CHILAKAMARTHI VENKATESWARLU & ANR. V. STATE OF ANDHRA PRADESH & ANR.

SC- Affirming the decision of the Hyderabad HC which had refused to quash the criminal complaint, the Hon’ble SC observed that the power to quash the proceedings under Sec.482 of the CrPC can be done only in rare cases and is to be generally exercised when there is no material to proceed against the Petitioners even if the allegations in the complaint are prima facie accepted as true. This power should not be exercised to stifle legitimate prosecution. -Hon'ble Justices Dr. Dhananjaya Y. Chandrachud and Indira Banerjee [31-07-2019]
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VIJAY PANDEY V. STATE OF UTTAR PRADESH

SC-In a case relating to the Narcotic Drugs and Psychotropic Substances Act,the Hon’ble SC while acquitting the appellant opined that the mere production of a laboratory report that the sample tested was narcotics cannot be conclusive proof by itself. The sample seized and that tested have to be co-related. The failure of the prosecution in the present case to relate the seized sample with that seized from the appellant makes the case no different from failure to produce the seized sample itself.-Hon'ble Justices Ashok Bhushan and Navin Sinha[30-07-2019]
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ZENITH DRUGS & ALLIED AGENCIES PVT. LTD. REPRESENTED BY ITS MANAGING DIRECTOR, SHRI UDAY KRISHNA PAUL V. M/S. NICHOLAS PIRAMAL INDIA LTD.

SC-Setting aside the Guwahati HC order,the Hon’ble SC held that the parties can be referred to arbitration in an application filed under Sec.8 of the Arbitration and Conciliation Act only if the subject matter of the action before the judicial authority relates to dispute which is the subject of the arbitration agreement. Since the respondent has raised the plea that the compromise decree is vitiated by fraud, the merits of such a plea could be decided only by the Civil Court and the parties cannot be referred to arbitration. Hon'ble Justices  R. Banumathi and A.S. Bopanna [30-07-2019]
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Mauji Ram V. State of Uttar Pradesh & Anr.

SC-The appeal against the Allahabad HC order has been allowed with the observation that the HC committed jurisdictional error in passing the impugned order because while passing it the HC did not assign any reason as to on what grounds, even though of a prima facie nature, it considered just and proper to grant bail to the respondents. It must appear from a perusal of the order that the Court has applied its mind to the relevant facts in the light of the material filed by the prosecution at the time of consideration of bail application.-Hon'ble Justices Abhay Manohar Sapre and Indu Malhotra[29-07-2019]
Read the full judgment with iDRAF (Issue,Decision,Reasoning,Arguments,Facts)-https://www.legitquest.com/mauji-ram-vs-state-of-uttar-pradesh-and-anr

STATE BANK OF INDIA & ORS. V. ATINDRA NATH BHATTACHARYYA & ANR.

SC-The opportunity of hearing granted to the respondent, which was the subject matter of appeal, has been set aside and the appeal has been allowed with the observation that once the respondent has failed to avail of opportunity of hearing granted, the Bank cannot be directed to give another opportunity for the sake of justice. The respondent avoided availing the said opportunity when offered. Once opportunity has been granted to the respondent, he is not entitled to another on the ground of compassion. The delaying tactics cannot be rewarded in such a manner.-Hon'ble Justices L. Nageswara Rao and Hemant Gupta [25-07-2019]
Read the full judgment with iDRAF (Issue,Decision,Reasoning,Arguments,Facts)-https://www.legitquest.com/state-bank-of-india-and-ors-vs-atindra-nath-bhattacharyya-and-anr

BRAHMANI RIVER PELLETS LIMITED V. KAMACHI INDUSTRIES LIMITED

While setting aside the Madras HC order,the Hon’ble SC observed that when the parties have agreed to have the “venue” of arbitration at Bhubaneswar, the Madras HC erred in assuming the jurisdiction under Sec.11(6) of the Arbitration and Conciliation Act, 1996.Where the contract specifies the jurisdiction of the court at a particular place, only such court will have the jurisdiction to deal with the matter and parties intended to exclude all other courts.Non-use of words like “exclusive jurisdiction”, “only”, “exclusive”, “alone” is not decisive and does not make any material difference.- Hon'ble Justices  R.Banumathi and A.S.Bopanna [25-07-2019]
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Sri A.M.C.S. Swamy, ADE/DPE/Hyd (Central) V. Mehdi Agah Karbalai & Anr.

