Friday, 24 July 2026

Edition No. 4. The day’s most significant judgments from India’s courts.

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Supreme Court

1Supreme CourtWork & Employment Issues
Paragraph 8 of the MACPS applies to the Guard cadre. The posts of Senior Goods Guard, Passenger Guard, Senior Passenger Guard, and Mail/Express Guard are distinct posts in the promotional hierarchy as per the applicable Recruitment Rules, carrying the same Grade Pay of Rs. 4200 in Pay Band PB-2. The functional promotions earned within the Guard cadre constitute 'promotions' within the meaning of Paragraph 8.
From the judgment

For your practice. Practitioners must now argue that promotions within same Grade Pay in a cadre's promotional hierarchy are to be counted under Paragraph 8 of MACPS, and rely on binding Railway Board circulars issued after DoPT consultation.

The order. Appeal allowed. High Court and Tribunal orders set aside. Speaking order dated 15.10.2014 restored. No recovery of MACP benefits already paid. Decision governs similarly situated Railway Guards across Indian Railways, subject to finality of individual orders.

Paragraph 8, Modified Assured Career Progression Scheme, 2008

Case
Union of India & ors. vs. Harbans Lal Verma & ors.
Citation
Supreme Court of India · C.A. No.-009346-009346 - 2026 · 2026 INSC 739 · 23.07.2026
Bench
Justice Augustine George Masih, Justice Sanjay Karol
2Supreme CourtContracts & Business Disputes
The argument regarding Article 33, Schedule I of the Stamp Act (M.P. Amendment), is not open to the appellant as a ground to assail the royalty demanded by the respondent State. The parties have consciously signed the Agreement as contained in Form K, which, at the cost of repetition, may be stated, is a statutory form which clearly mentions that for the purposes of calculation of Stamp Duty, anticipated royalty is the yardstick to be used.
From the judgment

For your practice. Practitioners must now ensure stamp duty on mining leases is calculated on anticipated royalty, not dead rent, to avoid revenue disputes. The judgment clarifies the statutory scheme and rejects private agreements to the contrary.

The order. The Supreme Court dismissed the appeal. Stamp duty of Rs. 4,32,00,000 based on anticipated royalty was upheld. No costs awarded. The Court held that the proviso to Section 26 applies independently to mining leases and mandates calculation based on anticipated royalty.

Section 26, Indian Stamp Act, 1899

Case
M/s Birla Corporation Limited vs The State of Madhya Pradesh & ors.
Citation
Supreme Court of India · C.A. No.-009345-009345 - 2026 · 2026 INSC 738 · 23.07.2026
Bench
Hon'ble Mr. Justice Sanjay Karol, Hon'ble Mr. Justice Augustine George Masih
3Supreme CourtProperty & Asset Disputes
Even without a probate, the 1st appellant was entitled to the premises in the new building as per the PAAA executed with her; validating her status as an occupant which cannot be merely brushed aside
From the judgment

For your practice. Developers cannot resile from obligations under PAAA after accepting possession for redevelopment. Statutory compliance is non-negotiable, and occupant status is determined by contemporaneous documents recognized by MHADA.

The order. The Court set aside the High Court’s order restraining MHADA from enforcing its directions. It directed the first and second respondents to execute the PAAA and handover possession of three apartments within two months from 23.07.2026. The Court also restrained the High Court from proceeding with Civil Suit No. 4579 of 2026 and awarded costs of Rs. 50,000 each to the appellants before the High Court and the Supreme Court.

Section 2(25), Maharashtra Housing and Area Development Act, 1976

Case
Mrs. Mahabanoo Contractor and Anr. vs. M/s. Kalikund Developers & ors.
Citation
Supreme Court of India · C.A. No.-009342-009342 - 2026 · 2026 INSC 737 · 23.07.2026
Bench
Justice K. Vinod Chandran, Justice J.B. Pardiwala

High Courts

4High CourtBanking Law, Debt & Money Matters
Freezing of an entire bank account, particularly when the alleged disputed transaction pertains only to a specified amount, has serious civil consequences and directly affects the account holder's ability to meet day-to-day financial requirements. Such action cannot be permitted to continue indefinitely without there being any justification for restraining the entire amount lying in the account.
From the judgment

For your practice. Banks and investigating agencies must now ensure freezes are proportionate to the disputed amount or offence. Indefinite freezing of entire accounts is unconstitutional and exposes agencies to constitutional challenges.

