Important Judgements delivered by Justice M.I. Arun. Karnataka High Court
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1 When civil suit touching upon the constitution of the Managing Committee of the Trust is pending, petition under the Charitable and Religious Trusts Act, 1920 cannot be entertained.
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2 Land acquisition. Though KIAD Act doesn’t specify time within which final notification has to be issued, the same shall be done within a reasonable time. Karnataka High Court quashes final notification issued 14 years after the preliminary notification.
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3 In a suit for ejection, Court fee is payable only on the rental amount and not on security deposit, premium or an advance or as a security deposit.
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4 Court in exercise of its power under Article 226 of the Constitution of India cannot sit as an Appellate Authority over the order passed by a statutory authority.
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5 Income Tax Act. Exemption from restriction on cash transaction can be claimed only for special exigencies the burden of proving is on the assessee.
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6 Land acquisition under BDA Act will not lapse when acquisition is complete even though the Scheme has lapsed.
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7 Acquisition under BDA Act will not lapse when acquisition is complete though Scheme has lapsed. Incomplete acquisition quashed.
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8 Hindu Succession Act, 1956. Ancestral property partitioned and sold prior to 2005 amendment. Suit for partition by daughter is maintainable under the 1994 Karnataka amendment. Plaint cannot be rejected.
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9 Authoritative pronouncement of the Karnataka High Court on the tests of motive eye witness interested witness independent witness unlawful assembly in a criminal trial.
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10 Criminal Procedure Code. Appeal against conviction is not continuation of the prosecution. Victim has no right to be impleaded in such appeal and be heard on suspension of sentence.
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11 ‘The House Committees are an extension of the legislature itself and do informed work’. Karnataka High Court upholds constitution of Special House Committee to examine irregularities in Nursing Colleges in Karnataka.
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12 Court cannot take cognizance of any offence under the Factories Act, 1948 unless a complaint is made within three months from the date on which the alleged commission of the offence came to the knowledge of Inspector.
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13 Existence of a competing co-operative society in the area is only a guiding factor and not a restriction to permit new co-operative society under the Karnataka Co-operative Societies Act.
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14 Administrator under Section 27A of the Societies Registration Act cannot be appointed on vague allegations of irregularities in conducting election.
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15 Karnataka State Commission for Scheduled Castes and Scheduled Tribes has no power to direct the Government to withhold grants being made to an educational institution.
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16 National Calamity Contingent Duty is a surcharge which can be levied independently of the excise duty. NCCD can be levied even in the absence of levy of excise duty.
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17 Wife cannot be held liable under the N.I Act for dishonour of the cheque issued by her husband though the loan transaction is joint.
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18 Suit cannot be dismissed simply because Specified Value as contemplated under the Commercial Courts Act is not mentioned in the plaint. Court can order valuation and return the plaint if the valuation is more than Rs. three lakhs.
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19 Confiscation of goods under Section 130 of the CGST Act must be preceded by an opportunity of being heard and not mere opportunity of filing objections to the action contemplated.
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20 Industrial Disputes Act, 1947. Pendency of disciplinary proceedings cannot be a ground to deny the status of a protected workman unless the workman is also involved in criminal cases.
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21 Cooperative society. Except meeting notice, supply of copy of the motion to the person against whom the no confidence motion is moved is not necessary.
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22 ‘Avoid making governmental policies which conflict with one another’. Karnataka High Corut advises the State Government.
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23 Karnataka Gram Swaraj and Panchayat Raj Act. Adhyaksha can only stay the execution of order or resolution of Taluk Panchayat if it is unjust and unlawful etc. He cannot sit as an appellate authority and decide the dispute.
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24 Prohibition against double allotment of shops under the APMC Act applies even when the trader ‘possesses’ another shop.
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25 When civil suit touching upon the constitution of the Managing Committee of the Trust is pending, petition under the Charitable and Religious Trusts Act, 1920 cannot be entertained.
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26 Authoritative pronouncement of the Karnataka High Court on the tests of motive eye witness interested witness independent witness unlawful assembly in a criminal trial.
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27 SARFAESI Act. Jurisdiction of Civil Court is NOT ousted to adjudicate dispute prior to mortgage in favour of bank. Suit challenging very validity of mortgage in favour of bank is maintainable.
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28 Karnataka Gram Swaraj and Panchayat Raj Act. Minor procedural flaws do not invalidate a no-confidence motion if the essential legal requirements are met. A distinction exists between illegality, which violates a fundamental principle of law, and irregularity, which involves a deviation from established procedures that can be remedied.
