Read Order: SUBHASH @ SUBANNA & ORS v. STATE OF KARNATAKA MINISTRY OF HOME AFFAIRS [SC-CRIMINAL APPEAL NO. 328 OF 2012]
LE Correspondent
New Delhi, April 15, 2024: While upholding the conviction of the accused persons in a murder case, the Supreme Court has dismissed the contention that the act of the appellants was in exercise of the right of private defence as there was no provocation by the deceased.
The First Information Report, in this case, was lodged against the accused persons for commission of offences under Section 143, 147, 148, 504, 323, 324 and 302 r/w Section 149 of Indian Penal Code, on the basis of complaint submitted by Kumari Sangeeta alleging that on February 17, 2009, her uncle brought fire wood which was dumped on the way, blocking the path of the complainant. Thus, Sangeeta tried to reach the said path to throw dust, at that time she found that her pathway was covered with the fire wood. As such, she demanded an explanation from her uncle Subhash. When She raised the question, her uncle Subhash, his wife and his children responded by abusing Sangeeta. When her parents were apprised about the fact, then a verbal altercation started between both the families. Subhash and the other family members started abusing Mahadevappa and then they assaulted Mahadevappa with a stick on his forehead and face, causing grievous injuries to Mahadevappa.
Dattatrey (appellant No.2), who was carrying a chopper, laid an assault on the forehead and head of Mahadevappa, causing grievous injuries to Mahadevappa. Digambar (appellant No.3) threw a big stone below the right knee of Mahadevappa, resulting in grievous blood injuries. Then Digambar picked up a stone in his hand and hit Mahadevappa on his face causing injury. When Mahadevappa was brought to his house, he was unconscious as he had received grievous injuries. When Mahadevappa was brought to the hospital, he was declared dead and his body was sent for autopsy.
By way of an appeal before the Top Court, the appellants challenged the judgment of the Karnataka High Court convicting the appellants (accused Nos. 1, 2 and 4) under Section 302 of IPC and sentencing them to life imprisonment. Additionally, the High Court also upheld the conviction and sentence of appellant Nos.1 and 3 (accused Nos 2 & 4) under Sections 324 and 326 of IPC as awarded by Trial Court.
The first aspect noted by the Division Bench of Justice Sudhanshu Dhulia and Justice Prasanna B. Varale was that except 7-8 witnesses, the majority of other witnesses, who were neighbours of the deceased Mahadevappa, have turned hostile.
To establish the death of Mahadevappa being a homicidal one, the prosecution mainly drew support from the testimony of P.W.12 Dr. Balachandra Joshi who in his testimony before the Trial Court stated that he was working as Senior specialist since June, 2006 in Government Hospital, Gulbarga. The Bench noted that version of Dr. Basawaswamy supported the case of the prosecution on the aspects i.e., the presence of the prosecution witnesses Sharanappa and Sangeeta on the spot and their attempt to interfere to save their father Mahadevappa from the attack of the accused/appellants, and receiving injuries in that process.
The Bench did not accept the contention of the appellant that the act of the appellants was in exercise of the right of private defence and as such, offence under Section 302 of Indian Penal code was not attracted against them. Reference was also made to the judgement in Darshan Singh v. State of Punjab and Another.
As per the Bench, the evidence clearly showed that Mahadevappa was alone, he went to the house of appellants to make an inquiry, but he had not entered in his house and on the contrary, accused No.1 Subhash s/o Shivaray Natikar thrashed the deceased using stick on the head of Mahadevappa. The evidence also showed that accused no.1 was armed with stick, accused no.2 was armed with chopper and accused no.4 picked up the stones lying on the spot.
Even though the evidence further revealed that there was a verbal exchange, but there was nothing to show that this verbal exchange was in the form of a provocation by the deceased to the appellants.
The evidence of these injured eyewitnesses clearly showed that the intention of the accused person was to do away with Mahadevappa. It was clear that the victim Mahadevappa was unarmed, whereas the accused persons who were armed led a brutal attack on the victim Mahadevappa by stick, by koita and stone.
Thus, dismissing the appeal, the Bench concluded that the Karnataka High Court committed no error in upholding and confirming the judgment and order of Trial Court/Sessions Court.
Read Order: AABID KHAN v. DINESH AND OTHERS [SC- CIVIL APPEAL NO. 4828 of 2024]
LE Correspondent
New Delhi, April 15, 2024: While observing that no reason had been assigned by the Motor Accidents Claims Tribunal for substituting its opinion to that of the doctor who treated the claimant, the Supreme Court has enhanced the motor accident compensation from Rs 1.27 lakh to Rs 2.42 lakh along with interest.
The Division Bench of Justice Sanjay Karol and Justice Aravind Kumar was considering a challenge to the order of the Madhya Pradesh High Court whereunder the compensation awarded by the Motor Accidents Claims Tribunal was enhanced from a sum of Rs 87,700 to Rs 1,27,700 with same interest contending inter-alia that compensation so awarded by the High Court was on the lower side and same had to be enhanced.
The occurrence of the accident, injuries sustained by the appellant/ claimant in the road accident that took place on 23.04.2013, consequential disability sustained, issuance of insurance policy to the offending vehicle and policy being in force on the date of accident were are all undisputed facts.
After a perusal of the award passed by the tribunal as modified by the High Court revealed that the claimant had sustained compound fracture in the left acetabulum and left rib. The Doctor had deposed that the whole body disability suffered by the claimant was to the extent of 17% and this fact had been elicited in the cross-examination. However, the tribunal computed the compensation towards loss of future income by considering the whole body disability at 10%.
On surmises and conjectures the percentage of disability had been reduced. No reason was assigned by the tribunal for substituting its opinion to that of the expert opinion, namely, the doctor who treated the claimant and examined as PW-5.
The Bench was of the view that the tribunal and the High Court committed a serious error in not accepting the said medical evidence and in the absence of any contra evidence available on record, neither the tribunal nor the High Court could have substituted the disability to 10% as against the opinion of the doctor (PW-5) certified at 17%.
“In that view of the matter the compensation awarded under the head loss of income towards permanent disability deserves to be enhanced by construing the whole body disability at 17%”, the Bench said.
The monthly income of the claimant which had been construed as Rs 3,500 was held to be on the lower side particularly in the background of the fact that the accident in question having occurred on 23.04.2013 and the evidence on record disclosing that claimant was self-employed as a mechanic and had work experience of over 30 years. As per the Bench, his income had to be construed at Rs.6,500 per month in substitution to Rs 3,500 computed by the Tribunal and the High Court. Thus, the claimant/appellant was held to be entitled for enhanced compensation of Rs.92,820 towards loss of future income.
“We are also of the considered view that compensation awarded by the Tribunal under the heads of Attendant charges, pain and suffering, transportation together in a sum of Rs.9,000 being abysmally on the lower side and same deserves to be enhanced and accordingly a lump sum compensation of Rs.1,00,000/- is awarded under these three (3) heads”, it added.
Thus, allowing the appeal, the Bench enhanced the compensation amount to Rs 2,42,120 and also asked the Respondent-Insurance Company to pay the balance amount of compensation with interest @ 7% P.A. as awarded by the Tribunal by depositing the same before the jurisdictional tribunal within 6 weeks.
Read Order: MAHAKALI SUJATHA v. THE BRANCH MANAGER, FUTURE GENERALI INDIA LIFE INSURANCE COMPANY LIMITED & ANOTHER [SC-CIVIL APPEAL NO. 3821 OF 2024]
Tulip Kanth
New Delhi, April 15, 2024: Considering the fact that the respondent-Insurance Company failed to adequately discharge its burden of proof about the fact of suppression of previous life insurance policies of the insured, the Supreme Court has asked the company to make the payment of over Rs 17 lakh with interest to the complainant.
The factual background of the case was such that Late Sri Siriveri Venkateswarlu, father of the complainant, obtained two insurance policies from the opposite party – one in the year 2009 for a sum of Rs. 4,50,000, and the other in 2010, for a sum of Rs 4,80,000. Under the said two policies, in the event of death by accident, twice the sum assured was payable by the insurer. In the application form of the policy, the insured had been asked about the details of his existing life insurance policies with any other insurer, and the insured had answered the same in the negative. The complainant, being the daughter of the policyholder Late Sri Siriveri Venkateswarlu, was nominated to receive the proceeds under both the policies.
In 2011, the policy holder unfortunately lost his life in a train accident, leaving behind the complainant alone as his legal heir as well as nominee for death benefits. Immediately thereafter, the complainant approached the opposite party and informed them about the death of her father and they advised the complainant to submit a claim form along with necessary documents which she did. However, by a letter dated 31.12.2011, the complainant’s claims were repudiated by the opposite party on the ground that the policy holder had suppressed material facts in his application form with respect to existing life insurance policies from other insurers.
The complainant approached the concerned District Forum by way of a consumer complaint which was allowed on the ground that no documentary evidence was available to show that the deceased- insured had taken various insurance policies from various other companies. The Commission directed the opposite parties to pay the insurance amount of Rs.7,50,000 + Rs.9,60,000 under two policies jointly and severally with interest at the rate of 6% per annum from 31.12.2011, i.e., the date of repudiation of the claim of the complainant, till realization, along with costs of Rs. 2000 to the complainant.
The insured/opposite party’s appeal before the State Consumer Forum was dismissed. The opposite party thereafter approached the NCDRC through Revision Petition and the consumer complaint was dismissed. Hence, the complainant preferred the present Special Leave Petition before the Apex Court.
In this matter, before the Division Bench of Justice B.V. Nagarathna & Justice Augustine George Masih, the controversy pertained to the factum of repudiation of the insurance claim of the Complainant on the ground of the material suppression of information regarding the previous policies allegedly held by the insured-deceased, while taking the life insurance policy from the Opposite Party.
It was clarified by the Bench that the repudiation of an insurance claim is largely governed by Section 45 of the Insurance Act, 1938 which bars the calling in question of an insurance policy beyond expiry of the stipulated period, except in a few circumstances that have to be proved by the insurer.It was opined that since the present case dealt with a policy and its repudiation before the 2014 amendment to Section 45, the pre-amendment time period of two years would be applicable to the case and the insurer cannot question the policy after the expiry of the time period. If it does, then the burden rests on the insurer to establish materiality of the fact suppressed and the knowledge of the insured about such suppression, so that the repudiation of the claim could be justified by the insurer, the Bench added.
“In the present case, the onus was on the insurer to show that the insured had fraudulently given false information and the said information was related to a material fact”, it said while also adding, “ Thus, the principle of utmost good faith imposes meaningful reciprocal duties owed by the insured to the insurer and vice versa…In relation to the duty of disclosure on the insured, any fact which would influence the judgment of a prudent insurer and not a particular insurer is a material fact.”
In this case, the respondent insurance company had produced no documentary evidence whatsoever before the District Forum to prove its allegation that the insured had taken multiple insurance policies from different companies and had suppressed the same. The District Forum had therefore concluded that there was no documentary evidence to show that the deceased-life insured had taken various insurance policies except an averment and on that basis the repudiation was held to be wrong.
Before the State Commission, the respondent had provided a tabulation of the 15 different policies taken by the insured-deceased, amounting to Rs.71,27,702. However, the same was not supported by any other documentary evidence, like the policy documents of these other policies, or pleadings in courts, or such other corroborative evidence. It was also noted by the Bench that there was no effort made by the respondent to bring any authenticated material on record.The NCDRC however accepted the averment of the respondents, without demanding corroborative documentary evidence. The NCDRC, on the contrary, also held that the fact about multiple policies was not dealt with by the appellant in her complaint or evidence affidavit and this therefore proved that the insured had indeed taken the policies from multiple companies as claimed by the respondents.
Observing that this approach adopted by the NCDRC was incorrect, the Bench said, “The cardinal principle of burden of proof in the law of evidence is that he who asserts must prove, which means that if the respondents herein had asserted that the insured had already taken fifteen more policies, then it was incumbent on them to prove this fact by leading necessary evidence. The onus cannot be shifted on the appellant to deal with issues that have merely been alleged by the respondents, without producing any evidence to support that allegation.”
Noting that the respondents had merely provided a tabulation of information about the other policies held by the insured-deceased and the said tabulation also had missing information with respect to policy numbers, issuing dates & different dates of births, the Bench considered the admitted fact that this information had not been supported with any other documents to prove the averment in accordance with law. No officer of any other insurance company was examined to corroborate the table of policies said to have been taken by the deceased policyholder.
“A fact has to be duly proved as per the Evidence Act, 1872 and the burden to prove a fact rests upon the person asserting such a fact. Without adequate evidence to prove the fact of previous policies, it was incorrect to expect the appellant to deal with the said fact herself in the complaint or the evidence affidavit, since as per the appellant, there did not exist any previous policy and thus, the onus couldnt have been put on the appellant to prove what was non-existent according to the appellant”, it held.
As per the Bench, the respondents, vide their counter affidavit sought to produce some documents to substantiate their claim of other existing insurance policies of the insured- deceased, but the same couldn’t be permitted to be exhibited at this stage, that too, in an appeal filed by the complainant who was the beneficiary under the policies in question.
