Priority of Claims - Stock Exchange Rules vs. Income Tax Dues - Lien and Statutory Preference: The Supreme Court examined the priority of claims between the Income Tax Department and the Stock Exchange regarding the assets of a defaulting member. It was held that the Stock Exchange, by virtue of Rule 43, possesses a first and paramount lien over the securities provided by a member, making it a secured creditor. Consequently, the Stock Exchange's claim had priority over the Government's claim for income tax dues. [Paras 19-25]

Membership Rights and Liabilities - Personal Privilege and Non-attachable Nature: The Court affirmed that a membership card of the Stock Exchange is a personal privilege and does not constitute property of the member. Thus, the proceeds from the sale of the membership card could not be attached by the Income Tax Department for the member's tax liabilities. [Para 16]

Interpretation of 'Lien' under Stock Exchange Rules - Secured Creditor Status: The Stock Exchange's lien under Rule 43 was considered statutory, placing it above unsecured claims, including those of the Income Tax Department. The definition and application of 'lien' were critically analyzed to determine its impact on the hierarchy of claims. [Paras 20-22]

Referred Cases:

Hansraj and Others Vs. Official Liquidators Dehra Dun Mussoorie Electric Tramway Co. Ltd.

Forwarding P. Ltd. and another Vs. Trustees, Port of Vizagapatnam and another (1987) 61 CompCas 513

Isha Valimohamed and Another Vs. Haji Gulam Mohamad and Haji Dada Trust AIR 1974 SC 2061

Triveni Shankar Saxena Vs. State of U.P. and others AIR 1992 SC 496

Vasudev Ramchandra Shelat Vs. Pranlal Jayanand Thakar and Others AIR 1974 SC 1728

The Bank of Bihar Vs. The State of Bihar and Others AIR 1971 SC 1210

Collector of Aurangabad and Another Vs. Central Bank of India and Another AIR 1967 SC 1831

The Stock Exchange, Ahmedabad Vs. Asstt. Commissioner of Income Tax, Ahmedabad AIR 2001 SC 1071

Board of Trustees, Port of Mumbai Vs. Indian Oil Corporation and Another AIR 1998 SC 1878

Dena Bank Vs. Bhikhabhai Prabhudas Parekh and Co. and Others AIR 2000 SC 3654

Bombay Stock Exchange Vs. Jaya I. Shah and Another AIR 2004 SC 55

K. Saradambal Vs. Jagannathan and Brothers (Automobile Engineers and Motor Works (P.) Ltd.) (1972) 42 CompCas 359

Criminal Law - Exception 4 of Section 300 IPC - Sudden Provocation - Appeal against conviction for murder under Section 302 IPC - The appellants, husband and wife, were convicted of the murder of Asaram following a scuffle. The defense claimed the deceased had raped the wife (Appellant No. 2) the previous night and the altercation occurred while the couple was proceeding to report the incident to the police. - Held, the act was done in the heat of passion, without premeditation, and the accused did not take undue advantage or act in a cruel manner. - Conviction under Section 302 IPC modified to Section 304 Part II IPC. Sentence reduced to 10 years' imprisonment. [Paras 12-20]

Evidence - Medical Evidence and Eyewitness Testimony - Analysis - The prosecution relied on the testimony of eyewitnesses and the medical evidence from the post-mortem report, which indicated stab wounds sufficient to cause death. However, the defense presented a plausible account of sudden provocation and lack of premeditation. - Held, the prosecution's evidence did not conclusively negate the defense's claim of sudden fight and lack of intent to kill. [Paras 11, 14-15, 17]

Dying Declaration - Admissibility and Weight - The dying declaration of the deceased was recorded and used as evidence by the prosecution. However, the defense challenged its reliability, citing contradictions and lack of corroboration with other evidence. - Held, the dying declaration alone was insufficient to override the defense of sudden provocation, particularly given the consistent testimony of the defense witnesses. [Para 16]

Decision - Conviction and Sentence Modified - The conviction under Section 302 IPC is set aside. The appellants are convicted under Section 304 Part II IPC and sentenced to 10 years' rigorous imprisonment. [Paras 19-21]

Referred Cases:

Satish Narayan Sawant v. State of Goa (2009) 17 SCC 724

Surinder Kumar v. Union Territory, Chandigarh AIR 1989 SC 1094

Arumugam v. State rep. by Inspector of Police, Tamil Nadu AIR 2009 SC 331

Constitutional Law - Articles 14, 19(1)(g) - Affiliation of Technical Institutions - Writ petition challenging the denial of affiliation by Chhattisgarh Swami Vivekanand Technical University (CSVTU) to Rungta Engineering College despite AICTE approval. Petitioners argue violation of Articles 14 and 19(1)(g). Held, the denial of affiliation was arbitrary and violated Article 14. University is obligated to grant affiliation if AICTE norms are met. [Paras 25-43]

