Land Law – Challenge of Khasra Pahani Entries – Exercise of Revisional Powers after 50 Years – Appeals against the High Court’s decision affirming the setting aside of notice for correction of land records dating back to 1954-55 – Supreme Court holds that the exercise of revisional power by the Joint Collector after such a significant lapse of time was unreasonable and arbitrary, not aligning with principles of fairness and legality in administrative actions – Confirmed that no rights could be claimed on the basis of potentially fraudulent entries but highlighted the necessity of timely action by the state to address such issues, emphasizing rule of law and avoidance of unsettling settled transactions without a reasonable basis – Appeals dismissed with no order as to costs. [Paras 1-26]

Referred Cases:

State of Punjab and Others Vs. Bhatinda District Coop. Milk P. Union Ltd., (2007) 11 SCC 363

State of H.P. and Others Vs. Rajkumar Brijender Singh and Others, (2004) 10 SCC 585

S.B. Gurbaksh Singh Vs. Union of India (UOI) and Others, AIR 1976 SC 1115

The State of Gujarat Vs. Patil Raghav Natha and Others, AIR 1969 SC 1297

State of Maharashtra and another Vs. Rattanlal, AIR 1993 SC 1733

The Special Director and Another Vs. Mohd. Ghulam Ghouse and Another, AIR 2004 SC 1467

Collector and Others Vs. P. Mangamma and Others, AIR 2003 SC 1706

M/s. Dehri Rohtas Light Railway Company Limited Vs. District Board, Bhojpur and and District Board, Shahabad and others, AIR 1993 SC 802

Smt. Sulochana Chandrakant Galande Vs. Pune Municipal Transport and Others, AIR 2010 SC 2962

Ibrahimpatnam Taluk Vyavasaya Collie Sangham Vs. K. Suresh Reddy and Others, AIR 2003 SC 3592

Mohamad Kavi Mohamad Amin Vs. Fatmabai Ibrahim, (1997) 6 SCC 71

Shri Santoshkumar Shivgonda Patil and Others Vs. Shri Balasaheb Tukaram Shevale and Others, (2009) 9 SCC 352

Amendment to Section 15Z of SEBI Act changes the appellate forum from High Court to Supreme Court for appeals against orders of Securities Appellate Tribunal - Initially allowing appeals on both questions of fact and law, post-amendment restricts appeals to questions of law only - Transition deemed procedural, affecting forum but not substantive rights unless pending proceedings initiated pre-amendment.

Legal Proceedings and Appeal Rights – Court held that rights to appeal are substantive rights that vest at the commencement of proceedings - Post-amendment rights to appeal limited to questions of law, reducing the scope of appeal compared to pre-amendment rights - Established that amendment does not affect cases where appeal processes began before the amendment took effect.

Court Decision: Dismissal of the appeal, affirming that all appeals filed by the Board before the enactment of the amendment were maintainable - Uses Article 142 of the Constitution to apply this ruling uniformly to all similar cases covered under the impugned order.

Referred Cases:

Addl. Commissioner of Income Tax, Karnataka Vs. M.Y. Chandragi, , (1981) 128 ITR 256 : (1981) 6 TAXMAN 271

Nana Aba Katkar Vs. Sheku Andu Bokade, , (1908) 10 BOMLR 330

Purshotam Singh Vs. Narain Singh and State of Rajasthan, , AIR 1955 Raj 203

Smt. Shanti Devi and Another Vs. Hukum Chand, , AIR 1996 SC 3525 : (1996) 12 JT 527 : (1996) 6 SCALE 267 : (1996) 5 SCC 768 : (1996) 5 SCR 69 Supp : (1997) 1 UJ 100

Maharaja Chintamani Saran Nath Shahdeo Vs. State of Bihar and Others, , AIR 1999 SC 3609 : (1999) 8 JT 45 : (1999) 6 SCALE 393 : (1999) 8 SCC 16 : (1999) 3 SCR 518 Supp : (1999) AIRSCW 3623

