Arbitration – Delay in Pronouncement – Validity of Award – Public Policy Conflict – Arbitral award pronounced after nearly 3 years and 8 months of reservation without explanation – Arbitrator’s delay resulted in demonstrable indecisiveness, non-application of mind, and denial of effective adjudication – Supreme Court held that while delay alone is not a ground under Section 34, where it materially impacts the quality and fairness of adjudication, it renders the award in conflict with public policy and patently illegal [Paras 1, 19–20, 46–48, 55].

Arbitration – Unworkable Award – Perversity – Incomplete Adjudication – Arbitrator invalidated sale deeds executed by the appellant but declined to determine compensation or finalize reliefs, leaving parties to litigate afresh – Findings held to be contradictory and Award declared ineffective – Held: Arbitrator failed to perform his core function of final dispute resolution, thereby defeating the purpose of arbitration – Award liable to be set aside for being unworkable and perverse [Paras 39–42, 44, 47–48, 55].

Section 14 vs. Section 34 – Independent Remedies – Not Mutually Exclusive – Supreme Court clarified that aggrieved party need not seek termination under Section 14(2) before challenging delayed award under Section 34 – Remedies under Sections 14 and 34 operate independently – Mandate of arbitrator can be challenged post facto under Section 34 based on effects of delay [Paras 15–16, 19–20].

Contractual Interpretation – Clauses 6(a)–(c) of Joint Development Agreement (JDA) – Arbitrator’s interpretation of “fit for occupation” under Clause 6(a) stretched beyond contractual text – Requirements of certificate by architect and application for completion certificate were fulfilled – Arbitrator’s finding of non-compliance held perverse and contrary to terms of JDA [Paras 53–54].

Arbitrator’s Interim Orders – Irreversible Consequences – Equity Consideration under Article 142 – Arbitrator’s interim order in 2010 shifted possession and altered parties' positions – Supreme Court held that reverting to status quo was impossible after 15 years and third-party rights had been created – Invoking Article 142, Court validated previously illegal sale deeds executed by appellant, directed forfeiture of ₹6.82 crore security deposit, and awarded ₹3.18 crore additional compensation to respondents – Ordered final settlement of rights to prevent further litigation [Paras 60–62].

Exercise of Article 142 – Final Settlement to Prevent Injustice – Held: When arbitral award fails to resolve core dispute and perpetuates litigation after extensive delay and altered circumstances, Supreme Court justified in invoking Article 142 to do complete justice – Power exercised in conformity with Gayatri Balasamy and Shilpa Sailesh to bring litigation to an end [Paras 57–60].

Decision: Appeal allowed – Arbitral award set aside – Sale deeds declared valid despite initial illegality – Security deposit of ₹6.82 crores forfeited and additional ₹3.18 crores to be paid by appellant to respondents – On full payment, appellant entitled to possession of its 50% share – Parties to bear own costs [Paras 64].

Tender – Disqualification of Bid – Solvency Certificate – Clause 18 of NIT – Appellant’s technical bid rejected by Krishi Utpadan Mandi Parishad as “haisiyat praman patra” (solvency certificate) was issued by a private architect rather than District Magistrate – NIT did not specify that certificate must be issued by the District Magistrate – Held: Tendering authority cannot import unstated conditions – Rejection of bid dehors terms of NIT and arbitrary – Valuer empanelled with Income Tax Department was competent to issue such valuation certificate – High Court erred in upholding disqualification [Paras 12–15, 18].

Judicial Review – Scope in Tender Matters – Court cannot act as appellate authority in tender evaluation – Intervention permissible only when decision is patently arbitrary or contrary to NIT terms – Rejection of bid for non-DM certificate fell outside tender conditions and hence interfered with [Para 11].

Administrative Law – New Grounds in Counter Affidavit – Rejection order must stand or fall on reasons stated therein – Additional grounds raised subsequently cannot justify the impugned decision – Respondent could not later argue that valuation failed to show encumbrance details when original rejection was solely for non-DM certificate [Paras 16–17].