SC-Setting aside the Hyderabad HC order, the Hon’ble SC observed that when there is express provision in the Special Act empowering the Special Court to take cognizance of an offence without the accused being committed, it cannot be said that taking cognizance of offence by Special Court is in violation of Sec. 193 of the CrPC,1973. The Govt. had already issued notification notifying the 1st Additional District Judge’s Court as a Special Court and under Sec. 151 of the Electricity Act, 2003, the Special Court is empowered to take cognizance without there being an order of committal as contemplated under Sec. 193 of the CrPC.-Hon'ble Justices R. Banumathi and R. Subhash Reddy [23-07-2019]
Read the full judgment with iDRAF (Issue,Decision,Reasoning,Arguments,Facts)-https://www.legitquest.com/sri-amcs-swamy,-adedpehyd-(central)-vs-mehdi-agah-karbalai-and-anr

Vinod Bhaiyalal Jain & Ors. V. Wadhwani Parmeshwari Cold Storage Pvt. Ltd.Through its Director & Anr.

SC-The Hon’ble SC observed that the award passed by the Arbitrator was not sustainable and the learned District Judge was justified in entertaining the petition under Sec. 34 of the Arbitration and Conciliation Act, 1996 to set aside the award. There was a reasonable basis for the appellants to make a claim that the Arbitrator would not be fair to them even if not biased and propriety demanded that the Arbitrator should have recused in the present facts; but failed to do so.-Hon'ble Justices R. Banumathi and A.S.Bopanna [24-07-2019]
Read the full judgment with iDRAF (Issue,Decision,Reasoning,Arguments,Facts)-https://www.legitquest.com/vinod-bhaiyalal-jain-and-ors-vs-wadhwani-parmeshwari-cold-storage-pvt-ltdthrough-its-director-and-anr

Section 138 NI Act: Delay In Filing The Complaint Can Be Condoned If Sufficient Cause Is Shown In The Complaint [Read Judgment]

Section 138 NI Act: Delay In Filing The Complaint Can Be Condoned If Sufficient Cause Is Shown In The Complaint [Read Judgment]: The Supreme Court has observed that cognizance of a complaint filed under Section 138 of the Negotiable Instrument Act can be taken by the court even after the prescribed period, if the...

GST Evaders Can Be Arrested: SC Upholds Telangana HC Judgment

Supreme Court has dismissed a plea challenging Telangana High Court judgment that held that a person can be arrested by the competent authority in cases of Goods and Service Tax (GST) evasion. 

The vacation bench of Chief Justice of India Ranjan Gogoi and Justice Aniruddha Bose, dismissing the Special Leave Petition, said that it is not inclined to interfere. 

The Division bench of the Telangana High Court, in April, comprising of V. Ramasubramanian and Justice P. Keshava Rao had dismissed a batch of writ petitions seeking protection from arrest for alleged tax evasion. The challenge was against the summons issued by Superintendent (Anti-Evasion) of the Hyderabad GST Commissionerate under the Central Goods and Services Tax Act, 2017. The bench observed that sub Section (1) of Section 69 of the Act empowers the Commissioner to order the arrest of a person, when such a person is believed to have committed a cognizable and non bailable offence. 

It had said: "If reasons to believe are recorded in the files, we do not think it is necessary to record those reasons in the authorization for arrest under Section 69(1) of the CGST Act. Since Section 69(1) of the CGST Act, 2017 specifically uses the words “reasons to believe”, in contrast to the words “reasons to be recorded” appearing in Section 41A(3) of Cr.P.C., we think that it is enough if the reasons are found in the file, though not disclosed in the order authorizing the arrest." 

The state had submitted before the High Court that the petitioners before it were allegedly involved in incorporating several partnership firms and had claimed input tax credit on the basis of certain invoices, without there being any actual physical receipt of goods. It had alleged that the fraudulent input tax credit claimed by them was to the tune of Rs 224.05 crore. 

The High court had also rejected the contention that here cannot be an arrest even before adjudication or assessment. 

It had said: "To say that a prosecution can be launched only after the completion of the assessment, goes contrary to Section 132 of the CGST Act, 2017. The list of offences included in sub Section (1) of Section 132 of CGST Act, 2017 have no co relation to assessment. Issue of invoices or bills without supply of goods and the availing of ITC by using such invoices or bills, are made offences under clauses (b) and (c) of sub Section (1) of Section 132 of the CGST Act. The prosecutions for these offences do not depend upon the completion of assessment." 

The bench also did not favour the argument raised by the petitioners that since all the offences under the Act are compoundable under sub Section (1) of Section 138 of the CGST Act, 2017, subject to the restrictions contained in the proviso thereto and that therefore, there is no necessity to arrest a person for the alleged commission of an offence which is compoundable. The court also had observed that the furthering of enquiry/ investigation is not the only object of arrest.

https://www.livelaw.in/top-stories/gst-evaders-can-be-arrested-14530