Thirumalai Chemicals Limited Vs. Union of India (UOI) and Others, , AIR 2011 SC 1725 : (2011) 102 CLA 269 : (2011) 163 CompCas 380 : (2011) 3 CompLJ 46 : (2011) 268 ELT 296 : (2011) 4 JT 453 : (2011) 3 RCR(Civil) 20 : (2011) 4 SCALE 642 : (2011) 6 SCC 739 : (2011) 108 SCL 78 : (2011) 4 SCR 838 : (2011) 2 UJ 1670 : (2011) AIRSCW 2641

Shyam Sunder and Another Vs. Ram Kumar and Another, , AIR 2001 SC 2472 : (2001) 6 JT 94 : (2001) 4 SCALE 710 : (2001) 8 SCC 24 : (2001) AIRSCW 2768 : (2001) 5 Supreme 492

Commissioner of Income Tax, Orissa Vs. Dhadi Sahu, , (1992) 108 CTR 444 : (1993) 199 ITR 610 : (1992) 6 JT 714 : (1992) 3 SCALE 255 : (1994) 1 SCC 257 Supp : (1992) 3 SCR 168 Supp

Manujendra Dutt Vs. Purendu Prosad Roy Chowdhury and Others, , AIR 1967 SC 1419 : (1967) 1 SCR 475

Mohd. Idris and Others Vs. Sat Narain, , AIR 1966 SC 1499 : (1966) 3 SCR 15

Janardan Reddy and Others Vs. The State, , AIR 1951 SC 124 : (1950) 1 SCR 940

Garikapatti Veeraya Vs. N. Subbiah Choudhury, , AIR 1957 SC 540 : (1957) 1 SCR 488

Ganpat Rai Hiralal and Another Vs. Aggarwal Chamber of Commerce Ltd., , AIR 1952 SC 409 : (1953) 4 SCR 752

Maria Cristina De Souza Sodder and Others Vs. Amria Zurana Pereira Pinto and Others, , AIR 1979 SC 1352 : (1979) 1 SCC 92 : (1978) 10 UJ 718

Dajisaheb Mane and Others Vs. Shankar Rao Vithal Rao Mane and Another, , AIR 1956 SC 29 : (1955) 2 SCR 872

Jose Da Costa and Another Vs. Bascora Sadasiva Sinai Narcornim and Others, , AIR 1975 SC 1843 : (1976) 2 SCC 917

K.S. Paripoornan Vs. State of Kerala and Others, , AIR 1995 SC 1012 : (1994) 6 JT 182 : (1994) 4 SCALE 192 : (1994) 5 SCC 593 : (1994) 3 SCR 405 Supp

M/s. Ambalal Sarabhai Enterprises Ltd. Vs. M/s. Amrit Lal and Co. and Another, , AIR 2001 SC 3580 : (2001) 7 JT 477 : (2001) 5 SCALE 509 : (2001) 8 SCC 397 : (2001) AIRSCW 3326 : (2001) 6 Supreme 505

New India Insurance Co. Ltd. Vs. Smt. Shanti Misra, Adult, , (1976) ACJ 128 : AIR 1976 SC 237 : (1977) 47 CompCas 453 : (1975) 2 SCC 840 : (1976) 2 SCR 266

Hoosein Kasam Dada (India) Ltd. Vs. The State of Madhya Pradesh and Others, , AIR 1953 SC 221 : (1983) 13 ELT 1277 : (1953) 4 SCR 987

Smt. Dayawati and Another Vs. Inderjit and Others, , AIR 1966 SC 1423 : (1966) 3 SCR 275

Hitendra Vishnu Thakur and Others Vs. State of Maharashtra and Others, , AIR 1994 SC 2623 : (1995) CriLJ 517 : (1994) 2 Crimes 916 : (1994) 4 JT 255 : (1994) 3 SCALE 109 : (1994) 3 SCALE 105 : (1994) 4 SCC 602 : (1994) 1 SCR 360 Supp : (1994) 2 UJ 786

