Transfer of Property Act - Section 100, Section 59 - Charge Creation – Analysis – Appeal arises from the issue of whether an undertaking not to dispose of properties, given by a borrower, creates a charge over the property. The undertaking was given on an unregistered document.

Fraudulent Decrees – Validity and Enforceability – Held – Decree obtained collusively to defeat the undertaking by the borrower, even if fraudulent, does not create a charge over the property. No charge can be created without a registered instrument or deposit of title deeds as per Sections 100 and 59 of the Transfer of Property Act. [Paras 7-13]

Undertaking and Charge Creation – Legal Requirements – Court emphasizes the need for registration or deposit of title deeds for creating a charge on immovable property. An unregistered undertaking is insufficient to create a charge. [Para 11]

Decision – Appeal Dismissal – Court dismisses the appeal by Haryana Financial Corporation, upholding that the unregistered undertaking did not create any charge over the properties. Decrees obtained collusively do not affect this legal position. No costs imposed. [Paras 13-14]

Administrative Law - Subsequent Events - Examination in Larger Public Interest - Special Leave Petitions challenging the judgment of the Madras High Court dismissing the plea of the petitioner firm against the suspension of quarry operations due to unauthorized activities - State officials found large scale unauthorized quarrying by the petitioner - Division Bench of High Court permitted reliance on subsequent events in light of larger public interest - Supreme Court upheld the High Court's approach and decision - Held, subsequent materials supporting the decision can be considered when larger public interest is involved - Principle from Mohinder Singh Gill's case distinguished. [Paras 7-13]

Mining Law - Unauthorized Quarrying - Suspension of Operations - Evaluation report by state authorities indicated large scale unauthorized quarrying by the petitioner firm - Violations of mining plan, encroachment, and illicit quarrying noted - Show cause notices issued under Mines and Minerals (Development and Regulation) Act, 1957 - Supreme Court upheld suspension orders and subsequent notices, noting pending writ petitions before the High Court addressing these issues - Held, suspension of operations justified in light of substantial evidence of unauthorized activities. [Paras 8-12]

Decision - Dismissal of Special Leave Petitions - Supreme Court dismissed the special leave petitions filed by PRP Exports - Upheld the Madras High Court's judgment permitting state authorities to take action based on subsequent events and reports indicating large scale unauthorized quarrying - Emphasized that public interest and statutory compliance take precedence over the petitioner's business operations. [Para 13]

Industrial Disputes Act, 1947 - Section 9A - Change in Service Conditions – Held:

Refusal by workmen to carry production bags to weighing scale after shift hours without additional remuneration constitutes a justified refusal under Section 9A. Instructions requiring additional work beyond shift hours without complying with statutory requirements under Section 9A were improper. [Para 13]

Proportionality of Punishment – Judicial Review – Held:

The penalty of dismissal was disproportionate to the misconduct of workmen refusing to perform additional tasks post-shift hours without extra pay. The Tribunal’s discretion in setting aside the dismissal was justified, and the High Court rightly refused to interfere under Article 226. [Para 17]

CPC - Order 41 Rule 22 – Supporting Decree on Grounds Decided Against – Held:

Respondents can support the decree by challenging findings against them even without a cross-appeal, as per principles underlying Order 41 Rule 22 CPC, applicable even in appeals under Article 136 of the Constitution. [Para 14]

Appeal - Powers of the Supreme Court – Article 142 – Held:

Supreme Court has the jurisdiction to pass necessary orders for complete justice, independent of CPC provisions. It can maintain, modify, or reverse lower court decisions to ensure justice. [Para 15]

Decision:

The appeal is dismissed. The Industrial Tribunal's order of reinstatement with 50% back wages is upheld, with costs of Rs. 25,000/- assessed against the appellant. [Para 17]

Constitutional Law - Equal Protection under the Law - Article 14 and 21 - Discrimination among Persons with Disabilities:

The Supreme Court held that discrimination among different categories of persons with disabilities, such as treating hearing impaired persons differently from visually impaired or orthopedically handicapped persons concerning transport allowance, violates Articles 14 and 21 of the Constitution. The court emphasized that all persons with disabilities should be treated equally regarding benefits, including transport allowance. [Paras 18-22]

