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indlaw updates
Judgments
In Re : Secur Industries Limited vs
[CHAIRMAN, SECURITIES EXCHANGE BOARD OF INDIA, 30 Jun 2009]
Securities Exchange Board of India - SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, regs. 11(1), 4(2) r/w 3(1)(l) - Application for grant of exemption from making a public announcement as required u/reg. 11(1) - With respect of proposed allotment of 12 lakh equity shares of the target company by way of preferential allotment and 10 lakh warrants (convertible into equity shares) to the acquirers who were promoters of the target company - Noted that consequent to the preferential allotment of equity shares and conversion of warrants, the shareholding of the acquirers in the target company would increase from 17.49% to 36.25% of post-preferential issue of equity shares and 46.40% of post-conversion of warrants - Target company's poor financial condition was sought as ground for exemption application; it was stated that target company owed unsecured loan of Rs. 1.20 Crore to the acquirers, which shall be converted into equity shares to revive the financial position and to meet the long term working capital requirements of the target company - Application was forwarded to the Takeover Panel for its recommendation - Recommendation made, Panel was not optimistic about the future of the company considering its balance sheet and sales position, but it had found that the proposed allotment was not to be prejudicial to the interest of the company or its public shareholders; thus Panel recommended exemption - Shareholding pattern of target company and acquirers before and after the allotment looked into - Findings made, increase in the shareholding of the acquirers would not result into change in control on the ground that acquirers are already in control of the target company; commitments and grounds put forth by acquirers upheld - Special resolution required to be passed under Companies Act and compliance with respective guidelines of SEBI found to be complied with by the target company - Recommendation of TO Panel agreed upon - Exemption granted but with conditions as to compliance of relevant norms - Further directions issued - Order accordingly.
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Edward Seaga vs Leslie Harper
[PRIVY COUNCIL, 29 Jun 2009]
The Judgment was delivered by : SIR HENRY BROOKE1. In this action the respondent Leslie Harper, who was at the material time a Deputy Commissioner of Police in Jamaica, recovered damages for slander from the appellant Edward Seaga, who was then the
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(1) Maruti Bhanudas Kamble; (2) Bajaj Auto Limited vs (1) Bajaj Auto Limited, Pune and Another; (2) Maruti Bhanudas Kamble and Another
[BOMBAY HIGH COURT, 25 Jun 2009]
Labour and Industrial Law - Industrial Dispute Act, 1947, ss. 2(oo), 25F, 25F(1) - Termination - Misconduct - Habitual absence - Workman was terminated by respondent company stating that since workmen deserted post his name was removed from company's muster roll - Termination was challenged before Labour Court - Labour Court held that termination was valid but ordered payment of full back wages - Writ petitions filed by both workman and respondent company challenging findings of Labour Court - (A) Whether striking off name of workman from muster roll amounts to retrenchment under Section 2(oo)? - If case is not covered by any of exception under Section 2(oo) read with s. 25-F of Act, striking off name of a worker from Rolls is illegal and non-compliance of Section 25-F renders such retrenchment void ab initio - No inquiry held before issuing order of termination - Held, admitted position that respondent company had not complied with provisions of Section 25-F before issuing order of termination - Striking off name of workman not covered in any of exception under Section 2(oo) and therefore, it amounts to retrenchment under Section 25-F - Termination illegal and retrenchment, therefore, illegal for non-compliance of Section 25-F and void ab initio - (B) Whether order of termination was not in consonance with provisions of Model Standing Orders? - Before issuing an order of termination for habitual absence under Clause 24(f) of Standing Orders, company ought to have given workman an opportunity of defending himself - No opportunity was given to workman either by issuing a show cause notice or by holding departmental enquiry - Held, Labour Court, therefore, clearly committed an error of law by holding that misconduct under Clause 24(f) was established and was undisputed and therefore, there was no need to hold departmental enquiry - (C) Whether any prejudice caused to respondent company as no specific issue was framed in respect of back wages? - Both parties led evidence on point of back wages and workman was cross-examined at length - Held, merely because a separate issue not been framed in respect of back wages, no prejudice caused to respondent company -(D) Whether Labour Court erred in relying on judgment of Apex Court in Indian Iron and Steel Company Ltd.? - Judgment was decided in 1958 - Model Standing Orders came into effect from 15.2.59 after said judgment of Apex Court was delivered - Held, Labour Court clearly erred in relying on ratio of judgment of Supreme Court in Indian Iron and Steel Company Ltd. in view of Standing Orders which came into effect from 15.2.59 since order of termination was passed thereafter on 24.10.78 - (E) Whether Labour Court committed an error by giving full back wages to workman after having held that order of termination was legal and proper? - Burden was on part of respondent company to establish that workman was gainfully employed - No evidence brought by respondent company to show that workmen was working elsewhere after his services were terminated - Held, Labour Court erred in granting full back wages to workman - In interest of justice, respondent company directed to pay lump sum amount to workman towards full and final settlement of his claim - Writ petitions disposed of.
