mechanism for identifying government land wrongly declared as waqf – However, stayed proviso to sub-section (2) and sub-sections (3) and (4) as they allowed executive action to change status without judicial determination – Held: Only Tribunal can determine title, not revenue officer [Paras 153–167, 209(ii), (iii)].

Protected Monuments – Section 3D – Declaration of Waqf Prohibited – Provision barring declaration of protected monuments as waqf upheld – Court observed such monuments are national heritage and religious practices remain unaffected under existing heritage law – Argument of interference in Islamic religious practice rejected [Paras 168–172].

Tribal Areas – Section 3E – Declaration of Waqf Prohibited – Provision barring declaration of Scheduled/Tribal land as waqf upheld – Based on protection for vulnerable communities under Fifth and Sixth Schedules – Provision has nexus with object sought to be achieved and is not arbitrary [Paras 173–178].

Composition of Waqf Boards and Councils – Inclusion of Non-Muslims – Section 9 and Section 14 – Court limited number of non-Muslim members to 4 (Council) and 3 (Board) – Though inclusion not stayed, directed cap to preserve character – Function of Board held largely secular – Appointment of Muslim CEO encouraged but not mandated [Paras 179–189, 209(iv), (v)].

Registration of Waqf – Bar on Enforcement by Unregistered Waqfs – Section 36(10) – Validity Upheld – Court upheld bar on institution of legal proceedings on behalf of unregistered waqfs – Provision aligns with past recommendations and earlier legal framework – Six-month window and judicial discretion to condone delay provide sufficient protection [Paras 190–192].

Evacuee Waqf Properties – Section 108 – Deletion Upheld – Court found provision redundant as Evacuee Property Act was repealed – Deletion does not impair any constitutional right [Paras 203–205].

Overriding Effect Clause – Section 108A – Deletion Permissible – Provision existed only from 2013–2025 – Legislature competent to delete earlier overriding clause – Deletion held valid [Paras 206–208].

Limitation Act – Application to Waqf Property – Section 107 – Validity Upheld – Application of general limitation law to waqf proceedings upheld as removing earlier special treatment – Not discriminatory [Paras 198–202].

Final Decision – Entire Act Not Stayed – Limited Provisions Stayed – Directions Issued – Court declined stay on impugned Act – Issued specific directions to limit possible misuse or ambiguity – Observations held prima facie and not binding for final adjudication on merits [Para 209].

Public Interest Litigation – Deaths in Beggars’ Home due to Cholera – Article 21 – Constitutional Violation Established – Appellant filed a PIL after media reports revealed deaths and illness of several beggars due to contamination in drinking water at Lampur Beggars’ Home – Authorities failed to ensure sanitary conditions and misrepresented facts – Held: Deaths amounted to violation of the right to life and dignity under Article 21 – Supreme Court recognized the need for judicial intervention and systemic reform [Paras 3-10, 18-20].

Institutional Negligence – Departmental Proceedings – Compliance Noted – Respondents submitted that departmental proceedings were concluded and penalties imposed – Court accepted compliance on that front – However, held that mere disciplinary actions were insufficient without sustained structural reforms and monitoring [Paras 21-22].

Beggars’ Homes – Paradigm Shift in Approach – From Penal to Protective Institutions – Constitutional Reframing – Court held that Beggars’ Homes must be viewed through a constitutional lens, aligned with Articles 38, 39(e), 41, and 47 – Emphasised shift from colonial punitive mindset to rehabilitation and dignity-based frameworks – Institutions must ensure health, freedom, privacy, and humane conditions [Paras 16-16.7].

Right to Life with Dignity – Expanded Interpretation – Article 21 – Applicability to Institutionalised Persons – Reaffirmed that all persons, including those in State custody, are entitled to humane treatment, adequate nutrition, healthcare, and dignity – Denial of such constitutes constitutional breach – Emphasised that beggars, unlike convicts, are not criminals and cannot be treated as such [Paras 15-16.6].

Anti-Begging Laws – Judicial Review – Validity and Purpose – The Bombay Prevention of Begging Act and similar laws in other States examined – Court acknowledged State’s interest in regulating begging but cautioned against criminalising poverty – Enforcement must balance public order with constitutional rights – Reiterated Delhi High Court’s earlier partial striking down of such laws [Paras 17-17.5].

Judicial Monitoring – Long-Term Oversight by Supreme Court – Compliance Recorded – From 2004 onwards, Supreme Court issued multiple detailed directions for improvement in Beggars’ Homes – Continuous monitoring led to structural changes, enhanced hygiene, staffing, vocational training, food quality, and medical care – Final reports showed significant compliance and nil complaints from inmates – Court stressed need for reforms to be sustained across India [Paras 22-22.18].

