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Irregularity by bank employees should not be dealt with leniently: Supreme Court

Bank employees hold the position of trust where honesty and integrity are essential conditions and any irregularity on their part should not be dealt with leniently, the Supreme Court said on Friday. A bench of Justices Ajay Rastogi and Abhay S Oka made the observation while upholding an order of dismissal against a bank clerk for serious irregularities in discharge of his duties. Merely because the employee stood superannuated in the meanwhile, will not absolve him from the misconduct which he had committed in discharge of his duties and looking into the nature of misconduct which he had committed, he was not entitled for any indulgence. The Bank employee always holds the position of trust where honesty and integrity are the sine qua non but it would never be advisable to deal with such matters leniently, the bench said. The apex court said that looking into seriousness of the nature of allegations levelled against the employee, the punishment of dismissal inflicted upon him in no manner could be said to be shockingly disproportionate. The employee joined service as a Clerk-cum-Typist in 1973 and while in service committed serious irregularities in discharge of his duties and was placed under suspension by an Order dated August 7, 1995. He was later served with the charge sheet along with the statement of allegation on March 2, 1996. After the disciplinary inquiry was conducted in accordance with the disciplinary rules of the bank, the inquiry officer found the charges proved. He was dismissed from service by an order dated December 6, 2000 and the appellate authority also rejected the appeal by the employee. The Tribunal, after taking into consideration the record of the domestic inquiry, finally arrived at the conclusion that inquiry was fair and proper and the charges stood proved. It, however, observed that the punishment awarded to the employee of dismissal is not commensurate with the charge levelled against him and substituted the punishment of dismissal with an order of reinstatement after lowering down of two stages in his basic salary. The order was upheld by the Patna High Court which was challenged by the bank before the apex court.  Source: Business Standard

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SC queries whether cases on quota in the private sector can be heard together

The Supreme Court on Friday asked whether parties connected with cases involving quota in private sector – based on domicile – can be heard together. A bench of Justices L. Nageswara Rao and B.R, Gavai said: “If the matters are pending before other high courts, we can hear the larger issue after calling for the papers from high courts…” The top court was hearing an appeal by the Haryana government challenging the Punjab and Haryana High Court interim stay, on its law to give 75 per cent reservation to the youths belonging to the state in the private sector. The bench said Jharkhand and Andhra Pradesh government policies granting reservation on the basis of domicile have been challenged in the high courts. It further queried the parties in the Haryana matter, whether matters of other states could be brought to the top court for adjudication along with Haryana government’s policy. The top court asked parties, including the Haryana government, to find out the pending cases in high courts and inform it on Monday whether they are agreeable on hearing matters together. Solicitor General Tushar Mehta, representing the Haryana government, submitted at the beginning of the hearing that only a handful of people are opposed to the state’s policy. Senior advocate Mukul Rohatgi said he will consult with his clients. Senior advocate Dushyant Dave, representing one of the parties, emphasised that the matter requires examination by the top court. In a special leave petition, the Haryana government contended that the interim order was passed in the teeth of law laid down by the top court in Bhavesh D. Parish vs Union of India (2000), and also in violation of the principles of natural justice. “It is submitted that the hearing granted by the High Court was mere empty formality, whereby, the High Court with a predetermined conclusion opened the hearing by saying that they Act is liable to be stayed and thereafter did not afford any opportunity to the law officer appearing on behalf of the state of Haryana,” said the plea. “Violation of principles of natural justice is manifest from the fact the entire hearing in the matter concluded within one minute,” it added. On February 3, in a setback to the BJP-JJP government in Haryana, the Punjab and Haryana High Court stayed the state government law to give 75 per cent reservation to the youths belonging to the state in the private sector. The law under the Haryana State Employment of Local Candidates Act, 2020 is applicable in industries having more than 10 employees. In a petition, the Faridabad Industrial Association said the impugned Act was against the provisions of Constitution and also against the basic principle of meritocracy that acted as the foundation for businesses to grow and remain competitive. Source: Business Standard

