2016 SCC Vol. 1 January 14, 2016 Part 2

Civil Procedure Code, 1908 — Or. 1 Rr. 3 and 10(2) and S. 115 — Impleadment as defendants when original defendants set ex parte: As the impleadment application moved by appellants for impleading themselves as defendants when original defendants set ex parte, was allowed by trial court, but set aside in revision, it is held that particularly when original defendants being set ex parte, presence of appellants in suit would be in the interest of justice. Accordingly, impugned order set aside and order passed by trial court, impleading appellants as Defendants 2 and 3, restored. [Dilbag Singh v. Ravinder Kaur, (2016) 1 SCC 388]

Civil Procedure Code, 1908 — S. 144 — Power to order restitution: S. 144 CPC vests expansive power in court. Such power must be exercised to ensure equity, fairness and justice to both the parties. For ascertaining the value of property which is no longer available for restitution on account of it having been further sold, etc., court should adopt a realistic and verifiable approach instead of resorting to hypothetical and presumptive value. Court should keep under consideration not only the loss suffered by the party entitled to restitution but also the gain, if any, made by the other party who is obliged to make restitution. No unmerited injustice should be caused to either party. [Citibank N.A. v. Hiten P. Dalal, (2016) 1 SCC 411]

Corporate Laws — Companies Act, 1956 — S. 111(7) — Rectification of register on transfer of shares, etc.: Issues which truly relate to rectification of the register fall within summary jurisdiction of Company Law Board (CLB). Complex questions of title fall outside its jurisdiction. But when there was no complicated question of title and no real dispute between parties about entitlement of members of one party to company shares in their favour and rectification of register, CLB erred in taking view that it lacked jurisdiction on ground of existence of complexity of facts and law. [Jai Mahal Hotels (P) Ltd. v. Devraj Singh, (2016) 1 SCC 423]

Courts, Tribunals and Judiciary — Judicial Process — Judicial discipline and comity: As judgments in rem were affirmed by Supreme Court, extending benefit of the same, to all similarly situated persons, reopening of the issue conclusively determined by said previous judgments by High Court, not permissible. [Sunil Kumar Verma v. State of U.P., (2016) 1 SCC 397]

Criminal Procedure Code, 1973 — S. 482 — Quashing of criminal proceedings involving abuse of financial system: As criminal proceedings initiated against both accused for loans availed on basis of mortgages based on forged documents, quashed by High Court under S. 482 CrPC, holding that as “No-dues certificates” were issued by respective banking institutions and settlements were arrived at under settlement scheme, continuance of prosecution was exercise in futility and, therefore, quashing of criminal proceedings was required to prevent abuse of process of law. It is held that High Court was erroneously guided by ambit and sweep of power under S. 482 CrPC for quashing the proceedings. It absolutely fallaciously opined, that continuance of proceeding will be abuse of process of court. [State of T.N. v. R. Vasanthi Stanley, (2016) 1 SCC 376]

Criminal Procedure Code, 1973 — Ss. 482 and 320 — Criminal proceedings involving non-compoundable offences: Economic offences like embezzlement of public money from bank are public wrongs or crimes committed against society and gravity and magnitude thereof affect public at large. Courts must not be swayed by return of money to bank which has been defrauded but must also consider society at large. Instant offence (cheating and using forged documents i.e. forged bills of lading to embezzle public money from bank) was well planned, and committed with deliberate design with an eye on personal profit regardless of consequence to society at large. Cheating of bank exposits fiscal impurity and such financial fraud is an offence against society at large. To quash proceedings merely on ground of settlement with bank amounts to misplaced sympathy. Hence, criminal proceedings involving non-compoundable offences, restored. [CBI v. Maninder Singh, (2016) 1 SCC 389

Excise — Valuation — Packing material — Cost of wooden crates — Whether is includible in the value of good sold: There is no necessity that the crates must be actually returned so long as there is an obligation on the seller to take back the crates, if the buyer chooses to return them. Wooden crates merely consist of planks of wood which are nailed together. Therefore, even if they are dismantled by the buyer and the planks are returned to the seller, the seller would be in a position to use them again. Wooden crates are durable and returnable packing. Cost of wooden cases, not to be included in the value of glass sheets sold. [Triveni Glass Ltd. v. CCE, (2016) 1 SCC 291]

Penal Code, 1860 — S. 420 — When attracted: In order to bring a case for offence of cheating, it is not merely sufficient to prove that a false representation was made, but, it is further necessary to prove that the representation was false to the knowledge of accused and was made in order to deceive complainant. [ARCI v. Nimra Cerglass Technics (P) Ltd., (2016) 1 SCC 348]

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) — S. 18(2) — Power of Appellate Tribunal under, to condone delay in filing appeal beyond prescribed period of limitation:Delay in filing an appeal under S. 18(1) of 2002 Act can be condoned by Appellate Tribunal under S. 18(2) of 2002 Act r/w proviso to S. 20(3) of 1993 Act. [Baleshwar Dayal Jaiswal v. Bank of India, (2016) 1 SCC 444]

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