Sadar Ali and Others Vs. Doliluddin Ostagar, , AIR 1928 Cal 640

Gundapuneedi Veeranna and Others Vs. Gundapuneedi China Venkanna and Others, , AIR 1953 Mad 878 : (1953) ILR (Mad) 1079 : (1953) 66 LW 645 : (1953) 2 MLJ 317

Nagendra Nath Bose Vs. Mon Mohan Singha Roy and Others, , AIR 1931 Cal 100 : 129 Ind. Cas. 849

Commissioner of Income Tax Vs. Om Sons, , (1979) 116 ITR 215

Tax Law - Status of Official Liquidator as Dealer - Held, Official Liquidator qualifies as a "dealer" under Kerala General Sales Tax Act, 1963 due to engagement in business transactions of selling company assets during liquidation, irrespective of profit motive - Responsibilities include accounting for and managing sales tax - Supreme Court reverses High Court's contrary decision, clarifying tax obligations arise from such transactions [Para 20-62]

Auction Purchaser's Tax Liability - Held, auction purchaser not liable as a dealer for sales tax purposes as the purchase explicitly included all taxes - Supreme Court confirms no further tax liability on the auction purchaser beyond the agreed transaction terms [Para 63-64].

Decision: Appeals allowed - Impugned judgments and orders passed by the High Court are set aside. The Official Liquidator is to manage and account for the necessary taxes due from the liquidation sale transactions, affirming his status as a dealer under the Act. The auction purchaser remains exempt from further tax liabilities beyond the sale agreement.

Referred Cases:

State of Tamil Nadu Vs. Shakti Estate, Tamil Nadu, AIR 1989 SC 945

The State of Tamil Nadu Vs. M.K. Kandaswami and Others, AIR 1975 SC 1871

State of Orissa and Others Vs. Titaghur Paper Mills Company Limited and Another, AIR 1985 SC 1293

Chowringhee Sales Bureau (P) Ltd. Vs. Commissioner of Income Tax, West Bengal, AIR 1973 SC 376

Food Corporation of India, etc. Vs. State of Kerala, AIR 1997 SC 1252

Hari Prasad Jayantilal and Co. Ltd. Vs. Income Tax Officer, Special Investigation Circle-B, AIR 1966 SC 732

State of Uttar Pradesh and Another Vs. Union of India (UOI) and Another, AIR 2003 SC 1147

Navalkha and Sons Vs. Ramanuja Das and Others, AIR 1970 SC 2037

Karya Palak Engineer, C.P.W.D., Bikaner Vs. Rajasthan Taxation Board, Ajmer and Others, AIR 2004 SC 177

Ajay G. Podar Vs. Official Liquidator of J.S. and W.M. and Others, AIR 2008 SC 14

Representing Advocates:

For the Appellant: Shri V. Giri

For the Respondent (Official Liquidator): Shri C.S. Rajan

For the Auction Purchaser: Shri S.K. Bagaria

Land Law – Challenge of Khasra Pahani Entries – Exercise of Revisional Powers after 50 Years – Appeals against the High Court’s decision affirming the setting aside of notice for correction of land records dating back to 1954-55 – Supreme Court holds that the exercise of revisional power by the Joint Collector after such a significant lapse of time was unreasonable and arbitrary, not aligning with principles of fairness and legality in administrative actions – Confirmed that no rights could be claimed on the basis of potentially fraudulent entries but highlighted the necessity of timely action by the state to address such issues, emphasizing rule of law and avoidance of unsettling settled transactions without a reasonable basis – Appeals dismissed with no order as to costs. [Paras 1-26]

Referred Cases:

State of Punjab and Others Vs. Bhatinda District Coop. Milk P. Union Ltd., (2007) 11 SCC 363