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(1) Maharashtra State Electricity Board, Assistant Controller of Stores, Aurangabad; (2) Goverment Insurance Fund, Maharashtra State, Assistant Director of Insurance, Bombay vs (1) P. B. Salunke, Solapur; (2) Goverment Insurance Fund, Maharashtra State, Assistant Director of Insurance, Bombay; (3) Maharashtra State Electricity Board, Assistant Controller of Stores, Aurangabad
[BOMBAY HIGH COURT, 25 Jun 2009]
(A) Practice and Procedure - Contract for carrier - Transportation of transformer - Damaged goods at the time of unloading - Eye-witness of mishap - Reliability of - Witness was not present when the mishap had taken place and what he had was hearsay knowledge - Witness was a retired employee of the plaintiff-board, having his own interest - Opinion of witness with regard to mishap was based on his personal opinion - Thus, reliability on solitary statement of such witness ignoring other evidence on record, is unsustainable.(B) Carriers and Transportation - Documentary evidence - Contract for transportation of transformer - Goods damaged at the time of unloading - Report given by the Contractor for carrier - Reliability - Report shows the contractor failed to take necessary precautions and he was negligent - Contractor did not deny the report and its contents - Report sent within 8 days of incident, can be accepted as correct description of incident.(C) Carriers and Transportation - Carriers Act, 1865, ss. 8, 9 - Burden of Proof - Contract for carrier - Goods damaged at the time of unloading - As per s. 9, the plaintiff is not necessary to establish negligence of the contractor for damage of the subject matter of contract - Party who alleges negligence must prove the same against other - Held, contractor was negligent in handling transformer, hence liable u/ss. 8 and 9 and he has to prove the negligence of plaintiff-board.(D) Carriers and Transportation - Carriers Act, 1865, s. 10 - Notice - Limitation - Contract for carrier - Defendant-contractor contended that plaintiff-board failed to give notice of damage within six months of mishap - Held, plaintiff-board had to collect the invoice and details of costs of repair and replacements of damaged goods from manufacturer - Plaintiff sent the notice immediately thereafter - Thus, notice was within four months after knowing the actual amount required for repairs, hence there was no limitation. (E) Carriers and Transportation - Carriers Act, 1865, s. 10 - Contract for carrier - Whether actual amount of claim to be intimated within six months to the contractor for carrier, in the event of damage of the goods transported u/s. 10 of the Act? - Held, no - S. 10 does not require the actual intimation of amount claimed, but mere intimation of accident, is sufficient - Held, actual amount of expenses incurred for the repairs of damaged goods known by the plaintiff-board only through the letter from manufacturer and within four months such claim intimated to the contractor - Plaintiff-board brought all necessary facts known to the notice of carrier - Requirement of s.10 fully complied with.(F) Carriers and Transportation - Contract of carrier - Goods damaged at the time of unloading - Liability of insurance company - Report submitted by carrier clearly shows the negligence of the carrier in handling of goods - Insurance has taken for the damaged goods during transport so as to save the board from losses - Insurance company cannot avoid its responsibility merely because of negligence of contractor - However, insurance company can recover the amount from negligent carrier.(G) Insurance - Contract for carrier - Damage of insured goods during unloading - Amount of claim - Determination of - Held, claim to be determined on the basis of final survey report and terms and conditions of the policy.
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United Spirits Limited vs Commissioner of Customs (Import), Mumbai
[BOMBAY HIGH COURT, 25 Jun 2009]
(A) Customs - Fine - Import of essence for manufacturing beverages - Failure to produce Bill of Entry and other relevant documents - Goods confiscated - Held, on payment of fine, goods could be released - Principles of unjust enrichment would not apply to fine or penalty - Fine reduced by the Tribunal - Appellant entitled the restitution of refund of balance amount of redemption fine.(B) Customs - Customs Act, 1962, ss. 18(2) (a), 27(3), 28(3) - Refund - Refund u/s. 18(2)(a) would have to be read with the relevant provisions of s. 27(2) r/w 27 (3) of Customs Act - No refund of duty and interest can be made without satisfying the requirements of sub-s. (2) of s. 27(3) - Although s. 18 (5) has been introduced which is applicable to final assessment, s. 28(3) would still govern the issue of refund - (C) Customs - Customs Act, 1962, s. 27 (2) (3) - Assessment - Provisional assessment - Applicability of Doctrine of unjust enrichment - Held, doctrine would not apply to the provisional assessment by virtue of s. 27 (2) and (3) of the Act - However, doctrine would apply to the assessment is finally completed but no application for refund could be made before the final assessment.(D) Customs - Customs Act, 1962, s. 28 - Additional duty - Amount of refund claimed has been credited to the Consumer Welfare Fund - Justifiability - S. 28 would squarely applied - Appellants have not established that the incidence of the amounts in question has not been passed on to anybody else - Hence, crediting the amount of refund to the Consumer Welfare Fund, is justifiable.(E) Customs - Refund of duty - Redemption fine - Applicability of principles of unjust enrichment - Held, principles of unjust enrichment applied to duty, cess, tax , fees etc but not on fine and penalty - Duty means duty of customs leviable under the Act, not fine or penalty.(F) Customs - Fine in lieu of confiscation - Act provides for the provision of imposition of fine instead of confiscation - Such fine is in the nature of re-compensation - Such fine is in addition to the duty and other charges payable in respect of goods to be confiscated - Confiscated goods vest with the Govt whereas the fine is for wrong done - Hence, fine in lieu of confiscation is admissible.
