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Keywords: Serious Fraud Investigation Office, SFIO, bail, default bail, Adarsh scam, charge-sheet, Section 167, Code of Criminal Procedure, Adarsh Group Directors [Adarsh Group] The Supreme Court has allowed an appeal filed by the Serious Fraud Investigation Office (SFIO) which had challenged the order passed by the High Court of Punjab and Haryana granting bail to the Directors of Adarsh Group. The bench observed, “Filing of a charge-sheet is sufficient compliance with the provisions of Section 167 CrPC and that an accused cannot demand release on default bail under Section 167(2) on the ground that cognizance has not been taken before the expiry of 60 days.” An investigation was directed to be conducted into the affairs of Adarsh Group of Companies and LLPs by the Central Government and the two Directors were arrested. However, the high court had granted bail to them for the sole reason that the trial court has not taken cognizance of the complaint before the expiry of the 60-day period, which entitled them to statutory bail, as a matter of indefeasible right. Bench: Justices L Nageshwar Rao and BR Gavai Case Title: Serious Fraud Investigation Office v. Rahul Modi & Ors. Click here to read more
Keywords: Insolvency and Bankruptcy Code, IBC, demand notice, operational creditor, debtor, corporate debtor [IBC] The Supreme Court has held that a demand notice for an operational debt by an operational creditor does not necessarily need to be accompanied by an invoice, but it may be sent where such debt arises under a “provision of law, contract, or other document” and for which documents can be attached along with the demand notice. Further, relying on Regulation 7(2) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the Court held that an operational creditor can prove their claim not only through “an invoice demanding payment for the goods and services supplied to the corporate debtor” (Regulation 7(2)(ii)) but also through “a contract for the supply of goods and services with corporate debtor” (Regulation 7(2)(i)). Bench: Justices Dr. Dhananjaya Y Chandrachud, Surya Kant and Vikram Nath Case Title: M/s Consolidated Construction Consortium Limited v. M/s Hitro Energy Solutions Private Limited Click here to know more
Keywords: Section 498A, Dowry death, Indian penal code, personal vendetta, matrimonial litigation, marriages in India, cruelty [Section 498A IPC] Stressing that in recent times, matrimonial litigations in the country have also increased significantly and there is a greater disaffection and friction surrounding the institution of marriage, now, more than ever, the Supreme Court recently remarked that this has resulted in an increased tendency to employ provisions such as 498A IPC as instruments to settle personal scores against the husband and his relatives. In this regard, a division bench highlighted that incorporation of section 498A of IPC was aimed at preventing cruelty committed upon a woman by her husband and her in-laws, by facilitating rapid state intervention. Bench: Justices S Abdul Nazeer and Krishna Murari Case Title: Kahkashan Kausar @ Sonam & Ors. V. State of Bihar & Ors. Click here to know more
Keywords: POCSO, mitigating circumstances, rigorous imprisonment, life sentence [POCSO] Noting that as of today the accused was aged 70-75 years of age and was also reportedly suffering from Tuberculosis (TB), the top court while considering such mitigating circumstances held that the life sentence awarded to one Nawabuddin convicted under Sections 376(2)(i) of IPC and Section 5/6 of the Protection of Children From Sexual Offences Act, 2012 could be converted to 15 years of rigorous imprisonment. While holding so, the court upheld the monetary fine of Rs. 50,000/- imposed by the Trial Court and confirmed by the High Court. Nawabuddin, who was neighbor of the victim girl, had enticed her to bushes where he had raped her. However, he got spotted by some persons while he was naked and was indulged in the process of raping the victim girl. Those persons had caught him red-handed and handed him over to the police, later on. Bench: Justices MR Shah and BV Nagarathna Case Title: Nawabuddin v. State of Uttarakhand Click here to know more
Keywords: Vicarious liability, employer-employee relationship, bank employees, fraud, post office, course of employment, wrongful acts, indemnified [Vicarious Liability] Noting that employees, as individuals, are capable of being dishonest and committing acts of fraud or wrongs themselves or in collusion with others, a three-judge bench of the Supreme Court on February 7th held that such acts of bank/post office employees, when done during their course of employment, are binding on the bank/post office at the instance of the person who is damnified by the fraud and wrongful acts of the officers of the bank/post office. The bench further noted that once this is established, the employer would be liable for the employee’s wrongful act, even if they amount to a crime. Whether the fraud is committed during the course of employment would be a question of fact that needs to be determined in the facts and circumstances of the case. Bench: Justices L Nageshwar Rao, BR Gavai and Sanjiv Khanna Case Title: Pradeep Kumar and Another vs. Post Master General and Others Click here to know more
Keywords: Insurance claims, delay, genuine claim, registration of FIR, theft of vehicle, insurance companies [Insurance Claim] Noting that when the complainant-insured had lodged the First Information Report (FIR) immediately after the theft of the vehicle, and when the police after the investigation had arrested the accused and had also filed challan before the concerned Court, and the claim of the insured was found to be genuine, the Supreme Court held that an Insurance Company could not have repudiated the claim merely on the ground that there was a delay in intimating the Insurance Company about the occurrence of the theft. Bench: Justice Sanjiv Khanna and Justice Bela M Trivedi Case Title: Jaina Construction Company vs The Oriental Insurance Company Ltd Click here to know more
Keywords: Bank employees, honesty, integrity, duty towards customers, sine qua non, United Bank of India [Role of Bank employees] The Supreme Court has remarked that a bank employee always holds the position of trust where honesty and integrity are the sine qua non. A division bench made this observation while allowing an appeal filed by United Bank of India filed against an order of the high court. The respondent employee of the bank, one Bachan Prasad Lall, was alleged to have fraudulently prepared nine credit transfer vouchers on various dates on the pretext of payment of interest towards fixed deposits and credited the whole amount to one saving account opened in the name of one Smt. Asha Devi (admittedly the fake account prepared by respondent-employee). Bench: Justices Ajay Rastogi and Abhay S Oka Case Title: United Bank of India vs Bachan Prasad Lall Click here to know more
Keywords: SARFAESI, mortgaged property, borrower, auction, secured creditor, outstanding liability, secured property, discharged from liability [SARFAESI] “By selling the mortgaged property/secured property it cannot be said that the borrower is discharged from the entire liability outstanding against him. The liability of the borrower with respect to the balance outstanding dues would still be continued….”, observed the Top Court. Holding that unless and until the borrower was ready to deposit/pay the entire amount payable together with all costs and expenses with the secured creditor, the borrower cannot be discharged from the entire liability outstanding, the Court found that the high court had erred in law. Bench: Justices MR Shah and Sanjiv Khanna Case Title: Bank of Baroda v M/s Karwa Trading Company & Anr. Click here to know more
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