Contempt of Court – Interim Orders – Effect of “Release” of Reserved Matter – Termination of Service during Subistence of Interim Protection – Appellant’s services were terminated on 10-06-2020 while an interim order dated 20-12-2018 restraining final orders in disciplinary proceedings was in operation and being extended – Mere “release” of the writ petition on 06-02-2019 did not extinguish the interim order – Held: Dismissal of contempt petition by High Court set aside; matter remitted for fresh consideration [Paras 2.8, 2.14–2.18, 5–6].

University Discipline – KGMU CPMS Audit and Enquiry – Procedural History – Multiple writ petitions (2018–2021) challenging preliminary enquiry, questionnaire, chargesheet, suspension, and termination – Interim stay of suspension on 05-12-2019 continued – Despite pendency, final termination order passed on 10-06-2020 forming the gravamen of contempt claim [Paras 2.3–2.6, 2.10–2.15].

Practice & Procedure – Remand – High Court requested to consider contempt afresh and, for effective adjudication, to take up connected matters together; pending applications disposed of [Paras 6–8].

Decision: Appeal allowed – Impugned order dated 23-09-2024 of the Allahabad High Court (Lucknow Bench) quashed and set aside – Contempt petition remitted for fresh consideration; connected matters may be heard together – Pending applications disposed of. [Paras 6–8].

Service Law – Departmental Enquiry – Proof of Charges – TTE dismissed for alleged demand of illegal gratification and possession of excess cash – Primary complainant not examined and his written statement relied upon without opportunity for cross-examination – Other complainants did not support prosecution version – Held: Non-examination of key witness and contradictions in other testimonies vitiate findings – Enquiry Officer’s report perverse and unsustainable – CAT rightly set aside dismissal – High Court erred in reversing CAT [Paras 17.1, 18]

Departmental Proceedings – Evidence – Reliance on Unexamined Witness – Placing reliance on written complaint of unexamined person constitutes denial of fair hearing – Finding based on such evidence is perverse – Violation of principles of natural justice [Paras 17.1, 18]

Possession of Excess Cash – No Rule fixing ceiling on cash carried by TTE – Amount deposited in Railway Sundry Accounts on same day – Circular relied on by department issued after date of incident – Charge unsustainable [Para 17.2]

Failure to Recover Fare Difference – Rs.18 difference allegedly not recovered – No receipt book produced and passenger not examined – Finding based solely on vigilance officer’s statement – Charge not proved [Para 17.3]

Forgery of Duty Card Pass – No handwriting expert opinion obtained – Enquiry Officer himself found charge unproved – No evidence to establish forgery – Charge fails [Para 17.4]

Judicial Review – CAT’s interference justified when findings are perverse or based on no evidence – High Court cannot reappreciate evidence mechanically to sustain dismissal – High Court’s reversal of CAT order unsustainable [Para 18]

Service Benefits – Employee deceased during litigation – Consequential monetary and pensionary benefits to be released to legal heirs within three months [Para 18-19]

Decision: Appeal allowed – High Court’s judgment dated 21.09.2017 set aside – Order of CAT dated 21.03.2002 restoring reinstatement upheld – All consequential monetary and pensionary benefits directed to be released to legal heirs within three months.

NDPS Act – Confiscation of Vehicle – Interim Release – Jurisdiction of Special Court – Rules of 2022 do not divest the Special Court of power to order interim custody of a seized conveyance – Subordinate legislation cannot override parent statute – Power under Sections 451 & 457 CrPC [497 & 503 BNSS] remains intact – High Court’s contrary view unsustainable [Paras 13, 22, 29-30]

NDPS Act – Sections 60(3) & 63 – Confiscation of Conveyance – Burden of proof on owner to show lack of knowledge or connivance – Confiscation can only follow judicial determination by Special Court after hearing claimant – Drug Disposal Committee cannot decide ownership or confiscation of vehicle – Violation of natural justice if deprived without hearing [Paras 19-22]

Subordinate Legislation – NDPS (Seizure, Storage, Sampling and Disposal) Rules, 2022 – Rules merely procedural and supplemental – Cannot curtail substantive rights of owner or judicial power of Court – Administrative Committee cannot substitute judicial adjudication under NDPS Act [Paras 13, 15-17, 27-30]