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In Re : Public Issue of Pyramid Saimira Theatre Limited vs
[CHAIRMAN, SECURITIES EXCHANGE BOARD OF INDIA, 25 Jun 2009]
Securities Exchange Board of India - SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003, reg. 3(b)(c) - Cornering of shares in IPO in the garb of employees, shares in question being reserved for employees of PSTL - Violation of provisions of reg. 3(b)(c) - IPO of PSTL through 100% book building; 5% of total issue reserved for employees - Investigation into allotment of such employee category issue - Revelations, total of 13 persons applied for in employee category and seven out of them applied for a total of 4,26,000 shares which amounted to 98.5% of the total shares allotted under employee category; such shares were received in the demat accounts with the same depository participant, sold the shares through the same broker soon after listing and made a total unlawful gain of Rs. 2,31,94,612, seven persons in collusion with PSTL donned the cloak of 'employee' on the eve of the public issue for 4 to 6 months with the sole purpose of receiving shares under the employee category; five of them abandoned the cloak after making applications but before the allotment, whereas two others did so immediately after the allotment - Details of shares applied for and received on allotment and the duration of their 'employment' noted - Show cause notice issued - Application for settlement through consent order moved by PSTL and the seven persons and only allowed was for two of them and for rest of them application was declined - In reply to the SCNs charges were denied - (A) Did these five noticees don the cloak of 'employee' of the company(PSTL) with a view to acquire shares under the employee category? - Held, Yes - Three issues required to be answered for the main issue, viz, (i) the evidence of employment - Records of attendance, salary, PF etc., looked into - Noticees had not attended the office; some of them were not even aware of the location of the office; vouchers relating to payment of salary to the noticees were not authentic; they had no PF accounts when they were in employment nor did they claim the balance in PF accounts - Finding, noticees were not employees of the company; they donned the cloak of 'employee' - (ii) the likelihood of their employment - Qualification, experience and background to determine whether the noticees could have taken employment in the Company, looked into - Noticees were well settled in Mumbai for a long time and were carrying on established textile business; all but one were having an annual turnover of about Rs. 1 crore each; banking transactions noted; surprising fact that all the noticees bearing similar family names, having similar business background, good financial standing and residing normally in Mumabi would seek jobs at a company located in a far off place in Chennai all for a paltry salary ranging from Rs. 7,500 to 15,000 pm - Finding, given the back ground of the noticees, it was very unlikely that they would take up jobs, for which they do not have required qualification and experience, for less then six months only at a paltry salary at a location far away from home - Noticees could not have become the employees - (iii) the understanding between the Company and the noticees - Employment is a relationship between two parties; noticees can don the cloak of an employee only if the employer cooperates with or there is an understanding between the two - Relevant facts noted - Company extended preferential treatment to the noticees in terms of the probation period; it also waived the notice period for resignation; it allowed the noticees to visit Mumbai regularly while paying them full salary without any deduction; more significantly it offered the jobs to them it did not advertise for, and offered the jobs for which the noticees did not have required qualification and experience - Finding, clear understanding between the two - Held further, attendant circumstances as well as the conduct of the noticees amply demonstrates their motive and intent to corner shares of PSTL under the employee category to the detriment of the common investor - (B) Whether donning the cloak of employees to corner the employee quota shares is in violation of reg. 3(b) and (c) of PFUTP Regulations, 2003? - Held, Yes - Provision of regulation perused - With manipulative intent employees cornered the shares in question; artifice employed by them is prohibited u/reg. 3(b) and (c) - Three year prohibition for the noticees; noticees directed to disgorge the unlawful gains made by them as detailed in the order with interest - Directions therefor issued - Order accordingly.
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In Re : Rashmi Gem Stocks and Shares Private Limited vs
[CHAIRMAN, SECURITIES EXCHANGE BOARD OF INDIA, 25 Jun 2009]
Securities Exchange Board of India - Code of Conduct, sch. II, cl. B(2) r/w r.7, SEBI(Stock Brokers and Sub-brokers) Regulations, 1992 - SEBI(Stock Broker & Sub brokers) Rules, 1992(Now rescinded), r. 4(e) - SEBI Circular ref. SMD/POLICY/CIRCULAR 3/97 D/- 31-03-1997 - Violations of provisions - Inspection of books of account of the stock broker - Charges - Enquiry - Report - Recommendation by EO as to giving of warning for violations - Perusals made - Charges were, that despite the fact that there were no dealing in the BgSE(Bangalore Stock Exchange) for the last two years stock broker entered into the member-client agreement and further that the agreements were not obtained on stamp paper, that the stock broker had not obtained the relevant details for mapping the orders placed and executed, that no contract notes were issued to clients, that it dealt with unregistered sub-brokers, that it had not redressed the complaints it had received against one of its sub broker - Findings of EO on such charges noted - Stock broker advised to strictly adhere to the Regulations and Circulars - Order accordingly.
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In Re : Neelam Bhatia and Company, Member, Ludhiana Stock Exchange Limited vs
[CHAIRMAN, SECURITIES EXCHANGE BOARD OF INDIA, 24 Jun 2009]
Securities Exchange Board of India - SEBI (Prohibition of Insider Trading) Regulations, 1992, reg. 12(1)(a) - SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992, regs. 17(1) (a) & (k) - SEBI Circular nos. SMD/POLICY/IECG/1-97 D/- 11-02-1997, SMD (B)/104/22775/93 D/-29-10-1993, SMD/POLICY/CIRCULAR/5-97 D/- 11-04-1997, SMDRP/Policy/CIR-39/2001 D/-18-07-2001 - Circulars regulating functions of registered intermediary of SEBI - Inspection of books of account of stock broker, Neelam Bhatia & Co. - Deficiencies/irregularities observed - Enquiry Officer appointed - Enquiry report - Recommendation as to issuance of warning made - Enquiry report, SCN and other materials on record perused - Noticee had not maintained the register of transactions and the Margin Deposit Book; it had not maintained the Order Book; it had not issued the contract notes to the clients; it had not complied with the 'Know Your Client' requirements; not issued unique client codes to its clients; did not maintain a clear distinction between the clients' funds and his funds, by maintaining separate accounts; had not framed the 'code of conduct' required under regulations, 1992 - Findings of EO agreed upon - Recommendation by EO accepted - Warnings issued - Order accordingly.
