Civil Recovery Suit – Mortgage Debt – Decree Execution – Equitable Settlement – Reduction of Dues - The respondent filed a civil suit to recover Rs.79,69,544/- against the original defendants based on a mortgage – The appellant, who purchased the mortgaged property during the pendency of the suit, was not impleaded – Suit was decreed and decree execution continued against the property – The appellant, after unsuccessful challenges to the decree, deposited Rs.1.15 crore and proceedings were closed – Subsequently, the respondent claimed a shortfall of Rs.19.54 lakhs, which was allowed by the Single Judge and affirmed by the Division Bench – Supreme Court intervened considering prolonged litigation, expenses and time, and exercised equitable jurisdiction – Appellant directed to pay Rs.15 lakhs as full and final settlement in modification of High Court orders, clarifying the order is restricted to the peculiar facts of the case [Paras 3-8].

Motor Accident Compensation – Continuation of Claim by Legal Heirs – Estate of Deceased – Compensation Enhanced - The deceased claimant suffered 100% disability from a motor vehicle accident and remained in a vegetative state for 19 years before death – Legal heirs substituted and pursued the claim – The Supreme Court reaffirmed the legal position that compensation claim survives to the estate of the deceased and the legal heirs can validly claim enhancement even post demise – The monthly income of the deceased assessed at ₹3,000 was accepted and future treatment expenses were further enhanced considering prolonged suffering – Tribunal’s award of ₹8.56 lakhs and High Court’s enhancement were further modified – Final compensation determined at ₹12,53,770 with directions to pay balance amount to legal heirs with interest as per Tribunal’s direction [Paras 5-9].

Criminal Law - Summoning of Advocates by Police – Privilege of Lawyer-Client Communication – Section 179 BNSS and Section 132 BSA – Interim Relief Granted - The petitioner, a practicing advocate, was summoned under Section 179 of the BNSS by the SC/ST Cell of Ahmedabad Police in relation to an FIR involving his client – The petitioner contended that being an advocate for the accused does not make him a witness or party to the crime and that communications between an advocate and client are privileged under Section 132 of the Bhartiya Sakshya Adhiniyam, 2023 – Held: Prima facie, permitting the Investigating Agencies to directly summon advocates seriously undermines the autonomy of the legal profession and constitutes a threat to the independence of the administration of justice – The Court restrained the State from summoning the petitioner and stayed the operation of the notice dated 24.03.2025 until further orders [Paras 1-10].

Advocate's Role – Whether Investigating Agency Can Directly Summon – Judicial Oversight Required – Question Raised - The Court identified key legal questions: whether an advocate advising a client can be directly summoned by the police, and whether judicial oversight is mandatory even if the police claim the lawyer's role goes beyond legal advice – The Court noted that these questions have significant bearing on the independence of the legal profession and administration of justice – Matter directed to be placed before the Hon’ble Chief Justice of India for further orders with notice issued to the Attorney General, Solicitor General, Bar Council of India, and other legal bodies to assist the Court [Paras 7-12].

Interim Order – Interim Stay on Summons – Notice Issued to Legal Bodies – Matter Referred to CJI - In view of the importance of the questions involved, the Court stayed the summons issued to the petitioner until further orders and referred the matter to the Hon’ble Chief Justice of India for appropriate directions – Notices also issued to relevant legal bodies for assistance in adjudicating the matter [Paras 10-12].

Criminal Law - Bail – Section 132(1)(a), 132(1)(i) and 132(5) of the Central Goods and Services Tax Act (CGST) - Onerous Conditions – Monetary Deposit – Bail Orders Set Aside – The petitioner was granted bail by the High Court upon voluntarily offering to deposit Rs.2.5 crores, despite opposing arguments by the prosecution – Later, the petitioner challenged the monetary condition as onerous – Held: The practice of offering deposits at the stage of bail hearing and later reneging by contending that the counsel lacked authority is strongly deprecated – The Court held that such conduct undermines the judicial process – Consequently, both the original bail order dated 08/05/2025 and the modification order dated 14/05/2025 are set aside – The matter is remitted back to the High Court for fresh consideration on merits uninfluenced by the previous orders [Paras 2-10].

Criminal Procedure – Bail Jurisprudence – Voluntary Offer in Bail Hearing – Not Binding Per Se – The Court observed that when a voluntary financial offer is made at the bail hearing, it often forecloses merits-based adjudication of bail – However, a subsequent attempt to repudiate the same cannot be permitted without affecting the sanctity of the judicial process – The petitioner cannot approbate and reprobate before the Court – The practice is disapproved as it undermines fair adjudication [Paras 8-10].