Interim Custody – Vehicle Seized under NDPS Act – Where owner not arrayed as accused and prima facie shows bona fides and absence of knowledge, Special Court empowered to release vehicle on supurdagi – Principle from Bishwajit Dey v. State of Assam, 2025 INSC 32 applied – Case fits within fourth category in Bishwajit Dey

(contraband recovered from third party without owner’s connivance) [Paras 31-35]

Presumption – Owner’s Knowledge – Mere presence of contraband in transport vehicle not sufficient to presume complicity of owner where no material indicates knowledge or connivance – Bonafide transporter carrying lawful goods entitled to interim release [Paras 31-33, 35]

Principles of Natural Justice – Property rights of innocent owner protected – Confiscation entails deprivation of property and must follow judicial process with opportunity of hearing – Rules of 2022 cannot override this constitutional safeguard [Paras 22, 27, 29]

Decision: Appeal allowed – Judgment of Madras High Court dated 20.12.2024 set aside – Vehicle bearing Registration No. TN 52 Q 0315 directed to be released to appellant on supurdagi subject to conditions imposed by the Special Court – Interpretation of Rules of 2022 clarified – Special Court retains jurisdiction to grant interim custody of seized conveyances [Paras 36-37].

Criminal Law – Section 306 IPC – Quashing of FIR – Allegations of abetment to suicide against the appellant who was in a relationship with the deceased and allegedly refused to marry her – FIR filed by deceased’s mother alleged mental and physical exploitation and instigation by the appellant – Supplementary statement introduced additional claims not present in the original FIR – Held: No direct or proximate act of instigation proved – Mere refusal to marry or breakdown in relationship, even if emotionally distressing, does not amount to abetment – FIR quashed – Continuation of trial would amount to abuse of process of law [Paras 5, 8, l2, l5, l8, l9, 20, 2l].

FIR – Supplementary Statement – Evidentiary Value – FIR lodged by mother of deceased mentioned emotional betrayal due to refusal of marriage – Two days later, supplementary statement added claims of physical and mental exploitation, phone conversations, and CD evidence – Court noted these were improvements upon initial version made after consulting others and were not spontaneous – Held: Such improvements create doubt and cannot solely be relied upon to prosecute for abetment of suicide [Paras 5, 9].

Abetment of Suicide – Essential Ingredients – No instigation or direct act by accused proved – Deceased allegedly took her life after emotional distress due to accused's refusal to marry her – Held: To constitute abetment under Section 306 IPC, there must be a clear act of instigation or active aiding – Mere refusal to marry, even if hurtful, does not fulfill the legal requirement – Cited precedents including S.S. Cheena v. Vijay Kumar Mahajan and Ramesh Kumar v. State of Chhattisgarh to clarify scope of ‘instigation’ [Paras l5–l8].

Mens Rea – Lack of Intent to Instigate Suicide – Court found that although appellant had a close relationship with the deceased and may have backed out under family pressure, there was no evidence of intention to provoke suicide – Mental process required for abetment (mens rea) absent – No alarming or direct encouragement to commit suicide established [Paras ll, l2, l8].

Judicial Approach – Emotional Elements vs. Legal Principles – Court observed that while emotional distress and tragedy of young life lost is acknowledged, legal principles must guide the decision – Held: Law does not punish failed relationships or heartbreak unless elements of a cognizable offence are clearly made out [Para l8].

Decision: Appeal allowed – FIR No. 273/20l6 dated 07.ll.20l6 and entire criminal proceedings in Sessions Case No. 728/20l8 pending before Additional Sessions Judge, Amritsar quashed – Trial would be an empty formality and continuation would amount to travesty of justice [Paras l9–2l].

Commercial Courts Act, 2015 – S.12A – Urgent interim relief – IP infringement – Delay per se does not negate urgency where infringement is continuing – High Court orders rejecting plaint set aside – Suit restored to be decided on merits [Paras 20-26, 27-28]

Commercial Law – Pre-Institution Mediation – Section 12A – Meaning of “contemplates any urgent interim relief” – Test reiterated that courts examine plaint, pleadings and annexed documents to see if urgent interim relief is genuinely required from the standpoint of the plaintiff – Court is not to decide merits at this stage – Pro forma/anticipatory prayers to bypass mediation to be ignored [Paras 18-20]

Intellectual Property – Continuing Infringement – Urgency – Each act of manufacture/sale/offer for sale is a fresh wrong creating a recurring cause of action – Mere delay in filing suit does not legalise infringement nor defeat the right to injunction against a dishonest user – Urgency may be inherent where ongoing acts cause immediate and irreparable harm to goodwill, reputation and proprietary rights [Paras 22-23]