Interpretation – Meaning of “Haisiyat Praman Patra” – As per Oxford Hindi–English Dictionary, “haisiyat” means capacity, means, or resources – Certificate indicating bidder’s financial capacity suffices unless specific authority prescribed – Valuation certificate showing worth far above ₹10 crores meets requirement [Paras 17, 18].

Tender Reconsideration – Direction – Order of High Court set aside – Mandi Parishad directed to reconsider appellant’s technical bid and, upon verifying that valuation certificate satisfies Clause 18, negotiate with successful bidder or re-award contract accordingly [Para 19].

Decision: Appeal allowed – Rejection of technical bid quashed – Matter remanded to reconsider appellant’s bid per NIT terms [Paras 18–20].

Urban Planning – Delhi – Monitoring Committee & Judicial Committee – Scope – Monitoring Committee was constituted to curb misuse of residential premises and lacked statutory sealing power vis-à-vis premises as such; sealing entails civil consequences and DMC Act provides statutory process/appeal – Judicial Committee’s 18.12.2023 common order did not examine individual units; SC reiterates case-by-case scrutiny and tests the applicant’s claim on its own facts – Held: Common order does not by itself entitle de-sealing; individual merits must govern [Paras 4–7, 10, 12].

Land Use – LSC Classification – New Rajinder Nagar is a shop-cum-residence Local Shopping Centre (designated LSC) under MPD-2021 – Ground floor sanctioned for commercial use; upper floors intended/reserved for residential use unless converted on payment of prescribed charges – FAR pattern (residential FAR applicable; sanctioned vs existing) confirms status; no proof of pre-1961 commercial first floor – Held: Only ground floor permitted commercially ab initio; upper floors require conversion and compliance [Paras 15–23].

Evidence/Documentary Proof – Third-party L&DO letter (1957) and generic lease deeds (1974/1975) not relied upon; 1987 conveyance recites single-storey; 1989 sale deed shows only ground-floor shop; 2005 sanctioned plan is for residential apartments over shop with basement for storage; 2018 DDA communication distinguishes planned vs designated LSCs – Held: Record rebuts claim of historic commercial use of upper floors [Paras 11, 16–19].

Municipal Law – De-sealing & Regularisation – Application for de-sealing rejected – MCD to conduct joint inspection, specify in a speaking order: (i) non-compoundable deviations to be removed, (ii) conversion charges for upper floors, (iii) penalty for excess FAR – Upon removal of non-compoundable works and payment of charges, applicant may carry on commercial activity in upper floors – Held: Relief moulded prospectively subject to statutory compliance; de-sealing not ordered now [Paras 22–24].

Decision: I.As seeking de-sealing and permission to use upper floors commercially rejected; directions issued to MCD for joint inspection and quantification of conversion/penalty charges; applicant permitted to regularise and thereafter use upper floors commercially upon compliance [Paras 23–25].

Criminal Law – Juvenility – First-time claim before Supreme Court – Appellant No. 2, Ganesh Yadav, underwent ossification test which estimated his age as 19 years at the time of offence – Relying on precedent in Jaya Mala v. Home Secretary, court allowed a margin of error of 2 years – Held: Ganesh Yadav was 17 years old at the time of the offence and entitled to benefit of juvenility – Having served over 8 years in custody, he was ordered to be released [Paras 4-6].

Juvenile Justice – Maximum Punishment – Section 18 of JJ Act, 2015 – Juvenile can be detained for a maximum of 3 years in special home – Appellant Ganesh Yadav had already undergone over 8 years imprisonment – Held: Entitled to immediate release unless wanted in another case [Para 6].

Criminal Law – Age Discrepancy – Appellant No.1/Umesh Yadav claimed juvenility but failed to provide consistent or credible evidence – Being elder to Ganesh Yadav, court inferred he was not a juvenile – No benefit extended [Para 7].

Sentencing – Modification of Life Sentence – Delay of over 35 years since incident – No misconduct reported during custody – Appellants Baleshwar Pandit and Muneshwar Pandit aged 67 and 59 years respectively – Held: Life imprisonment modified to 14 years of actual imprisonment for them and Umesh Yadav – Appeal partly allowed [Paras 8-11].