Final Directions – Nationwide Reform Mandated – Article 21 – Court Issued Model Framework – Directions issued to all States/UTs covering medical screening, disease control, hygiene, infrastructure audits, dietary standards, vocational training, legal aid, child and gender-sensitive provisions, and accountability mechanisms – Directed Union Ministry to issue model guidelines within 3 months – Held: Failure to maintain humane conditions in such institutions constitutes breach of fundamental rights [Paras 23-23.3].

Judgment – Appeal Disposed – Structural Reforms Ordered – Supreme Court partially allowed the appeal – Reiterated State's affirmative duty under Article 21 – Upheld PIL’s maintainability – Issued binding directions to State and Union authorities to overhaul Beggars’ Homes nationwide – Liberty granted to seek further directions if needed [Paras 24-25].

Advocates Act – Professional Misconduct – Bar Council of India – Suspension for Three Years – Supreme Court dismisses statutory appeal; imposes ₹1,00,000 costs; directs Collector to attach properties for recovery; Bar Council not to renew licence without prior permission; compliance report to Supreme Court upon completion of sentence [Paras 2-6].

Professional Misconduct – Scope of Appellate Interference – Serious, scandalous allegations by advocate – No leniency – Appeal dismissed with costs – The appellant-advocate, found guilty of professional misconduct and suspended for three years by BCI, had made scandalous allegations against the complainant; the Court, noting the serious nature of misconduct and obstinate conduct, refused to interfere or extend leniency; appeal dismissed with cost of ₹1 lakh [Paras 2-3].

Costs – Mode of Recovery – Attachment of Properties – Compensation to Complainant – Direction to Collector – Court directed the Collector, Agra, to attach appellant’s properties to recover ₹1 lakh cost to be paid to respondent within three months – Ensures effective enforcement and compensation to the complainant [Para 4].

Bar Council – Regulatory Consequence – Non-renewal of Licence Without Court’s Permission – To prevent circumvention of disciplinary penalty, the Bar Council was directed not to renew the appellant’s licence without prior permission of the Supreme Court [Para 4].

Post-Sentence Compliance – Reporting Requirement – After the appellant undergoes the sentence already awarded, a report shall be supplied to the Secretary General of the Supreme Court – Ensures oversight and compliance closure [Para 5].

Decision – Appeal Dismissed – Costs and Directions Affirmed – Statutory appeal dismissed; costs of ₹1 lakh imposed; attachment and non-renewal directions issued; matter disposed of accordingly [Paras 3-6].

Legal Metrology – Search and Seizure – Procedural Violations – Quashing of Notices – Appeal Allowed.

Search and Seizure – Legal Metrology Act, 2009 – Appellant (ITC Limited) challenged seizure of 7,600 pre-packed notebooks from its warehouse by Legal Metrology officials for alleged violation of Rule 24(a) of the Legal Metrology (Packaged Commodities) Rules, 2011 – Seizure conducted under Section 15 of the 2009 Act without obtaining warrant or recording “reasons to believe” – High Court’s Division Bench upheld seizure, reversing Single Judge’s quashing order – Held: Seizure was illegal – Officials failed to comply with mandatory safeguards under Section 15 of the 2009 Act and Sections 100(4), 165 of the Cr.P.C – No warrant obtained – No reasons to believe recorded – Single witness (driver) not independent – No urgency or exigency pleaded – Procedural violations vitiated entire action [Paras 11-23].

Criminal Procedure – Application of Cr.P.C to Special Acts – Section 15(4) of the Legal Metrology Act mandates compliance with Cr.P.C for search and seizure – Search requires “reasons to believe” and warrant unless exigency shown – Presence of two independent witnesses mandatory under Section 100(4) Cr.P.C – Held: Procedural safeguards under Cr.P.C applicable unless explicitly excluded – Respondent’s claim of “inspection” without warrant unsustainable – Premises, though commercial, not “public” for warrant exemption – CFC packages stored in warehouse do not constitute “wholesale packages” merely due to bulk [Paras 14-20].

Natural Justice – Violation of Principles – Simultaneous issuance of seizure and compounding notices deprived appellant of opportunity to be heard – No hearing granted – No opportunity for objections – Held: Violation of natural justice evident – Division Bench erred in not appreciating legal necessity of procedural compliance [Paras 7.5, 20.1].

Technical Violation – Rule 24 of 2011 Rules – Packages had declarations affixed as labels instead of being printed – Held: Declarations existed – At best, violation was technical – Supported by Supreme Court’s earlier ruling in State of Maharashtra v. Raj Marketing (2011) 15 SCC 525 – Seizure not justified in absence of material inconsistency in declared particulars [Para 22].

Decision: Appeal allowed – Search and seizure held illegal – Orders passed by Division Bench of High Court and impugned notices/quasi-criminal proceedings quashed – Order of Single Judge restored – No costs [Paras 23-24].