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‘Return money to homebuyers by Jan 17,’ says SC

The Supreme Court on Wednesday slammed the real estate developer Supertech over non-payment to the homebuyers for the flats, which were ordered to be demolished. A Bench headed by Justice DY Chandrachud told Supertech to keep their office in order and to make the payment to home buyers by January 17. It said that no amount should be deducted while giving back the money. The bench told the counsel appearing for Supertech, “Interest cannot be charged on return of investment. You are looking for all sorts of reasons to not comply with the order of the court. Ensure that the payments are made by Monday, else there would be consequences.” The top court was hearing a contempt plea by home buyers who paid for the flats on which apex court judgment of August 31, 2021, directed demolition of the twin-tower 40 storeys building of Supertech’s Emerald Court project at Noida. Homebuyers alleged that Supertech invited them to collect their money. However, when they approached the company, they were told that the money would be paid back in installments together with certain deductions which were not indicated by the court. The top court further asked Noida Authority to finalise the name of the agency that would be given the task to demolish the twin towers of the Supertech Emerald Court housing project. The top court has now posted the matter for hearing on Monday. Earlier, the apex court had dismissed a plea of Supertech seeking modification of its August 31 order by which it was directed to demolish two of its 40-storey towers at its Emerald Court housing project in Noida. While directing the demolition of two towers over grave violations of building norms, the court had said that it was a result of “nefarious complicity” between Noida Authority and the Supertech and ordered that company shall carry out the demolition at its own expense within three months under the supervision of the Noida Authority and an expert body like the Central Building Research Institute. The order had come on a batch of petitions filed by homebuyers for and against the April 11, 2014 verdict of the Allahabad High Court, which had ordered the demolition of the two buildings within four months and the refund of money to apartment buyers. Source: business-standard.com

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Supreme Court States ‘Welfare Of Minor To Be The Predominant Consideration’ In Custody Battle Case

In regards to a  case of custody battle between a US resident and his wife for their minor boy, the Supreme Court noted that welfare of the minor are of predominant consideration. It further stated  that the rights of the parties to a custody dispute are irrelevant. It said the consideration of the well-being and welfare of the child must get precedence over the individual or personal rights of the parents. “The principle that the welfare of the minor shall be the predominant consideration and that the rights of the parties to a custody dispute are irrelevant has been consistently followed by this court,” a bench of justices Ajay Rastogi and Abhay S Oka said. “The consideration of the well-being and welfare of the child must get precedence over the individual or personal rights of the parents,” the bench said. It said that a custody dispute involves human issues which are always complex and complicated and what is in the welfare of the child depends on several factors. There can never be a straight jacket formula to decide the issue of custody of a minor child as what is in the paramount interest of a minor is always a question of fact, it said. ( With PTI Inputs)

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Plea in SC seeks new accreditation policy to ensure best patient to doctor, nurse ratio in NABH hospitals

New Delhi [India], December 21 (ANI): A plea has been filed in the Supreme Court seeking a fresh national accreditation policy that ensures the optimum doctor to patient and nurse to patient ratio is adhered to in all the National Accreditation Board for Hospitals and Healthcare Providers (NABH) hospitals and those who apply for accreditation. The plea filed by the Indian Professional Nurses Association, a non-governmental registered body working for the welfare of the nurses across India, also prayed to direct the Quality Council of India and the National Accreditation Board for Hospitals and Healthcare Providers (NABH) to place on record the documents it peruses while granting accreditation. The plea also sought direction for forming a committee to monitor the quality of patient care, patient safety and satisfaction. The petitioner said that the plea has been filed in light of the RTI responses and also in the context of the overburden put on medical staff during the ongoing pandemic. In the RTI response, Quality Council of India admits that it has no specified norms related to the patient-nurses ratio and it has further stated that it has not conducted any survey or study to monitor the quality of patient care, patient safety and patient satisfaction. “Most important, this petition is trying to emphasize that adherence of patient-nurse and the patient-doctor ratio is extremely significant from the point of view of patient safety,” it stated. Quality Council of India and NABH themselves claim to be the apex body that sets the basic standards for healthcare quality and patient safety has never conducted a survey or study to see if hospitals are ensuring patient safety. “There is a dire need of a fresh policy of accreditation as respondent number one and two are relying on the documents submitted by hospitals,” it added. There is also a need for NABH to conduct surprise visits along with pre-informed inspections in hospitals to monitor if the safety standards are being complied by the said hospitals, said the plea. (ANI)