Insurance Law – Fire Insurance – Cause of fire immaterial in absence of insured-instigation – Surveyor’s inference of “non-accidental” fire found unreasoned – Incident held accidental – NCDRC’s finding on liability affirmed – Interest modified to 6% p.a. from three months after the incident – Appeals: insurer dismissed, insured partly allowed [Paras 1, 63].

Fire Insurance – Accidental Fire – Where loss by fire is established and there is no allegation or finding that the insured instigated the fire, the precise cause/source is immaterial – Final surveyor’s view that fire was “not accidental” lacked reasons and did not invoke any exclusion or fraud – Held: the incident was an accidental fire within policy terms – Repudiation arbitrary and perverse.

Policy Coverage – Meaning of “FFF” – Policy described risk as covering “FFF” – Court holds “FFF” can only mean furniture, fixtures and fittings – Exclusion of FFF by surveyor/NCDRC found contrary to record – Insured entitled to amounts under Building, Plant & Machinery, Showroom, Electrical Fittings, Furniture & Fixtures [Para 48].

Surveyor’s Report – Weight and Scrutiny – Final surveyor ignored 5,855 pages of contemporaneous business records, assigned a flat ₹450 per unit to “identifiable” stock and disregarded charred/unidentifiable stock – Approach termed perverse; cost sheets and stock records maintained in ordinary course accepted as reliable proof of quantity/value – Physical site visit by accountants/architect not sine qua non for valuing stock [Paras 36-47].

Evidence – Business Records & Secondary Evidence – Cost sheets, stock statements, production logs, purchase orders, cancellation emails, VAT returns and audited accounts treated as contemporaneous records admissible under Sections 34 and 65(g) of the Evidence Act – Random verification of cancelled-order entries largely tallied; minor variance explained by production exceeding order quantity [Paras 39-46].

Bank Valuation vs Insurance Loss – Bank stock valuation excluding samples serves different purpose; for insured, destruction of samples causes real loss requiring replacement – Insurer’s reliance on bank’s exclusion rejected [Para 49].

Interest – Modification – Simple interest @ 6% p.a. (not 9%) from three months after 25/09/2010 until payment – Appeal by insurer dismissed; appeal by insured allowed except to interest rate/period as specified [Para 63].

Decision: Appeal by Insurance Company dismissed – Appeal by Insured allowed in substance – Claim under “FFF” heads covered – Stock loss established on contemporaneous records – Interest awarded @ 6% p.a. from three months post-incident till payment – No order on exclusions/fraud as none established [Paras 48, 63].

Legal Profession – Enrollment Fees – Overcharging by State Bar Councils – Court’s direction in Gaurav Kumar v. Union of India reiterated – Supreme Court observed that despite earlier directions dated 30-07-2024, some State Bar Councils continue to collect enrollment fees in excess of the statutory limit – Bar Council of India (BCI) reported it had communicated with State Bar Councils but without full compliance – Held: BCI to issue a formal written circular reiterating compliance requirements with clear warning of contempt consequences – State Bar Councils to respond immediately upon receipt of circular [Paras 2–6]

Contempt of Court – Non-compliance by State Bar Councils – Supreme Court warned that any future instance of overcharging will lead to contempt proceedings against responsible authorities – Directed BCI to explicitly highlight this in its circular to all State Bar Councils [Para 7]

Enrollment Documents – Withholding Prohibited – Applicants’ original documents submitted for enrollment cannot be withheld by State Bar Councils on grounds of non-payment of unauthorized fees – Held: Once statutory fees are paid, applicants are entitled to return of their documents on request – Failure to do so is unjustified and amounts to administrative overreach [Paras 8–9]

Decision: Bar Council of India directed to issue compliance circular within four weeks – State Bar Councils to respond promptly – Non-compliance will attract contempt – Matter to be listed after four weeks – Dasti permitted.