“Therefore, it can be safely concluded that the respondents have failed to adequately prove the fact that the insured-deceased had fraudulently suppressed the information about the existing policies with other insurance companies while entering into the insurance contracts with the respondents herein in the present case. Therefore, the repudiation of the policy was without any basis or justification”, the Bench held while allowing the appeal. The Top Court also asked the respondent-company to make the payment of the insurance claim under both the policies to the appellant, amounting to Rs 7,50,000 and Rs. 9,60,000, with interest at the rate of 7% per annum from the date of filing the complaint, till the actual realisation.
Read Order: SANJAY CHAUDHARY AND ANR v. PIONEER URBAN LAND & INFRASTRUCTURE LTD. AND ANR [SC- CIVIL APPEAL NO(S). 1454 OF 2023]
Tulip Kanth
New Delhi, April 13, 2024: The Supreme Court has come to the aid of aggrieved homebuyers by setting aside a direction passed by the National Consumer Disputes Redressal Commission whereby the respondent-developer was permitted to charge interest at the rate of 9% per annum on the balance amount.
The appeal in question was directed against the final order passed by the National Consumer Disputes Redressal Commission (Commission) allowing a consumer case and directing the opposite parties to issue a fresh statement of account, duly crediting delayed compensation of Rs 2433120 within one month of the judgment. On the balance amount (except stamp duty and registration charges), the opposite parties were asked to charge interest @9% per annum, from 14.11.2017 till the date of payment. The complainants were given a months’ time to deposit the amount. On settlement of the account, the opposite parties were to execute conveyance deed in favour of the complainants and handover possession of the unit, complete in all respect to them without any further delay.
The appellants were aggrieved by the direction passed by the Commission giving liberty to the respondent developer to charge interest @9% per annum on the balance amount (except stamp duty and registration charges) from November 14, 2017 till the date of payment from the appellants homebuyers.
The Division Bench comprising Justice B. R. Gavai & Justice Sandeep Mehta noted the admitted fact that that the appellants being the homebuyers, had made payment of 90% of the total sale consideration of the flat in question to the respondent-developer till 23rd June, 2014. The said amount ran to nearly Rs.2,21,56,942.42 (total consideration for 4111 sq. ft super area and amenities being Rs.2,38,20,932/-).
The respondent-developer failed to handover the possession of the flat to the appellants-homebuyers by the scheduled date i.e. March 16, 2014 upon which the consumer dispute came to be registered.
“In this background, we are of the view that the learned Commission erred in directing that the opposite party i.e. respondent-developer shall be entitled to charge interest @9% per annum from the appellants-homebuyers on the balance amount (except stamp duty and registration charges) from 14th November, 2017 till the date of payment. Thus, the said part of the impugned order whereby, the respondent-developer has been permitted to charge interest at the rate of 9% per annum on the balance amount is quashed and set aside”, the Bench held.
The Top Court directed the respondents to convey the outstanding amount to the appellants within a period of two months and upon payment being made, hand over the possession of the flat in question to the appellants forthwith and not later than a period of 30 days from the date of final payment being made.
Read Order:RAVISHANKAR TANDON v. STATE OF CHHATTISGARH [SC- CRIMINAL APPEAL NO. 3869 OF 2023]
Tulip Kanth
New Delhi, April 12, 2024: Referring to section 27 of the Evidence Act, the Supreme Court has asserted that when a fact is actually discovered in consequence of the information supplied, it affords some guarantee that the information is true and it can therefore be safely allowed to be admitted in evidence as an incriminating factor against the accused.
The incident in question was of the year 2011 when Ramavtar (PW-1) had lodged a missing person report after his son Dharmendra Satnami (deceased) went missing. While an extensive search was being conducted, on the basis of suspicion, the police interrogated the appellants. During the interrogation, the appellants, who disclosed that they had strangulated the deceased to death on the Bhatgaon Canal Road and had thereafter thrown his body into a pond at Village Bhatgaon. On the basis of the memorandum statements, the police recovered the dead body of the deceased from the pond and the dead body was identified. Thereafter, on the very same day, a First Information Report (FIR) was registered wherein it is recorded that the aforesaid offences were committed between the days of November 30,2011 and December 3, 2011. According to the Post-Mortem Report, the cause of death of the deceased was stated to be asphyxia due to strangulation and the nature of death was homicidal.
The prosecution case stemmed from the memorandum statements of the appellants wherein they admitted that Dinesh Chandrakar (accused No.3) had instructed Ravishankar Tandon (accused No.1) and Satyendra Kumar Patre (accused No.4) to murder the deceased in exchange for Rs.90,000, which was to be paid upon the execution of the said murder. Upon receiving the aforesaid instruction, Ravishankar Tandon (accused No.1) and Satyendra Kumar Patre (accused No.4) along with Umend Prasad Dhritalhare (accused No.2) hatched a criminal conspiracy to kill the deceased and worked out a plan to execute the same.
The appeals before the Top Court challenged the judgment of the Division Bench of the Chhattisgarh High Court wherein the Division Bench dismissed the criminal appeals preferred by the appellants, namely Ravishankar Tandon (accused No.1), Umend Prasad Dhrutlahre (accused No.2), Dinesh Chandrakar (accused No.3) and Satyendra Kumar Patre (accused No.4) and upheld the order of conviction as recorded by the trial court.
The appellants submitted that the case was based on circumstantial evidence and the prosecution had failed to prove any of the incriminating circumstances beyond reasonable doubt.
It was contended on behalf of the respondent-State that both the High Court and the trial court had concurrently held that the prosecution had proved the case beyond reasonable doubt.
Noting that the matter was based on circumstantial evidence, the Bench placed reliance upon Sharad Birdhichand Sarda v. State of Maharashtra wherein it has been opined that it is a primary principle that the accused must be and not merely may be proved guilty before a court can convict the accused.
“It is settled law that suspicion, however strong it may be, cannot take the place of proof beyond reasonable doubt. An accused cannot be convicted on the ground of suspicion, no matter how strong it is. An accused is presumed to be innocent unless proved guilty beyond a reasonable doubt”, the Bench said.
Referring to State (NCT of Delhi) v. Navjot Sandhu alias Afsan Guru, the Top Court further affirmed, “As such, for bringing the case under Section 27 of the Evidence Act, it will be necessary for the prosecution to establish that, based on the information given by the accused while in police custody, it had led to the discovery of the fact, which was distinctly within the knowledge of the maker of the said statement. It is only so much of the information as relates distinctly to the fact thereby discovered would be admissible. It has been held that the rationale behind this provision is that, if a fact is actually discovered in consequence of the information supplied, it affords some guarantee that the information is true and it can therefore be safely allowed to be admitted in evidence as an incriminating factor against the accused.”
After a perusal of the evidence and materials on record, the Bench opined that that the prosecution had utterly failed to prove that the discovery of the dead body of the deceased from the pond at Bhatgaon was only on the basis of the disclosure statement made by the accused persons under Section 27 of the Evidence Act and that nobody knew about the same before that. Moreover, Ajab Singh (PW-18) had clearly admitted that he had signed the papers without reading them and that too on the instructions of the police.
Not only this but insofar as the statement of Dinesh Chandrakar (accused No. 3) was concerned, even the statement recorded under Section 27 of the Evidence Act was not at all related to the discovery of the dead body of the deceased. Nothing in his statement recorded under Section 27 led to discovery of any incriminating fact.
The IO had also failed to state as to what information was given by the accused persons which led to the discovery of the dead body. The evidence was also totally silent as to how the dead body was discovered and subsequently recovered. The Bench held, “We find that therefore, the evidence of the IO (PW-16) would also not bring the case at hand under the purview of Section 27 of the Evidence Act.”
Noting that the prosecution had utterly failed to prove any of the incriminating circumstances against the appellants the chain of circumstances was not so complete to lead to no other conclusion than the guilt of the accused persons, the Bench allowed the appeals.
“The appellants are directed to be acquitted of all the charges charged with and are directed to be released forthwith, if not required in any other case”, the Supreme Court ordered.
Read Order: Bhupatbhai Bachubhai Chavda & Anr v. State of Gujarat [SC-CRIMINAL APPEAL NO. 334 OF 2019]
LE Correspondent
New Delhi, April 12, 2024: While observing that there was no reason for the High Court to overturn the order of acquittal when the findings of the Trial Court were possible findings that could be arrived at after re-appreciating the evidence, the Supreme Court has acquitted a father-son duo in a murder case.
The appellants, who are father and son, were prosecuted for the offence punishable under Section 302, read with Section 34 of the Indian Penal Code (IPC).
The prosecution case was that the deceased was engaged in the business of diamond polishing. At about 9.45 pm on September 17, 1996, when PW-1, brother of the deceased, was sitting in his pan-bidi shop, one Vajsurbhai came to him by motorcycle and told him that the appellants had assaulted the deceased. PW-1 met his uncle Ramabhai on the outskirts of the village, who was taking the deceased to the hospital by a tempo. According to the prosecution case, Karshanbhai (PW-4), Dayabhai, Jivabhai and other villagers were sitting in the tempo. The deceased was taken to a clinic and was immediately shifted to Bhavnagar in a private hospital. The deceased succumbed to the injuries.
The Trial Court disbelieved the testimony of PW-4 Karshanbhai for various reasons. In the impugned judgment, the High Court noted that though, according to the case of PW-4, he received injuries on September 17, at the hands of the accused, Dr Jagdishbhai (PW-5) deposed that PW-4 informed him that he suffered injuries on September 18, 1996. The High Court, in the impugned judgment, held that in his police statement, PW-4, had correctly stated that he was injured on September 18, 1996.
Therefore, the statement he gave before the Court and the statement given by the doctor were meaningless. The High Court held that although the number of persons who witnessed the incident have not been examined, the appellants failed to adduce any evidence to falsify the prosecution's version. By the impugned judgment, after overturning the acquittal of the appellants, the High Court sentenced them to undergo life imprisonment.Aggrieved thereby, the appellants-father & son, approached the Top Court with the present appeal.
The Division Bench of Justice Abhay S. Oka and Justice Ujjal Bhuyan stated, “...it is true that while deciding an appeal against acquittal, the Appellate Court has to reappreciate the evidence. After re-appreciating the evidence, the first question that needs to be answered by the Appellate Court is whether the view taken by the Trial Court was a plausible view that could have been taken based on evidence on record. Perusal of the impugned judgment of the High Court shows that this question has not been adverted to. Appellate Court can interfere with the order of acquittal only if it is satisfied after reappreciating the evidence that the only possible conclusion was that the guilt of the accused had been established beyond a reasonable doubt. The Appellate Court cannot overturn the order of acquittal only on the ground that another view is possible. In other words, the judgment of acquittal must be found to be perverse. Unless the Appellate Court records such a finding, no interference can be made with the order of acquittal.”
As per the Bench, the High Court had ignored the well-settled principle that an order of acquittal further strengthens the presumption of innocence of the accused.
The second error committed by the High Court was that it had gone to the extent of recording a finding that the appellants had failed to adduce evidence in their support, failed to examine the defence witness and failed to establish falsity of the prosecution's version.
“This concept of the burden of proof is entirely wrong. Unless, under the relevant penal statute, there is a negative burden put on the accused or there is a reverse onus clause, the accused is not required to discharge any burden. In a case where there is a statutory presumption, after the prosecution discharges initial burden, the burden of rebuttal may shift on the accused”, the Bench said.
In the absence of the statutory provisions, the Bench opined that the burden was on the prosecution to prove the guilt of the accused beyond a reasonable doubt. The High Court’s finding on the burden of proof was held to be completely erroneous.
It was also noticed that PW-1 did not state that PW-4 was present when he reached the place where he found that the deceased was laid in a tempo, and according to his version, PW-4 came to Bhavnagar. Though PW-4 stated that PW-1 came on a bicycle and came to Dhola with them, the version of PW-1 was that PW-4 joined him at Bhavnagar and this created a doubt about the presence of PW-4 at the time of the incident. Importantly, one Vajsurbhai, who informed PW- 1 about the assault on the deceased, has not been examined as a witness.
Asserting that the incident was of September 17, 1996, the Bench opined that the High Court had completely brushed aside this statement of PW-5 by observing that once the police recorded statements of the Doctor and PW-4, the statements of PW-4 and the Doctor before the Court became meaningless.
“As is apparent from Section 162 of the Code of Criminal Procedure, 1973 (CrPC), statements recorded by police under Section 161 of the CrPC cannot be used for any purpose except to contradict the witness”, the Bench said while further noting that the Trial Court gave several reasons for discarding the testimony of PW-4. His prior enmity with the appellants and his failure to report the incident to the police, notwithstanding available opportunities, were also some factors considered by the Trial Court.
After having perused the evidence of the material prosecution witnesses, the Bench was of the view that the finding of the Trial Court that the evidence of PW-4 did not inspire confidence was a possible finding which could have been recorded on the basis of the evidence on record. There was no reason for the High Court to overturn the order of acquittal when the findings of the Trial Court were possible findings that could be arrived at after reappreciating evidence.