Tax Offences – GST – Bail in Economic Offence – Interim Protection Granted – Although the bail orders were set aside, considering the petitioner’s circumstances including his wife’s pregnancy and father’s ill-health as stated in the modification plea, interim protection from surrender is granted – The High Court is directed to decide the bail plea expeditiously on its own merits without being influenced by prior orders or observations [Paras 11-13].

Decision – Special Leave Petition Disposed – Original bail order dated 08/05/2025 and modification order dated 14/05/2025 are quashed – Crl.O.P. No.14718/2025 is restored to the file of the High Court of Madras – The Chief Justice of the High Court is requested to place the matter before the appropriate bench for early disposal – Interim protection from surrender is granted to the petitioner till the first date of listing before the High Court – All pending applications stand disposed of [Paras 12-15].

Criminal Law - Prevention of Corruption Act – Suspension of Sentence vs. Stay of Conviction – No Interference – The petitioner, a public servant convicted under Sections 7/12 and 13(1)(d)/13(2) of the PC Act, sought stay of conviction during the pendency of the appeal – The High Court suspended the sentence but declined to stay the conviction – Held: There is no infirmity in the impugned order as the settled law discourages granting stay of conviction in corruption cases involving public servants – The decisions in K.C. Sareen v. CBI (2001) 6 SCC 584 and CBI v. M.N. Sharma (2008) 8 SCC 549 were relied upon, reiterating that stay of conviction should be granted sparingly and not routinely in corruption cases [Paras 1-6].

Corruption Cases – Judicial Approach – Stay of Conviction Discouraged – The Court reaffirmed that in cases of corruption involving public servants, staying the conviction undermines the public’s faith in the justice delivery system – Courts must be cautious in exercising discretion to stay convictions and must avoid it unless exceptional circumstances exist, which were absent in the present case [Paras 5-6].

Decision – Special Leave Petition Dismissed – The impugned order of the High Court dated 03/04/2023 does not suffer from any legal infirmity – The Special Leave Petition is dismissed as being devoid of merit – All pending applications also stand disposed of [Para 6].

FIR Quashing - Section 420, 467, 468, 471 of the IPC – Allegation of Forged Vakalatnama – FIR Quashed – The appellant, an advocate, was accused of forging thumb impressions and signatures in court pleadings to benefit a co-accused in civil disputes – Respondent (Manuben), allegedly impersonated, filed affidavit confirming she and her late sister had lawfully authorized the appellant – Held: Allegations found to be false; continuation of proceedings is abuse of process of law – FIR and sessions case quashed as against the appellant [Paras 4-6].

Affidavit by Alleged Victim – Exoneration of Advocate – Respondent No.3 Manuben explicitly confirmed her and her sister’s authorization to the appellant for legal representation – This admission was accepted by the Court, nullifying the substance of the criminal charges [Para 5].

Abuse of Process – Quashing of Proceedings Justified – Supreme Court reiterated that where continuation of criminal proceedings is unjust and amounts to misuse of legal process, quashing is warranted – Held: High Court erred in declining relief; criminal case quashed as against appellant alone [Para 6].

Decision – Appeal Allowed – Impugned High Court order dated 13.06.2019 set aside – FIR No. I-110/2009 and Sessions Case No. 351/2012 quashed only as against the present appellant – No opinion expressed on merits against other accused [Paras 6-8].

Criminal Law – Narco Analysis Test– Constitutional Validity – Article 20(3) and 21 – Involuntary Test Impermissible – Direction Quashed – High Court accepted submission from police to conduct narco-analysis test on accused persons during pendency of bail application – Held: Such direction violates the constitutional safeguards under Articles 20(3) and 21 and directly contravenes the ruling in Selvi v. State of Karnataka – Forced administration of narco-analysis is impermissible – High Court’s acceptance of such a request during bail adjudication under Section 439 CrPC was erroneous [Paras 3, 6–13].

Evidentiary Value – Voluntary Narco-analysis – Not Sole Basis for Conviction – Subject to Section 27 Evidence Act – Voluntarily administered narco-analysis with safeguards in place may reveal facts admissible under Section 27 of the Evidence Act – However, test results alone cannot form the sole basis of conviction without corroborative evidence – Conviction must rest on material that passes threshold of proof beyond reasonable doubt [Paras 14–16].

