February - 2012

  • Arbitration: When the allegations made by one of the contracting parties pertain to criminal offences, then, in spite of the arbitration agreement, such allegations cannot be determined by the arbitrator. For eg., fraud is a complicated question of law & fact and cannot be adjudicated by arbitrator. Sahara India Commercial Corporation Limited v. Dr. (Smt.) Rashmi Pathak, (HC of MP).

  • Caste certificate: Dispute regarding the validity of the caste certificate by the competent authority is required to be determined by the High Power Committee appointed by the State Government. No other authority can initiate action on its own for determining validity of the caste certificate. Archana Mourya v. MP Bhoj Open University, (HC of MP).
  • Cheque bouncing: Complaint of cheque bouncing can be presented only against such person who has signed the cheque, and on his death, there is no liability of legal heirs of person signing the cheque. Neena Chopra v. Mahendra Singh Vaishya, (HC of MP).
  • Custodial death: When a human rights activist who had been investigating and exposing the illegal activities of police during the disturbed period of Punjab, and such activist was abducted, bought to police station, tortured, murdered and his dead body thrown in canal, then, such custodial death would amount to violation of constitutional mandate. Further held that tolerance of police atrocities would amount to acceptance of systematic subversion and erosion of rule of law. Prithipal Singh v. State of Punjab, (Supreme Court).
  • Departmental enquiry: Even if the departmental enquiry is not initiated within a period of two years within the date of retirement, then also it the appropriate authority is empowered under the M.P. Civil Services (Pension) Rules, 1976 to impose penalty after conclusion of departmental enquiry. State of MP v. Puranlal Nahir, (HC of MP) (FB).
  • Enlargement on bail: Factors: Apart from gravity of alleged offence and severity of punishments prescribed, it shall be factored that the person shall be presumed innocent until proved guilty, importance of personal freedom as well as securing attendance of accused during trial. Accordingly, held that bail is a rule and jail is an exception, and denial of bail shall be in most extraordinary circumstances. Sanjay Chandra v. Central Bureau of Investigation, (Supreme Court).
  • High Court: Inherent powers u/s.482, Code of Criminal Procedure, 1973: Even after the revision against conviction under s.138 of NI Act, 1881 has been dismissed by the High Court, considering the fact that Negotiable Instruments Act, 1881 is a special law, accordingly, prevails over s.320(6) of Cr.P.C. Thus, even after disposal of revision, the inherent powers of High Court could be invoked for purposes of setting aside conviction in light of compromise entered between the parties. OTG Global Finance Limited v. Mohan Madelia, (HC of MP).
  • Hire-purchase agreements: Hypothecation: Hirer continues to be the owner of the vehicle till such time the ownership is not transferred to the purchaser. Further held, that the hirer even in case of default is not permitted to take re-possession of the vehicle by force. Citicorp Maruti Finance Limited v. S Vijaylaxmi, (Supreme Court) (FB).
  • Priority of creditors: Dues outstanding under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 have an over-riding priority over the dues pertaining to wages of workman and secured creditor as provided under the Companies Act, 1956. Once the provident fund dues are settled, then, the employees' wages would be treated at par with secured creditors. Employees' Provident Fund Commissioner v. Official Liquidator, Esskay Pharmaceuticals, (Supreme Court).
  • Stamp duty: Liability for payment: When there was deficient stamp duty in the 1st sale deed, and the land stood subsequently transferred through further sale deeds, than the deficiency in the 1st sale deed would be borne by the purchaser in the said sale deed. Dr. Hemlata v. State of MP, (HC of MP) (FB).

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