Thus, allowing the appeal, the Top Court set aside the conviction of the appellants and cancelled their bail bonds.
Read Order: Delhi Metro Rail Corporation Ltd v. Delhi Airport Metro Express Pvt. Ltd [SC- Curative Petition (C) Nos.108-109 of 2022]
Tulip Kanth
New Delhi, April 12, 2024: The Supreme Court has allowed a curative petition filed by the DMRC challenging a Rs 7,687 crore arbitral award passed in favour of the Delhi Airport Metro Express Private Limited in a dispute pertaining to a concession agreement, which envisaged a public-private partnership for providing metro rail connectivity between New Delhi Railway Station and the Indira Gandhi International Airport as well as other points within Delhi.
In this matter, the respondent, Delhi Airport Metro Express Private Limited (DAMEPL/ Concessionaire), a special- purpose vehicle incorporated by a consortium comprising of Reliance Infrastructure Limited and Construcciones Y Auxiliar de Ferrocarriles SA, Spain, bagged the contract for the construction, operation and maintenance of the Delhi Airport Metro Express Ltd (AMEL) in 2008. The Concession Agreement (2008 Agreement) envisaged a public-private partnership for providing metro rail connectivity between New Delhi Railway Station and the Indira Gandhi International Airport and other points within Delhi.
Under the 2008 Agreement, DAMEPL was granted exclusive rights, license and authority to implement the project and concession in respect of AMEL and the petitioner Delhi Metro Rail Corporation (DMRC) was to undertake clearances and bear costs relating to land acquisition, and civil structures. DAMEPL was to complete the work in two years, and thereafter, to maintain AMEL until August 2038.
In April 2012, DAMEPL sought a deferment of the concession fee, citing delays in providing access to the stations by DMRC. Meanwhile, DAMEPL expressed its intention to halt operations, alleging that the line was unsafe to operate. Operations were stopped on July 8, 2012. The next day, DAMEPL issued a notice to DMRC containing a non- exhaustive list of eight defects which, according to them, affected the performance of their obligations under the 2008 Agreement (Cure Notice). The notice stated that the defects were attributable to faulty construction and deficient designs which affected project safety.
DAMPEL issued a notice terminating the 2008 agreement. DMRC initiated conciliation under as well as arbitration proceedings. In 2013, DAMEPL halted operations and handed over the line to DMRC.
CMRS issued sanction and consequently, on June 30, 2013, the project assets were handed over by DAMEPL to DMRC. Meanwhile the arbitral tribunal passed the unanimous award holding that DAMEPL was entitled to the termination payment, expenses incurred in operating AMEL, refund of the bank guarantee and security deposits with the service providers. DMRC has paid the decretal amount of Rs 2599.18 Crores while Rs 5088 Crores under the decree is outstanding as on January 31, 2024.
DMRC's application filed under Section 34 of the Arbitration and Conciliation Act 1996 (Arbitration Act) before the Delhi High Court challenging the award, was dismissed. The Division Bench partly allowed the appeal. Against the decision of the Division Bench of the High Court, DAMEPL moved a Special Leave Petition under Article 136 of the Constitution was allowed and the award was restored. The review petition assailing this decision was dismissed and hence, the curative petition was filed before the Top Court.
The 3-Judge Bench of Chief Justice D.Y. Chandrachud, Justice B.R. Gavai and Justice Surya Kant observed that a finding based on no evidence at all or an award which ignores vital evidence in arriving at its decision would be perverse and liable to be set aside under the head of patent illegality. An award without reasons would suffer from patent illegality. The arbitrator commits a patent illegality by deciding a matter not within his jurisdiction or violating a fundamental principle of natural justice.
The Bench also made it clear that a judgment setting aside or refusing to set aside an arbitral award under Section 34 is appealable in the exercise of the jurisdiction of the court under Section 37 of the Arbitration Act. The jurisdiction under Section 37 of the Arbitration Act is akin to the jurisdiction of the Court under Section 34 and restricted to the same grounds of challenge as Section 34. However, the Constitution provides the parties with a remedy under Article 136 against a decision rendered in appeal under Section 37. This is the discretionary and exceptional jurisdiction of this Court to grant Special Leave to Appeal. As per the Bench, unlike the exercise of power under Section 37, which is akin to Section 34, the Court (under Article 136) must limit itself to testing whether the court acting under Section 37 exceeded its jurisdiction by failing to apply the correct tests to assail the award.
The Top Court was of the view that rather than considering the vital evidence of the CMRS certificate towards safety and effective steps, the arbitral tribunal focussed on the conditions imposed by the Commissioner on speed and regarding inspections. “While the Division Bench correctly noted that the certificate was relevant for the issue of the validity of termination, this Court held that safety was not in issue, even though DAMEPL insisted on discontinuing operations citing safety concerns. We respectfully disagree with this Courts re-assessment of the Division Benchs interpretation. The cure notice was relevant for the reasons stated above. Moreover, the fact that DAMEPL premised it on safety could not have been overlooked by the Tribunal. In doing so, it overlooked vital evidence pertaining to an issue that goes to the root of the matter. The cure notice was obviously on the record and merited consideration for its contents bearing on vital elements of safety”, it said.
It was clear from the record that DMRC took steps towards curing defects which led to the eventual resumption of operations. The award contained no explanation as to why the steps which were taken by DMRC were not effective steps within the meaning of the termination clause. It was further opined that the award was unreasoned as it overlooked the vital evidence in the form of the joint application of the contesting parties to CMRS and the CMRS certificate. The arbitral tribunal ignored the specific terms of the termination clause. Moreover, the Division Bench had correctly held that the arbitral tribunal ignored vital evidence on the record, resulting in perversity and patent illegality, warranting interference.
The Bench observed that the findings of the Division Bench were borne out from the record and were not based on a misappreciation of law or fact. This Court failed, while entertaining the Special Leave Petition under Article 136, to justify its interference with the well-considered decision of the Division Bench of the High Court. The decision of the Top Court failed to adduce any justification bearing on any flaws in the manner of exercise of jurisdiction by the Division Bench under Section 37 of the Arbitration Act.
It was held that the Top Court had restored a patently illegal award which saddled a public utility with an exorbitant liability and this caused a grave miscarriage of justice, warranting the exercise of the power under Article 142 in a Curative petition, in terms of Ashok Hurra vs Rupa Hurra.
Allowing the Curative petitions, the Bench held that the execution proceedings before the High Court for enforcing the arbitral award must be discontinued and the amounts deposited by the petitioner pursuant to the judgment of this Court shall be refunded. The orders passed by the High Court in the course of the execution proceedings for enforcing the arbitral award were also set aside.
The Bench concluded the matter by observing, “The curative jurisdiction should not be used to open the floodgates and create a fourth or fifth stage of court intervention in an arbitral award, under this Court's review jurisdiction or curative jurisdiction, respectively.”
Read Order: Karikho Kri v. Nuney Tayang and another [SC-CIVIL APPEAL NO. 4615 OF 2023]
Tulip Kanth
New Delhi, April 12, 2024: While observing that a candidate's right to privacy would still survive as regards matters which are of no concern to the voter, the Supreme Court has upheld the 2019 election of Arunachal Pradesh independent MLA Karikho Kri from Tezu Assembly Constituency.
The factual background of this case was that in the year 2019, Karikho Kri, an independent candidate, Dr. Mohesh Chai, candidate of the Bharatiya Janata Party, and Nuney Tayang, candidate of the Indian National Congress, contested the election to the Arunachal Pradesh Legislative Assembly from 44 Tezu (ST) Assembly Constituency. The election was held on 11.04.2019 and Karikho Kri emerged victorious with 7538 votes, while Dr. Mohesh Chai secured 7383 votes and Nuney Tayang secured 1088 votes. Nuney Tayang filed Election Petition before the Assam High Court seeking a declaration that the election of Karikho Kri was void.
The Court allowed the election petition in part, declaring the election of Karikho Kri void under Sections 100(1)(b), 100(1) (d)(i) and 100(1)(d)(iv) of the Representation of the People Act, 1951, but rejecting the prayer of Nuney Tayang to declare him duly elected, as he had not led any evidence to prove the allegations leveled by him against Dr. Mohesh Chai, the candidate with the second highest number of votes. Aggrieved thereby, Karikho Kri filed an appeal and the Top Court directed that an election should not be held for the subject Constituency which was represented by Karikho Kri and permitted him to enjoy all the privileges as a Member of the House and of the constituted committees but restrained him from casting his vote on the floor of the House or in any of the committees wherein he participated as an MLA.
Karikho Kri filed an interlocutory application as a fresh schedule for election to the Legislative Assembly of the State of Arunachal Pradesh and he wished to contest in the election that is proposed to be held on 19.04.2024. He sought leave to contest as a candidate in the upcoming assembly election in the State of Arunachal Pradesh during the pendency of this appeal. The Supreme Court stayed the operation of the impugned judgment and also made it clear that any steps taken by Karikho Kri in view of the stay order would be subject to the final decision that would be taken upon conclusion of the hearing of these appeals.
In his election petition, Nuney Tayang claimed that the nomination submitted by Karikho Kri was improperly accepted by the Returning Officer, Tezu, as he did not disclose material particulars in his Affidavit. As the High Court was of the opinion that the nomination of Karikho Kri had been improperly accepted by the Returning Officer, Tezu, his election was held liable to be declared void under Section 100(1)(d)(i) of the Act of 1951.
Referring to the judgement in Santosh Yadav vs. Narender Singh, the Division Bench of Justice Aniruddha Bose and Justice Sanjay Kumar said, “It is well-settled that the success of a winning candidate at an election should not be lightly interfered with.”
The issue pertained to the validity of the High Court's findings that the grounds under Sections 100(1)(b), 100(1)(d)(i) and 100(1)(d)(iv) were established, warranting invalidation of the election of Karikho Kri. Further, the finding of the High Court that Karikho Kri committed a corrupt practice within the meaning of Section 123(2) also required to be examined.
The Bench was of the opinion that there were no actual outstanding dues payable by Karikho Kri in relation to the government accommodation occupied by him earlier. His failure in disclosing the fact that he had occupied such accommodation and in filing the No Dues Certificate in that regard, with his nomination form, couldn’t be said to be a defect of any real import as he did submit the relevant documents of 2014 after Nuney Tayang raised an objection before the Returning Officer. His explanation that he submitted such Certificates in the year 2014 when he stood for re-election as an MLA is logical and worthy of acceptance.
The Bench also refused to accept the blanket proposition that a candidate is required to lay his life out for examination by the electorate. “His right to privacy would still survive as regards matters which are of no concern to the voter or are irrelevant to his candidature for public office. In that respect, non-disclosure of each and every asset owned by a candidate would not amount to a defect, much less, a defect of a substantial character”, the Bench held while also adding, “It is not necessary that a candidate declare every item of movable property that he or his dependent family members owns, such as, clothing, shoes, crockery, stationery and furniture, etc., unless the same is of such value as to constitute a sizeable asset in itself or reflect upon his candidature, in terms of his lifestyle, and require to be disclosed… Each case would, therefore, have to be judged on its own facts.”
Referring to Section 100(1)(d)(iv) which requires that the established non-compliance with the provisions of the Constitution or the Act or any rules or orders made thereunder necessarily has to be shown to have materially affected the result of the election insofar as it concerns the returned candidate, the Bench noted that in the High Court's order no discussion was made on what were the violations which qualified as non-compliance with the provisions of either the Constitution or the Act of 1951 or the rules and orders framed thereunder, for the purposes of Section 100(1)(d)(iv), and as to how the same materially affected the result of the election.
The Bench also did not find adequate pleadings or proof to substantiate and satisfy the requirements of Section 100(1)(d)(iv). “Therefore, it is clear that Nuney Tayang tied up the improper acceptance of Karikho Kris nomination, relatable to Section 100(1)(d)(i) of the Act of 1951, with the non-compliance relatable to Section 100(1)(d)(iv) thereof and he did not sufficiently plead or prove a specific breach or how it materially affected the result of the election, in so far as it concerned the returned candidate, Karikho Kri. It was not open to Nuney Tayang to link up separate issues and fail to plead in detail and adduce sufficient evidence in relation to the non-compliance that would attract Section 100(1)(d)(iv) of the Act of 1951”, the Bench said.
Thus, the Bench held that the High Court was in error in concluding that sufficient grounds were made out under Sections 100(1)(b), 100(1)(d)(i) and 100(1)(d)(iv) to invalidate the election of Karikho Kri and, further, in holding that non-disclosure of the three vehicles, that still remained registered in the names of his wife and son as on the date of filing of his nomination, amounted to a corrupt practice under Section 123(2) of the Act of 1951.
Allowing the Civil Appeal and setting aside the Judgment of the High Court, the Bench upheld the election of Karikho Kri as the returned candidate from 44 Tezu (ST) Assembly Constituency of the State of Arunachal Pradesh.
