Arbitration – Injunction Against Bank Guarantee – Arbitration and Conciliation Act, 1996 – Dispute arose over performance of contractual obligations in a construction project – Respondent terminated contract and sought to invoke bank guarantees – Petitioner sought injunction on grounds of fraud and special equity – Supreme Court held that fraud allegations were previously rejected and no special equity existed to justify injunction [Paras 2-10].

Criminal Proceedings – Quashing of Complaint – Criminal Procedure Code, 1973 – Petitioner’s criminal complaint alleging fraud by respondent quashed by High Court – Supreme Court upheld quashing as fraud claims were unsupported – Reaffirmed principles on limited grounds to restrain bank guarantee payments [Paras 6, 9-11].

Arbitration Award – Enforceability – Partial award in favor of respondent not challenged by petitioner – Supreme Court emphasized enforceability of unchallenged arbitral awards and rejected petitioner’s plea for continuation of stay on bank guarantee invocation [Paras 11-12].

Decision:

Special Leave Petition Dismissed – High Court's decision upheld – Petitioner directed to pay Rs. 1 lakh to Supreme Court Legal Services Committee – Interim application disposed [Paras 12].

Representing Advocates:

for appellant: Gagan Gupta

for respondents: Meenakshi Arora

Jurisdiction of Civil Courts – Cooperative Societies – Civil Procedure Code, 1908 – High Court held suits challenging society's resolution to sell property were not maintainable as they fell under the exclusive jurisdiction of the Co-operative Court – Supreme Court overturned this, stating disputes involving third parties (non-members) and property alienation are not exclusively covered by Section 91 of the Maharashtra Co-operative Societies Act – Civil courts have jurisdiction [Paras 16-39].

Interim Relief – Section 9A CPC (Maharashtra Amendment) – High Court examined maintainability of suits during hearing of application for interim relief – Supreme Court upheld this approach but directed High Court to consider interim relief applications afresh based on prima facie case, balance of convenience, and irreparable harm [Paras 40-42].

Decision:Appeals Allowed – High Court’s decision set aside – Suits maintainable in civil court – Status quo to be maintained for two weeks pending fresh consideration of interim relief by Bombay High Court [Paras 42-43].

Government Employment – Appointments Beyond Advertised Vacancies – Constitution of India, 1950 – Advertisement for 160 seats for Assam Survey and Settlement Training Institute – Appellants sought appointments beyond advertised vacancies from a select list of 560 candidates – Supreme Court held such appointments as arbitrary and violative of Articles 14 and 16 – Reference to Prem Singh case clarified exceptional circumstances for deviation which were not present in this case [Paras 2-13].

Precedent – Consistency with Established Law – Appointment beyond advertised vacancies must comply with established precedents unless extraordinary circumstances justify deviation – Supreme Court emphasized that the exception noted in Prem Singh's case does not apply in absence of emergent or exceptional situations [Paras 10-12].

Decision:

Special Leave Petitions Dismissed – Appeals dismissed, upholding High Court’s decision – Appointments beyond advertised vacancies ruled impermissible – No costs [Paras 13-14].

Motor Accident Compensation – Disbursement of Award – Motor Vehicles Act, 1988 – High Court of Karnataka upheld Tribunal's decision to invest part of compensation in long-term deposits – Supreme Court reversed, holding guidelines for long-term deposits inapplicable to educated, literate claimants unless specific circumstances warrant – Tribunal’s rigid application of guidelines led to injustice [Paras 4-7].

Guidelines Clarified – Discretion of Tribunals – Supreme Court emphasized discretion provided to Tribunals in releasing compensation amounts – Stressed individualized consideration of each case rather than mechanical application of guidelines – Tribunal failed to consider appellants' educational background and immediate financial needs [Paras 5-8].

Decision:

Appeal Allowed – Tribunal’s and High Court’s orders set aside – Full compensation amount to be released to appellants without delay – No order as to costs [Paras 8].

Medical Education – Admission Criteria – Indian Medical Council Regulations, 2000 – Conflict between the eligibility criteria in the Medical Council of India (MCI) Regulations and the Prospectus for MBBS admissions issued by private medical colleges in Kerala – Prospectus omitted the requirement of securing minimum 50% marks in the competitive entrance examination (CEE) – Appellants admitted based on the Prospectus despite not meeting the MCI’s criteria [Paras 2-8].

Judicial Discretion – Article 142 – Supreme Court invoked Article 142 to permit appellants to continue their MBBS course despite initial ineligibility due to an inadvertent omission in the Prospectus – Decision based on appellants’ progression in their studies and absence of malafide intention by the colleges – Supreme Court emphasized the necessity of considering individual circumstances to ensure justice [Paras 21-24].

Penalty for Irregular Admissions – Proposal to impose penalty on respondent-colleges rejected – Supreme Court found the irregularity was due to a bona fide mistake without malafide intention – Directed colleges to surrender equivalent number of seats from management quota over a phased period starting from the year 2012 [Paras 25-26].