The order. The Court directed the bank to continue freezing only Rs. 20,000 in the petitioner’s account. The remaining balance of approximately Rs. 35,000 was defrozen and the petitioner permitted to operate the account without restriction in respect of such amount. The petitioner was granted liberty to approach the competent authority to demonstrate that the frozen amount is unconnected with the alleged offence.

Articles 14 and 21, Constitution of India

Case
Mrs Reeta Parashar vs The State Of Madhya Pradesh
Citation
Madhya Pradesh High Court · WP-11923-2026 · 2026:MPHC-GWL:22028 · 22.07.2026
Bench
Justice Milind Ramesh Phadke
5High CourtConstitutional & Fundamental Rights
The petitioner's right to life and liberty under Article 21 of the Constitution of India cannot be compromised merely because no FIR has been lodged against him.
From the judgment

For your practice. Lawyers must now argue that Article 21 protects citizens from harassment even without an FIR. Departmental inquiries will become a standard relief.

The order. The Court directed the Commissioner of Police, Lucknow to provide safety to the petitioner, initiate departmental inquiry against the SHO within 8 weeks, and take strict action on the petitioner's application dated 15.07.2026. The writ petition was disposed of.

Article 21, Constitution of India

Case
Abdul Mannan vs State Of U.P. Thru. Prin. Secy. Home Lko. ...
Citation
Allahabad High Court · Criminal Misc. Writ Petition No. 7159 of 2026 · 2026:AHC-LKO:49525-DB · 23.07.2026
Bench
Abdul Moin,Pramod Kumar Srivastava, JJ
6High CourtWork & Employment Issues
It is a disconcerting reality that temporary employees, particularly in government institutions, often face multifaceted forms of exploitation.
From the judgment

For your practice. Government institutions can no longer use outsourcing to deny regular employment to staff performing essential roles. Lawyers must now challenge such classifications and seek regularisation for affected employees.

The order. The Court issued notice to the placement agency (returnable in four weeks) and directed that the appellant's services not be discontinued till the next date. The substantive relief of regularisation and quashing of termination order was left for adjudication on merits.

Constitution of India, Articles 14, 16, and 21

Case
Richhpal Singh vs The State Of Rajasthan
Citation
High Court of Rajasthan (Jodhpur) · SAW No. 849/2026 · 23.07.2026
Bench
Justice Pushpendra Singh Bhati, Justice Praveer Bhatnagar
7High CourtRelationships & Family Matters
Admittedly, there had been instance of the respondent attempting to commit suicide. It was at the house of the petitioner. The respondent was saved by the timely intervention of police and fire force. Such conduct, by itself, amounts to mental cruelty on the spouse. The petitioner would not be able to lead a peaceful life with the respondent, he having attempted to commit suicide on discord with her
From the judgment

For your practice. Lawyers must now argue that extreme conduct like suicide attempts and false allegations can constitute mental cruelty, even without proof beyond reasonable doubt.

The order. Appeal allowed. Impugned judgment set aside. Marriage dissolved by decree of divorce. No costs awarded.

Section 13(1)(ia), Hindu Marriage Act, 1955

Case
Veena Violet D Souza vs Antony Crasta
Citation
Kerala High Court · Mat Appeal No. 713 of 2022 · 2026:KER:55112 · 23.07.2026
Bench
Justice Sathish Ninan
8High CourtContracts & Business Disputes
The Deed of Assignment dated 29 March 2019 executed between L&T Finance Limited and the petitioner... Clause 2.1.1 transfers the assignor's rights, title and interest in the receivables and also authorises the petitioner to institute recovery proceedings or take legal action in its own name and right and as a legal acquirer and not as representative or agent of the assignor
From the judgment

For your practice. Practitioners must draft assignment clauses to expressly transfer arbitration agreements and document borrower acceptance of assignment to establish locus for invoking arbitration. Interim protection under Section 9 requires prima facie material showing asset depletion or dissipation.