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In Re : Jermyn Capital Llc vs
[CHAIRMAN, SECURITIES EXCHANGE BOARD OF INDIA, 23 Jun 2009]
Securities Exchange Board of India - SEBI (Foreign Institutional Investors) Regulations, 1995, reg. 13(b) r/w reg. 38 and sch. II of SEBI (Intermediaries) Regulations, 2008 - 'Fit and Proper' person - Criteria therefor - Jermyn Capital LLC(JL) a foreign company was registered with SEBI under Regulation, 1995 as a foreign corporate sub-account of SEBI registered Foreign Institutional Investor, Taib Bank E.C. - Direction was issued to Taib Bank to stop trading in the Indian securities market on receiving certain 'credible information' indicating that JL did not meet the criteria for 'fit and Proper Person' - Notice issued, reply filed - Interim order made wherein JL was declared to be not 'fit and proper' and thus restriction imposed was continued and further JL was restrained from accessing the Indian securities market - Appeal preferred thereagainst before SAT - Interim order was upheld - Appeal again preferred before Supreme Court - SC allowed time to dispose of the pending proceeding till 31-08-2009 - Submissions noted, and orders and material on records examined - SAT's order, 'good reputation and character of the applicant is a very material consideration which must necessarily weigh in the mind of the Board in this regard. Reputation is what others perceive of you. '..impression of opinion is generally formed on the basis of the association he has with others and/or on the basis of his past conduct'. A person is known by the company he keeps. In the vary nature of the things, there cannot be any direct evidence in regard to the reputation of a person whether he be an individual or a body corporate. In the case of a body corporate.., the reputation of its whole time director(s) or MD(s) would come into focus. '...appellant was not a fit and proper person because Mr. H.H. Andrews who managed the operations of the appellant was a close associate of Mr. Dharmesh Doshi who was a close associate of Mr. Ketan Parekh. '..since Mr. Doshi and Mr. Parekh did not enjoy a good reputation, it was legitimate to infer that Mr. Andrews too did not enjoy a good reputation..' - Whether JL is a 'fit and proper person' in terms of SEBI regulations given its association with Mr. Doshi? - Held, No - Further fact of disassociation by JL with such disreputed persons noted and observation made that it is natural for a person to disassociate from an associate if the regulator finds such association; in the process, a person can continue its association with the associate who has bad reputation until the regulator notices this and on being noticed, would sever the association to remain fit and proper and escape from the clutches of law; this needs to be discouraged - Member observed that even after such severance, there should be a moratorium before he can be considered fit and proper again - SCN becomes infructuous in changed facts and circumstances - Restriction imposed directed to be continued till expiry of two years from the cessation of association - Order accordingly.
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Smr Universal Softech Limited, Asia Hr Technologies Limited vs Securities and Exchange Board of India
[SECURITIES APPELLATE TRIBUNAL, 23 Jun 2009]
Securities Exchange Board of India - Circular D/- 20-04-2007 - Consent order thereunder - Application therefor - Whether acceptable? - Held, Yes - Appellants charged for giving false and misleading statements in the press regarding the buy back of their own shares thereby disseminating untrue information to the investing public - Appellants were debarred from accessing the securities market for two years - Appellants offered a sum of Rs. 1,00,000/- towards the settlement charges and another sum of Rs. 75,000/- towards legal expenses and have voluntarily undertaken to remain out of the securities market for a period of two years - In terms of consent terms - Appeal disposed of.
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P. Vinoth Kumar vs (1) State of Tamil Nadu, Secretary, Higher Education Department, Chennai; (2) Principal Madras Christian College, Chennai; (3) Inspector of Police, Chennai; (4) Director, Directorate of Collegiate Education, Chennai
[MADRAS HIGH COURT, 23 Jun 2009]
Education - Constitution of India, 1950, art. 226 - Indisciplined behaviour - Suspension - Validity of - Petitioner pursuing his studies in first year Master of Arts (History) in Madras Christian College - Suspended from college by order of Principal of College, second respondent for indisciplined behaviour - Petitioner, member of RSYF, organisation formed to safe guard rights of those who suffer social injustice - During demonstrations organized by organization police officials assaulted petitioner and other members of organization - FIR lodged and a criminal case was registered - Petitioner was suspended from college until a clearance from Police Department was obtained - Hence, present writ petition - Petitioner submitted that he would file an affidavit undertaking that he would not indulge in such activities in future and that he would not act in any manner that could be termed as indisciplined behaviour - In view of undertaking given by petitioner, second respondent submitted that impugned order of suspension, would be revoked on condition that petitioner files a similar undertaking before him - Held, in view of submissions made by parties second and fourth respondents directed to permit petitioner to attend second year classes - Impugned order of suspension to be withdrawn on petitioner submitting an undertaking, similar to affidavit of undertaking - Order accordingly. Constitution - Constitution of India, 1950, art. 19(1)(a), 19(2) - Fundamental right - Freedom of speech and expression - Held, fundamental right should be preserved and given effect to with all sanctity it deserves - However, it also casts a duty on person who exercises such a right - Said right could be curtailed and regulated to extent permitted under Article 19(2) of Constitution - Order accordingly.