Persons with Disabilities Act, 1995 - Non-Discrimination - Sections 2(i), 44, 45, 46, and 47:

The Act's provisions aim for equal treatment and non-discrimination among all persons with disabilities. The government is obligated to provide necessary accommodations and benefits to ensure their equal participation in societal activities. The refusal to extend transport allowance to hearing impaired employees, while providing it to visually impaired and orthopedically handicapped employees, is discriminatory and contrary to the spirit of the Act. [Paras 13-18]

Transport Allowance for Hearing Impaired Employees:

The court acknowledged the recommendations of the Ministry of Health and Family Welfare and other authorities advocating for transport allowance for hearing impaired employees on par with other disabled employees. It noted the additional challenges faced by hearing impaired persons in commuting, which justify the need for equal transport allowances. [Paras 5-7, 20]

International Conventions - Obligations and Compliance:

India, being a signatory to international conventions such as the UN Convention on the Rights of Persons with Disabilities, is committed to upholding the rights and dignity of persons with disabilities. The court emphasized that India must comply with these international obligations, which mandate non-discrimination and equal treatment of all persons with disabilities. [Paras 10-12]

Decision:

The writ petition was allowed. The Supreme Court directed the Respondents to grant transport allowance to deaf and dumb employees on par with visually impaired and orthopedically handicapped employees of the Central and State Governments and other establishments wherever such benefits have been extended. The court affirmed that any form of discrimination among persons with disabilities is unconstitutional and contrary to the Disabilities Act. [Para 23]

Equal Protection and Non-Discrimination – Transport Allowance for Disabled Employees – Writ of Mandamus –

The Supreme Court addresses the denial of transport allowance to government employees with hearing impairments while it is provided to those who are blind or orthopedically handicapped. The Court held that such discrimination violates Articles 14 and 21 of the Constitution and contravenes the Persons with Disabilities Act, 1995. The Court directs the Central and State Governments to extend the transport allowance to employees with hearing impairments at the same rate as that given to blind and orthopedically handicapped employees. [Paras 1-25]

Statutory Interpretation – Scope of Disabilities Act –

The Disabilities Act does not envisage discrimination among various types of disabilities. The Act defines disability inclusively and aims for equality in treatment for all persons with disabilities. The Court clarifies that the travel hardships faced by hearing-impaired employees are comparable to those faced by other disabled employees, thus justifying equal transport allowances. [Paras 12-21]

Human Dignity and Equality –

The inherent dignity of hearing-impaired persons is compromised when they are marginalized or devalued compared to other disabled persons. The Court emphasizes that such differential treatment violates their right to equality and dignity under Articles 14 and 21 of the Constitution. [Para 22]

Decision – Grant of Transport Allowance to Hearing-Impaired Employees –

The Supreme Court directs the Respondents to grant transport allowance to hearing-impaired government employees at double the normal rates, aligning with allowances provided to blind and orthopedically handicapped employees. The decision ensures non-discriminatory treatment of all disabled employees under the Disabilities Act. [Paras 23]

Arbitration Law - Appointment of Arbitrator - Dispute Resolution Mechanism - Interpretation of "Excepted Matters" - Scope of Court's Jurisdiction under Section 11(6) of the Arbitration and Conciliation Act, 1996 - Civil Appeal challenging the High Court's appointment of an arbitrator under Section 11(6) - Held, the Chief Justice or his designate must decide preliminary issues of jurisdiction, existence of an arbitration agreement, and whether a live claim exists - Matters involving "excepted matters" should be determined by the arbitrator, not the Chief Justice or his designate - High Court's decision partly set aside.

Role of Chief Justice or Designate in Appointment of Arbitrators - Interpretation - Held, Chief Justice or his designate should determine jurisdictional prerequisites and existence of arbitration agreement but leave substantive issues such as the arbitrability of disputes to the arbitrator - Substantive determination of whether disputes are "excepted matters" falls within the arbitrator's domain.

Decision - Partial Allowance of Appeal - High Court’s designate erred in addressing the substantive issue of whether the dispute was a "billing dispute" or an "excepted matter" - Such determinations should be left to the arbitrator - Appointment of the arbitrator upheld, but the portion of the order addressing the substantive merits set aside.