Technical Education - Jurisdiction of AICTE and State Universities - AICTE Act empowers AICTE to set norms and standards for technical education institutions. State universities must comply with these norms. Held, state cannot impose additional requirements or deny affiliation if AICTE norms are met. [Paras 30-38]

Administrative Law - Role of Universities in Granting Affiliation - Examination of university’s role in granting or denying affiliation in light of AICTE approval. Held, university's refusal to grant affiliation must be based on grounds outside AICTE’s jurisdiction, such as eligibility of students or admission procedures. [Paras 31-40]

Decision - CSVTU's decision to deny affiliation to Rungta Engineering College set aside. University directed to grant affiliation. Court reaffirms AICTE's primacy in setting standards for technical education institutions. The writ petition stands disposed off accordingly. [Para 43]

Referred Cases:

Jaya Gokul Educational Trust v. Commissioner and Secretary to Government Higher Education Department, Kerala State and Another, AIR 2000 SC 1614

Chairman, Bhartia Education Society and Another v. State of Himachal Pradesh and Others, (2011) 4 SCC 527

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

Constitutional Law - Classification for Superannuation Age - Validity - Civil Appeals challenging the Armed Forces Tribunal's decision allowing respondents to serve until 57 years for ground duty and 54 years for the flying branch. - Held, classification between Group Captains (Select) and Group Captains (Time Scale) for different retirement ages is arbitrary and violates Articles 14 and 16 of the Constitution. Both categories perform similar duties, wear the same rank, and receive the same benefits, thus, the distinction lacks rational basis. Classification quashed. [Paras 1-25]

Armed Forces - Promotion and Retirement Age - Analysis - Promotions in the Air Force include merit-based (Select) and time-bound (Time Scale) routes. Both routes lead to the same rank and equivalent responsibilities. - Held, merit-based distinctions cannot justify differential retirement ages within the same rank. Parity in retirement age ensures fairness and maintains morale among officers. [Para 16-25]

Decision - Uniform Retirement Age for Group Captains - Court affirms that both Group Captains (Select) and Group Captains (Time Scale) should have the same retirement age. Differentiation based on selection process violates equality principles enshrined in the Constitution. Appeals dismissed. [Paras 38-39]

Referred Cases:

E.P. Royappa v. State of Tamil Nadu, AIR 1974 SC 555

Centre for Public Interest Litigation v. Union of India, AIR 2014 SC 2140

Mrs. Maneka Gandhi v. Union of India, AIR 1978 SC 597

The State of West Bengal v. Anwar Ali Sarkar, AIR 1952 SC 75

A.S. Iyer v. V. Balasubramanyam, AIR 1980 SC 452

Ram Krishna Dalmia v. Shri Justice S.R. Tendolkar, AIR 1958 SC 538

Lachhman Das v. State of Punjab, AIR 1963 SC 222

AIR India v. Nergesh Meerza, AIR 1981 SC 1829

Kamlakar v. Union of India, AIR 1999 SC 2300

Educational Service Law - Statutory Qualifications for Appointments - Private School Teachers - The State of Punjab appeals against the High Court’s decision favoring the private respondents (teachers) appointed by the Doaba Arya Senior Secondary School, Nawanshahr, without adherence to statutory qualifications - Supreme Court finds that appointments were made in violation of the Punjab Privately Managed Recognised Schools Employees (Security of Service) Rules, 1981, which strictly mandate specific qualifications for JBT/ETT teachers - Appointments lacking statutory qualifications cannot be validated. [Paras 6-12]

Appointments and Approvals - Invalid Process - Government Instructions vs. Statutory Rules - Examined whether higher qualifications could substitute statutory requirements - Ruled that government instructions permitting higher qualifications are nullified if they contravene statutory provisions - Affirmed that none of the private respondents possessed the requisite statutory qualifications for the advertised JBT/ETT posts - Government instructions cannot override statutory rules - High Court order set aside. [Paras 13-18]

Compensation for Appointed Teachers - Private School’s Responsibility - Held that management issuing illegal advertisement and appointments should bear financial responsibility - Directed the management of Doaba Arya Senior Secondary School to pay all outstanding emoluments to the private respondents. [Paras 19-20]

Decision - Appeals Allowed - Supreme Court sets aside the High Court’s decision, affirming that appointments made without statutory qualifications are invalid and directing the school management to compensate the appointed teachers. [Paras 19-21]