Decision:

Appeal Allowed – Appellants permitted to continue and complete MBBS course – Respondent-colleges directed to surrender equal number of management quota seats over a phased period – No penalty imposed on colleges [Paras 27].

Legislative Disqualification – Joining Political Party – Constitution of India, 1950 – Appellants, elected as independent members, joined the Cabinet of the BJP-led government and were disqualified by the Speaker for allegedly joining the BJP – Supreme Court held that merely supporting a government or joining the Cabinet does not amount to joining a political party under Paragraph 2(2) of the Tenth Schedule [Paras 42-48].

Violation of Natural Justice – Judicial Review – Speaker’s Decision – Disqualification proceedings conducted hastily and without proper notice as required under the Karnataka Legislative Assembly (Disqualification of Members on Ground of Defection) Rules, 1986 – Supreme Court found the Speaker’s decision violated rules of natural justice and was motivated by mala fides – Decision subject to judicial review despite finality clause in the Tenth Schedule [Paras 49-56].

Malafide Intent – Speaker’s Conduct – Evidence showed Speaker acted with undue haste to disqualify appellants before a scheduled confidence vote – Supreme Court concluded Speaker’s actions were intended to favor the ruling party and were not impartial [Paras 52-55].

Decision:

Appeals Allowed – Speaker’s disqualification orders and High Court’s affirming judgment set aside – No order as to costs [Paras 57-58].

Arbitration Law – Statutory Arbitration – Madhya Pradesh MadhyasthamAdhikaranAdhiniyam, 1983 – The Appellants challenged the High Court's decision appointing an arbitrator under the Arbitration and Conciliation Act, 1996, instead of referring the dispute to the statutory tribunal constituted under the Madhya Pradesh MadhyasthamAdhikaranAdhiniyam, 1983 – Supreme Court examined whether the state act is repealed by the central act in light of the doctrine of repugnancy and Article 254 of the Constitution [Paras 2-10, 19-24].

Doctrine of Per Incuriam – Judicial Precedent – Supreme Court held that the decision in Va Tech Escher WyassFlovel Ltd. v. MPSE Board (2005) was rendered per incuriam as it did not consider relevant provisions of the Madhya Pradesh Act and prior case law – Reaffirmed that the M.P. Act's tribunal should handle disputes if the works contract exists, but disputes regarding the termination of the contract should be handled under the Arbitration and Conciliation Act, 1996 [Paras 18-31, 41].

Repugnancy – Constitution of India, 1950 – Article 254 – The Court found no repugnancy between the state and central acts as the M.P. Act was reserved for and received the President's assent, complying with Article 254(2) – The state law continues to operate for specified types of arbitration within the state [Paras 44-47].

Decision:

Appeal Allowed – High Court's judgment set aside – Arbitration proceedings to proceed under the Madhya Pradesh MadhyasthamAdhikaranAdhiniyam, 1983, for disputes relating to execution of works contract – Disputes on termination or cancellation to be referred under the Arbitration and Conciliation Act, 1996 [Paras 48-62].

Constitutional Law – Article 14 – Equality Before Law – Section 32(5A) of Bangalore Development Authority Act, 1976 – High Court declared Section 32(5A) as violative of Article 14 and void – Supreme Court analyzed legislative intent and found no guidelines for the BDA’s power to levy charges on development schemes – Concluded the provision granted arbitrary power leading to potential discrimination [Paras 27-28].

Administrative Law – Sanction of Layout Plans – Conditional Approvals – BDA’s conditional approval for residential layout plans required payment of various charges including Cauvery Water Scheme and Ring Road surcharge – Supreme Court upheld the High Court's decision to quash these conditions – Found BDA’s demands exceeded statutory powers and violated constitutional principles [Paras 16-18, 22-28].

Decision:

Appeals Dismissed – High Court’s decision affirmed – Section 32(5A) declared unconstitutional – Conditions for payment of charges quashed – BDA directed to refund amounts collected under invalidated conditions [Paras 29-30].

Summary Suit – Leave to Defend – Order 37 CPC – HDFC filed a summary suit under Order 37 CPC for recovery of dues from the borrower and guarantors – Trial court denied leave to defend to guarantors and decreed the suit – High Court allowed leave to defend, citing triable issues under Section 139 of the Contract Act – Supreme Court found no triable issue existed as the guarantors had explicitly waived their rights under Section 139 in the deed of guarantee [Paras 2-10].

Guarantor's Liability – Section 139 of Contract Act – Deed of Guarantee – The liability of guarantors was found to be co-extensive with the borrower – Supreme Court emphasized that explicit clauses in the deed waived the guarantors’ rights under Section 139 – Held that guarantors cannot avoid liability on this basis [Paras 8-10].

Decision:

Appeal Allowed – High Court's judgment set aside – Trial court’s order and decree restored – No order as to costs [Paras 10-11].