Criminal Law – Murder Conviction – Acquittal Reversed – Appellant convicted for the murder of her niece-in-law by pouring kerosene and setting her ablaze – Trial court acquitted the appellant due to inconsistencies in three dying declarations – High Court reversed acquittal relying on the first dying declaration made to an independent medical officer (PW-3) supported by forensic and medical evidence – Held: First dying declaration clear, voluntary, medically certified, and corroborated by recovery of kerosene container and burn pattern – Conviction under Section 302 IPC justified [Paras 1-3, 6, 10-12]

Dying Declarations – Admissibility – Multiple Versions – Discrepancies – Prosecution relied on three dying declarations made by deceased victim, two of which had minor inconsistencies – First dying declaration made before doctor (PW-3), a neutral witness, clearly implicated the appellant – Supreme Court held: Each dying declaration must be evaluated on its own merit – Merely because other declarations had discrepancies, the first declaration cannot be discarded if found truthful and voluntary – Statement corroborated by medical certificate and kerosene smell from body and site [Paras 6, 10, 13]

Medical Evidence – Corroboration of Dying Declaration – PW-3 (In-charge Medical Officer) testified that deceased was conscious, fit to speak, and provided consistent history implicating appellant – Medical Certificate (Exhibit 20) and Yadi to police corroborated dying declaration – Body of deceased had 100% burns and strong kerosene odour – Postmortem (Exh. 25) and physical evidence including empty kerosene container and kerosene-soaked soil further supported prosecution version – Held: High Court rightly relied on medical evidence to convict [Paras 6, 7, 10-12]

Criminal Procedure – Appeal Against Acquittal – Interference by Appellate Court – Trial court acquitted appellant citing benefit of doubt due to minor inconsistencies – Supreme Court held: Where only one view is possible on evidence and trial court failed to properly appreciate key facts, High Court justified in reversing acquittal – First dying declaration proved and corroborated – High Court rightly convicted under Section 302 IPC [Paras 4, 6, 13-14]

Defence – Accidental Fire Theory – Rejected – Defence claimed incident was accidental – However, victim's 4-year-old son who slept beside her suffered only 10-12% burns – Victim had 100% burns – Supreme Court held: Pattern of injury inconsistent with accidental fire – Appellant’s theory unsupported by evidence – Strong smell of kerosene on clothes, body, and site corroborated deliberate act [Paras 6, 11-12]

Appeal Dismissed – Supreme Court affirmed conviction under Section 302 IPC – Held: Trial court wrongly disbelieved trustworthy dying declaration given to doctor – Medical and circumstantial evidence support prosecution – High Court’s judgment restored – No interference warranted [Paras 14-15]

Specific Performance – Registered Agreement – Additional Consideration – Plaintiff entered into a registered agreement for sale dated 08.01.2010 for purchase of two items of property for a total sale consideration of Rs. 4,80,000 – Out of which, Rs. 4,70,000 was paid as advance on the date of agreement – Plaintiff placed in possession of the property – Subsequently, defendants demanded an additional Rs. 2,00,000 – Plaintiff paid Rs. 1,95,000 on 09.06.2010, which was acknowledged by endorsement on the reverse of the agreement – Trial court disbelieved transaction, treating it as a loan and held plaintiff not ready and willing – First appellate court reversed, upheld existence of valid sale agreement and additional consideration – Held: High Court erred in discarding endorsement without addressing findings of first appellate court – No perversity or misreading shown – Findings of fact binding under Section 100 CPC – Acceptance of further consideration after stipulated period proved contract remained subsisting [Paras 4, 6, 7, 14-21]

Termination of Contract – Necessity of Declaratory Relief – Respondents contended that without challenging the termination notice dated 20.08.2010, suit for specific performance was not maintainable – Supreme Court held: Agreement did not contain automatic termination clause – Vendor accepted additional Rs. 1,95,000 after six-month period, thereby waiving right to terminate – Plaintiff could treat agreement as subsisting and sue for enforcement – Suit for specific performance not barred for want of declaratory relief – Declaratory relief becomes necessary only where a cloud exists on title or subsistence of contract – Not applicable when termination itself is invalid or waived by conduct [Paras 21-33]