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Consumer Protection| Can written statement be accepted beyond 45 days? SC settles pre and post New India Assurance Company Verdict conundrum once and for all

Supreme Court: In a case where the NCDRC had condoned a delay for a period beyond the prescribed statutory outer limit just before the decision of the Constitution Bench on 4 March 2020 wherein it was held that the consumer fora has no power and/or jurisdiction to accept the written statement beyond the statutory period prescribed under the Act, i.e., 45 days in all, the 3-judge bench of Dr. DY Chandrachud*, Surya Kant and Vikram Nath, JJ has held that the Constitution Bench judgment would not affect applications that were pending or decided before 4 March 2020. The Court made clear that such applications for condonation would be entitled to the benefit of the position in Reliance General Insurance Co. Ltd. v.  Mampee Timbers & Hardwares Pvt. Ltd.,  (2021) 3 SCC 673, which directed consumer fora to render a decision on merits. Factual Background While entertaining a Consumer Complaint, the NCDRC has condoned the delay of 100 days in filing a written statement. The order of the NCDRC was a few days before the judgment of a Constitution Bench dated 4 March 2020, in New India Assurance company Limited v. Hilli Multipurpose Cold Storage Private Limited, (2020) 5 SCC 757 which held that the limitation period under Section 13(2)3 of the Consumer Protection Act 1986 could not be extended beyond the statutorily prescribed period of forty-five days. The appellants filed a consumer complaint before the NCDRC on 3 December 2018 based on two insurance policies on the ground of an alleged fire that took place at the factory of the appellant. The respondent received the summons on 20 May 2019 together with the order of the NCDRC and a complete set of papers consisting of the consumer complaint and documents. The respondent filed its written statement on 23 September 2019 together with IA No 15390 of 2019 for condonation of a delay of 100 days. The NCDRC, by its order dated 25 February 2020, condoned the delay subject to the respondent paying costs of Rs 50,000. What led to the confusion? A series of judgments, before and after the Constitution Bench verdict, gave contradictory views with respect to discretion of NCDRC to condone the delay beyond 45 days. Here’s how the various Supreme Court verdicts created uncertainty: Reference to the Constitution Bench The decision in J.J. Merchant v. Shrinath Chaturvedi, (2002) 6 SCC 635, which was a three Judge Bench decision, consumer fora has no power to extend the time for filing a reply/written statement beyond the period prescribed under the Act. However, thereafter, despite the above three Judge Bench decision, a contrary view was taken by a two Judge Bench and therefore the matter was referred to the five Judge Bench. During the pendency of the matter before the Constitution Bench Bhasin Infotech and Infrastructure Private Limited v. Grand Venezia Buyers Association, (2018) 17 SCC 255 Parties were permitted to file written statements beyond the prescribed limitation period, subject to payment of appropriate costs. Reliance General Insurance Co. Ltd. v.  Mampee Timbers & Hardwares Pvt. Ltd.,  (2021) 3 SCC 673 The consumer fora may accept the written statement beyond the stipulated time of 45 days in an appropriate case, on suitable terms, including the payment of costs and to proceed with the matter. Constitution Bench Verdict New India Assurance company Limited v. Hilli Multipurpose Cold Storage Private Limited, (2020) 5 SCC 757 [Constitution Bench] The Constitution Bench reiterated the view taken in the case of J.J.Merchant and held that the consumer fora has no power and/or jurisdiction to accept the written statement beyond the statutory period prescribed under the Act, i.e., 45 days in all. “28. It is true that “justice hurried is justice buried”. But in the same breath it is also said that “justice delayed is justice denied”. The legislature has chosen the latter, and for a good reason. It goes with the objective sought to be achieved by the Consumer Protection Act, which is to provide speedy justice to the consumer. It is not that sufficient time to file a response to the complaint has been denied to the opposite party. It is just that discretion of extension of time beyond 15 days (after the 30 days’ period) has been curtailed and consequences for the same have been provided under Section 13(2)(b)(ii) of the Consumer Protection Act. It may be that in some cases the opposite party could face hardship because of such provision, yet for achieving the object of the Act, which is speedy and simple redressal of consumer disputes, hardship which may be caused to a party has to be ignored.” The decision was rendered on 11 February 2021 after the judgment of the Constitution Bench in New India Assurance Company Limited (supra). That was a case where the NCDRC in a judgment dated 4 September 2020, had confirmed the order of the Karnataka State Consumer Disputes Redressal Commission dated 26 September 2018 rejecting an application seeking condonation of delay in filing the written statement. Ultimately it was left to the concerned fora to accept written statements beyond the stipulated period of 45 days in an appropriate case. Conclusion Having regard to the prospective effect of the judgment of the Constitution Bench in New India Assurance Company Limited and the orders in Reliance General Insurance Company Limited and Bhasin Infotech, which had recognized an element of discretion pending the reference, the Court held that no case for interference is made in the order of the NCDRC allowing the application for condonation of delay on merits. [Diamond Exports v. United India Insurance Company Limited, 2021 SCC OnLine SC 1241, decided on 14.12.2021] Source: scconline.com