Read Order: M/S RAJCO STEEL ENTERPRISES v. KAVITA SARAFF AND ANOTHER [SC- PETITION FOR SPECIAL LEAVE TO APPEAL (CRIMINAL) NO.5583 OF 2022]
LE Correspondent
New Delhi, April 12, 2024: In a cheque bounce case where the complainant/petitioner had failed to produce any document showing any loan transaction pertaining to the cheques in question, the Supreme Court has dismissed a petition challenging a Calcutta High Court order whereby the accused was acquitted of the charges.
The common petitioner in these four petitions for special leave to appeal was a partnership firm dealing in iron and steel products. The petitioner had assailed a common judgment of the Calcutta High Court by which the petitioner’s appeal against acquittal of the first respondent in respect of offences under Section 138 of the Negotiable Instrument Act, 1881 (1881 Act) had been dismissed.
The petitioner, through its partner, Ramesh Kumar Gupta, had lodged four complaint cases under the aforesaid provision, after four cheques alleged to have been issued by the accused/respondent no.1, were dishonoured on the ground of insufficiency of funds. The petitioner claimed that these cheques were issued between 07.11.2008 and 24.11.2008, drawn on the Axis Bank Limited, Burra Bazar in Kolkata.
Four independent complaint cases were lodged in the Court of the Metropolitan Magistrate, Kolkata by the petitioner. The petitioner contended before the Trial Court that it had granted financial assistance to the accused/respondent no.1 and the said cheques were issued by the accused/respondent no.1 in discharge of her liability towards the petitioner. The petitioner/complainant had issued a statutory demand notice which was duly served upon the accused/respondent no. 1 on but the accused neither complied with the requisition as contained therein, nor gave any reply thereto. To further substantiate its case, the petitioner/complainant also relied upon the testimony of its partner, Ramesh Kumar Gupta.
The accused/respondent no.1 had taken the defence that the petitioner had not provided any financial assistance, but money was advanced to the accused/respondent no.1 for undertaking stock market related transactions through her account.
The defence case, in essence, was that the cheques, the dishonour of which was the subject of this proceeding, were neither issued nor handed over to the complainant, but these were illegally procured by the complainant/petitioner from the custody of the investigating agency i.e., CBI and were subsequently presented for encashment intentionally.
The First Appellate Court acquitted the accused/respondent no.1. It found that the complainant/petitioner had failed to produce any document showing any loan transaction. The petitioner approached the Top Court after the appeal against the judgment of acquittal was also dismissed.
The Division Bench comprising Justice Aniruddha Bose & Justice Sanjay Kumar observed that both the Courts had examined the evidence threadbare and in the opinion of these two fora, the evidence went against the complainant/petitioner. On the question as to whether the sum involved in the cheques was advanced in discharge of a legally enforceable debt or not, the petitioner had failed to show if any sum was advanced towards financial assistance.
The High Court found that the debt/liability, in discharge of which, according to the petitioner, the cheques were issued, did not reflect in the petitioner's balance-sheet. The other partners of the firm did not depose as prosecution witnesses to establish that the cheque-amounts were advanced to the accused as financial assistance.
As per the Bench, the respondent no.1/accused had put up a plausible defence as regards the reason for which the petitioner's funds had come to her account. “Both the appellate fora, on going through the evidence did not find existence of any enforceable debt or other liability. This strikes at the root of the petitioners case”, the Bench said.
Thus, dismissing the petitions, the Bench held that no point of law is involved in this set of cases that would warrant interference.
Read Order:KIZHAKKE VATTAKANDIYIL MADHAVAN (DEAD) THR. LRS v. THIYYURKUNNATH MEETHAL JANAKI AND ORS [SC- CIVIL APPEAL NO. 8616 OF 2017]
Tulip Kanth
New Delhi, April 10, 2024: The Supreme Court has observed that if right, title or interest in certain property is sought to be conveyed by a person by an instrument who herself does not possess any such form of entitlement on the subject being conveyed, even with a subsisting deed of conveyance on such property, the grantee on her successors-in-interest will not have legal right to enforce the right the latter may have derived from such an instrument.
The Division Bench of Justice Aniruddha Bose & Justice Sudhanshu Dhulia was considering an appeal which arose out of a suit for partition instituted by one ThiyyerKunnathMeethal Chandu (Chandu) claiming 8/20 shares in the suit property. The appellants were the defendants in the said suit, and were successors-ininterest of one Sankaran.
The latter and Chandu were uterine brothers, both being the sons of one Chiruthey, who was married twice. Her first husband was Madhavan, within whose wedlock Sankaran was born. Madhavan passed away sometime before the year 1910, though the exact year of death has not been specified in the pleadings nor it has appeared in evidence. After Madhavans death, Chiruthey contracted second marriage with Neelakandan, who was the father of Chandu.
The Trial Court sustained the claim for partition and decreed in favour of the plaintiff therein whose interest was represented by the respondents. The First Appellate Court set aside the decree and dismissed the suit. The main issue before the Court was whether Chiruthey had any title over the subject-property which the plaintiff claimed through the series of transactions.
The Bench was of the opinion that the First Appellate Court had rightly come to a finding that Chiruthey had only a reversionary right over the suit property held by her first husband Madhavan and the plaintiff (Chandu) could not claim partition right on the strength of his being a uterine brother of Sankaran born to Chiruthey after she contracted her second marriage. She lost all her rights and interests in her deceased husband's property on contracting second marriage with Neelakandan.
It was observed that when Chiruthey contracted her second marriage by operation of Section 2 of the 1856 Act, she had lost title of her share over the property of Madhavan. The High Court in the judgment under appeal, however, primarily relied on the deeds executed on 14th July 1910 to sustain the claim of Chandu (since deceased), represented by his successors-in-interest.
As per the Bench, on remarriage of Chiruthey, after the death of Madhavan, her title or interest over the suit property stood lapsed in terms of Section 2 of the 1856 Act. Thus, Chiruthey's right to deal with property derived from Madhavan stood extinguished so far as the deed of 14th July 1910 is concerned (Exhibit A-20). But it was not Chiruthey alone who had executed that instrument, it was Nangeli and also Sankaran, (son of Chiruthey) who had executed it and remained valid legal heirs of Madhavan (since deceased).
Finding no material that Madhavan had any other legal heir, the Bench opined, “...even if we discount Chirutheys title over the property forming subject of lease, it stood conveyed by its actual owners i.e., Nangeli and Sankaran. To that extent, we accept the validity of the lease deed, that was otherwise proved in the Trial Court. Once we find the Exhibit A-20 to be valid conveyance, we do not think the corollary transaction which is marked as Exhibit A-1 bearing No.2329/1910, by which the same property was leased back to Chiruthey and Kuttiperavan to be invalid.”
These back-to-back transactions may be unusual, but in absence of any evidence pointing to any illegality, the Bench held them to be valid. The High Court on finding that these deeds are valid restored the Trial Court's judgment and decree. The underlying reasoning of the High Court was that Chiruthey had legitimate right over the property. The Bench, however, found a flaw in this reasoning of the judgment of the High Court.
“The High Court as also the Trial Court have held that since the deeds were proved, implying that Cheruthey had the right to execute the lease deed on 14th July 1910 so far as the deed of re- lease is concerned, the same might entitle her to be the beneficiary as a lessee thereof. But it would be trite to repeat that even if subsistence of a deed is proved in evidence, the title of the executing person (in this case Chiruthey) does not automatically stand confirmed. If a document seeking to convey immovable property ex-facie reveals that the conveyer does not have the title over the same, specific declaration that the document is invalid would not be necessary. The Court can examine the title in the event any party to the proceeding sets up this defence”, the Bench added.
“If right, title or interest in certain property is sought conveyed by a person by an instrument who herself does not possess any such form of entitlement on the subject being conveyed, even with a subsisting deed of conveyance on such property, the grantee on her successors-in-interest will not have legal right to enforce the right the latter may have derived from such an instrument”, it added.
The plaintiff (now represented by his successors as respondents) sought to claim his share of suit property through Chiruthey. But the Bench opined that Chiruthey had lost her right over the subject property on her contracting second marriage.
Also, her status over the said property, post-1910 if at all was that of lessee. There was no indication in any of the deeds that the said lease could travel beyond the stipulated term of twelve years. The ownership of the suit property could not be said to have devolved in any manner whatsoever to the original plaintiff, who was born within the wedlock of Chiruthey and Neelakandan.
Thus, allowing the appeal, the Bench set aside the decision of the High Court and confirmed the decision of the First Appellate Court.
Read Order:M K Ranjitsinh&Ors v. Union of India &Ors [SC- Writ Petition (Civil) No. 838 of 2019]
LE Correspondent
New Delhi, April 10, 2024: The Supreme Court has recently directed the formation of an Expert Committee in order to identify alternatives which would balance the conservation of the Great Indian Bustard with the arrangement of power lines in a manner that would facilitate the fulfilment of the international commitments made by India for developing renewable sources of energy.The Top Court also opined that Articles 14 & 21 of the Constitution are important sources of the right to a clean environment and the right against the adverse effects of climate change.
The 3-Judge Bench of Chief Justice D.Y. Chandrachud, Justice J.B. Pardiwala and Justice Manoj Misra was considering a petition filed for protecting the Great Indian Bustard (GIB) and the Lesser Florican, both of whom are on the verge of extinction.
The GIB is native to southern and western India. It typically occupies grasslands or arid regions. The State of Rajasthan is home to a majority of the current population. With time, the country has seen a rapid and steady decline in the population of the GIB. As of 2018, the International Union for Conservation of Nature, or IUCN as it is popularly known, classified the GIB as a ‘critically endangered’ species. In IUCN’s system of classification, only two categories indicate a graver threat to a particular species – ‘extinct in the wild’ and ‘extinct’. The GIB has been classified as a critically endangered species from 2011 until the most recent assessment in 2018.
In the context of the dwindling population of GIBs and the existential threat looming over them, a writ petition invoking the constitutional jurisdiction under Article 32 was instituted for seeking directions relating to the conservation of the species.In the order of this Court dated April 19, 2021, restrictions were imposed on the setting up of overhead transmission lines in a large swath of territory of about 99,000 square kilometres.
A committee was also appointed for assessing the feasibility of laying high voltage underground power lines. The Court had directed that in all cases where overhead power lines exist as on date in the priority and potential GIB areas, steps shall be taken to install bird diverters pending consideration of the conversion of overhead power lines into underground power lines. Moreover, the court directed that in all cases, where it is found feasible to convert the overhead lines to underground power lines, this shall be undertaken and completed within a year.
The order of this Court had been implemented by the Committee by granting case- specific sanctions to projects where undergrounding was found not to be possible. Respondent Nos. 1, 3, and 4 (the Ministry of Environment, Forests, and Climate Change, the Ministry of Power, and the Ministry of New and Renewable Energy respectively) filed applications for modification of the directions.
The Union of India filed an additional affidavit and an updated, comprehensive status report stating that the direction by this Court for laying high voltage, or as the case may be, low voltage lines underground was practically impossible to implement. The measures taken for protection were also presented.
Highlighting the manifold efforts of the Nation to combat climate change, the Bench observed that the people have a right against the adverse effects of climate change. As the havoc caused by climate change increases year by year, it becomes necessary to articulate this as a distinct right. It is recognised by Articles 14 and 21.
Stating that the GIB is seriously endangered as a species, the Bench noted that in the course of the hearing, it emerged that there was no basis to impose a general prohibition in regard to the installation of transmission lines for the distribution of solar power in an area about 99,000 square kilometres. There were several reasons due to which it was not feasible to convert all transmission lines into underground power transmission lines.
The Bench was of the view that the order passed by this Court on April 19, 2021 needed to be suitably modified. A blanket direction for undergrounding high voltage and low voltage power lines of the nature that was directed by this Court would need recalibration, it added.
Directing the constitution of an Expert Committee, the Bench opined that the committee would carry the following tasks:
- Determining the scope, feasibility and extent of overhead and underground electric lines in the area identified as priority areas in the reports of the Wild Life Institute of India in the States of Rajasthan and Gujarat;
- The need for adopting conservation and protection measures for the GIB as well as other fauna specific to the topography;
- Identification of the measures to be adopted in the priority areas to ensure the long- term survival of the GIB and facilitating an increase in its population. Such measures may include habitat restoration, anti-poaching initiatives, and community engagement programs;
- Evaluating the potential consequences of climate change on GIB habitats, considering factors such as shifting precipitation patterns, temperature extremes, habitat degradation and developing adaptive management strategies to enhance their resilience;
- Identification of suitable options in the context of sustainable development in the matter of laying power lines in the future. The alternatives identified should balance the conservation and protection of the GIB with the arrangement of power lines in a manner that would facilitate the fulfilment of the international commitments made by India for developing renewable sources of energy.
- Engaging with relevant stakeholders, including government agencies, environmental organizations, wildlife biologists, local communities, and energy industry representatives, to solicit inputs, build consensus, and promote collaborative efforts towards achieving conservation and sustainable development goals;
- Conducting a thorough review of conservation efforts and innovative approaches in similar contexts globally, such as the Houbara Bustard in the Middle East or the Black Stilt in New Zealand, to inform best practices;
- Implementing a robust monitoring and research program to track GIB populations, habitat dynamics, and the effectiveness of conservation measures over time. This may include employing techniques such as satellite tracking, camera trapping, and ecological surveys to gather essential data for informed decision-making; and
- Adopting any additional measures both in regard to the priority and potential areas, as the Committee considers appropriate including considering the efficacy and suitability of installing bird diverters on existing and future power lines on the basis of a scientific study.