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Daniel Dick Trimmingham vs Queen
[PRIVY COUNCIL, 22 Jun 2009]
The Judgment was delivered by : LORD CARSWELL1. The appellant Daniel Dick Trimmingham was on 23 November 2004 convicted after a trial before Blenham J and a jury in the High Court of St Vincent and the Grenadines of the murder of Albert Browne and
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(1) Shalini Vaman Godbole; (2) Solapur Municipal Corporation, Municipal Commissioner; (3) State of Maharashtra and Others vs (1) Special Land Acquisition Officer, Solapur and Others; (2) Shankar Ramchandra Mate; (3) Umabai Shankar Mate and Others; (4) Mahadeo Ramchandra Mate; (5) Malati Keshav Bhide and Others
[BOMBAY HIGH COURT, 22 Jun 2009]
(A) Land & Property - Land Acquisition Act, 1894 - Land acquisition - Market value - Enhancement of - Value fixed by the Reference Court on the basis of ready reckoner and G.R. containing the policy of the Govt - Land in question has high N.A. potentiality and access, having high marketability - Claimant has lost an area admeasuring 344 sq. mtrs, entitled for compensation on ground of severance - No appeal has been filed by state against the enhancement of value by Reference Court, hence, the value fixed by the Reference Court attained finality.(B) Land & Property - Land acquisition - Value of property - Evidence - Sale transactions in respect of acquired land or neighbouring land, time and purpose of sale, nature of consideration, manner of transaction are relevant to determine the value of property - In the absence of sale deed, sale transaction of the neighbouring lands have to be taken into consideration - Such transaction preferably before the date of notification and must be bona fide and similar or adjacent to the land to be acquired.(C) Land & Property - Land acquisition - Determination of value of property - Reliance of GR - Held, reliance of GR containing policy of Govt to fix the value of land to be acquired is proper - GR clearly says the value should be determined on sale-purchase transaction method or valuation by ready reckoner, whichever is higher - Rate prescribed in the ready reckoner was higher than the market value, hence fixed the market rate by following the ready reckoner and GR, is sustainable.(D) Land & Property - Land Acquisition Act, 1894, s. 23 - Land acquisition - Determination of market value - Basic Valuation Register (BVR) - Reliability of - BVR maintained for the purpose of collecting stamp duty, has no statutory base or force - BVR is not a foundation or basis of determining the market value u/s. 23 of the Act - Evidence of bona fide sales between willing prudent vendor and prudent vendee would furnish basis to determine market value, not the BVR.(D) Land & Property - Land Acquisition Act, 1894, s. 4(1) - Land acquisition - Enhanced compensation - Burden of proof - Claimant has to prove the prevailing market value as on the date of notification published in the State Gazette u/s. 4(1) of the Act with reference to the sale deeds of the same lands or neighbour's lands possessed of same or similar advantages and features executed between willing vendor and willing vendee or other relevant evidence in the reference court - Thus, burden of proof lies on claimant, not state(E) Land & Property - Land acquisition - Award - Legality - Award of compensation is an offer based on the policy of Govt - Indeed, the policy being binding on the Government, the offer must be based thereon - Policy has not been challenged by any party including the Acquiring Body, hence, award attained finality which has been drawn on such policy
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P. A. Karkhanis, Indian Inhabitant, Dombivili vs (1) Uco Bank, Regional General Manager, Mumbai; (2) Assistant General Manager, Uco Bank, Mumbai; (3) General Manager, Uco Bank, Mumbai; (4) Executive Director, Reviewing Authority, Calcutta
[BOMBAY HIGH COURT, 22 Jun 2009]
Service - Dismissal - Misconduct - Enquiry - Principles of natural justice - Petitioner challenged order of dismissal passed against him - Whether from evidence on record, misconduct alleged against petitioner can be said to have been proved? - Appellate authority required to consider evidence on record and to find out guilt - Neither enquiry officer nor disciplinary authority or appellate authority considered all important documents on which petitioner relied upon - Appellate authority duty bound to assess evidence for coming to conclusion as to whether guilt established against delinquent or not - Enquiry officer as well as disciplinary authority at time of taking decision also required to take into account version of delinquent as also various documents produced by delinquent - Findings should be arrived at on basis of some evidence or even on basis of pre-ponderence of probabilities - Held, in present case, enquiry officer has not considered relevant aspects while submitting his report to disciplinary authority - Disciplinary authority also has not considered relevant facts and circumstances of case - Documents produced by petitioner have not been taken into account and, therefore, principles of natural justice can be said to have been violated - Impugned orders of disciplinary authority, appellate authority and reviewing authority set aside - Since petitioner already retired by way of superannuation, no question of passing order of reinstatement - Respondents directed to pay all necessary retiral dues to petitioner - Further held, nothing on record as to whether petitioner was gainfully employed after his removal from services, it would be just and proper to award 30 per cent of back wages during intervening period i.e. from date of dismissal order till petitioner reached age of superannuation - Rule made absolute.
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In Re : Jayakant K. Diwan (Trade Name: Infimage Shares and Stock) vs
[CHAIRMAN, SECURITIES EXCHANGE BOARD OF INDIA, 22 Jun 2009]
Securities Exchange Board of India - For alleged violation by the sub-broker penalty was imposed by the appointed adjudicating officer - Failure on part of sub-broker to pay such penalty, consequently proceedings were undertaken under SEBI(Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 against the sub-broker - Officer appointed recommending dropping of proceedings as sub-broker had paid the penalty - Recommendation accepted - Proceedings disposed of - Order accordingly.
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(1) In Re : Prakash Nahata and Company; (2) In Re : Toplight Commercial Limited vs
[CHAIRMAN, SECURITIES EXCHANGE BOARD OF INDIA, 22 Jun 2009]
Securities Exchange Board of India - SEBI Act, 1992 - Securities and Exchange Board of India (Intermediaries) Regulations, 2008 - SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003, regs. 4(2)(a)(e)(o) and 8(1) - Code of Conduct under Stock Brokers Regulations, cls. A(1) to A(5) and B(4)(a) - 'Matched and Synchronised' trades - 'Cross deals' - 'Misled appearance of trading' - Upon reference from Ministry of Finance, SEBI conducted investigation into the reports that shares of some illiquid companies were traded in a circular pattern among certain members of a group operating collusively and were later on sold at highly inflated prices - TCL was one of the company and PN was the stock broker among three others - Investigation period was from 01-01-2004 to 03-08-2004; during this period manifold increase was found in the shares between the two dates - Enquiry - Enquiry report; recommendation for suspension of certificate for six months - Report perused, SCN sent noted and materials on record looked into - Shares of the company witnessed a sharp increase during the investigation period; price rose from Rs. 23.50/- to Rs. 322/-; such increase was not supported by any strong fundamentals of the company; trade of certain stock brokers alongwith the broker accounted for around 92% of total trading in the shares of the company at Calcutta SE during IP; out of 1,89,300 shares traded by the broker in the shares of the company, trading in 1,27,100 shares(67.14%) were in the nature of 'cross deals' - Broker had not controverted any of the said facts - Broker was found to have placed both buy and sell orders of identical quantity and price in such a way that its buy orders matched with its corresponding sell orders resulting in trades; broker was placing such orders within a gap of few seconds only; thus trades were executed by matching and synchronization; admittedly some of its trades were self trades; they did not result in any transfer of beneficial ownership - Held, provisions of regulations and Code to be violated - Certificate of registration suspended for one month - Order accordingly.