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Builder’s failure to procure occupancy certificate a deficiency in service under Consumer Protection Act: Supreme Court

The Supreme Court on January 11 has said that the failure of a real estate developer to obtain an occupation certificate is a ‘deficiency in service’ under the Consumer Protection Act 1986 and that homebuyers are within their rights as ‘consumers’ to demand compensation for high charges incurred by them. “In the present case, the respondent was responsible for transferring the title to the flats to the society along with the occupancy certificate. The failure of the respondent to obtain the occupation certificate is a deficiency in service for which the respondent is liable. Thus, the members of the appellant society are well within their rights as ‘consumers’ to pray for compensation as a recompense for the consequent liability (such as payment of higher taxes and water charges by the owners) arising from the lack of an occupancy certificate,” the bench comprising Justices DY Chandrachud and AS Bopanna observed. The bench was hearing a case wherein the complaint was filed by Samruddhi Co-operative Housing Society Ltd of Mumbai for refund of the excess taxes and charges paid to the municipal authorities, due to the alleged deficiency of service of the builder- Mumbai Mahalaxmi Construction Pvt. Ltd. The buyers had said that they had to pay a 25 percent higher amount on account of the property tax and an additional 50 percent towards the water charges due to the builder’s failure to obtain an occupancy certificate. Members of the Mumbai society had booked units in 1993 and were given possession of their units in 1997 but the builder had not taken steps to obtain an occupation certificate from the municipal authorities. As a result, the flat buyers were not eligible for an electricity and water connection and had to shell out  property tax at a rate 25 percent higher than the normal rate and water charges at a rate which was 50 percemt higher than the normal charge The National Consumer Disputes Redressal Commission (NCDRC) had earlier dismissed the complaint filed by homebuyers on the ground that it was barred by limitation and that it was not that it was in the nature of a recovery proceeding and not a consumer dispute. It had also said that the housing society was not a ‘consumer’ under the provisions of the Consumer Protection Act as they had claimed the recovery of higher charges paid to the municipal authorities from the builder. The Supreme Court bench in its order observed that Sections 3 and 6 of the MOFA indicate that the promoter has an obligation to provide the occupancy certificate to the flat owners. Apart from this, the promoter must make payments of outgoings such as ground rent, municipal taxes, water charges and electricity charges till the time the property is transferred to the flat owners. Where the promoter fails to pay such charges, the promoter is liable even after the transfer of property. “Based on these provisions, it is evident that there was an obligation on the respondent to provide the occupancy certificate and pay for the relevant charges till the certificate has been provided. The respondent has time and again failed to provide the occupancy certificate to the appellant society. “For this reason, a complaint was instituted in 1998 by the appellant against the respondent. The NCDRC on 20 August 2014 directed the respondent to obtain the certificate within a period of four months. Further, the NCDRC also imposed a penalty for any delay in obtaining the occupancy certificate beyond these 4 months. Since 2014 till date, the respondent has failed to provide the occupancy certificate,” it said. Owing to the failure of the respondent to obtain the certificate, there has been a direct impact on the members of the appellant in terms of the payment of higher taxes and water charges to the municipal authority. This continuous failure to obtain an occupancy certificate is a breach of the obligations imposed on the respondent under the MOFA and amounts to a continuing wrong. The appellants, therefore, are entitled to damages arising out of this continuing wrong and their complaint is not barred by limitation, the order said. The bench has allowed the appeal against the order of the NCDRC dated December 3, 2018, and hold that the complaint is maintainable. “We direct the NCDRC to decide the merits of the dispute having regard to the observations contained in the present judgment and dispose the complaint within a period of three months from the date of this judgment,” the order noted. The Supreme Court had in the Bangalore Development Authority vs Syndicate Bank also held that failure to register title deeds is a deficiency of service on the part of the builder. No registration can be done and consequently, possession cannot be handed over if an occupation certificate is not obtained. Therefore, the Supreme Court has taken note of the plight of homebuyers and has rightly held that failure to obtain OC is a deficiency of service, said advocate Kumar Mihir. This will also help thousands of homebuyers who are forced to take possession by the builders even when the projects are not complete and OC/CC has not been issued for the same by the competent authority, he added.  Source: moneycontrol.com