The Committee has also been asked to complete its task and submit a report to this Court through the Union Government on or before July 31, 2024.
The Bench concluded the matter by further asking the Union of India and the concerned ministries to implement the measures which have been already undertaken. It was also held that the project clearances which have been granted pursuant to the recommendations of the earlier committee appointed in terms of the order April 19, 2021 shall not be affected by the present judgment.
Time for judiciary to introspect and see what can be done to restore people’s faith – Justice Lokur
Justice Madan B Lokur, was a Supreme Court judge from June 2012 to December 2018. He is now a judge of the non-resident panel of the Supreme Court of Fiji. He spoke to LegitQuest on January 25, 2020.
Q: You were a Supreme Court judge for more than 6 years. Do SC judges have their own ups and downs, in the sense that do you have any frustrations about cases, things not working out, the kind of issues that come to you?
A: There are no ups and downs in that sense but sometimes you do get a little upset at the pace of justice delivery. I felt that there were occasions when justice could have been delivered much faster, a case could have been decided much faster than it actually was. (When there is) resistance in that regard normally from the state, from the establishment, then you kind of feel what’s happening, what can I do about it.
Q: So you have had the feeling that the establishment is trying to interfere in the matters?
A: No, not interfering in matters but not giving the necessary importance to some cases. So if something has to be done in four weeks, for example if reply has to be filed within four weeks and they don’t file it in four weeks just because they feel that it doesn’t matter, and it’s ok if we file it within six weeks how does it make a difference. But it does make a difference.
Q: Do you think this attitude is merely a lax attitude or is it an infrastructure related problem?
A: I don’t know. Sometimes on some issues the government or the establishment takes it easy. They don’t realise the urgency. So that’s one. Sometimes there are systemic issues, for example, you may have a case that takes much longer than anticipated and therefore you can’t take up some other case. Then that necessarily has to be adjourned. So these things have to be planned very carefully.
Q: Are there any cases that you have special memories of in terms of your personal experiences while dealing with the case? It might have moved you or it may have made you feel that this case is really important though it may not be considered important by the government or may have escaped the media glare?
A: All the cases that I did with regard to social justice, cases which concern social justice and which concern the environment, I think all of them were important. They gave me some satisfaction, some frustration also, in the sense of time, but I would certainly remember all these cases.
Q: Even though you were at the Supreme Court as a jurist, were there any learning experiences for you that may have surprised you?
A: There were learning experiences, yes. And plenty of them. Every case is a learning experience because you tend to look at the same case with two different perspectives. So every case is a great learning experience. You know how society functions, how the state functions, what is going on in the minds of the people, what is it that has prompted them to come the court. There is a great learning, not only in terms of people and institutions but also in terms of law.
Q: You are a Judge of the Supreme Court of Fiji, though a Non-Resident Judge. How different is it in comparison to being a Judge in India?
A: There are some procedural distinctions. For example, there is a great reliance in Fiji on written submissions and for the oral submissions they give 45 minutes to a side. So the case is over within 1 1/2 hours maximum. That’s not the situation here in India. The number of cases in Fiji are very few. Yes, it’s a small country, with a small number of cases. Cases are very few so it’s only when they have an adequate number of cases that they will have a session and as far as I am aware they do not have more than two or three sessions in a year and the session lasts for maybe about three weeks. So it’s not that the court sits every day or that I have to shift to Fiji. When it is necessary and there are a good number of cases then they will have a session, unlike here. It is then that I am required to go to Fiji for three weeks. The other difference is that in every case that comes to the (Fiji) Supreme Court, even if special leave is not granted, you have to give a detailed judgement which is not the practice here.
Q: There is a lot of backlog in the lower courts in India which creates a problem for the justice delivery system. One reason is definitely shortage of judges. What are the other reasons as to why there is so much backlog of cases in the trial courts?
A: I think case management is absolutely necessary and unless we introduce case management and alternative methods of dispute resolution, we will not be able to solve the problem. I will give you a very recent example about the Muzaffarpur children’s home case (in Bihar) where about 34 girls were systematically raped. There were about 17 or 18 accused persons but the entire trial finished within six months. Now that was only because of the management and the efforts of the trial judge and I think that needs to be studied how he could do it. If he could do such a complex case with so many eyewitnesses and so many accused persons in a short frame of time, I don’t see why other cases cannot be decided within a specified time frame. That’s case management. The second thing is so far as other methods of disposal of cases are concerned, we have had a very good experience in trial courts in Delhi where more than one lakh cases have been disposed of through mediation. So, mediation must be encouraged at the trial level because if you can dispose so many cases you can reduce the workload. For criminal cases, you have Plea Bargaining that has been introduced in 2009 but not put into practice. We did make an attempt in the Tis Hazari Courts. It worked to some extent but after that it fell into disuse. So, plea bargaining can take care of a lot of cases. And there will be certain categories of cases which we need to look at carefully. For example, you have cases of compoundable offences, you have cases where fine is the punishment and not necessarily imprisonment, or maybe it’s imprisonment say one month or two month’s imprisonment. Do we need to actually go through a regular trial for these kind of cases? Can they not be resolved or adjudicated through Plea Bargaining? This will help the system, it will help in Prison Reforms, (prevent) overcrowding in prisons. So there are a lot of avenues available for reducing the backlog. But I think an effort has to be made to resolve all that.
Q: Do you think there are any systemic flaws in the country’s justice system, or the way trial courts work?
A: I don’t think there are any major systemic flaws. It’s just that case management has not been given importance. If case management is given importance, then whatever systematic flaws are existing, they will certainly come down.
Q; And what about technology. Do you think technology can play a role in improving the functioning of the justice delivery system?
I think technology is very important. You are aware of the e-courts project. Now I have been told by many judges and many judicial academies that the e-courts project has brought about sort of a revolution in the trial courts. There is a lot of information that is available for the litigants, judges, lawyers and researchers and if it is put to optimum use or even semi optimum use, it can make a huge difference. Today there are many judges who are using technology and particularly the benefits of the e-courts project is an adjunct to their work. Some studies on how technology can be used or the e-courts project can be used to improve the system will make a huge difference.
Q: What kind of technology would you recommend that courts should have?
A: The work that was assigned to the e-committee I think has been taken care of, if not fully, then largely to the maximum possible extent. Now having done the work you have to try and take advantage of the work that’s been done, find out all the flaws and see how you can rectify it or remove those flaws. For example, we came across a case where 94 adjournments were given in a criminal case. Now why were 94 adjournments given? Somebody needs to study that, so that information is available. And unless you process that information, things will just continue, you will just be collecting information. So as far as I am concerned, the task of collecting information is over. We now need to improve information collection and process available information and that is something I think should be done.
Q: There is a debate going on about the rights of death row convicts. CJI Justice Bobde recently objected to death row convicts filing lot of petitions, making use of every legal remedy available to them. He said the rights of the victim should be given more importance over the rights of the accused. But a lot of legal experts have said that these remedies are available to correct the anomalies, if any, in the justice delivery. Even the Centre has urged the court to adopt a more victim-centric approach. What is your opinion on that?
You see so far as procedures are concerned, when a person knows that s/he is going to die in a few days or a few months, s/he will do everything possible to live. Now you can’t tell a person who has got terminal cancer that there is no point in undergoing chemotherapy because you are going to die anyway. A person is going to fight for her/his life to the maximum extent. So if a person is on death row s/he will do everything possible to survive. You have very exceptional people like Bhagat Singh who are ready to face (the gallows) but that’s why they are exceptional. So an ordinary person will do everything possible (to survive). So if the law permits them to do all this, they will do it.
Q: Do you think law should permit this to death row convicts?
A: That is for the Parliament to decide. The law is there, the Constitution is there. Now if the Parliament chooses not to enact a law which takes into consideration the rights of the victims and the people who are on death row, what can anyone do? You can’t tell a person on death row that listen, if you don’t file a review petition within one week, I will hang you. If you do not file a curative petition within three days, then I will hang you. You also have to look at the frame of mind of a person facing death. Victims certainly, but also the convict.
Q: From the point of jurisprudence, do you think death row convicts’ rights are essential? Or can their rights be done away with?
A: I don’t know you can take away the right of a person fighting for his life but you have to strike a balance somewhere. To say that you must file a review or curative or mercy petition in one week, it’s very difficult. You tell somebody else who is not on a death row that you can file a review petition within 30 days but a person who is on death row you tell him that I will give you only one week, it doesn’t make any sense to me. In fact it should probably be the other way round.
Q: What about capital punishment as a means of punishment itself?
A: There has been a lot of debate and discussion about capital punishment but I think that world over it has now been accepted, more or less, that death penalty has not served the purpose for which it was intended. So, there are very few countries that are executing people. The United States, Saudi Arabia, China, Pakistan also, but it hasn’t brought down the crime rate. And India has been very conservative in imposing the death penalty. I think the last 3-4 executions have happened for the persons who were terrorists. And apart from that there was one from Calcutta who was hanged for rape and murder. But the fact that he was hanged for rape and murder has not deterred people (from committing rape and murder). So the accepted view is that death penalty has not served the purpose. We certainly need to rethink the continuance of capital punishment. On the other hand, if capital punishment is abolished, there might be fake encounter killings or extra judicial killings.
Q: These days there is the psyche among people of ‘instant justice’, like we saw in the case of the Hyderabad vet who was raped and murdered. The four accused in the case were killed in an encounter and the public at large and even politicians hailed it as justice being delivery. Do you think this ‘lynch mob mentality’ reflects people’s lack of faith in the justice system?
A: I think in this particular case about what happened in Telangana, investigation was still going on. About what actually happened there, an enquiry is going on. So no definite conclusions have come out. According to the police these people tried to snatch weapons so they had to be shot. Now it is very difficult to believe, as far as I am concerned, that 10 armed policeman could not overpower four unarmed accused persons. This is very difficult to believe. And assuming one of them happened to have snatched a (cop’s) weapon, maybe he could have been incapacitated but why the other three? So there are a lot of questions that are unanswered. So far as the celebrations are concerned, the people who are celebrating, do they know for certain that they (those killed in the encounter) were the ones who did the crime? How can they be so sure about it? They were not eye witnesses. Even witnesses sometimes make mistakes. This is really not a cause for celebration. Certainly not.
Q: It seems some people are losing their faith in the country’s justice delivery system. How to repose people’s faith in the legal process?
A: You see we again come back to case management and speedy justice. Suppose the Nirbhaya case would have been decided within two or three years, would this (Telangana) incident have happened? One can’t say. The attack on Parliament case was decided in two or three years but that has not wiped out terrorism. There are a lot of factors that go into all this, so there is a need to find ways of improving justice delivery so that you don’t have any extremes – where a case takes 10 years or another extreme where there is instant justice. There has to be something in between, some balance has to be drawn. Now you have that case where Phoolan Devi was gangraped followed by the Behmai massacre. Now this is a case of 1981, it has been 40 years and the trial court has still not delivered a judgement. It’s due any day now, (but) whose fault is that. You have another case in Maharashtra that has been transferred to National Investigating Agency two years after the incident, the Bhima-Koregaon case. Investigation is supposedly not complete after two years also. Whose fault is that? So you have to look at the entire system in a holistic manner. There are many players – the investigation agency is one player, the prosecution is one player, the defence is one player, the justice delivery system is one player. So unless all of them are in a position to coordinate… you cannot blame only the justice delivery system. If the Telangana police was so sure that the persons they have caught are guilty, why did they not file the charge sheet immediately? If they were so sure the charge sheet should have been filed within one day. Why didn’t they do it?
Q: At the trial level, there are many instances of flaws in evidence collection. Do you think the police or whoever the investigators are, do they lack training?
A: Yes they do! The police lacks training. I think there is a recent report that has come out last week which says very few people (in the police) have been trained (to collect evidence).
Q: You think giving proper training to police to prepare a case will make a difference?
A: Yes, it will make a difference.
Q: You have a keen interest in juvenile justice. Unfortunately, a lot of heinous crimes are committed by juveniles. How can we correct that?
A: You see it depends upon what perspective we are looking at. Now these heinous crimes are committed by juveniles. Heinous crimes are committed by adults also, so why pick upon juveniles alone and say something should be done because juveniles are committing heinous crimes. Why is it that people are not saying that something should be done when adults are committing heinous crimes? That’s one perspective. There are a lot of heinous crimes that are committed against juveniles. The number of crimes committed against juveniles or children are much more than the crimes committed by juveniles. How come nobody is talking about that? And the people committing heinous crimes against children are adults. So is it okay to say that the State has imposed death penalty for an offence against the child? So that’s good enough, nothing more needs to be done? I don’t think that’s a valid answer. The establishment must keep in mind the fact that the number of heinous crimes against children are much more than those committed by juveniles. We must shift focus.