Referred Cases:

P.M. Latha and Another Vs. State of Kerala and Others, (2003) 3 SCC 541

Yogesh Kumar and Others Vs. Government of NCT, Delhi and Others, (2003) 3 SCC 548

Jyoti K.K. and Others Vs. Kerala Public Service Commission and Others, (2002) 3 SCC 541

Criminal Law - Prevention of Corruption - Demand and Acceptance of Bribe – Criminal Appeal challenging the conviction and sentencing by the High Court of Gujarat which affirmed the trial court's judgment convicting the appellant for offenses under Section 7 and Section 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act, 1988 – Whether there was sufficient legal evidence to establish the guilt of the appellant for the offenses charged – The appellant argued lack of evidence for demand and voluntary acceptance of bribe, and improper witness credibility.

Held – The evidence presented, including the testimonies of the complainant (PW1) and the shadow witness (PW3), corroborated by scientific evidence (U.V. lamp experiment), sufficiently established the demand and acceptance of the bribe by the appellant. The prosecution effectively demonstrated that the appellant had demanded and accepted the bribe for issuing certain documents. The defense failed to substantiate claims of collecting the amount towards land revenue tax – Appeal partly allowed with modification in sentence. [Paras 1-11]

Demand of Bribe - Proof – Analysis – The court emphasized that for an offense under Section 13(1)(d) of the Act, proof of demand or request for a bribe is essential. The prosecution's evidence, including the complainant’s and shadow witness’s testimonies, proved the demand and acceptance of the bribe – The presumption under Section 20 of the Act was not rebutted by the appellant. [Paras 6-9]

Modification of Sentence – Mitigating Factors – Considering the appellant's age and medical condition, the court reduced the sentence to the minimum prescribed under the law, concluding that it would meet the ends of justice. [Paras 10-11]

Decision – Conviction upheld – Sentence modified – The appellant's conviction for offenses under Sections 7 and 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act was upheld. However, the sentence was reduced to six months rigorous imprisonment for the conviction under Section 7, and one year rigorous imprisonment for the conviction under Section 13(1)(d) read with Section 13(2), with the sentences to run concurrently. The fines and default sentences were retained. [Para 11]

Referred Cases:

State of Kerala and Another Vs. C.P. Rao, (2012) CriLJ 2607

Narendra Champaklal Trivedi Vs. State of Gujarat, AIR 2012 SC 2263

B. Jayaraj Vs. State of A.P., (2014) AIRSCW 2080

Banarsi Dass Vs. State of Haryana, AIR 2010 SC 1589

A. Subair Vs. State of Kerala, (2009) CriLJ 3450

Criminal Law – Quashing of Cognizance – Appeal against High Court order quashing the order of cognizance for offenses under IPC Sections 425, 468, and 471 – High Court relied on precedent stating that offenses involving documents produced in court must be pursued via a complaint by the court under Section 195(1)(b)(ii) CrPC – Supreme Court overruled High Court, referencing Constitution Bench decision in Iqbal Singh Marwah v. Meenakshi Marwah – Held that the bar under Section 195(1)(b)(ii) CrPC applies only to documents forged during the pendency of a case – Quashing of cognizance order set aside, case remanded for reconsideration on merits. [Paras 10-22]

Forged Documents – Applicability of Section 195(1)(b)(ii) CrPC – Held – Bar applies only to documents forged while the document is under court custody – Allegations pertain to forged document produced before institution of suit – High Court erred in applying bar under Section 195(1)(b)(ii) CrPC – Matter remanded for High Court to assess prima facie case on facts. [Paras 14-20]

Decision – Remand for Fresh Consideration – Supreme Court sets aside High Court order quashing cognizance, remands matter for fresh consideration on merits within three months – Clarifies no opinion expressed on merits of case. [Paras 21-22]

Referred Cases:

Surjit Singh and others v. Balbir Singh, AIR 1996 SC 1592

Smt. Nagawwa v. Veeranna Shivalingappa Konjalgi and Others, AIR 1976 SC 1947

Patel Laljibhai Somabhai v. The State of Gujarat, AIR 1971 SC 1935

Raghunath and Others v. State of U.P. and Others, AIR 1973 SC 1100

Mohan Lal and Others v. The State of Rajasthan and Another, AIR 1974 SC 299

Sachida Nand Singh and Another v. State of Bihar and Another, AIR 1998 SC 1121

M.S. Sheriff v. The State of Madras and Others, AIR 1954 SC 397

Dr. S.L. Goswami v. The High Court of Madhya Pradesh at Jabalpur, AIR 1979 SC 437