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Railways Liable To Pay Compensation For Late Arrival Of Trains If Delay Is Not Explained Or Justifiable

The Supreme Court has held that until and unless the railways provide evidence and explain the late arrival of a train to establish and prove that delay occurred because of the reasons beyond their control, they would be liable to pay compensation for such delay. “Therefore, unless and until the evidence is laid explaining the delay and it is established and proved that delay occurred which was beyond their control and/or even there was some justification for delay, the railway is liable to pay the compensation for delay and late arrival of trains”, a bench of Justice MR Shah and Justice Aniruddha Bose observed. [Case: Northern Western Railway and Another v. Sanjay Shukla Citation: LL 2021 SC 427] Source: live Law

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SC directs all states, except Maharashtra, to fill up vacancies in Consumer Commissions by Jan end

The Supreme Court has directed all states, except Maharashtra, to fill up vacancies in the Districts and State Consumer Disputes Redressal Commissions by the end of January 2022. A bench comprising Justices S K Kaul and M M Sundresh noted that a large number of states are stated to be reaching the culmination of the process of appointment. With regard to Tamil Nadu, the top court said the acting Chief Justice of the high court would have to nominate some Judge and the state government would promptly approach the acting Chief Justice for the said purpose and ”we expect the nomination to be made on an urgent basis”. Advocate Aditya Narain, who has been appointed as amicus curiae in the case, submitted a comprehensive status report with regard to the appointment of members of the Commission. ”It is suggested by the amicus curiae that two months’ time, i.e., by the end of January, 2022 should be enough for the States to fully comply, which include the ones which have partially complied but their vacancies have not been filled up, the exception being State of Maharashtra which will have to wait the decision in the special leave petition stated to be filed both by the Union of India and the State but not listed as yet,” the bench said. On the issue of development of judicial infrastructure, the apex court noted that a large part of pending funds under category of utilisation certificate ”UC.” does not portray a very happy situation. ”It must be appreciated that the utilization of the Central funding in turn requires planning by the States so that the funds do not lapse. The project may be spread over a period of time and if the utilisation is on the basis of the total funds available without taking into account the time period within which that infrastructure would be built, there is bound to be a situation of funds lapsing,” the bench said. The top court, in its December 1 order, said that what is required is to take up as many projects as would result in a utilisation of the fund in the given financial year so that the fund does not lapse. ”It is suggested to us that in order to facilitate the utilization of funds within the stipulated time and to ensure that utilisation certificates are submitted so that no part of the fund lapses, there should be nodal officers assisting the Empowered Committees. ”We call upon the Central Government and the State Governments as well as the Union Territories to nominate the nodal officers for the said purpose within a week. These nodal officers will coordinate and assist the Empowered Committees,” the bench said. The apex court made it clear that the Empowered Committees, the nodal officers, states and the Union government are all responsible to ensure that the funds allocated are utilised properly and within the time stipulated with proper utilization certificate to ensure that no fund lapses, and are utilized under the Scheme. The top court