Q: Coming to NRC and CAA. Protests have been happening since December last year, the SC is waiting for the Centre’s reply, the Delhi HC has refused to directly intervene. Neither the protesters nor the government is budging. How do we achieve a breakthrough?
A: It is for the government to decide what they want to do. If the government says it is not going to budge, and the people say they are not going to budge, the stalemate could continue forever.
Q: Do you think the CAA and the NRC will have an impact on civil liberties, personal liberties and people’s rights?
A: Yes, and that is one of the reasons why there is protest all over the country. And people have realised that it is going to happen, it is going to have an impact on their lives, on their rights and that’s why they are protesting. So the answer to your question is yes.
Q: Across the world and in India, we are seeing an erosion of the value system upholding rights and liberties. How important is it for the healthy functioning of a country that social justice, people’s liberties, people’s rights are maintained?
A: I think social justice issues, fundamental rights are of prime importance in our country, in any democracy, and the preamble to our Constitution makes it absolutely clear and the judgement of the Supreme Court in Kesavananda Bharati and many other subsequent judgments also make it clear that you cannot change the basic structure of the Constitution. If you cannot do that then obviously you cannot take away some basic democratic rights like freedom of assembly, freedom of movement, you cannot take them away. So if you have to live in a democracy, we have to accept the fact that these rights cannot be taken away. Otherwise there are many countries where there is no democracy. I don’t know whether those people are happy or not happy.
Q: What will happen if in a democracy these rights are controlled by hook or by crook?
A: It depends upon how much they are controlled. If the control is excessive then that is wrong. The Constitution says there must be a reasonable restriction. So reasonable restriction by law is very important.
Q: The way in which the sexual harassment case against Justice Gogoi was handled was pretty controversial. The woman has now been reinstated in the Supreme Court as a staffer. Does this action of the Supreme Court sort of vindicate her?
A: I find this very confusing you know. There is an old joke among lawyers: Lawyer for the petitioner argued before the judge and the judge said you are right; then the lawyer for the respondent argued before the judge and the judge said you’re right; then a third person sitting over there says how can both of them be right and the judge says you’re also right. So this is what has happened in this case. It was found (by the SC committee) that what she said had no substance. And therefore, she was wrong and the accused was right. Now she has been reinstated with back wages and all. I don’t know, I find it very confusing.
Q: Do you think the retirement age of Supreme Court Judges should be raised to 70 years and there should be a fixed tenure?
A: I haven’t thought about it as yet. There are some advantages, there are some disadvantages. (When) You have extended age or life tenure as in the United States, and the Supreme Court has a particular point of view, it will continue for a long time. So in the United States you have liberal judges and conservative judges, so if the number of conservative judges is high then the court will always be conservative. If the number of liberal judges is high, the court will always be liberal. There is this disadvantage but there is also an advantage that if it’s a liberal court and if it is a liberal democracy then it will work for the benefit of the people. But I have not given any serious thought onthis.
Q: Is there any other thing you would like to say?
A: I think the time has come for the judiciary to sit down, introspect and see what can be done, because people have faith in the judiciary. A lot of that faith has been eroded in the last couple of years. So one has to restore that faith and then increase that faith. I think the judiciary definitely needs to introspect.
‘A major issue for startups, especially during fund raising, is their compliance with extant RBI foreign exchange regulations, pricing guidelines, and the Companies Act 2013.’- Aakash Parihar
Aakash Parihar is Partner at Triumvir Law, a firm specializing in M&A, PE/VC, startup advisory, international commercial arbitration, and corporate disputes. He is an alumnus of the National Law School of India University, Bangalore.
How did you come across law as a career? Tell us about what made you decide law as an option.
Growing up in a small town in Madhya Pradesh, wedid not have many options.There you either study to become a doctor or an engineer. As the sheep follows the herd, I too jumped into 11th grade with PCM (Physics, Chemistry and Mathematics).However, shortly after, I came across the Common Law Admission Test (CLAT) and the prospect of law as a career. Being a law aspirant without any background of legal field, I hardly knew anything about the legal profession leave alone the niche areas of corporate lawor dispute resolution. Thereafter, I interacted with students from various law schools in India to understand law as a career and I opted to sit for CLAT. Fortunately, my hard work paid off and I made it to the hallowed National Law School of India University, Bangalore (NSLIU). Joining NLSIU and moving to Bangalorewas an overwhelming experience. However, after a few months, I settled in and became accustomed to the rigorous academic curriculum. Needless to mention that it was an absolute pleasure to study with and from someof the brightest minds in legal academia. NLSIU, Bangalore broadened my perspective about law and provided me with a new set of lenses to comprehend the world around me. Through this newly acquired perspective and a great amount of hard work (which is of course irreplaceable), I was able to procure a job in my fourth year at law school and thus began my journey.
As a lawyer carving a niche for himself, tell us about your professional journey so far. What are the challenges that new lawyers face while starting out in the legal field?
I started my professional journey as an Associate at Samvad Partners, Bangalore, where I primarily worked in the corporate team. Prior to Samvad Partners, through my internship, I had developed an interest towards corporate law,especially the PE/VC and M&A practice area. In the initial years as an associate at Samvad Partners and later at AZB & Partners, Mumbai, I had the opportunity to work on various aspects of corporate law, i.e., from PE/VC and M&A with respect to listed as well as unlisted companies. My work experience at these firms equipped and provided me the know-how to deal with cutting edge transactional lawyering. At this point, it is important to mention that I always had aspirations to join and develop a boutique firm. While I was working at AZB, sometime around March 2019, I got a call from Anubhab, Founder of Triumvir Law, who told me about the great work Triumvir Law was doing in the start-up and emerging companies’ ecosystem in Bangalore. The ambition of the firm aligned with mine,so I took a leap of faith to move to Bangalore to join Triumvir Law.
Anyone who is a first-generation lawyer in the legal industry will agree with my statement that it is never easy to build a firm, that too so early in your career. However, that is precisely the notion that Triumvir Law wanted to disrupt. To provide quality corporate and dispute resolution advisory to clients across India and abroad at an affordable price point.
Once you start your professional journey, you need to apply everything that you learnt in law schoolwith a practical perspective. Therefore, in my opinion, in addition to learning the practical aspects of law, a young lawyer needs to be accustomed with various practices of law before choosing one specific field to practice.
India has been doing reallywell in the field of M&A and PE/VC. Since you specialize in M&A and PE/VC dealmaking, what according to you has been working well for the country in this sphere? What does the future look like?
India is a developing economy, andM&A and PE/VC transactions form the backbone of the same. Since liberalization, there has been an influx of foreign investment in India, and we have seen an exponential rise in PC/VA and M&A deals. Indian investment market growth especially M&A and PE/VC aspects can be attributed to the advent of startup culture in India. The increase in M&A and PE/VC deals require corporate lawyersto handle the legal aspects of these deals.
As a corporate lawyer working in M&A and PE/VC space, my work ranges from drafting term-sheets to the transaction documents (SPA, SSA, SHA, BTA, etc.). TheM&A and PE/VC deal space experienced a slump during the first few months of the pandemic, but since June 2021, there has been a significant growth in M&A and PE/VC deal space in India. The growth and consistence of the M&A and PE/VC deal space in India can be attributed to several factors such as foreign investment, uncapped demands in the Indian market and exceptional performance of Indian startups.
During the pandemic many businesses were shut down but surprisingly many new businesses started, which adapted to the challenges imposed by the pandemic. Since we are in the recovery mode, I think the M&A and PE/VC deal space will reach bigger heights in the comingyears. We as a firm look forward to being part of this recovery mode by being part of the more M&A and PE/VC deals in future.
You also advice start-ups. What are the legal issues or challenges that the start-ups usually face specifically in India? Do these issues/challenges have long-term consequences?
We do a considerable amount of work with startupswhich range from day-to-day legal advisory to transaction documentation during a funding round. In India, we have noticed that a sizeable amount of clientele approach counsels only when there is a default or breach, more often than not in a state of panic. The same principle applies to startups in India, they normally approach us at a stage when they are about to receive investment or are undergoing due diligence. At that point of time, we need to understand their legal issues as well as manage the demands of the investor’s legal team. The majornon-compliances by startups usually involve not maintaining proper agreements, delaying regulatory filings and secretarial compliances, and not focusing on proper corporate governance.
Another major issue for startups, especially during fund raising, is their compliance with extant RBI foreign exchange regulations, pricing guidelines, and the Companies Act 2013. Keeping up with these requirements can be time-consuming for even seasoned lawyers, and we can only imagine how difficult it would be for startups. Startups spend their initial years focusing on fund-raising, marketing, minimum viable products, and scaling their businesses. Legal advice does not usually factor in as a necessity. Our firm aims to help startups even before they get off the ground, and through their initial years of growth. We wanted to be the ones bringing in that change in the legal sector, and we hope to help many more such startups in the future.
In your opinion, are there any specific India-related problems that corporate/ commercial firms face as far as the company laws are concerned? Is there scope for improvement on this front?
The Indian legal system which corporate/commercial firms deal with is a living breathing organism, evolving each year. Due to this evolving nature, we lawyers are always on our toes.From a minor amendment to the Companies Act to the overhaul of the foreign exchange regime by the Reserve Bank of India, each of these changes affect the compliance and regulatory regime of corporates. For instance, when India changed the investment route for countries sharing land border with India,whereby any country sharing land border with India including Hong Kong cannot invest in India without approval of the RBI in consultation with the central government,it impacted a lot of ongoing transactions and we as lawyers had to be the first ones to inform our clients about such a change in the country’s foreign investment policy. In my opinion, there is huge scope of improvement in legal regime in India, I think a stable regulatory and tax regime is the need for the hour so far as the Indian system is concerned. The biggest example of such a market with stable regulatory and tax regime is Singapore, and we must work towards emulating the same.
Your boutique law firm has offices in three different cities — Delhi NCR, Mumbai and Bangalore. Have the Covid-induced restrictions such as WFH affected your firm’s operations? How has your firm adapted to the professional challenges imposed by the pandemic-related lifestyle changes?
We have offices in New Delhi NCR and Mumbai, and our main office is in Bangalore. Before the pandemic, our work schedule involved a fair bit of travelling across these cities. But post the lockdowns we shifted to a hybrid model, and unless absolutely necessary, we usually work from home.
In relation to the professional challenges during the pandemic, I think it was a difficult time for most young professionals. We do acknowledge the fact that our firm survived the pandemic. Our work as lawyers/ law firms also involves client outreach and getting new clients, which was difficult during the lockdowns. We expanded our client outreach through digital means and by conducting webinars, including one with King’s College London on International Treaty Arbitration. Further, we also focused on client outreach and knowledge management during the pandemic to educate and create legal awareness among our clients.
‘It’s a myth that good legal advice comes at prohibitive costs. A lot of heartburn can be avoided if documents are entered into with proper legal advice and with due negotiations.’ – Archana Balasubramanian
Archana Balasubramanian is the founding partner of Agama Law Associates, a Mumbai-based corporate law firm which she started in 2014. She specialises in general corporate commercial transaction and advisory as well as deep sectoral expertise across manufacturing, logistics, media, pharmaceuticals, financial services, shipping, real estate, technology, engineering, infrastructure and health.
August 13, 2021:
Lawyers see companies ill-prepared for conflict, often, in India. When large corporates take a remedial instead of mitigative approach to legal issues – an approach utterly incoherent to both their size and the compliance ecosystem in their sector – it is there where the concept of costs on legal becomes problematic. Pre-dispute management strategy is much more rationalized on the business’ pocket than the costs of going in the red on conflict and compliances.
Corporates often focus on business and let go of backend maintenance of paperwork, raising issues as and when they arise and resolving conflicts / client queries in a manner that will promote dispute avoidance.
Corporate risk and compliance management is yet another elephant in India, which in addition to commercial disputes can be a drain on a company’s resources. It can be clubbed under four major heads – labour, industrial, financial and corporate laws. There are around 20 Central Acts and then specific state-laws by which corporates are governed under these four categories.
Risk and compliance management is also significantly dependent on the sector, size, scale and nature of the business and the activities being carried out.
The woes of a large number of promoters from the ecommerce ecosystem are to do with streamlining systems to navigate legal. India has certain heavily regulated sectors and, like I mentioned earlier, an intricate web of corporate risk and compliance legislation that can result in prohibitive costs in the remedial phase. To tackle the web in the preventive or mitigative phase, start-ups end up lacking the arsenal due to sheer intimidation from legal. Promoters face sectoral risks in sectors which are heavily regulated, risks of heavy penalties and fines under company law or foreign exchange laws, if fund raise is not done in a compliant manner.
It is a myth that good legal advice comes at prohibitive costs. Promoters are quick to sign on the dotted line and approach lawyers with a tick the box approach. A lot of heartburn can be avoided if documents are entered into with proper legal advice and with due negotiations.
Investment contracts, large celebrity endorsement contracts and CXO contracts are some key areas where legal advice should be obtained. Online contracts is also emerging as an important area of concern.