The order. Court partly allowed petitions. Granted interim protection including: restraint on alienation of hypothecated assets; respondents to file comprehensive Affidavit of Disclosure within 3 weeks; maintain true accounts of receivables; furnish Bank Guarantee of Rs.7,60,21,638 within 6 weeks; ONGC not to release security deposits without 2 weeks' prior notice; Court Receiver appointed without actual possession to prepare inventory within 8 weeks. Rejected prayers for freezing all bank accounts, blanket garnishee order, and Receiver with actual possession and power to sell.

Section 9, Arbitration and Conciliation Act, 1996

Case
Kotak Mahindra Bank Limited v. Sitaram Energy and Logistics Limited & ors.
Citation
Bombay High Court · CARBP/5535/2025 · 23.07.2026
Bench
Amit Borkar, J.
9High CourtProperty & Asset Disputes
Prima-facie, it transpires that the First Appellate Court has not considered the fact that the burden of proof is on the person, who has pleaded the case to that extent.
From the judgment

For your practice. Practitioners must ensure appellate courts do not substitute their views for trial courts' discretionary orders without proper reasons. Burden of proof in property disputes involving wills must be correctly placed on the party alleging fraud or benami transactions.

The order. The High Court allowed the petition under Article 227 of the Constitution of India, quashed the First Appellate Court's order dated 23.09.2025, and restored the trial court's order dated 10.03.2025 rejecting the injunction application. The trial court was directed to expedite the main suit and dispose of it as early as possible.

Order 43 Rule 1, Code of Civil Procedure, 1908

Case
L0Ate Indrajeet Singh S/O Mehtab Singh ... vs Avtar Singh
Citation
Madhya Pradesh High Court · Misc. Petition No. 5743 of 2025 · 2026:MPHC-IND:19922 · 22.07.2026
Bench
Hon'ble Shri Justice Sandeep N. Bhatt
10High CourtContracts & Business Disputes
The question in regard to whether the claim is vexatious or legally unsustainable or a stale case or not is not the domain of the High Court to decide as it contains disputed question of facts, which is to be determined by the Arbitrator.
From the judgment

For your practice. Practitioners must now focus arguments on the existence of the arbitration agreement at the referral stage, as all other threshold issues are to be decided by the arbitral tribunal under the doctrine of kompetenz-kompetenz.

The order. The Court appointed Shri Justice Ved Prakash as sole arbitrator. Parties directed to deposit arbitration fees as per M.P. Arbitration Center Rules, 2019. All other rights and contentions left open for adjudication by the arbitrator.

Section 11(6), Arbitration and Conciliation Act, 1996

Case
Vijay Hariramani vs Manish Verma
Citation
Madhya Pradesh High Court · Arbitration Case No. 153 of 2025 · 2026:MPHC-JBP:54901 · 22.07.2026
Bench
Hon'ble Shri Justice Deepak Khot
11High CourtCriminal Issues
The offence committed by the petitioner and the statements of confidential witnesses indicate that the acts were committed against individuals and not against the public at large. This would at the most fall under law and order and not public order situation.
From the judgment

For your practice. Preventive detention orders must now consider bail conditions and demonstrate a live link to public order. Courts will require detailed reasoning.

The order. The Court quashed the detention order dated 14.11.2025, approval order dated 21.11.2025, and confirmation order dated 26.12.2025. The petitioner was directed to be released forthwith, if not required in any other offence. The Court held that the detention order was unsustainable due to failure to consider bail conditions, absence of a live link to public order, and non-application of mind by the detaining authority.