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In Re : Shashikant P. Biyani, Pyramid Saimira Theatre Limited vs
[CHAIRMAN, SECURITIES EXCHANGE BOARD OF INDIA, 18 Jun 2009]
Securities Exchange Board of India - SEBI Act, 1992 - Inadvertent inclusion of name of One Shashikant P. Biyani in the ad interim ex-parte order D/- 23-04-2009 - Directions pertaining to such person revoked - Remaining order to be unaffected - Order accordingly.
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Ongole Ravikanth vs State of Andhra Pradesh
[SUPREME COURT OF INDIA, 17 Jun 2009]
Criminal - Indian Penal Code, 1860, ss. 304 Part I, 302 and 324 - Dying declaration - Conviction by Trial Court u/s. 324 - Conviction altered by High Court to s. 304 part I - Whether proper? - Held, Yes - Deceased, wife of appellant - Deceased/wife objecting to wayward and immoral behaviour of appellant in indulging in illicit affairs with women in the matrimonial house itself and strong objection by deceased/wife to the suggestion made by appellant that she too could indulge in the same things - In the night of occurrence appellant wanted wife to be out of the home and for it he turned on tape recorder when wife was sleeping, to which she objected and altercation ensued - On abuses being hurled by appellant deceased/wife rushed to the kitchen and bring kerosene oil and poured it on herself; appellant snatched the match stick from her and lit her; she rushed out of the house - She gave DD at the hospital and subsequently succumbed to her injuries - Trial Court concluded that appellant had no intention to kill his wife and further it observed that it cannot be said that the appellant was having any knowledge that the burn injuries were likely to cause the death of the deceased - Court expressed its anguishness with such findings of TC - DD perused, surrounding circumstances noted and contentions heard - Records disclosed that requisition was immediately sent to the Judicial First Class Magistrate after the victim was taken to the hospital at about 10.00pm on the date of occurrence, incidence had occurred between 9.00 pm and 9.30pm; recording of DD by PW2 duty doctor commenced at about 11.30pm and went on till about 11.55 pm, which suggested that victim was speaking conherently and was in a fit condition to make a statement; statement made by the deceased was on her own volition without any coercion or tutoring of anyone; nothing on record to doubt the evidence of PW2 who recorded the DD and evidence of PW13 who certified that the deceased was in a fit state of mind - (A) Whether the contents in the DD disclosed any offending act by the appellant? - Held, Yes - Burns were 60% - Appellant instead of preventing the deceased pouring kerosene upon herself lit the match stick resulting in fire and causing burns; appellant knew very well that the body of the deceased was drenched with kerosene yet he indulged in the cruel act of lighting the match stick, Court noted - Court posits that 'can it be said that the appellant was not aware that his act was likely to cause serious burn injuries to the deceased' - HC took a very lenient view in the conviction - Impugned judgment upheld - Appeals dismissed.
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(1) Kaikhosrou (Chick) Kavasji Framji of Indian Inhabitant, Pune; (2) Jawahir (Jerry) Kavasji Framji of Indian Inhabitant, Pune vs (1) Union of India, New Delhi, Ministry of Defence; (2) Gita Kashyap, Defence Estate Officer, Pune
[BOMBAY HIGH COURT, 17 Jun 2009]
Land & Property - Public Premises Act, ss. 2(e), 4(1) and 2B(i) - Show Cause Notice thereunder - Against unauthorized occupation of subject property - Legality and vires of notice challenged - Challenge whether acceptable? - Held, No - Long litigating history of subject property - Petitioners' contention, that the subject property was held as freehold property by its earliest owner from whom predecessor of petitioners had purchased it in the year 1923 through conveyance deed; whereas respondents were contending that subject property belonged to the C. Govt. and was resumable at the pleasure of the C. Govt. as it was held on Old Grant Terms (Ordinary Cantonment Tenure) under the Govt. G.O. No. 14, D/- 06-01-1827 - Predecessor of petitioners on receiving the notice in 1971 raised similar objections in the writ petition filed - At that time similar notice was also issued to one Ankalesaria and the High Court had heard simultaneously both the cases; and relying upon its own judgment in Ankalesaria's case declared notice to be bad and illegal and issued writ of mandamus restraining the respondents from acting under the notice - Matter reached the Supreme Court along with inter alia Ankalesaria's case - SC vide its order D/- 04-08-1998 disposed of the appeal on the basis of the statement made by the Sol. General that UOI would seek dispossession of the occupants from the properties involved in accordance with law and if need be, through a Civil Court by filing suits; SC had made it clear that if such steps are taken, any observations made by the HC, which would tend to defeat the remedies sought, would not stand in the way of UOI - Much legal debate was raised on the sweep of such order of SC - Respondents herein issued impugned notice relying upon the said order of SC - Whole controversy raised by petitioners is that the dispute relates to the title to the said land, UOI must be relegated to the remedy of civil suit to establish their title and prove that the land constitutes public premises within the meaning of s. 2(e) of Act and, only after obtaining declaration of title, the respondents can be permitted to take recourse to