SCC Online Weekly Rewind Episode 20 ft. Devika Sharma, Senior Editorial Assistant is out now. The written episode along with the video episode can be watched and read below.
Supreme Court
Part IX-B of Constitution relating to cooperative societies unconstitutional for want of ratification by half of the States; Provisions relating to multi-State cooperative societies severable and valid: SC
In a major ruling this week, a 3-Judge Bench of the Supreme Court held that the Constitution (97th Amendment) Act, 2011 which inter alia inserted Part IX-B, is ultra vires the Constitution insofar it is concerned with the subject of Cooperative Societies, for want of the requisite ratification under Article 368(2) proviso. At the same time, the Court by a majority of 2:1, followed doctrine of severability in declaring that Part IX-B is operative insofar as it concerns Multi-State Cooperative Societies both within various States and in Union Territories. Justice R.F. Nariman and Justice B.R. Gavai formed the majority. Whereas Justice K.M. Joseph penned a separate opinion dissenting partly with the majority. He expressed inability to concur with the view on the application of doctrine of severability.
https://www.scconline.com/blog/post/2021/07/21/constitution-97th-amendment-act-2011/
Can Courts modify Arbitral Awards under S. 34 of Arbitration Act or is power limited? SC decides
Whether the power of a Court under Section 34 of the Arbitration and Conciliation Act, 1996 to ‘set aside’ an award of an arbitrator would include the power to modify such an award? Answering this interesting and important question in the negative, the Supreme Court said that:
“If one were to include the power to modify an award in Section 34, one would be crossing the Lakshman Rekha.”
While laying down this law, the Supreme Court reversed a Madras High Court judgment which had ruled that at least insofar as arbitral awards made under the National Highways Act, 1956 are concerned, Section 34 of the Arbitration Act must be so read as to permit modification of an arbitral award made under the National Highways Act so as to enhance compensation awarded by an Arbitrator.
https://www.scconline.com/blog/post/2021/07/22/arbitral-award-3/
Supreme Court closes suo motu case as U.P. Government expresses decision to postpone Kanwar Yatra to next year
In another case, while closing the suo motu case regarding “Kanwar Yatra during pandemic”; the Division Bench comprising of Justice R.F. Nariman and Justice B.R. Gavai directed the authorities to be cautious towards public health and safety. The Bench stated,
“We may only remind the authorities at all levels to have regard to Article 144 of the Constitution, and ensure that untoward incidents which directly affect the lives of the public will be looked upon sternly and prompt action taken immediately.”
https://www.scconline.com/blog/post/2021/07/19/kanwar-yatra-2/
Will a subsequent purchaser stepping into shoes of original allottee in housing project have same rights as that of original allottee? SC explains
Giving a major relief to homebuyers, the Supreme Court held that rights of a subsequent purchaser are the same as that of an original allottee in a housing project. The Court said that in the event the subsequent purchaser claims refund, on an assessment that he too can (like the original allottee) no longer wait, and face intolerable burdens, the equities would have to be moulded.
High Court
Delhi High Court
Whether a Chief Minister’s promise to its citizens is enforceable?
Whether a promise made by a Chief Minister to its citizens is enforceable?
Well, the Delhi High Court says yes it is! Justice Prathiba M. Singh pronounced a one of its kind ruling. The Court said that the Law has evolved the doctrines of legitimate expectation and promissory estoppel to ensure that promises made by the Government, its officials and other authorities are not broken and are, in fact, judicially enforceable, subject to certain conditions.
The High Court expressed that,
A statement given in a consciously held press conference, in the background of the lockdown announced due to the pandemic and the mass exodus of migrant labourers, cannot be simply overlooked. Proper governance requires the Government to take a decision on the assurance given by the CM, and inaction on the same cannot be the answer.
In the backdrop of this decision, was a press conference held by the Chief Minister of Delhi during the ongoing Covid pandemic where he gave a solemn assurance that the Government would take care of the tenants who are unable to pay the rent due to poverty.
Andhra Pradesh High Court
AP HC | Is girlfriend or concubine a “relative” of husband, liable to be prosecuted for cruelty under S. 498-A IPC? Court decides
Can a Girlfriend or concubine of husband be prosecuted for cruelty under the Penal Code, 1860?
Andhra Pradesh High Court held that a Girlfriend or concubine, being not connected by blood or marriage, is not a relative of the husband for the purpose of Section 498-A IPC.
https://www.scconline.com/blog/post/2021/07/20/cruelty-5/
Allahabad High Court
The Allahabad High Court dealt with a case of an accused who committed murder in most brutal and barbaric manner of his wife and four minor daughter to pave way to marry another lady. Not only this, but he also chopped off various parts of their bodies and inflicted severe incised wounds. In such above background of the case, the High Court upheld the trial court’s decision of awarding death penalty to the accused. Court expressed that
The accused is a menace to the Society and, therefore, imposition of lesser sentence than that of death sentence, would not be adequate and appropriate.
https://www.scconline.com/blog/post/2021/07/19/rarest-of-rare-category/
Punjab and Haryana High Court
Maintaining elderly parents is not only a value based principle but a bounden duty under Maintenance and Welfare of Parents Act
Recently, the Punjab and Haryana High Court addressed plight of a 72-year-old widowed mother who had been ousted from her house by her son and was given beatings. The Court observed that,
“It is often seen that after receiving property from their parents, children abandon them. In such situation, the Maintenance and Welfare of Parents and Senior Citizens Act, 2007 is an enabling lifeline for such old, aged parents and senior citizens who are not looked after by their children and become neglected lots.”
