Sunday, August 3, 2014

Supreme Court issues notice to Election Commission on a PIL seeking direction for display of photographs of contesting candidates on EVMs

The Supreme Court of India has entertained a PIL which has sought directions to the Election Commission of India to display photographs of candidates on the EVMs to curb the practice of dummy candidates with same or similar names. The PIL raised the issue that quite often dummy candidates with same / similar names are set up by vested interests to confuse the voters which many a times alter the election result. This menace can be curbed if the photographs of the contesting candidates are displayed on the Electronic Voting Machines (EVMs) so that voters can meaningfully and properly exercise their right to vote and to ensure that their vote has gone to the candidate of their choice.

The Supreme Court’s bench of Chief Justice R.M.Lodha, justice Kurian Joseph and Justice RF Nariman, on 25th July 2014, issued notice to the Election Commission of India returnable in ten weeks. The case is “Akash Gahlot vs Election Commission of India” Writ Petition (Civil) No.541/2014.

Sunil Goel advocate B.Sc. L.Lb L.Lm

Supreme Court allows Sahara group chief Subrata Roy and other officers to use conference room facilities at Tihar Jail for limited period

By an order passed on 1st August 2014, the Supreme Court allowed Sahara group chief Subrata Roy and other officers lodged in Tihar Jail to use the conference room of Jail No.3 at Tihar Jail Delhi for 10 days starting 5th August and also allowed them to use the facilities of video conferencing, internet/wifi, secretarial staff, laptop, mobile and landline with STD/ISD facility to negotiate with prospective buyers of hotel properties of Sahara to comply with Supreme Court’s order of deposit of Rs.5000 crore in cash (out of which Rs.3000 crore stands deposited by Sahara group). It may be recalled that by its order dated 26th March 2014, the Supreme Court had granted interim bail to Subrata Roy and other officers subject to the Sahara group depositing Rs.5000 crore in cash and Rs.5000 crore by way of Bank Guarantee from a nationalised bank in favour of SEBI.


Read the Full Order

Sunil Goel advocate B.Sc. L.Lb L.Lm

Supreme Court : High Court under Section 482 CrPC can compound the non-compoundable offences of personal nature but offences which involve moral turpitude, grave offences like rape, murder etc. cannot be compounded and can not be quashed on compromise by the parties




Yogendra Yadav vs State of Jharkhand (Criminal Appeal No.1205/2014)

Section 320 of Code of Criminal Procedure prescribe which offences can be compromised (called “compounding of offences” in legal language) by the parties themselves and which offences can be compromised by them with the permission of the court. The remaining offences which do not find mention in Section 320 CrPC can not be compromised even with the permission of the Court.

The facts of the case in brief are that complainant got registered an FIR under Sections 341, 323, 324, 504 and 307 read with Section 34 of the Indian Penal Code (IPC) alleging that appellants assaulted him and his men. On the same day, appellants also got registered an FIR under Sections 147, 148, 149, 448, 341, 323 and 380 of the IPC regarding the same incident alleging that complainant and his men assaulted them. In both the cases, after investigation, charge-sheet was submitted.

While the cases were going on before trial court, both the parties agreed to compromise the cases. A Panchayat was held where with the intervention of the well-wishers a compromise was arrived at. A compromise petition dated 16/11/2011 was signed by both the parties and it was filed in the trial Court. The trial court observed that offences under Sections 324, 341, 323 of the IPC are compoundable with the permission of the court and hence said offences were compounded and the accused were acquitted of the same. However, the trial court observed that offences under Sections 326, 307 read with Section 34 of the IPC are non-compoundable and hence directed that the case should proceed against the accused for offences under Sections 326, 307 read with Section 34 of the IPC.

This order was challenged by the appellants in the High Court of Jharkhand but the High court dismissed the challenge. The appellants then moved the Supreme Court.