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29 Central Goods and Services Tax Act. When the initial action of search and seizure conducted by an improper officer is illegal, all further actions undertaken are also rendered illegal and unenforceable.
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30 Karnataka High Court directs the State Government to devise a mechanism to conduct phodi, durasti and hudbast in respect of granted lands and the lands alienated by any person.
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31 Land acquisition. Grant of a house site under the rehabilitation package shall be determined by ownership rights over the land, rather than actual cultivation of the land at the time of acquisition.
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32 Auction purchaser cannot be asked to pay interest on the sale amount when the delay in execution of the sale deed is solely attributable to the vendor authority.
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33 Karnataka Land Grant Rules. Mortgage to a Co-operative Bank is not an alienation. Mortgagee is entitled to sell the property while enforcing the mortgage even within the prohibited period.
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34 Karnataka Gram Swaraj and Panchayat Raj Act. Power conferred on Adhyaksha to stay the execution of any order or resolution of Taluk Panchayat is not appellate in nature to decide the dispute itself.
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35 Land acquisition. Though KIAD Act doesn’t specify time within which final notification has to be issued, the same shall be done within a reasonable time. Karnataka High Court quashes final notification issued 14 years after the preliminary notification.
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36 Income Tax Act. Exemption from restriction on cash transaction can be claimed only for special exigencies the burden of proving is on the assessee.
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37 Prevention of Money Laundering Act. Arrest of an accused under Section 19 is legally valid and not arbitrary if the Enforcement Directorate demonstrates sufficient material and a reason to believe that the accused is involved in money laundering, provided that at least one scheduled/predicate offense is alive.
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38 Court is not an expert in handwriting and cannot reject an application to refer disputed signatures to an expert solely based on its own visual comparison. When the outcome of a case under rests primarily on the identity of a denied signature, and there is no other corroborative evidence to form a conclusion, the court must refer the matter to a handwriting expert.
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39 Wife cannot be held liable under the N.I Act for dishonour of the cheque issued by her husband though the loan transaction is joint.
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40 The Legislature has the competence to alter the forum and coram for appeals to reduce judicial pendency. However, a legislative provision giving an amendment retrospective effect of nullifying past final judgments without a saving clause is arbitrary.
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41 Legal insanity under Section 84 IPC requires proof of incapacity at the time of the offence. Mere medical evidence is insufficient. Failure to meet this burden bars any later claim, including relief under Section 105 of the Mental Healthcare Act.
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42 Criminal complaint for cheating and a complaint for cheque dishonour arising from the same transaction are maintainable simultaneously, as they are based on two distinct acts, the initial fraudulent inducement and the subsequent failure to honour a legally dischargeable debt.
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43 An error in the FIR relating to the description of the offence is not fatal, as it can be corrected after investigation while filing the police report, and the Trial Court retains the power to amend or alter the charge accordingly.
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44 Negotiable Instruments Act. A statutory demand notice under Section 138 must require payment to be made to the payee or holder in due course. A notice demanding payment to a third party is invalid, and any proceedings based on such a defective notice are unsustainable in law.
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45 Urban Land (Ceiling and Regulation) Act. Land that is primarily used for agricultural purposes and is not designated for non-agricultural use in the prevailing Master Plan is expressly excluded from the definition of ‘vacant land.’ Consequently, the State has no legal authority to acquire or take possession of such agricultural land under the Act.
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46 An arbitral award is liable to be set aside if it is rendered by an authority lacking jurisdiction. An award passed under the National Highways Act by a Deputy Commissioner who has no territorial jurisdiction is a nullity. Such a defect goes to the root and cannot be cured by consent or waiver of the parties.
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47 Land acquisition. A landowner who voluntarily enters into a price-fixation agreement and accepts a ‘consent award’ cannot subsequently seek enhancement of compensation through writ jurisdiction. A challenge filed years after the acceptance of such compensation is barred by both the principle of finality of contracts and the doctrine of laches.
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48 SARFAESI Act. Where a plaintiff alleges that a mortgage was created through fraud or that the title documents held by the bank are forged, bar under Section 34 does not apply. When a suit is filed for a declaration of title and a challenge is made to the validity of the mortgage on the grounds of fraud, plaint cannot be rejected under Order VII Rule 11 CPC.
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49 Negotiable Instruments Act. Proceedings under Section 138 does not preclude the payee from maintaining a civil suit for recovery of money. To prevent unjust enrichment the courts may take into consideration the amounts recovered in one proceeding while passing appropriate orders in the other proceedings.
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