was hearing a suo motu case, ‘Inaction of the Governments in appointing President and Members/Staff of Districts and State Consumer Disputes Redressal Commission and inadequate infrastructure across India’. Earlier, the apex court had expressed displeasure over delay in appointments in the Districts and State Consumer Disputes Redressal Commission and said if the government does not want the tribunals then it should abolish the Consumer Protection Act. It had directed that the process of filling up vacancies in the State Consumer Commissions as per its earlier directions must not be impeded by the judgment of the Bombay High Court which had quashed certain Consumer Protection Rules. Sankaranarayanan had apprised the court about the judgement passed by the Bombay High Court at Nagpur Bench quashing certain Consumer Protection Rules. The top court had in January said that Consumer rights are ”important rights” and non-manning of posts and inadequate infrastructure in the district and state consumer commissions across the country would deprive the citizens of redressal of their grievances. The top court had appointed senior advocate Gopal Sankaranarayan and lawyer Aaditya Narain as amicus curiae to assist it in the matter. Source: devdiscourse.com

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Motor Accident Claims – Potential To Earn Can Be Considered To Determine Compensation If There Is No Evidence For Actual Income : Supreme Court

The Supreme Court has held that even if there is no evidence on record of actual income, deceased person’s potential to earn can be considered while considering insurance claims in motor accidents matter. The deceased was a computer engineer with a B.Tech degree. While there was evidence on record to show that the deceased was earning Rs.10,000/ month, there was no documentary evidence to show an additional 10,000/month which Appellants claimed. The Motor Accidents Claims Tribunal, Ranchi in its judgement assessed the “future loss of income” of the deceased at Rs.20,000/month and on that basis arrived at a compensation figure of Rs. 30 Lakhs. The Jharkhand High Court in its impugned judgement reduced the amount of compensation from 30 Lakh Rupees to 15 Lakh Rupees. The impugned judgement held that: “this Court is of the opinion that without any evidence with regard to income and only on the basis of oral statement income of the deceased was considered by the learned Tribunal to the tune of Rs.20,000/- is not just and proper, though there no contrary evidence was brought by Insurance Company nor cross-examination has been done by the Insurance Company, but the learned Tribunal ought to have been very reasonable in granting compensation as the same cannot be bonanza rather the same must be just and fair compensation.” (Para 28) Before the Supreme Court, the Respondent-Insurance Company argued that there was no documentary evidence produced on record to show that Rs.20,000/ month was the actual income of the deceased at the time of death. In this light, the Order holds: “assuming that there was no supporting evidence laid, in that case also considering the potentiality to earn, as the deceased was a Bachelor of Engineering in Computer Technology, his income can safely be assessed at-least at Rs.20,000/- per month.” On the basis of this reasoning, the Order dated 06.12.2021 sets aside the impugned judgement noting that the “High Court has committed grave error in reducing the compensation.” Case name: Basant Devi v Divisional Manager, The New India Assurance Company Ltd Coram: Justice M.R. Shah and Justice B.V.Nagarathna Counsels: Mr.Kaushik Laik for Appellants, Mr.J.P.N.Shahi for Respondents. Citation : LL 2021 SC 728 Source: https://www.livelaw.in/top-stories/motor-accident-claims-potential-to-earn-can-be-considered-to-determine-compensation-if-there-is-no-evidence-for-actual-income-supreme-court-187406

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