Coal Policy – Interim Pricing Post-Auction – Background and Challenge – Policy Upheld – After the e-auction system was held unconstitutional in Ashoka Smokeless, CIL issued the Interim Coal Policy dated 15.12.2006 imposing a 20% price hike for non-core sector consumers through linkage – Respondents challenged the policy as arbitrary and sought refund of excess payment made – High Court allowed refund – Supreme Court reversed – Held: Interim Policy was a necessary measure to ensure availability of coal and sustain operations, not arbitrary or profit-driven – The increase was temporary and did not violate Article 14 [Paras 11-15, 83-94, 106-107].

Judicial Review of Economic Policy – Scope and Limitations – Courts Cannot Substitute Economic Wisdom – Supreme Court reaffirmed that economic decisions like price fixation and resource allocation fall within executive domain – Unless found to be unconstitutional or manifestly arbitrary, courts must defer – Pricing policy was based on operational requirements and market dynamics – Courts cannot apply proportionality test to price-based classification [Paras 83-85, 95-99].

Classification – Core vs. Non-Core Sector – Linked Consumers Not a Homogeneous Class – Article 14 Not Violated – Respondents argued that once linked, all consumers formed a single class – Rejected – Held: Core and non-core classification continued to serve valid purposes under national policy for equitable distribution of coal – The linkage system was administrative and did not erase original classification – Price differentiation justified [Paras 100-104].

Price Fixation – Executive Authority under Colliery Control Order – Valid Exercise of Power – Coal India Limited was within its authority under the Colliery Control Order to notify revised prices post e-auction quashing – Ashoka Smokeless did not bar such revision – Policy was made in response to court ruling and to stabilize supply – Not violative of statutory scheme [Paras 109-112].

Refund of 20% Price Increase – Unjust Enrichment – Refund Denied – Even assuming invalidity of price hike, refund not automatic – Respondents failed to prove they bore the burden of excess price and did not pass it on – Refund in such context would result in unjust enrichment – Burden lies on claimant to prove actual loss – High Court erred in mechanically granting refund [Paras 114-139].

Reliance on Undertakings in Earlier Cases – No Independent Refund Right Created – Respondents relied on undertaking given in Somal Pipes to claim refund – Held: Undertaking was conditional and contingent on final adjudication of legality of price hike – Since Interim Policy found valid, refund does not follow [Paras 141-143].

Cited Cases Distinguished – Ashoka Smokeless, Tetulia Coke – Not Applicable to Present Facts – Supreme Court clarified that Ashoka Smokeless dealt with discrimination in e-auction prices – Interim Policy involved fixed price hike without auction – Likewise, refund orders in Tetulia Coke and Domco Smokeless were fact-specific and not binding for Interim Policy price hike cases [Paras 104-122].

Constitutional Principles – Article 39(b) and Resource Allocation – Auction Not Mandatory – Respondents argued that auction is the only constitutional means of resource allocation – Rejected – Court reiterated that while auction is desirable, it is not mandatory – State retains discretion in method of allocation provided it ensures fairness and public interest [Paras 83-85].

Final Judgment – Appeal Allowed – High Court Set Aside – No Refund Payable – The impugned High Court judgment ordering refund of 20% excess price was quashed – Interim Coal Policy held constitutionally valid – Price hike justified – Refund claims denied for failure to establish financial loss and unjust enrichment bar [Paras 144-147].

Cruelty – Decree of Divorce – Section 13(1)(ia) of Hindu Marriage Act – Divorce Affirmed – The husband filed for divorce on grounds of mental cruelty; the wife filed counter-allegations including domestic violence – Family Court granted divorce which was upheld by the High Court – Supreme Court observed long-standing acrimony and prolonged separation since 2009, holding that false complaints constituted cruelty – Decree of divorce upheld [Paras 3.2–3.7, 7].

Domestic Violence – Compensation – DV Act Proceedings – Wife Entitled – Though initial complaint under DV Act was dismissed, appellate courts found the husband guilty of domestic violence and directed compensation of ₹2,00,000/-, later enhanced to ₹7,00,000/- – SLP against this enhancement was dismissed by Supreme Court – Proceedings under DV Act thus culminated in favour of wife [Paras 3.3–3.5].

Child Marriage Expenses – Contribution by Father – Reasonable Demand – Appellant-wife sought ₹10,00,000/- for daughter’s marriage – Despite husband’s denial of income, Court held he was capable of contributing – Directed to pay ₹10,00,000/- by 15th October 2025 – Held: Contributing to child’s marriage is a natural parental duty irrespective of spousal disputes [Paras 5–10].

Final Decision – Appeals Partly Allowed – Divorce decree affirmed – Supreme Court directed husband to pay ₹10,00,000/- towards daughter’s marriage expenses, failing which the appeals would be revived – Appeals accordingly disposed of [Paras 10–13].