The Supreme Court by its judgment on 21st July 2014 allowed the appeal and set aside the trial court’s and High court’s order and compounded the non-compoundable offences and quashed the proceedings. The Supreme Court relied on its earlier judgment in the case of Gian Singh vs State of Punjab (2012) 10 SCC 303 (wherein the Supreme Court had held that where the High Court quashes a criminal proceeding having regard to the fact that the dispute between the offender and the victim has been settled although the offences are not compoundable, it does so as in its opinion, continuation of criminal proceedings will be an exercise in futility and justice in the case demands that the dispute between the parties is put to an end and peace is restored; securing the ends of justice being the ultimate guiding factor). The Supreme Court held that in a given case, the High Court can quash a criminal proceeding in exercise of its power under Section 482 of the Code having regard to the fact that the parties have amicably settled their disputes and the victim has no objection, even though the offences are non-compoundable. In which cases the High Court can exercise its discretion to quash the proceedings will depend on facts and circumstances of each case. Offences which involve moral turpitude, grave offences like rape, murder etc. cannot be effaced by quashing the proceedings because that will have harmful effect on the society. Such offences cannot be said to be restricted to two individuals or two groups. If such offences are quashed, it may send wrong signal to the society. However, when the High Court is convinced that the offences are entirely personal in nature and, therefore, do not affect public peace or tranquility and where it feels that quashing of such proceedings on account of compromise would bring about peace and would secure ends of justice, it should not hesitate to quash them. In such cases, the prosecution becomes a lame prosecution. Pursuing such a lame prosecution would be waste of time and energy. That will also unsettle the compromise and obstruct restoration of peace.

Though State of Jharkhand filed an affidavit opposing the compromise, but the Supreme Court quashed  the proceedings in view of the compromise and in view of the legal position.


Manohar singh vs State of Madhya Pradesh (Criminal Appeal No.1498/2014)
In another matter on same day, the Supreme court held that where the parties enter into a compromise after the conviction has been recorded after trial, the non-compoundable offences can not be compounded. However, in such a situation if the court feels that the parties have a real desire to bury the hatchet in the interest of peace, it can reduce the sentence of the accused to the sentence already undergone (relying on Supreme Court’s earlier decision in Narinder Singh vs State of Punjab JT 2014 (4) SC 573). In this case, the offence involved was Section 498-A IPC and Section 4 Dowry Prohibition Act. Appellant was convicted under both and was sentenced. His appeal was rejected by the High Court. During his appeal in Supreme Court, he made a statement that he was willing to give monetary compensation to his wife in lieu of substantive sentence of imprisonment. His wife appeared and stated that if the appellant pays her Rs.2,50,000/- as compensation, she is ready to settle the matter. The appellant brought the demand draft of said amount.  The counsel for both parties requested the Court to show leniency in view of the settlement, however counsel for State opposed the prayer. The Supreme court, while maintaining the conviction, reduced the sentence to the sentence already undergone by the husband subject to his paying Rs.2.50 lakh to the wife, in the interest of peace and amity.


Sathiyamoorthy vs State (Criminal Appeal No. 1169/2014)
In yet another case on the same day, in respect of the offences under Sections 148 and 149 of the IPC (rioting, armed with deadly weapon), the supreme Court reduced the sentence to the sentence already undergone, in view of compromise between the accused and the victim.

Read the full judgment.

Sunil Goel advocate B.Sc. L.Lb L.Lm

Supreme Court comes to the rescue of person against whom false case of cheque dishonor was filed