the Act - Background of Act, object and scheme deliberated upon - Considerations and observations made - Initial observation made as to that present litigation came to be initiated at the threshold to challenge the show-cause notice issued without even filing reply thereto; rival pleadings on merits are yet to be crystallized -(A) Whether or not the Estate Officer(EO), appointed u/s. 3 of Act, has a jurisdiction to entertain and try the present eviction proceeding initiated by the respondents? - Held, Yes - Effect of previous litigation together with the decision thereon, considered - Basic question arose as to which order would hold the field, order of DB of HC or order of SC D/-04-08-1998? - Held, Order of SC - Doctrine of Merger - The judgment must be read in its entirety and it should not be read as a provision of a statute - Court posits question, 'whether the order of the DB can be said to have merged in the order of the SC?', 'yes' - Precedents referred and relied - 'the judgment of the inferior Court loses its identity by its merger with the judgment of the superior Court', 'M/s Gojer Bros.(P) Ltd. vs. Shri Ratan Lalsingh (1974) 2 SCC 453' - Law therefrom applied to the facts of case - Subject matter of the earlier writ petition and the subject matter of appeal before the SC were identical; entire order of the DB was taken in appeal to the SC and the SC was pleased to pass the order D/- 04-08-1998 - Thus, earlier order of DB of the HC lost its existence in the eye of law and the same stood superseded with that of the SC Order - Principle of res judicata - In case of appeal the appellate decision and not the trial Court's decision which operates as res judicata - Finding on an issue in the earlier suit to operate as res-judicata should not only have been only directly and substantially in issue but it should have been necessary to be decided as well; thus in instant case on examining the order of SC things becomes clear that findings on issue recorded by the HC were directly and substantially in issue, but none of them were considered by the SC on merits; appeal was disposed of not on merits but on the statement of the Sol. General that UOI would resort to the remedy known to or recognized by law - Judgment of HC had lost its identity by its merger in view of the order of superior Court; there cannot be two orders holding the field in the same litigation; SC's Order D/- 04-08-1998 alone holds the field -(B) Meaning to the order of SC, assigned - Order was based on the statement made by Sol. General - Such statement was in consonance with law as to that 'a lessor, with the best of title, has no right to resume possession extra-judicially by use of force, from a lessee, ever after the expiry of .', 'State of UP vs. Maharaja Dharmander Pd. Singh, AIR 1989 SC 997' - UOI was permitted to resort to the remedies known to law to resume possession of the subject property, on the same cause of action -(C) What is the effect of order of SC? - First part resulted in granting liberty to the UOI to seek dispossession of the petitioners from the subject property in accordance with law and, if need be through the Civil Court by filing suit, and the second part takes away the effect of the findings and observations made by HC to the extent it would tend to defeat the remedies sought -(D) Whether or not Public Premises Act answers the requirement of 'due course of law'? - Held, Yes it fulfills the requirement - Comparative study made with the AP Land Encroachment Act, 1905 - Survey of Act done - Held further, it provides complete due machinery answering the test of due course of law - Thus it is not necessary for the respondents to first go to Civil Court to seek declaration of their title and thereafter resort to the provisions of Act -(E) Expression 'belonging to' - Meaning and connotation - It will take within its sweep not only ownership but also rights lesser than that of ownership like 'right of user' - Act has been placed on the statute book to give summary remedy to the Govt. to evict persons in occupation of public premises to obviate the long ordeal of trial in Civil Court and of further proceedings thereafter; hence a wider meaning will have to be given to the expressions used in the Act for defining the concept of public premises - Thus for exercising his jurisdiction EO has to consider whether or not the present premises will squarely be embraced by the definition 'public premises' within the meaning of the Act; for such purpose it is not necessary for EO to determine ownership or title -(F) Jurisdiction of EO under the Act - Once basic facts are established it is open for the EO to assume jurisdiction - Findings on such facts as to their existence and assumption of jurisdiction thereupon can only be challenged by the procedure laid down in the Act and not in a separate proceeding - Position is, 'if a Tribunal appointed under an Act is vested with jurisdiction to try cases arising out of the said Act, the Tribunal is also vested with the power to decide the existence or non-existence of facts giving rise to such jurisdiction, and the Tribunal's finding thereon even if wrong can be assailed only before the authorities if any under the Act', thus no writ of certiorari -Prayer for writ of mandamus incompetent, and for writ of prohibition, premature - Question of survival of cause of action, thus decided in favour of respondents to initiate eviction proceedings under Act leaving the question open for being tried by the authorities under Act on its own merits - Direction issued to petitioners to file reply to the SCN within four weeks - Further directions issued - Petition dismissed.