When we talk of scope, arbitration is pretty much a default mechanism at this stage for adjudicating commercial disputes in India, especially given the fixation of timelines for closure of arbitration proceedings in India. The autonomy it allows the parties in dispute to pick a neutral and flexible forum for resolution is substantial. Lower courts being what they are in India, arbitration emerges as the only viable mode of dispute resolution in the Indian commercial context.
The arbitrability of disputes has evolved significantly in the last 10 years. The courts are essentially pro-arbitration when it comes to judging the arbitrability of subject matter and sending matters to arbitration quickly.
The Supreme Court’s ruling in the Vidya Drolia case has significantly clarified the position in respect of tenancy disputes, frauds and consumer disputes. It reflects upon the progressive approach of the court and aims to enable an efficient, autonomous and effective arbitration environment in India.
Law firms stand for ensuring that the law works for business and not against it. Whatever the scope of our mandate, the bottom line is to ensure a risk-free, conflict-free, compliant and prepared enterprise for our client, in a manner that does not intimidate the client or bog them down, regardless of the intricacy of the legal and regulatory web it takes to navigate to get to that end result. Lawyers need to dissect the business of law from the work.
This really involves meticulous, detail-oriented, sheer hard work on the facts, figures, dates and all other countless coordinates of each mandate, repetitively and even to a, so-called, “dull” routine rhythm – with consistent single-mindedness and unflinching resolve.
As a firm, multiply that effort into volumes, most of it against-the-clock given the compliance heavy ecosystem often riddled with uncertainties in a number of jurisdictions. So the same meticulous streamlining of mandate deliverables has to be extrapolated by the management of the firm to the junior most staff.
Further, the process of streamlining itself has to be more dynamic than ever now given the pace at which the new economy, tech-ecosystem, business climate as well as business development processes turn a new leaf.
Finally, but above all, we need to find a way to feel happy, positive and energized together as a team while chasing all of the aforesaid dreams. The competitive timelines and volumes at which a law firm works, this too is a real challenge. But we are happy to face it and evolve as we grow.
We always as a firm operated on the work from anywhere principle. We believed in it and inculcated this through document management processes to the last trainee. This helped us shut shop one day and continue from wherever we are operating.
The team has been regularly meeting online (at least once a day). We have been able to channel the time spent in travelling to and attending meetings in developing our internal knowledge banks further, streamline our processes, and work on integrating various tech to make the practice more cost-effective for our clients.
Validity & Existence of an Arbitration Clause in an Unstamped Agreement
By Kunal Kumar
January 8, 2024
In a recent ruling, a seven-judge bench of the Supreme Court of India in its judgment in re: Interplay between arbitration agreements under the Arbitration & Conciliation Act 1996 and the Indian Stamp Act 1899, overruled the constitutional bench decision of the Supreme Court of India in N. N. Mercantile Private Limited v. Indo Unique Flame Ltd. & Ors. and has settled the issue concerning the validity and existence of an arbitration clause in an unstamped agreement. (‘N. N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd. – III’)
Background to N. N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd. – III
One of the first instances concerning the issue of the validity of an unstamped agreement arose in the case of SMS Tea Estate Pvt. Ltd. v. Chandmari Tea Company Pvt. Ltd. In this case, the Hon’ble Apex Court held that if an instrument/document lacks proper stamping, the exercising Court must preclude itself from acting upon it, including the arbitration clause. It further emphasized that it is imperative for the Court to impound such documents/instruments and must accordingly adhere to the prescribed procedure outlined in the Indian Stamp Act 1899.
With the introduction of the 2015 Amendment, Section 11(6A) was inserted in the Arbitration & Conciliation Act 1996 (A&C Act) which stated whilst appointing an arbitrator under the A&C Act, the Court must confine itself to the examination of the existence of an arbitration agreement.
In the case of M/s Duro Felguera S.A. v. M/s Gangavaram Port Limited, the Supreme Court of India made a noteworthy observation, affirming that the legislative intent behind the 2015 Amendment to the A&C Act was necessitated to minimise the Court's involvement during the stage of appointing an arbitrator and that the purpose embodied in Section 11(6A) of A&C Act, deserves due acknowledgement & respect.
In the case of Garware Wall Ropes Ltd. v. Cosatal Marine Constructions & Engineering Ltd., a divisional bench of the Apex Court reaffirmed its previous decision held in SMS Tea Estates (supra) and concluded that the inclusion of an arbitration clause in a contract assumes significance, emphasizing that the agreement transforms into a contract only when it holds legal enforceability. The Apex Court observed that an agreement fails to attain the status of a contract and would not be legally enforceable unless it bears the requisite stamp as mandated under the Indian Stamp Act 1899. Accordingly, the Court concluded that Section 11(6A) read in conjunction with Section 7(2) of the A&C Act and Section 2(h) of the Indian Contract Act 1872, clarified that the existence of an arbitration clause within an agreement is contingent on its legal enforceability and that the 2015 Amendment of the A&C Act to Section 11(6A) had not altered the principles laid out in SMS Tea Estates (supra).
Brief Factual Matrix – N. N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd.
Indo Unique Flame Ltd. (‘Indo Unique’) was awarded a contract for a coal beneficiation/washing project with Karnataka Power Corporation Ltd. (‘KPCL’). In the course of the project, Indo Unique entered into a subcontract in the form of a Work Order with N.N. Global Mercantile Pvt. Ltd. (‘N.N. Global’) for coal transportation, coal handling and loading. Subsequently, certain disputes arose with KPCL, leading to KPCL invoking Bank Guarantees of Indo Unique under the main contract, after which Indo Unique invoked the Bank Guarantee of N. N. Global as supplied under the Work Order.
Top of FormS
Subsequently, N.N. Global initiated legal proceedings against the cashing of the Bank Guarantee in a Commercial Court. In response thereto, Indo Unique moved an application under Section 8 of the A&C Act, requesting that the Parties to the dispute be referred for arbitration. The Commercial Court dismissed the Section 8 application, citing the unstamped status of the Work Order as one of the grounds. Dissatisfied with the Commercial Court's decision on 18 January 2018, Indo Unique filed a Writ Petition before the High Court of Bombay seeking that the Order passed by the Commercial Court be quashed or set aside. The Hon’ble Bombay High Court on 30 September 2020 allowed the Writ Petition filed by Indo Unique, aggrieved by which, N.N. Global filed a Special Leave Petition before the Supreme Court of India.
N. N. Global Mercantile Pvt. Ltd. v. Indo Unique Flame Ltd. – I
The issue in the matter of M/s N.N. Global Mercantile Pvt. Ltd. v. M/s Indo Unqiue Flame Ltd. & Ors. came up before a three-bench of the Supreme Court of India i.e. in a situation when an underlying contract is not stamped or is insufficiently stamped, as required under the Indian Stamp Act 1899, would that also render the arbitration clause as non-existent and/or unenforceable (‘N.N. Global Mercantile Pvt. Ltd. v. Indo Flame Ltd. – I’).
The Hon’ble Supreme Court of India whilst emphasizing the 'Doctrine of Separability' of an arbitration agreement held that the non-payment of stamp duty on the commercial contract would not invalidate, vitiate, or render the arbitration clause as unenforceable, because the arbitration agreement is considered an independent contract from the main contract, and the existence and/or validity of an arbitration clause is not conditional on the stamping of a contract. The Hon’ble Supreme Court further held that deficiency in stamp duty of a contract is a curable defect and that the deficiency in stamp duty on the work order, would not affect the validity and/or enforceability of the arbitration clause, thus applying the Doctrine of Separability. The arbitration agreement remains valid and enforceable even if the main contract, within which it is embedded, is not admissible in evidence owing to lack of stamping.
The Hon’ble Apex Court, however, considered it appropriate to refer the issue i.e. whether unstamped instrument/document, would also render an arbitration clause as non-existent, unenforceable, to a constitutional bench of five-bench of the Supreme Court.
N. N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd. – II
On 25 April 2023, a five-judge bench of the Hon’ble Supreme Court of India in the matter of N. N. Mercantile Private Limited v. Indo Unique Flame Ltd. & Ors. held that (1) An unstamped instrument containing an arbitration agreement cannot be said to be a contract which is enforceable in law within the meaning of Section 2(h) of the Indian Contract Act 1872 and would be void under Section 2(g) of the Indian Contract Act 1872, (2) an unstamped instrument which is not a contract nor enforceable cannot be acted upon unless it is duly stamped, and would not otherwise exist in the eyes of the law, (3) the certified copy of the arbitration agreement produced before a Court, must clearly indicate the stamp duty paid on the instrument, (4) the Court exercising its power in appointing an arbitration under Section 11 of the A&C Act, is required to act in terms of Section 33 and Section 35 of the Indian Stamp Act 1899 (N. N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd. – II).
N. N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd. – III
A seven-judge bench of the Supreme Court of India on 13 December 2023 in its recent judgment in re: Interplay between arbitration agreements under the Arbitration & Conciliation Act 1996 and the Indian Stamp Act 1899, (1) Agreements lacking proper stamping or inadequately stamped are deemed inadmissible as evidence under Section 35 of the Stamp Act. However, such agreements are not automatically rendered void or unenforceable ab initio; (2) non-stamping or insufficient stamping of a contract is a curable defect, (2) the issue of stamping is not subject to determination under Sections 8 or 11 of the A&C Act by a Court. The concerned Court is only required to assess the prima facie existence of the arbitration agreement, separate from concerns related to stamping, and (3) any objections pertaining to the stamping of the agreement would fall within the jurisdiction of the arbitral tribunal. Accordingly, the decision in N. N. Global Mercantile (P) Ltd. v. Indo Unique Flame Ltd. – II and SMS Tea (supra) was overruled, by the seven-judge bench of the Supreme Court of India.
Kunal is a qualified lawyer with more than nine years of experience and has completed his LL.M. in Dispute Resolution (specialisation in International Commercial Arbitration) from Straus Institute for Dispute Resolution, Pepperdine University, California.
Kunal currently has his own independent practice and specializes in commercial/construction arbitration as well as civil litigation. He has handled several matters relating to Civil Law and arbitrations (both domestic and international) and has appeared before the Supreme Court of India, High Court of Delhi, District Courts of Delhi and various other tribunals.
No Safe Harbour For Google On Trademark Infringement
By Mayank Grover & Pratibha Vyas
October 9, 2023
Innovation, patience, dedication and uniqueness culminate in establishing a distinct identity. A trademark aids in identifying the source and quality, shaping perceptions about the identity's essence. When values accompany a product or service's trademark, safeguarding against misuse and infringement becomes crucial. A recent pronouncement of a Division Bench of the Delhi High Court dated August 10, 2023 in Google LLC v. DRS Logistics (P) Ltd. & Ors. and Google India Private Limited v. DRS Logistics (P) Ltd. & Ors. directed that Google’s use of trademarks as keywords for its Google Ads Programme does amount to ‘use’ in advertising under the Trademarks Act and the benefit of safe harbour would not be available to Google if such keywords infringe on the concerned trademark.
Factual Background
Google LLC manages and operates the Google Search Engine and Ads Programme, while, Google India Private Limited is a subsidiary of Google that has been appointed as a non-exclusive reseller of the Ads Programme in India. The Respondents, DRS Logistics and Agarwal Packers and Movers Pvt. Ltd. are leading packaging, moving and logistics service providers in India.
On 22.12.2011, DRS filed a suit against Google and Just Dial Ltd. under provisions of the Trademarks Act, 1999 (‘TM Act’) inter alia seeking a permanent injunction against Google from permitting third parties from infringing, passing off etc. the relevant trademarks of DRS. The core of the dispute revolved around Google’s Ads Programme. DRS claimed that its trade name 'AGARWAL PACKERS AND MOVERS' is widely recognized and a 'well-known' trademark. Use of DRS’s trademark as a keyword diverts internet traffic from its website to that of its competitors and they were entitled to seek restraint against Google for permitting third parties who are not authorized to use the said trademark. DRS further argued that Google benefits from these trademark infringements. This practice involved charging a higher amount for displaying these ads, constituting an infringement of their trademarks. Whereas, Google contended that the use of the keyword in the Ads Programme does not amount to ‘use’ under the TM Act notwithstanding that the keyword is/or similar to a trademark. Thus, the use of a term as a keyword cannot be construed as an infringement of a trademark under the TM Act, and being an intermediary, it claimed a safe harbour under Section 79 of the Information Technology Act, 2000. (‘IT Act’).
In essence, the dispute between the parties was rooted in DRS’s grievance concerning the Ads Programme. The Learned Single Judge vide judgment dated 30.10.2021interpreted relevant provisions of the TM Act and drew on multiple legal precedents to arrive at the decision that DRS can seek protection of its trademarks which were registered under Section 28 of the TM Act and issued directions to investigate complaints alleging the use of trademark and/or to ascertain whether a sponsored result has an effect of infringing a trademark or passing off.
Being aggrieved, Google LLC and Google Pvt. Ltd. filed appeals before the Division Bench. Google LLC argued that the Single Judge’s findings were erroneous and the directions issued were liable to be set aside. Google India claimed that it doesn’t control and operate the Search Engine and the Ads Programme making it unable to comply with the directions passed in the impugned judgment.