Legal Remembrancer of Govt. of West Bengal v. Haridas Mundra, AIR 1976 SC 2225

Iqbal Singh Marwah and Another v. Meenakshi Marwah and Another, AIR 2005 SC 2119

Gopalakrishna Menon and Another v. D. Raja Reddy and Another, AIR 1983 SC 1053

State of Haryana and others v. Ch. Bhajan Lal and others, AIR 1992 SC 604

Constitutional Law - Arbitrary Allocation of Natural Resources - Coal Blocks - Writ Petitions challenging the legality of coal block allocations by the Government of India through the Screening Committee and Government dispensation route. The Supreme Court held that these allocations were arbitrary and illegal, violating the Coal Mines (Nationalisation) Act, 1973, and were not in accordance with the law. The Court quashed all coal block allocations, except for those specifically exempted, and imposed consequences for the illegalities. [Paras 1-40]

Principles of Natural Justice - Hearing before Cancellation - Held - The Court observed that affected parties, including associations representing allottees and state governments, were given an opportunity to be heard before the judgment. Consequently, the principles of natural justice were adhered to, and no further individual hearings were warranted. [Paras 29-32]

Cancellation of Coal Blocks - Legal and Economic Implications - The Court quashed the illegal coal block allocations, recognizing the severe economic and social consequences but underscored the need to rectify the arbitrariness. Allocations to the Ultra Mega Power Projects and certain Central Government undertakings were exempted. The decision to cancel was deferred for six months to mitigate immediate disruption. [Paras 33-39]

Additional Levy - Compensation for Illegal Allocation - Held - The Court imposed an additional levy of Rs. 295 per metric ton of coal extracted, based on the Comptroller and Auditor General’s report, as a compensatory measure for the loss to the exchequer. This levy was to be paid by the allottees within a stipulated time frame. [Paras 40-41]

Referred Cases:

Chingleput Bottlers v. Majestic Bottling Company, AIR 1984 SC 1030

Onkar Lal Bajaj v. Union of India, AIR 2003 SC 2562

Rupa Ashok Hurra v. Ashok Hurra, AIR 2002 SC 177

National Textile Workers' Union v. P.R. Ramakrishnan, AIR 1983 SC 75

Sheela Barse v. Union of India, AIR 1988 SC 2211

Constitutional Law - Right to Life and Personal Liberty - Police Encounters - Guidelines for Investigation: The Supreme Court, recognizing the right to life under Article 21 of the Constitution, emphasized the necessity of ensuring thorough, independent, and impartial investigations into police encounters resulting in death. The Court issued comprehensive guidelines to be followed in such cases to safeguard human rights and maintain public confidence in the rule of law.

Criminal Procedure - FIR and Investigation: The Court mandated that upon receiving intelligence or a tip-off about criminal activities leading to an encounter, such information must be recorded. An FIR must be registered if death occurs as a result of police firing, and an independent investigation by the CID or another police unit under a senior officer's supervision must be conducted. The investigation must include collecting and preserving evidence, conducting post-mortems by two doctors, and videographing the procedure.

Magisterial Inquiry and NHRC Involvement: A magisterial inquiry under Section 176 of the CrPC is compulsory in all cases of death due to police action. Information of the incident must be promptly sent to the NHRC or the State Human Rights Commission. In cases of serious doubts about impartiality, NHRC involvement is not necessary unless required.

Compensation and Disciplinary Action: The Court emphasized that compensation to the victim's dependents should follow the scheme under Section 357A of the CrPC. Disciplinary action against police officers involved in encounters resulting in death must be promptly initiated if evidence shows the use of firearms amounting to an offense under the IPC.

Promotion and Rewards: No out-of-turn promotions or instant gallantry rewards should be bestowed on officers involved in encounters until their actions are thoroughly investigated and established beyond doubt as gallant.

Application of Guidelines: The guidelines issued are to be treated as law declared under Article 141 of the Constitution and are applicable to all cases of death and grievous injury in police encounters.

Referred Cases:

Om Prakash and Others v. State of Jharkhand and Another (2012) 9 JT 642

D.K. Basu v. State of West Bengal AIR 1997 SC 610

B.G. Verghese v. Union of India (2012) 2 SCALE 457

Chaitanya Kalbagh and Others v. State of U.P. AIR 1989 SC 1452

Rohtash Kumar v. State of Haryana (2013) ACJ 1033

R.S. Sodhi v. State of U.P. AIR 1994 SC 38

Satyavir Singh Rathi v. State thr. C.B.I. AIR 2011 SC 1748

Prakash Kadam v. Ramprasad Vishwanath Gupta AIR 2011 SC 1945