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Red Carpet Films Limited, Mumbai vs (1) Eros International Films Private Limited, Mumbai; (2) Eros International Media Private Limited, Mumbai
[BOMBAY HIGH COURT, 17 Jun 2009]
Arbitration & ADR - Arbitration and Conciliation Act, 1996, ss. 9 and 11 - Arbitration Agreement, cl. 22 - Agreement to jointly produce and complete the films between the parties - Dispute arose - Reconciliation failed - Both parties were member of 'Association of Motion Pictures and TV Programme Producers' (AMPTPP) at the time of agreement - But petitioner had subsequently resigned from the membership - AMPTPP was constituted to achieve various objects and to promote and to protect trade, commerce and industries of Indian motion pictures and allied industries, it has its own bye-laws setting out mechanism for settlement for disputes between its members - Respondents had lodged a complaint/letter before AMPTPP seeking termination of agreement and the refund of amount advanced to the petitioner - Admittedly, inspite of membership of AMPTPP and its bye-laws of dispute settlement, the parties have agreed to resolve the dispute arising out the agreement through the procedure provided in cl. 22 of the arbitration agreement - Petitioner on dispute and after failure of conciliation between themselves, invoked the arbitration clause and nominated a sole arbitrator and sought the concurrence from the respondents - Respondents declined to give their consent to the arbitrator named by the petitioners and instead proposed to appoint AMPTPP as sole arbitrator - Petitioners in turn not accepted the AMPTPP as the sole arbitrator - Application u/s. 11 of Act moved by petitioners in view of failure of arrival of consensus in appointing a sole arbitrator, which is pending - Respective Committee of AMPTPP which is neither party to the agreement and nor to the petition, called upon an emergency meeting for the arbitration dispute - Present petition filed thereagainst with prayer for injunction against AMPTPP to proceed with the dispute arising out of the agreement which form a subject matter of the arbitration agreement and which is pending adjudication before the HC - Prayer whether acceptable? - Held, Yes - Parties cannot compel or impose any sole arbitrator to decide/resolve their disputes unilaterally - Complaint with AMPTPP was filed with the same subject matter as of agreement - Court observed that there was a specific clause of arbitration and as the parties failed to mutually appoint any arbitrator, any proceeding dealing with the same subject matter of agreement and arbitration in question cannot be permitted to agitate before such Committee of the AMPTPP, specially considering the scheme and purpose of Act, apart from binding contract between the parties - Court u/s. 9 of Act can pass appropriate order or injunction to avoid multiplicity of the proceedings and to protect the right under adjudication before the arbitral tribunal, if constituted u/s. 11 of the Act - Order passed - Petition allowed.
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As (Somalia) (Fc) and Another vs Secretary of State For the Home Department
[HOUSE OF LORDS, 17 Jun 2009]
The Judgment was delivered by : LORD PHILLIPS OF WORTH MATRAVERS, LORD HOFFMANN, LORD HOPE OF CRAIGHEAD, BARONESS HALE OF RICHMOND AND LORD BROWN OF EATON-UNDER-HEYWOODLORD PHILLIPS OF WORTH MATRAVERSMy Lords,Introduction1. The appellants are two
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Gray (Original Respondent and Cross vs Thames Trains and Others
[HOUSE OF LORDS, 17 Jun 2009]
The Judgment was delivered by : LORD PHILLIPS OF WORTH MATRAVERS, LORD HOFFMANN, LORD SCOTT OF FOSCOTE, LORD RODGER OF EARLSFERRY AND LORD BROWN OF EATON-UNDER-HEYWOODLORD PHILLIPS OF WORTH MATRAVERSMy Lords,1. I have had the advantage of reading in
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In Re : Attorney-General's British Broadcasting Corporation vs
[HOUSE OF LORDS, 17 Jun 2009]
The Judgment was delivered by : LORD PHILLIPS OF WORTH MATRAVERS, LORD HOPE OF CRAIGHEAD, LORD WALKER OF GESTINGTHORPE, LORD BROWN OF EATON-UNDER-HEYWOOD AND LORD NEUBERGER OF ABBOTSBURYLORD PHILLIPS OF WORTH MATRAVERSMy Lords,1. I have had the
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Lanwall Services Limited vs Trm Copy Centres (Uk) Limited and Others
[HOUSE OF LORDS, 17 Jun 2009]
The Judgment was delivered by : LORD HOPE OF CRAIGHEAD, LORD HOFFMANN, LORD RODGER OF EARLSFERRY AND LORD WALKER OF GESTINGTHORPE AND BARONESS HALE OF RICHMONDLORD HOPE OF CRAIGHEADMy Lords,1. The appellant, Lanwall Services Ltd ("Lanwall"),
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Hero Cycles Limited, Ludhiana vs (1) Union of India, Secretary, Ministry of Finance Department of Revenue, New Delhi; (2) Commissioner of Customs (Imports) Mumbai Ii, Raigad; (3) Deputy Commissioner of Customs, Raigad
[BOMBAY HIGH COURT, 16 Jun 2009]
Excise - Central Excise Tariff Act, 1985 - Chap. Heading 87149990 - Notification No. 10/2003-CE D/-01-02-2003 as amended by 43/2006-CE D/-30-12-2006 - Import of goods - Non-claim of exemption available under notification - Claim of refund made in respect of duty paid on exempted imported goods - Refund claim rejected on ground that petitioners had not challenged the order of assessment - (A) Whether in the absence of impugning the original order of assessment by preferring a statutory appeal which was available, should the Court, ought to exercise its extra ordinary jurisdiction? - Position of law well settled that mere existence of the alternative remedy by itself is no bar for such exercising; it will depend on the circumstances of the case i.e. when the order is on the face of it erroneous or raised the question of jurisdiction or of infringement of fundamental rights of the petitioner - 'Champalal Binani vs. Commissioner of Income Tax, West Bengal, 76 ITR 692(SC) - (B) Whether on the facts of the case, would it be a fit case for the Court to exercise its extra ordinary jurisdiction? - Held, Yes - Record of case showing that a statutory notification was in existence and which ordinarily the AO ought to have noted - 'Statutory notification issued u/s. 5A of CE Act has statutory force, as if it were contained in the Act itself', 'Parle Exports (Private) Limited, 1988(38)ELT 741' - Admitted position, petitioner was being granted the benefit of the notification previous to the imports in issue and also subsequent to the imports in question; thus both the parties were aware of the said notifications; inadvertent error on part of petitioner to claim benefit would not be an answer on the part of authorities as a duty is cast on the authority to assess the goods and impose duty according to law which includes a statutory notification - Once there be a power to assess there is a corresponding duty to assess according to law - The fact the petitioner has paid the duty under mistake of law and or in instant case by oversight, cannot result in being assessed to duty which was otherwise not payable - Instant case is case of manifest injustice and on the face of it erroneous, Court observed - Directions issued to amend the original assessment order - Further appropriate directions issued - Rule made absolute.
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