Further, the Court held that the children are expected to look after their elderly parents properly which is not only a value based principle but a bounden duty as enshrined within the mandate of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007.
“Nightmarish and traumatic”; HC denies bail in a case of sodomy committed to an 8-year-old child
In a case with very disturbing accusations, the Punjab & Haryana High Court rejected the bail application of the applicant accused of committing an act of sodomy to an 8 year old child. The Bench stated that,
“Accused has spoiled the life of a young child by his hateful acts. The petitioner comes out to be a sex maniac, himself a teenager, indulging in perverse sexual acts. His conduct cannot be taken lightly, since if released on bail, he may victimize several other innocent children and is a grave threat to the society.”
It was alleged that accused had attempted to commit unnatural sex with a child of young age of 8 years, making him undergo nightmarish and traumatic experience, which may haunt him for the rest of his life.
https://www.scconline.com/blog/post/2021/07/21/sodomy/
Kerala High Court
Harassment, abuse and torture of wife within seven months of marriage; HC denies anticipatory bail to doctor
Expressing concern over violence against married women, the Kerala High Court rejected the bail application of a doctor and his family accused of dowry demand and cruelty against his wife within seven months of marriage. Calling ‘matrimonial homes the most dangerous place to live’ due to harassment, abuse and torture, the Bench remarked that the number of cases of attack towards married women in our country is alarming, though stringent laws are there and the same has to be stopped forever. The Court observed that:
“Harassment, abuse and torture both mental and physical towards married ladies are increasing day by day in our country to pressurize them to bring more wealth to the family of the bridegroom to improve their financial situation. Though so many cases are being registered against husbands and in laws there is no change in the attitude of the society towards married women and family members.”
https://www.scconline.com/blog/post/2021/07/21/anticipatory-bail-6/
Gauhati High Court
The Gauhati High Court stayed the order of the State Executive Committee of Arunachal Pradesh whereby non-vaccinated persons for Covid-19 were being discriminated for the purpose of permit to enter the State for developmental works in both public and private sector.
Additionally, the Court stated that,
“if the sole object of issuing the impugned order was for containment of the Covid-19 pandemic and its further spread in the State of Arunachal Pradesh, the classification sought to be made between vaccinated and unvaccinated persons was, prima facie, a classification not founded on intelligible differentia nor it was found to have a rational relation/nexus to the object sought to be achieved by such classification, namely, containment and further spread of Covid-19 pandemic.”
https://www.scconline.com/blog/post/2021/07/22/covid-19-vaccination-4/
District Court
“Utterly shocked”; “No one allowed to ignite religious riots, blow hatred towards particular group or community”: Court rejects bail plea of accused booked over hate speech
Expressing shock over an incident of hate speech in a public gathering, the Court of Judicial Magistrate, Patuadi, Gurugram dismissed bail plea of Rambhagat Gopal who had allegedly delivered hate speech instigating abduction and killing of girls of a particular community. The Court observed that,
“If right of freedom of speech is allowed to be used to spread hatred amongst the people based on religion, caste, etc. then the very basic nature of the constitution and Indian Society will be shattered and the country will lose its true spirit and soul.”
Further, the Court stated that,
“Conscience of the Court is utterly shocked while seeing the actual incidents which took place at that time, in video recording. It seems that now a normal parent would tell stories to their children that there used to be a time when talks of hatred or the religious intolerance in our society used to be seen as a sign of diminishing social values.”
https://www.scconline.com/blog/post/2021/07/19/hate-speech/
International Court
European Court of Justice
Prohibiting Islamic headscarf and other religious signs at workplace isn’t discriminatory
In a significant ruling, the European Court of Justice held that prohibiting Islamic headscarf and any visible sign of political, ideological or religious beliefs does not constitute discrimination on the grounds of religion.
https://www.scconline.com/blog/post/2021/07/20/religious-neutrality-policy/
Legislation updates
Issuance and listing of securities by Start-ups, SMEs and SPAC notified via International Financial Services Centres Authority (Issuance and Listing of Securities) Regulations, 2021
The International Financial Services Centres Authority has notified the International Financial Services Centres Authority (Issuance and Listing of Securities) Regulations, 2021 to ensure that capital markets in IFSCs support the financing of innovative business models and also, for the Issuance and listing of securities by Start-ups, Small Medium Enterprises and Special Purpose Acquisition Company.
Rates of Dearness Allowance to Central Government employees revised
The Ministry of Finance has issued a memorandum on the revision of Dearness Allowance to the Central Government employees. The dearness allowance has been enhanced from 17% to straight 28% of the basic pay for the employees with effect from July 01, 2021.
IBBI issues circular for filing of Form CIRP 8 under the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
IBBI has released Form CIRP 8 which as per Regulation 40B of CIRP Regulation, every resolution professional is required to file intimating details of his opinion and determination under regulation 35A, by 140th day of the insolvency commencement date. The Form CIRP 8 is required to be filed for all corporate insolvency resolution processes ongoing or commencing on or after 14th July 2021.
For the Format of FORM CIRP 8, read our story on SCC Online Blog
SEBI issues Circular on “Block Mechanism in demat account of clients undertaking sale transactions”
SEBI issues Circular on “Block Mechanism in demat account of clients undertaking sale transactions” after extensive consultations with Depositories, Clearing Corporations and Stock Exchanges to provide a mechanism of block in the demat account of clients undertaking sale transactions.