Constitutional Law - Scheduled Caste/Tribe Status - Caste Certificate Verification – Appellant employed based on a caste certificate later invalidated by Scrutiny Committee – Supreme Court evaluates the legitimacy of the termination and criteria for reinstatement.

Employment Law - Validity of Caste Certificate – Held – Appellant’s employment terminated due to invalid caste certificate – No evidence of fraudulent intent by Appellant – Service continuity protected under certain conditions – Government resolutions and previous judgments considered – Directed reinstatement without back wages, subject to conditions. [Paras 1-10]

Protection of Employment - Scheduled Tribe Status - Precedents – Analysis – Held – Court reviews extensive case law on the protection of employment for individuals who obtained benefits based on caste certificates later invalidated – Principles established for protecting employment in absence of fraudulent intent. [Paras 4-7]

Decision – Reinstatement with Conditions – Supreme Court orders reinstatement of Appellant – No back wages awarded – Appellant not entitled to further promotion under Scheduled Tribe category – Employment protected if obtained in good faith based on caste certificate – Appellant to be reappointed to the post if vacant before retirement. [Para 10]

Service Law - Employment under Rehabilitation Scheme – Displaced persons - Claim for employment after death of nominee - Respondent's brother appointed under NALCO's scheme for land displaced persons, died in an accident – High Court directed NALCO to provide employment to the respondent, another family member – Supreme Court reverses High Court's decision – Holds that once the benefit under the scheme was duly availed by the nominee, there is no provision for appointment of another family member after the death of the nominee – Employment schemes under NALCO and compassionate appointment guidelines examined - No scope for second appointment under either scheme – Appeal allowed, High Court order set aside. [Paras 1-17]

Rehabilitation Scheme - Interpretation and Application – Held – Provisions of NALCO’s scheme for land displaced persons do not support the claim for another appointment after the death of an already appointed nominee – Analysis of relevant scheme provisions reveals nomination by head of family cannot be altered post employment of the nominee – Supreme Court emphasizes that benefits under the scheme are not perpetually transferrable to other family members post the nominee's death. [Paras 10-14]

Compassionate Appointment – Guidelines and Limitations – Held – NALCO's guidelines for compassionate appointment limited to spouse, dependent son, or unmarried dependent daughter – Respondent, being the deceased's brother, does not fall under eligible categories for compassionate appointment – High Court’s direction for employment inconsistent with established guidelines – Appeal by NALCO allowed. [Paras 11, 17]

Decision – Appeal Allowed – Supreme Court sets aside the High Court’s order directing NALCO to consider the respondent’s employment claim – Confirms that neither the scheme for land displaced persons nor the compassionate appointment guidelines support the respondent’s claim – Directions for no further employment under the examined schemes. [Para 17]

Principle of Res Judicata - Application in Successive Stages of Same Litigation – The Supreme Court emphasized that for the doctrine of res judicata to apply, there must be a conscious adjudication of an issue. In the absence of an expression of opinion on the merits, the principle cannot be invoked to bar subsequent applications in the same litigation. The court found that the learned Company Judge had not adjudicated the application for leave on merits in the initial order and had only recorded a statement made by the counsel for the respondent, thus not attracting res judicata. The Division Bench's decision was held to be in error for treating the initial order as res judicata. [Paras 23-38]

Liberty to Apply – Interpretation – The court clarified that the phrase "liberty to apply" granted by the learned Company Judge must be understood in context. It does not inherently grant the right to reopen matters already adjudicated, but in this case, it allowed for future applications as the initial application had not been decided on merits. The Division Bench's interpretation that it barred subsequent applications was incorrect. [Paras 34-38]

Grant of Leave for Filing Eviction Suit – Company in Liquidation – The court noted that the learned Company Judge had correctly granted leave for the appellant to file an eviction suit against the company in liquidation, as the company's tenancy rights were not assets of the company for liquidation purposes and the official liquidator had no objection. The Division Bench's decision to revoke this leave was overturned. [Para 22]

Decision: The appeal was allowed, setting aside the Division Bench's order and restoring the order of the learned Company Judge. The respondents were directed to pay costs. [Paras 38-39]