Section 3(1), Maharashtra Prevention of Dangerous Activities Act, 1981

Case
Rutik S/o Amritrao Sarje @ Deshmukh v. The State of Maharashtra
Citation
Bombay High Court · WP/238/2026 · 2026:BHC-AUG:30544-DB · 23.07.2026
Bench
Vaishali Patil-Jadhav, Sandipkumar C. More, JJ
12High CourtWork & Employment Issues
The principles laid down by this Court in the aforesaid judgment will apply to the present case regarding non-teaching staff also. A Division Bench of this Court in case of Smt. Darshana wd/o Adikrao Gaikwad v. State of Maharashtra has considered identical facts where the Petitioner was appointed as part-time Librarian initially and thereafter, full-time Librarian. In that matter also authority had refused to grant superannuation pension to the Petitioner therein.
From the judgment

For your practice. Practitioners can now argue part-time service counts as 50% for pension. Permanent approvals retroactively validate service. Scrutiny committee findings are critical evidence.

The order. Writ Petition allowed in part. Respondent No.5 to submit pension proposal within 6 weeks. Respondent Nos.2 and 3 to process and pass orders for grant of pensionary benefits within 6 weeks thereafter.

Rule 57 Note 1, Maharashtra Civil Services (Pension) Rules, 1982

Case
Dr. Vijay S. Shedage v. The State of Maharashtra & ors.
Citation
Bombay High Court · WP/13205/2023 · 23.07.2026
Bench
Abasaheb D. Shinde, Nitin B. Suryawanshi, JJ

Tribunals

13TribunalTraffic & Motor Vehicle Law
Rule 9(i)(bb) is applicable to supplementary invoice, bill or challan issued by provider of output service and Rule 9(i)(e) is applicable, inter alia, to a person liable to pay Service Tax under Rule 2(1)(d) of Service Tax Rules, 1994. It is apparent that the appellant is not service provider and therefore Rule 9(i)(bb) would not be applicable to them
From the judgment

For your practice. Practitioners must now ensure refund claims for Service Tax paid under RCM during pre-2011 periods are computed under Rule 9(1)(e) and not denied by invoking Rule 9(1)(bb). Gross eligible credit, not closing balance, must be used for computation.

The order. Refund of Rs. 2,42,39,076 set aside. Recomputation of Rs. 11,16,153 directed. Rs. 3,11,450 remanded for verification of invoices. Appeal allowed partly. Compliance within 8 weeks.

Rule 9(1)(e) and Rule 9(1)(bb), Cenvat Credit Rules, 2004

Case
Amd Research & ors. vs Hyderabad-Ii
Citation
Customs Excise and Service Tax Appellate Tribunal · ST/1902/2012 · 23.07.2026
Bench
A.K. Jyotishi, Angad Prasad
14TribunalBanking Law, Debt & Money Matters
Considering the factual matrix and peculiar case in hand, in our view, for the sake of equity, the profit of 0.55% on net sales will justify in this case.
From the judgment

For your practice. Tax practitioners must now ensure that rejections under Section 145(3) are grounded in concrete evidence, not structural realities of regulated sectors. Profit estimations must be benchmarked against comparable cases or industry standards.

The order. The ITAT partly allowed the appeals, directing the AO to estimate net profit at 0.55% on net sales instead of the arbitrary 1% applied earlier. The additions of Rs.1,45,06,784 for AY 2016-17 and Rs.75,47,823 for AY 2017-18 were set aside. Statutory depreciation of Rs.8,95,589 was allowed against the net profit estimated at 0.55%. Compliance directed within standard timelines.

Section 145(3), Income-tax Act, 1961

Case
Jaswinder Singh,Bathinda vs Dcit Circle-1, Bathinda, Bathinda
Citation
Income Tax Appellate Tribunal · ITA Nos.585 & 586/ASR/2025 · 23.07.2026
Bench
Shri S. Rifaur Rahman, Shri Udayan Das Gupta

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