State of H.P. and Others Vs. Rajkumar Brijender Singh and Others, (2004) 10 SCC 585

S.B. Gurbaksh Singh Vs. Union of India (UOI) and Others, AIR 1976 SC 1115

The State of Gujarat Vs. Patil Raghav Natha and Others, AIR 1969 SC 1297

State of Maharashtra and another Vs. Rattanlal, AIR 1993 SC 1733

The Special Director and Another Vs. Mohd. Ghulam Ghouse and Another, AIR 2004 SC 1467

Collector and Others Vs. P. Mangamma and Others, AIR 2003 SC 1706

M/s. Dehri Rohtas Light Railway Company Limited Vs. District Board, Bhojpur and and District Board, Shahabad and others, AIR 1993 SC 802

Smt. Sulochana Chandrakant Galande Vs. Pune Municipal Transport and Others, AIR 2010 SC 2962

Ibrahimpatnam Taluk Vyavasaya Collie Sangham Vs. K. Suresh Reddy and Others, AIR 2003 SC 3592

Mohamad Kavi Mohamad Amin Vs. Fatmabai Ibrahim, (1997) 6 SCC 71

Shri Santoshkumar Shivgonda Patil and Others Vs. Shri Balasaheb Tukaram Shevale and Others, (2009) 9 SCC 352

Family Property Partition – Dispute among family members over partition of ancestral and self-acquired properties left by Basavantayya Revanayya Mathad - High Court modified the trial court’s judgment, affecting the appellants’ shares adversely - Supreme Court found the High Court’s judgment unsatisfactory for lack of detailed reasoning and failure to independently assess facts and law [Paras 8-30].

Legal Principles on Appeal – Emphasis on the duty of the first appellate court to independently assess the record, articulate specific findings on all issues, and provide reasons reflecting its conscious application of mind – Remand necessary due to failure of High Court to fulfill its duties as the first appellate court under Section 96 read with Order XLI Rule 31 of the CPC [Paras 13, 16-20, 22, 25-27].

Remand Directions – Case remanded to High Court for fresh consideration on merits, ensuring proper appreciation of evidence and application of relevant legal principles - High Court directed to expedite the hearing and conclude within six months [Paras 28-30].

Decision: The appeal is allowed - Impugned judgment set aside - Case remanded to the High Court for fresh disposal in accordance with the principles laid down.

Referred Cases:

Vinod Kumar Vs. Gangadhar, (2015) 1 RCR(Civil) 598 : (2014) 9 SCJ 292Kurian Chacko Vs. Varkey Ouseph, AIR 1969 Ker 316

State Bank of India and Another Vs. Emmsons International Ltd. and Another, AIR 2011 SC 2906 : (2011) 12 SCC 174

Madhukar and Others Vs. Sangram and Others, AIR 2001 SC 2171 : (2001) 4 SCC 756

B.V. Nagesh and Another Vs. H.V. Sreenivasa Murthy, (2010) 13 SCC 530

Santosh Hazari Vs. Purushottam Tiwai (Dead) by Lrs., (2001) 3 SCC 179

Constitutional Law - Scope of legislative competence under Entry 66 of List I vs. Entry 25 of List III - State legislation prescribing selection based on seniority for postgraduate medical courses challenged - Regulation 9 of MCI, 2000 mandates academic merit as the basis of admission, requires entrance examination results - High Court holds, seniority-based selection permissible only if candidates meet the entrance test benchmarks set by MCI [Paras 9-10, 13-14].

Legislative Competence - Kerala Act under challenge - Held, provisions of Kerala Act prescribing seniority-based selection not valid if they conflict with MCI's mandate of merit-based admissions through an entrance exam - State's legislative competence limited by the need to align with national standards set under Entry 66 of List I [Paras 11-12, 16].