Ramdass vs  Krishnanand   Criminal Appeal No.1522/2014

Facts of the case are that the cheque of Rs.5 lakh issued by the appellant Ramdass in favour of respondent was dishonored as the appellant instructed the bank to stop the payment. The respondent filed criminal case under Section 138 of Negotiable Instruments Act against the appellant. The complainant/respondent set up the case that he had given hand loan of Rs.1.75 lakh to the appellant and that to discharge said liability, the appellant had issued the cheque of Rs.5 lakh.  The case of the appellant, on the other hand, was that he had entered into an agreement with the complainant to purchase 3 acres of land belonging to the complainant for a total consideration of Rs.10,00,000/- and for that purpose, an advance of Rs.30,000/- in cash was paid and the Cheque in question for Rs.5,00,000/- was handed over to the complainant in presence of B.S. Pai (DW 2) and that when the complainant failed to execute the sale agreement and not even willing to return the advance amount of Rs.30,000/- and the Cheque of Rs.5,00,000/-, he had to instruct the Bank to stop payment against the said Cheque.

The Magistrate Court took note of the financial condition of the complainant and found his version to be false on the evidence led before him and dismissed the complaint and acquitted the appellant of the offence.

The complainant filed appeal in the High Court. The High Court while allowing the appeal, set aside the judgment of the Trial Court and sentenced the appellant-accused to pay a fine of Rs.8,50,000/- within a period of eight weeks, failing which, to suffer simple imprisonment for a period of six months.

Aggrieved by the reversal of his acquittal, the appellant appealed to Supreme Court of India. The appellant deposited Rs.1,75,000/- in the trial court in accordance with the Supreme court’s order initially. However, vide final judgment dated 23rd July 2014, the Supreme Court allowed the appeal and set aside the  judgment of High court and restored the judgment of trial court acquitting the appellant. The Court observed that it can not be believed that the complainant had raised loan of Rs.1,75,000/- only to give hand loan to his employer/appellant. The court observed that it is not trustworthy that complainant was in a position to extend hand loan of such a big amount to the appellant particularly when the complainant himself admitted that his net savings in a year came to Rs.10,000/- per year and he was working as lorry driver with appellant who used to deal in sale purchase of properties. The supreme court permitted appellant to withdraw Rs.1,75,000/- which were earlier deposited by the appellant in the trial court in pursuance to Supreme Court’s initial order.

Read the full Judgment.


Sunil Goel advocate B.Sc. L.Lb L.Lm

Thursday, July 24, 2014

Banks can publish photographs of wilful defaulters in newspapers, rules Supreme Court of India

The borrowers defaulted in repayment of loan. The bank initiated action under Sarfaesi Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act) 2002. The Bank issued notice under Section 13(2) of said Act. The Bank then issued further notice that if the account is not regularized within 10 days, the bank would publish the photographs of the directors and Guarantors of the borrower company in the newspapers.

The borrowers challenged this letter of the bank by way of a writ petition WPL No. 2808/2013 in the Bombay High Court. The High Court referred to Rule 8 of the Sarfaesi Rules and noticed that the said Rule permit the bank to publish the names and addresses of the defaulters . The Division Bench of the High Court observed that such publication of names serve two purposes – firstly that these persons are willful defaulters is made known to the public at large and secondly, it  tends to caution the prospective buyers  who may be offered the property which may be mortgaged by these defaulters with the bank.

After so observing, the High court held that that being the primary objective for publication of notice, there would be no impediment in publishing the photographs of such willful defaulters and particularly those defaulters who have committed various acts of misfeasance. The High Court however cautioned that banks should not publish the photographs of willful defaulters in a routine manner. Only after examining the facts and circumstances of each case, the bank should consider whether the photographs should be published.

Having said so, in peculiar facts of said case, the High court (Justice V.M.Kanade and Justice M.S.Sonak) did not find any fault with the proposed action of the bank to publish the photographs of directors and guarantors of the defaulter borrower company and dismissed the writ petition. 

The borrower company and its directors / guarantors challenged the said decision dated 28th November 2013 of Bombay High Court in  the Supreme Court of India. The Supreme Court (Justice F.M.I. Kalifulla and Justice Shiva Kirti Singh) by its order dated 14th July 2014 dismissed the said SLP No. 37726/2013 and thus the judgment given by Bombay High Court was upheld.