Readiness and Willingness – Plaintiff paid over 90% of consideration upfront and further agreed to pay additional amount demanded by vendors – No reason to doubt readiness and willingness to perform contract – High Court erred in holding otherwise – Acceptance of Rs. 1,95,000 after expiry of six-month term showed that time was not of the essence and defendants treated contract as ongoing – Mere delay in tendering balance Rs. 10,000 not fatal – Ready and willing conduct to be assessed holistically, based on facts and conduct of parties [Paras 18-21]

Discretion to Grant Relief – Clean Hands – Allegation of False Plea – High Court refused specific performance on grounds that plaintiff falsely claimed possession and fabricated additional consideration – Held: Absence of recital in agreement regarding possession not sufficient to prove falsehood – Claim may be unproved, but not necessarily false or dishonest – Additional consideration proved by endorsement and admitted signatures – No fraudulent conduct attributable to plaintiff – Court must consider substantial acts done in pursuance of contract and unjust enrichment of vendor – D-3 (Vasanthi), daughter of D-1, not a bona fide purchaser – Plaintiff entitled to relief under Section 20 of the Specific Relief Act, 1963 [Paras 34-39]

Interpretation – Time Not of the Essence – In contracts involving immovable property, time is ordinarily not of the essence unless specifically stipulated – Defendants' conduct of accepting additional consideration after expiry of six months indicated waiver of time clause – No notice given requiring performance within fixed time – Contract subsisted – Plaintiff’s failure to issue demand within six months not fatal in such circumstances [Paras 18-20]

Second Appeal – Scope under Section 100 CPC – High Court reversed concurrent findings of fact without framing substantial question of law – Findings regarding genuineness of agreement, additional payment, readiness and willingness, were based on evidence and reasoning – No perversity, misreading, or exclusion of admissible evidence established – Held: High Court exceeded jurisdiction under Section 100 CPC – Interference with factual findings was unwarranted [Paras 15-17, 20, 38]

Appeal Allowed – Judgment and decree of High Court dated 02.02.2018 set aside – Decree of first appellate court restored – Plaintiff to deposit balance amount of Rs. 10,000 within one month in execution court if not already deposited – Specific performance of contract granted – Parties to bear own costs [Paras 40-41]

Family Law – Divorce – Irretrievable Breakdown of Marriage – Parties living separately since April 2010 – Multiple litigations and failed reconciliation attempts – Held: Relationship has irretrievably broken down – No purpose in perpetuating a legally defunct marriage – Supreme Court exercises powers under Article 142 of the Constitution to dissolve the marriage [Para 8–9].

Maintenance – Domestic Violence Act and CrPC – Trial Court granted monthly maintenance, education expenses, residence rights, and compensation to wife and child under DV Act – Family Court also granted additional maintenance under Section 125 CrPC – High Court set aside Family Court’s order and partly allowed husband's revision – Held: In light of comprehensive settlement, all prior orders merged into final alimony award – All pending proceedings quashed [Paras 3.5, 3.7–3.9, 8–9].

Permanent Alimony – Settlement – Respondent-husband offered Rs.1 crore as full and final settlement for all claims by wife and minor son – Supreme Court found the amount fair and reasonable considering income, duration of litigation, and circumstances – Directed payment within three months – Upon receipt, no further claims to be raised by either party [Paras 7–9].

Constitution of India – Article 142 – Scope – Supreme Court invoked Article 142 to do complete justice – Dissolved marriage, settled all pending disputes, and quashed all civil/criminal proceedings arising from the matrimonial relationship – Held: Appropriate case for Article 142 relief due to protracted litigation and impossibility of marital reconciliation [Paras 8–9].

Decision: Appeal allowed in part – Marriage dissolved under Article 142 – Respondent-husband directed to pay Rs.1 crore as permanent alimony and final settlement to appellant-wife within 3 months – All civil and criminal proceedings between the parties arising from the marriage quashed – No further claims maintainable thereafter – Appellant to provide bank details – Pending applications disposed of [Paras 9–12].