Judicial Interpretation - High Court's directive that seniority can be a criterion only if in-service candidates clear the entrance test as per MCI regulations upheld - Supreme Court finds no fault in reconciliatory approach but clarifies merit remains predominant criterion over seniority in admissions [Para 20].

Decision: Appeals dismissed - High Court judgment upheld, clarifying that admissions must align with MCI's academic merit criteria and entrance exam performance despite seniority considerations under state law [Para 21].

Referred Cases:

R. Rajagopal alias R.R. Gopal and Another Vs. State of Tamil Nadu and Others, , AIR 1995 SC 264 : (1994) 6 JT 514 : (1994) 4 SCALE 494 : (1994) 6 SCC 632 : (1994) 4 SCR 353 Supp

Bachan Singh Vs. State of Punjab, , AIR 1980 SC 898 : (1980) CriLJ 636 : (1982) 1 SCALE 713 : (1980) 2 SCC 684 : (1980) SCC(Cri) 174 : (1983) 1 SCR 145

Machhi Singh and Others Vs. State of Punjab, , AIR 1983 SC 957 : (1983) CriLJ 1457 : (1983) 2 Crimes 268 : (1983) 2 SCALE 1 : (1983) 3 SCC 470 : (1983) 3 SCR 413

Neel Kumar @ Anil Kumar Vs. The State of Haryana, , (2012) 2 RCR(Criminal) 941 : (2012) 5 SCALE 185 : (2012) 5 SCC 766 : (2012) AIRSCW 3766

Ram Pal Vs. State of U.P., , AIR 2003 SC 4168 : (2003) CriLJ 3760 : (2003) 6 SCALE 109 : (2003) 7 SCC 141 : (2004) 1 UJ 101 : (2003) AIRSCW 3792 : (2003) 5 Supreme 297

Sri Mahendra Nath Das @ Sri Gobinda Das Vs. State of Assam, , AIR 1999 SC 1926 : (1999) CriLJ 2873 : (1999) 3 Crimes 86 : (1999) 4 JT 35 : (1999) 3 SCALE 700 : (1999) 5 SCC 102 : (1999) 3 SCR 729 : (1999) AIRSCW 1596 : (1999) 5 Supreme 414

Santosh Kumar Singh Vs. State thr. CBI, , (2010) 4 Crimes 226 : (2010) 11 JT 1 : (2010) 9 SCC 747 : (2010) 9 UJ 4611

Haresh Mohandas Rajput Vs. State of Maharashtra, , AIR 2011 SC 3681 : (2011) 4 Crimes 163 : (2011) 10 JT 493 : (2011) 4 RCR(Criminal) 257 : (2011) 10 SCALE 629 : (2011) 12 SCC 56 : (2011) 6 UJ 3571 : (2011) AIRSCW 5414 : (2011) 6 Supreme 450

The Supreme Court examined the legislative competence of the Kerala State Legislature in enacting provisions allowing in-service medical officers’ admissions to postgraduate courses based solely on seniority under the Kerala Medical Officers Admission to Post Graduate Courses under Service Quota Act, 2008 (Kerala Act 29 of 2008) - The appellants argued that this legislation conflicted with the Medical Council of India's regulations which mandate admission based on academic merit determined through a common entrance test - The High Court upheld that admissions should be merit-based, aligning with the Medical Council of India’s regulations but allowed seniority to play a role provided the candidates met the entrance test's minimum eligibility criteria - The Supreme Court held that the State's legislation, while well-intentioned to address the difficulties faced by in-service candidates, was ultimately beyond the legislative competence of the State as it contravened the standards set by the Medical Council of India under the Entry 66 of List I of the Constitution - Consequently, the Court affirmed that admissions must be based strictly on merit as defined by the MCI regulations, without seniority as a criterion, hence dismissed the appeals [Para 9-21]

Decision: Dismissed. The Supreme Court dismissed the appeals, reaffirming the principle that admission to postgraduate medical courses should be based on merit as determined by a common entrance test in accordance with the Medical Council of India’s regulations, and not on seniority.