Right to Undergo Narco-analysis – No Indefeasible Right – Judicial Discretion Required – Accused does not possess an absolute right to undergo narco-analysis – Court must assess voluntariness, legal safeguards, and relevance before allowing such tests – Held: Courts must strictly follow NHRC guidelines issued in Selvi, and mere consent is insufficient to justify administration – Rajasthan High Court’s contrary view in Sunil Bhatt disapproved [Paras 17–21].

Decision: Appeal allowed – Impugned order of the Patna High Court dated 09/11/2023 set aside – Bail application of appellant to be considered on merits without reference to narco-analysis direction [Paras 23–25].

Criminal Law - Preventive Detention – Misapplication of KAAPA – Detention Order Set Aside – Detention of a person running a licensed lending firm, based on pending cases, held unsustainable as no acts shown to disturb public order – Supreme Court reiterated that preventive detention is a severe measure which should only be applied when there is genuine threat to public order and not merely on grounds of law and order violations – Held: Detention failed the test of proportionality and legal necessity [Paras 9, 16-19].

Public Order vs Law and Order – Legal Distinction Reinforced – KAAPA Invocation Invalid – Supreme Court distinguished between issues affecting individuals (law and order) versus society at large (public order) – Found that the detenu’s alleged acts affected only private parties and did not justify invoking preventive detention – Held: Detention based on personal disputes or private contraventions does not meet threshold of public disorder [Paras 17-19].

Procedural Safeguards – Bail Condition Violations Not Legally Pursued – No Justification for Detention – State failed to move for cancellation of bail before resorting to preventive detention – No proof or detail of bail violations presented – Held: Proper legal remedy was to apply for bail cancellation, not to bypass due process via preventive detention [Paras 6, 20-21].

Constitutional Principles – Article 21 and Article 22(3)(b) – Rights of Detenu Violated – The Court emphasized the exceptional nature of preventive detention powers and stressed compliance with constitutional protections – Burden lies on the State to strictly justify detention – Held: Liberty curtailed without adequate cause; detention order quashed [Paras 10-11, 22].

Decision – Appeal Allowed – Detention Order and High Court Judgment Set Aside – Supreme Court held that neither the detaining authority’s order nor High Court’s affirmation could survive judicial scrutiny – Directed that any future action by the State must comply with ordinary criminal law [Para 23].

Negotiable Instruments – Cheque Dishonour – Section 138 NI Act – Accused issued multiple cheques to appellant financial firm in discharge of loan liability – All cheques returned dishonoured due to insufficient funds – Trial Court acquitted the accused in all four cases – Complainant’s application for leave to appeal under Section 378(4) CrPC dismissed by High Court – Supreme Court held complainant as ‘victim’ under Section 2(wa) CrPC and entitled to appeal without leave under proviso to Section 372 CrPC – Acquittal orders set aside – Case remanded to High Court for fresh consideration on merits [Paras 1, 2, 3, 4.2, 5, 6, 7.8, 7.10, 9].

Definition of Victim – Scope under CrPC – Section 2(wa) CrPC defines ‘victim’ as a person who has suffered any loss or injury due to the act or omission of the accused – Held: Dishonour of cheque causing financial loss is covered within the meaning of injury – Hence, complainant under Section 138 NI Act is a ‘victim’ and can invoke right of appeal under Section 372 CrPC without special leave – Position clarified by 2009 Amendment and Supreme Court precedents [Paras 6.4, 6.5, 6.6, 7.7, 7.9].

Right to Appeal – Distinction between Sections 372 and 378 CrPC – Section 378(4) mandates special leave for complainant to appeal against acquittal – However, if the complainant is also a ‘victim’ under Section 2(wa), the appeal lies as of right under Section 372 proviso – Held: Section 372 proviso provides an independent remedy to the victim without need for special leave under Section 378 – Legislative intent is to strengthen victim’s rights and provide a direct avenue for appeal [Paras 6.1, 6.2, 6.3, 7.10, 7.11, 7.12].

Supreme Court Precedents – Considered judgments in Satya Pal Singh v. State of M.P., Mallikarjun Kodagali v. State of Karnataka, and Tej Kumar v. State of Haryana – Emphasised purposive interpretation of ‘victim’ – Confirmed right to appeal under Section 372 proviso for complainants in cheque dishonour cases – Declined contrary view of High Court and restored complainant’s right to appeal [Paras 6.1, 6.3, 6.5, 7.6, 7.9].

Decision: Appeal allowed – Impugned High Court order rejecting leave set aside – Complainant recognised as ‘victim’ entitled to file appeal directly – Matter remanded to High Court for fresh decision on merits of acquittal – Liberty granted to parties to raise all contentions before High Court [Para 9].