Public Interest – IP disputes implicate consumer confusion and market integrity – Preventing deception and confusion furnishes an additional element of immediacy for interim protection – Section 12A not intended to render a plaintiff remediless during ongoing infringement [Paras 16, 24]

Procedure – Section 12A v. Ongoing IP Infringement – Courts below erred by treating lapse of time as negating urgency and by evaluating entitlement to interim relief on merits rather than the plaintiff’s stand-point and material on record – Rejection of plaint under Order VII Rule 11 CPC for non-compliance with Section 12A set aside [Paras 25, 27-28]

Principles Culled Out – (i) Section 12A is mandatory; violation ordinarily renders institution defective – (ii) Exemption lies only where plaint and documents disclose a real need for urgent interim intervention – (iii) Look for immediacy of peril/irreparable harm/risk to rights/perishable subject-matter/time sensitivity – (iv) Sham/anticipatory prayers to skip mediation to be ignored – (v) Court is concerned with plausibility of urgency, not its eventual success [Para 20]

Decision: Appeal allowed – Orders dated 28.08.2024 (Single Judge) and 13.11.2024 (Division Bench, HP High Court) set aside – Commercial Suit No. 13 of 2024 restored for decision on merits in accordance with law [Paras 27-28]

Criminal Law – Murder – Conviction Reversed – Appellant convicted under Section 302 read with Section 34 IPC along with three others – FIR stated incident occurred when accused tried to destroy hut of one Jagya, and deceased Ramesh intervened – Alleged eyewitnesses Madho Singh (PW-5) and Puniya (PW-12) gave materially contradictory accounts regarding place and sequence of incident – Court found contradictions regarding location (hut, Gopya’s field, Bholiya’s field) and number of assailants with sharp weapons – Doubt raised on presence of eyewitnesses due to improbabilities, contradictions, and omissions – Medical evidence confirmed homicidal death but lacked independent corroboration of witness accounts [Paras 26-40, 41-52].

Witness Testimony – Credibility – Madho Singh (PW-5) and Puniya (PW-12) contradicted each other on key aspects – Each denied other’s presence – Madho Singh admitted political rivalry with accused and stated no one came to rescue despite hue and cry – Puniya claimed to have witnessed the assault but made no attempt to assist the deceased – Their testimonies found unreliable and lacking corroboration – Court classified Puniya as “wholly unreliable” and Madho Singh as “partially reliable” – No corroborative evidence to support their testimonies [Paras 40, 55].

FIR and Investigation – Omission of key eyewitness name in FIR – FIR failed to mention presence of Puniya despite being relative and allegedly witnessing incident – Site inspection plan contradicted witness statements – No source of light recorded at scene – Seized weapons not proven to be linked with specific injuries – FIR filed next morning – Held: Prosecution suppressed genesis of incident and shifted scene of crime – Entire narrative doubtful [Paras 29, 36, 49, 56-57].

Benefit of Doubt – Other co-accused not before Court – However, in exercise of powers under Article 142, Court extended benefit of doubt to similarly situated co-convicts Govardhan, Raja Ram, and Bhima – All four accused acquitted – Conviction and sentence set aside [Paras 61-64].

Decision: Appeal allowed – Conviction and sentence under Section 302 IPC and Section 302 read with Section 34 IPC set aside – Appellant and co-accused acquitted – To be released forthwith if not wanted in any other case.

Taxation – Business expenditure – Non-resident – Lull in business vs cessation – Assessee, a French drilling company with ONGC contract till 1993, maintained continuous correspondences and bid activity with ONGC during 1993–1998, ultimately securing a fresh contract in October 1998 (formalised January 1999) – Held: Such sustained efforts show intention to carry on business – Mere failure to procure a contract or maintain a permanent establishment in India does not imply cessation – Business expenditure (admin/legal etc.) undertaken wholly and exclusively for business is deductible and eligible for set-off under Section 71 [Paras 2, 4, 9, 11-17, 19-20].

Unabsorbed Depreciation – Section 32(2) – For the pre-2002 law, continuation of the business is relevant – On facts, business had not ceased; therefore, unabsorbed depreciation could be carried forward and set off in terms of Section 32(2) – Note: first proviso to Section 32(2) stood omitted w.e.f. 01/04/2002 by Finance Act, 2001 [Paras 10-12, 17].