Referred Cases:

State of T.N. and Another Vs. Adhiyaman Educational and Research Institute and Others, (1995) 4 SCC 104

The State of Madhya Pradesh and Others Vs. Gopal D. Tirthani and Others, AIR 2003 SC 2952

Dr Preeti Srivastava and Another Vs. State of M.P. and Others, AIR 1999 SC 2894

Financial misconduct and misappropriation — Appellant, an assistant manager at UCO Bank, involved in a criminal conspiracy with Harshad Mehta to misappropriate funds through erroneous securities transactions in the Securities General Ledger (SGL) accounts — Held, appellant misused his official position for wrongful gain to co-conspirator and caused significant loss to the bank, violating multiple sections of IPC and Prevention of Corruption Act — Conviction upheld by the Supreme Court due to substantial evidence of intentional fraud and conspiracy [Paras 1-31].

Role of Accused — Manipulation of bank records and SGL accounts — Held, appellant's actions were part of a well-orchestrated plan to benefit Harshad Mehta, rather than clerical errors as claimed — Active participation in criminal activities established beyond reasonable doubt through documentary and oral evidence, demonstrating abuse of his official position for personal gain [Paras 2-30].

Evidence and Conviction — Prosecution established guilt through detailed analysis of transaction records, bank instructions, and telex communications — Defense of clerical error rejected based on the pattern of transactions and deliberate cover-up efforts — Supreme Court finds no merit in the appeal, dismissing it and ordering immediate custody of the appellant [Paras 5-31].

Referred Cases:

None

Constitutional Law - Reservation in Promotion - Consideration of reservation for SC and ST in promotions within officer grades of public sector banks - Appeals against High Court judgment favoring reservations - Supreme Court finds no provision for reservation in promotions within officer grades carrying a salary of Rs. 5,700 and above per month as per Office Memorandum dated 01-11-1990 - High Court's interpretation of Article 16 and supportive affirmative actions upheld in part - Reservation mandated for promotions from Scale-I to Scale-VI, as applicable salary limits fall below Rs. 5,700 per month. [Paras 1-38]

Interpretation of Office Memoranda - Distinction between 'concession' and 'reservation' clarified - Concession applies to promotions within officer grades carrying a salary above Rs. 5,700 per month, not amounting to reservation - Reservation in promotions affirmed for lower scales up to Scale-VI based on salary criteria outlined in Department of Public Enterprises guidelines dated 08-11-2004. [Paras 27-35]

Directive to Appellant Banks - To implement reservation policy effectively from Scale-I to Scale-VI as per prevailing salary limits, ensuring representation of SC/ST employees in promotions to uphold constitutional mandates of Articles 15 and 16. [Para 37]

Referred Cases:

M. Nagaraj and Others Vs. Union of India (UOI) and Others, AIR 2007 SC 71

S. Vinod Kumar and Another Vs. Union of India (UOI) and Others, (1996) 6 SCC 580

Indra Sawhney Vs. Union of India (UOI) and Others, (1992) 3 SCC 217 Supp

National Federation of S.B.I. and Others, etc. Vs. Union of India and Others, AIR 1995 SC 1457

Pragiyotish Gaonlia Bank (now known as Assam Gramin Vikash Bank) and Another Vs. Shri Brijlal Das, (2009) 1 SCC(L&S) 655

Union of India and others etc. Vs. Virpal Singh Chauhan etc., AIR 1996 SC 448

Superintending Engineer, Public Health, U.T. Chandigarh and others Vs. Kuldeep Singh and others, AIR 1997 SC 2133

Rohtas Bhankhar Vs. Union of India (UOI), (2014) 8 SCC 872

H.P. Scheduled Tribes Employees Federation and Another Vs. Himachal Pradesh S.V.K.K. and Others, (2013) 10 SCC 308