Analysis & Decision of Court
The Division Bench found Single Judge’s rationale for assessing trademark infringement through keywords and meta-tags valid. Meta-tags are a list of words/code in a website, not readily visible to the naked eye. It serves as a tool for indexing the website by a search engine. If a trademark of a third party is used as a meta-tag, the same would serve as identifying the website as relevant to the search query that includes the trademark as a search term. The use of keywords in the Ads Programme also serves similar purpose. The Division Bench was unable to accept that using a trademark as a keyword, even if not visible, would not be considered trademark use under the TM Act.
Google placed heavy reliance on the decisions rendered by Courts across jurisdictions of United Kingdom, United States of America, European Union, Australia, New Zealand, Russia, South Africa, Canada, Spain, Italy, Japan and China; in the cases of Google France SARL and Google Inc. v. Louis Vitton SA & Ors.[1], Interflora Inc. v. Marks & Spencer Plc.[2], and L’Oreal SA v. eBay International AG[3] in support of the contention that the use of trade marks is by the advertiser and not by Google. However, the Division Bench rejected Google’s passive role; highlighting its active involvement in recommending and promoting trademark keywords for higher clicks in its Ads Programme. Division Bench referred to a few judicial decisions rendered in the United States of America that captured the essence of the controversy for perspective, concluding that Google actively promotes and encourages trademarks associated with major goods and services, rather than having a passive role.
It was held that the contention that the use of trademarks as keywords, per se constitutes an infringement of the trademark is unmerited; the assumption that an internet user is merely searching the address of the proprietor of the trademark when he feeds in a search query that may contain a trademark, is erroneous.
The Doctrine of 'Initial Interest Confusion' addresses trademark infringement based on pre-purchase confusion. The doctrine is applied when meta-tags, keywords, or domain names cause initial confusion similar to a registered trademark. If users are misled to access unrelated websites, trademark use in internet advertising may be actionable and reliance was placed on US precedents. Referring to Section 29 of the TM Act, it was directed that Section 29 does not specify the duration for which the confusion lasts but, even if the confusion is for a short duration and an internet user is able to recover from the same, the trade mark would be infringed and would offend Section 29(2) of the TM Act.
It was held that the Ads Programme is a platform for displaying advertisements. Google, being an architect and operator of its own programme makes it an active participant in the use of trademarks and determining the advertisements displayed on search pages. Their use of proprietary software makes them utilize trademarks and control the distribution of information related to potentially infringing links, ultimately leading to revenue maximization. Hence, a substantial link exists between Google LLC and Google India, rendering it impossible for Google India to deny its role in operating the Ads Programme. It was further held that Google sells trademarks as keywords to advertisers and encourages users to use trademarks as keywords for ads. It is contradictory for Google to encourage trademark use while claiming data belongs to third parties for exemption. After 2004, Google changed policies to boost revenue and subsequently, introduced a tool that searches effective terms, including trademarks. Google's active involvement in its advertising business and online nature does not necessarily qualify it for benefits under Section 79 of the IT Act. The Division Bench agreed with the view of the Single Judge that Google would not be eligible for protection of safe harbour under Section 79(1) of the IT Act, if its alleged activities infringe trademarks.
Conclusion
This is a seminal decision governing (and rather, restricting) the operations of intermediaries and redefining the jurisprudence of safe harbour under the IT Act. The decision is well-reasoned and establishes a significant precedent for safeguarding trademarks by uniquely holding Google accountable under its Ads Programme. The same will prevent usage of tradenames as a third-party trademark in keyword search or metatags by advertisers on Google’s search engine. While keywords and meta-tags have different levels of visibility, their purpose is similar i.e. advertising and attracting internet traffic. The use of trademarks as meta-tags by a person who is neither a proprietor of the trademark nor permitted to use the same leads to confusion amongst public at large due to the automated processes of search engines and consequently, constitutes trademark infringement.
About the Authors: Mayank Grover is a Partner and Pratibha Vyas is an Associate at Seraphic Advisors, Advocates & Solicitors
[1] C-236/08 to C-238/08 (2010) [2011] All ER (EC) 41
[2] [2014] EWCA Civ 1403
[3] 2C- 324/09 (2010)
Environment and Sustainable Development – A Balanced Approach - Nayan Chand Bihani
The debate between protection of the environment and sustainable development is an age old one and is growing in proportion with every passing day all over the world, in general and specifically with respect to developing countries like India, in particular.
The Stockholm Declaration on the Human Enviornment,1972 categorically stated that man is both the creator and the moulder of his environment, which gives him physical sustenance and affords him the opportunity of intellectual, moral, social and spiritual growth. In the long run and tortuous evolution of the human race on this planet a stage has been reached when through the rapid acceleration of science and technology man has acquired the power to transform his environment in countless ways and on an unprecedented scale. Both aspect of man’s environment, the natural and the man-made, are essential to his wellbeing and to the enjoyment of basic human rights-even the right to life itself. It also states that the protection and improvement of the human environment is a major issue which affects the wellbeing of peoples and economic development throughout the world, it is the urgent desire of the people of the whole world and the duty of all the Governments. The Declaration, in Principle 2, states that the natural resources of the earth, including the air, water, land, flora and fauna and especially representative samples of natural eco-systems, must be safeguarded for the benefit of present and future generations through careful planning or management, as appropriate. It further, in Principle 8, states that economic and social development is essential for ensuing a favourable living and working environment for man and for creating conditions on earth that are necessary for the improvement of the quality of life.
A milestone in this field is the Rio Declaration on Environment and Development, 1992. It, interalia, states that human beings are at the centre of concern for sustainable development and that they are entitled to a healthy and productive life in harmony with nature. It also states that the right to development must be fulfilled so as to equitably meet developmental and environmental needs of present and future generations. It states that in order to achieve sustainable development, environmental protection shall constitute an integral part of the development process and cannot be considered in isolation from it and that to achieve sustainable development and a higher quality of life for their people, States should reduce and eliminate unsustainable patterns of production and consumption and promote appropriate demographic policies. It contemplates that the States shall enact effective environmental legislation. Environmental standards, management objectives and priorities should reflect the environmental and developmental context to which they apply. The Declaration states that in order to protect the environment, the precautionary approach shall be widely applied by the states according to their capabilities and that environmental impact assessment, as a national instrument, shall be undertaken for proposed activities that are likely to have a significant adverse impact on the environment and are subject to a decision of a competent national authority.
Initially, the trend was to use ‘Polluter Pays’ principle and punish the offending unit. Subsequently, vide judicial decisions, the principle of sustainable development was widely applied so as to balance the two principles.
The Polluter Pays principle talks about the liability of the polluter. With the increase in the industrial development what subsequently also increased is the waste emitted out of these industries and as a result of these wastes not only were the immediate surroundings adversely affected but also the environment at large. There is no specific definition of the Polluter Pays principle, rather it is a practice emphasising on the fact that one who pollutes the environment should be held accountable and responsible for the same with consequential steps to be taken. The principle not just focuses on punishing the polluter but its main criterion is to ensure that the polluted environment returns back to its original state. The reason behind it is to promote ‘Sustainable Development’. Thus it can be summed up that Polluter Pays principle is an essential element of sustainable development. Therefore, whosoever causes pollution to the environment will have to bear the cost of its management. The principle imposes a duty on every person to protect the natural environment from pollution or else he will be responsible for the cost of the damage caused to the environment. The main reason behind imposing a cost is two folds. Firstly, to refrain any person from polluting the environment and secondly, if in the case there is pollution then it is the polluter’s duty to undo the damage. Hence, both of the above ensures that there should be sustainable development. It is pertinent to mention that the Polluter Pays principle is not a new concept. It was first referred to in 1972 in a Council Recommendation on Guiding Principles Concerning the International Economic Aspects of Environmental Policies of the Organisation for Economic Co-operation and Development. The same is also enshrined in Principle 16 of the Rio Declaration, which states that ‘the polluter, in principle, bear the cost of pollution.’ The need of the hour is a demonstrable willingness to adhere to the essence of the principle in order to ensure that there is development, but not at the cost of causing environmental degradation.
The Hon’ble Supreme Court of India in the case of Indian Council for Enviro-legal Action vs Union of India reported in LQ/SC/1996/358, interalia, putthe absolute liability upon the polluter for the harm caused to the environment.
The Hon’ble Supreme Court of India in the case of Vellore Citizens Welfare Forum vs Union of India, reported in LQ/SC/1996/1368, interalia, accepted the Polluter Pays Principle as a part of the Article 21 of the Constitution of India and also emphasised Article 48A and Article 51A(g) of the Constitution of India.
The Hon’ble Supreme Court of India in the case of Amarnath Shrine reported in LQ/SC/2012/1121, has categorically stated the right to live with dignity, safety and in a clean environment.Article 21 of the Constitution of India, guaranteeing the right to life is ever widening and needs to maintain proper balance between socio-economic security and protection of the environment.
The Hon’ble Apex Court in the case of Bombay Dyeing and Manufacturing Co Ltd- vs – Bombay Environmental Action Group reported in LQ/SC/2006/206, interalia, states that the consideration of economic aspects by Courts cannot be one and it depends on the factors of each case. However, strict views ought to be taken in cases of town planning and user of urban land so as to balance the conflicting demands of economic development and a decent urban environment. Ecology is important but other factors are no less important and public interest will be a relevant factor.
The Hon’ble Supreme Court in the case of Dahanu Taluka Environment Protection Group –vs- Bombay Suburban Electricity Supply Company Ltd reported in LQ/SC/1991/157, has held that it is primary for the Government to consider importance of public projects for the betterment of the conditions of living of people on one hand and necessity for preservation of social and ecological balance, avoidance of deforestation and maintenance of purity of atmosphere and water from pollution and the role of the Courts is restricted to examine the whether the Government has taken into account all the relevant aspects and has not ignored any material condition.
The Hon’ble Supreme Court of India in the case of Narmada BachaoAndolan vs Union of India reported in LQ/SC/2000/1509, interalia, reiterated the Polluter Pay Principle.
A milestone case is that of M C Mehta vs Union of India reported in LQ/SC/2004/397, wherein the Hon’ble Supreme Court explained the Precautionary principle and the principle of Sustainable Development. It was, interalia, stated that the development needs have to be met but a balance has to be struck between such needs and the environment. The Hon’ble Supreme Court also reiterated similar views in a series of cases, some of which are stated hereinbelow;
LQ/SC/2007/1421
- M C Mehta vs Union of IndiaLQ/SC/2009/1231
- Tirpur Dyeing Factory Owners Association vs Noyyal River Ayacutdars Protection Association &Ors.LQ/SC/2009/1891
An interesting question came up before the Hon’ble Supreme Court with regard to the setting up of nuclear power plants with regard to the possibility of considerable economic development weighed against risk of feared radiological hazard. The Hon’ble Apex Court in the case of G.Sundarrajan –vs- Union of India reported in LQ/SC/2013/536, interalia, held that the Courts will be justified to look into the aspect as to the opinions of experts and the adequacy of safety measures and will be justified to look into the safety standards being followed by the Nuclear Power Plant.
The Hon’ble Supreme Court, in the case of Lal Bahadur vs State of UP reported in LQ/SC/2017/1384, interalia, emphasised the importance of striking a balance between the two principles.
An important development is the advent of the National Green Tribunal which has the jurisdiction over all civil cases where a substantial question relating to environment (including enforcement of any legal right relating to environment) is involved and relates to the Acts specified in Schedule I, namely the Water (Prevention and Control of Pollution) Act, 1974, the Water(Prevention and Control of Pollution) Cess Act, 1977, the Forest Conservation Act, 1980, the Air (Prevention and Control of Pollution) Act, 1981, the Environment (Protection) Act, 1986, the Public Liability Insurance Act, 1991 and the Biological Diversity Act, 2002. The National Green Tribunal, since its inception, has been looking into the aspects of environmental pollution and the mitigation thereof.
It can thus be said that both the environment and development are essential in the modern world for the betterment and living standards of the people. However, rampant and unplanned development at the cost of the environment is not to be entertained and the Courts will keep a close watch into the aspect of sustainable development, interalia, based on the criteria and guidelines, as specified.
Nayan Chand Bihani is a practising advocate at Calcutta High Court. Mr. Bihani pursued his LL.B from the Calcutta University College of Law, Hazra Campus and was enrolled as an Advocate in December,1998. Mr. Bihani deals mainly with Writ petitions, specially in Environmental laws, Election laws, Educational laws, Municipal laws, Service laws and Public Interest Litigations. He also represents several authorities like the West Bengal State Election Commission, the West Bengal Pollution Control Board, the State of West Bengal, several Educational Institutions and Universities and several Municipalities and Municipal Corporations and the Odisha Pollution Control Board. He can be contacted at nayanbihani@gmail.com.
Sign up for our weekly newsletter to stay up to date on our product, events featured blog, special offer and all of the exciting things that take place here at Legitquest.