Permanent Establishment (PE) – Not a statutory precondition under the Act for being “in business” in India – PE is relevant to DTAA benefits, not to charging or computation provisions under Sections 4, 5(2), 9(1)(i), and 28 – High Court erred in equating lack of PE/office or foreign-based correspondence with absence of business in India [Paras 11-12, 18-19].

Income Characterisation – Interest on income-tax refunds taxable under “Income from Other Sources” – Yet, business expenditure incurred for carrying on business can be set off against such income under Section 71, given the finding that business continued [Paras 5, 9, 11, 15-17].

Principles – The term “business” has a wide import, denoting real, substantial, systematic activity with a set purpose – “For the purpose of business” is broader than “for earning profits” and includes acts incidental to carrying on business, measures for preservation/protection, and statutory payments – “Lull in business” is distinct from “going out of business” [Paras 4, 14-16].

Decision: Appeals allowed – High Court judgment set aside – ITAT orders revived – Assessing Officer to pass fresh assessment orders for AYs 1996-97, 1997-98, and 1999-2000 in terms of ITAT orders [Paras 21].

Service Law – Medical Practitioners – Retirement Age – Parity Between Allopathy and AYUSH Doctors – Issue arose whether doctors practicing indigenous systems of medicine (AYUSH) are entitled to the same retirement age as allopathic doctors – Division Bench decisions in NDMC v. Dr. Ram Naresh Sharma (2021) 17 SCC 642, State of Gujarat v. Dr. P.A. Bhatt, 2023 SCC OnLine SC 503, and Dr. Solamon A. v. State of Kerala distinguished – Court observed that Dr. Ram Naresh Sharma turned on a policy decision of Union Cabinet extending parity in retirement age, while Dr. P.A. Bhatt upheld classification based on educational qualifications – Ambiguity persists in judicial approach [Paras 2–6].

Equality Before Law – Articles 14 and 16 – Classification Between Allopathy and AYUSH Practitioners – Court held that difference in qualifications, nature of work, duties, and responsibilities justifies separate treatment – Allopathic doctors perform critical care, trauma management, surgeries, and emergency procedures, unlike AYUSH practitioners – Distinction has rational nexus with public interest and sufficiency of qualified allopathy doctors – Classification constitutionally valid [Paras 7–9].

Judicial Discipline – Reference to Larger Bench – Divergent Judicial Views – Considering conflicting precedents and continuing ambiguity regarding parity of service conditions between allopathic and AYUSH doctors, matter referred to a Larger Bench for authoritative pronouncement [Para 9].

Interim Directions – Continuance of AYUSH Doctors – Pending reference, States permitted to continue AYUSH doctors beyond their prescribed retirement age up to the age applicable to MBBS doctors, on half pay and allowances – Such continuance optional; benefits subject to final outcome before Larger Bench [Paras 10–11].

Decision: Matter referred to Larger Bench – Interim arrangement for continuation of AYUSH doctors till Larger Bench decides issue – Directions regarding pay, allowances, and pension adjustments issued [Paras 9–12].

Trademark Law – Interim Injunction – Intra-group Licensing – Scope of Restraint – Suit filed by respondent sought to restrain petitioner from creating third-party interest including license or assignment of ‘Kirloskar’ trademarks – Trial Court granted injunction on 09.01.2025 – High Court stayed the injunction on 25.07.2025 permitting limited licensing to group companies – Later, by order dated 10.10.2025, High Court modified earlier order to prohibit even such licensing – Held: Prima facie, modified order expanded restraint without proper consideration of earlier licensing practices and despite pendency of appeal – Operation of 10.10.2025 order stayed [Paras 2–10].

Trademark Ownership – Difference between Assignment and Licensing – Petitioner argued that licensing does not amount to transfer of ownership and is distinguishable from assignment – Court noted there was no dispute over ownership of the mark and no prior adjudication on internal licensing history – Modified restraint seen as excessive at interlocutory stage [Paras 5–8].

Judicial Discretion – Modification of Interim Orders – Supreme Court observed that expanding the scope of an interim injunction during pendency of appeal and without full factual analysis was not warranted – Ordered interim stay on modified order [Paras 8–10].

Decision: Notice issued returnable on 04.11.2025 – Effect and operation of High Court order dated 10.10.2025 stayed – Parties allowed to exchange affidavits/written submissions in the meantime