Monday, 27 July 2026

Edition No. 6. The day’s most significant judgments from India’s courts.

In today’s digest

  • Section 149 MV Act | Insurer Must Pay Compensation Despite Invalid License : Bombay HC
  • Section 56 Companies Act | Share Transfer Without Deed Is Non-Est : NCLAT
  • Section 528 BNS | Non-Bailable Warrant Issued Without Alternatives Is Illegal : Bombay HC
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Supreme Court

1Supreme CourtWork & Employment Issues
Once the rule-making authority has consciously provided only one mode of shortlisting, namely limiting the candidates to be called for interview to four times the number of vacancies where applications are received in large numbers, it was not open to the Selection Committee/SoUP to superimpose an additional eligibility threshold.
From the judgment

For your practice. Practitioners must scrutinize recruitment rules for compliance with central executive directions. Arbitrary cut-off marks policies are liable to be struck down. Delayed cases may still secure moulded relief including prospective appointments.

The order. Supreme Court allowed appeals, set aside High Court judgment dated 04.01.2023. Directed appellants to approach appointing authority within two weeks. Appointments to be offered within four months with prospective effect. Vacancies available: 2,241 posts out of 7,768 sanctioned posts as of May 2026. Appointed appellants entitled to all benefits except back wages, seniority, promotion, and eligible for pension/gratuity if qualified.

Executive directions dated 24th July, 1996 issued by Directorate General of Employment & Training under Ministry of Labour

Case
Arvind Kumar vs State Of U.P
Citation
Supreme Court of India · Civil Appeal Nos. 8257-8259 of 2026 [Arising out of SLP (Civil) Nos. 4012-4014 of 2023] with Civil Appeal No. 8260 of 2026 [Arising out of SLP (Civil) No. 9685 of 2023] and connected matters · 2026 INSC 741 · 24.07.2026
Bench
Justice Dipankar Datta

High Courts

2High CourtConstitutional & Fundamental Rights
a blanket prohibition on the establishment of the Pharmacy Colleges cannot be imposed by an executive resolution
From the judgment

For your practice. Lawyers advising educational institutions must now argue that State-imposed bans on new colleges are ultra vires without statutory authority, relying on PCI as the sole regulatory body for approvals.

The order. The Court granted ad-interim relief permitting the petitioner to participate in the 2026-27 admission, affiliation, and approval process based on PCI approval dated 13.05.2026. State directed to file reply by 07.08.2026, rejoinder by 14.08.2026, with final hearing on 17.08.2026.

Article 19(1)(g), Constitution of India, 1950

Case
Dhumane Patil Foundation And Anr vs The State Maharashtra Thr Its Principal Secretary
Citation
Bombay High Court · Writ Petition No. 9468 of 2026 · 24.07.2026
Bench
R. I. Chagla & Farhan P. Dubash, JJ.
3High CourtBanking Law, Debt & Money Matters
Priority means precedence or going before (Black's Law Dictionary). In the present context, it would mean the right to enforce a claim in preference to others.
From the judgment

For your practice. Tax authorities must now register charges with CERSAI post-24.01.2020 or prove MLRC proclamation compliance for pre-amendment attachments to enforce priority over secured creditors. Non-compliance renders their claims subordinate.

The order. The Court quashed impugned orders dated 09.12.2013, 26.08.2017, and 14.10.2020, directed removal of mutation entries Nos. 187, 211, and 232 from the 7/12 extract, and ordered compliance within six weeks. Secured creditor's priority under SARFAESI Act upheld.

Section 26E, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

Case
Central Bank Of India vs Assistant Commissioner Of State Tax
Citation
Bombay High Court · Writ Petition (L) No. 5750 of 2026 and Writ Petition (L) No. 5830 of 2026 · 24.07.2026
Bench
Justice Manish Pitale
4High CourtBanking Law, Debt & Money Matters
We are of the opinion that the petitioner cannot be foisted with the liability for property tax dues prior to 24.04.2024 i.e. the date of sale certificate. To that extent, the demand letter dated 07.08.2024 deserves to be quashed.
From the judgment

For your practice. Practitioners must now ensure that liquidators clarify property tax liabilities upfront in e-auction documents to protect auction purchasers from unexpected claims and streamline insolvency processes.

The order. The High Court allowed the writ petition in part, quashed the demand letter dated 07.08.2024 to the extent it sought to recover property tax dues prior to 24.04.2024, and directed MCGM to issue a fresh demand letter/notice for the period from 24.04.2024 within two weeks. The petitioner must make payment within two weeks of service, with credit for any prior payments made.

Insolvency and Bankruptcy Code, 2016

Case
Macrotech Developers Limited vs Municipal Corporation
Citation
Bombay High Court · Writ Petition No. 4121 of 2025 · 23.07.2026
Bench
Justice Manish Pitale
5High CourtInsurance Law & Claims
It is beyond any doubt or dispute that only in the event an application for renewal of licence is filed within a period 30 days from the date of expiry thereof, the same would be renewed automatically
From the judgment

For your practice. Insurers must now satisfy awards even for unlicensed drivers but can recover from owners. Multipliers must use the deceased’s age, and future prospects must be added for victims under 40.

The order. Compensation enhanced to Rs. 3,17,400 with 6% interest p.a. Insurer, driver, and owner held jointly and severally liable. Insurer directed to deposit amount within 10 weeks and recover from owner. Costs imposed on insurer.

Section 149, Motor Vehicles Act, 1988

Case
The New India Assurance Co Ltd v. Nk. Hyder Mohiuddin (Deceased) through L.Rs. & ors.
Citation
Bombay High Court · FA/1344/2003 · 2026:BHC-AUG:30872 · 24.07.2026
Bench
Justice S. G. Chapalgaonkar
6High CourtCriminal Issues
The issuance of non-bailable warrants involves interference with personal liberty. Arrest and imprisonment means deprivation of the most precious right of an individual. Therefore, the courts have to be extremely careful before issuing non-bailable warrants.
From the judgment

For your practice. Practitioners must now argue for bailable warrants or summons in cases of single-day absence, especially where the accused has a history of compliance.

The order. The Court allowed the application, quashed the NBW issued on 29-05-2026, and directed the applicant to attend all future court dates without fail. The Court held that the NBW was issued without exhausting alternatives and violated personal liberty.

Section 528, Bharatiya Nagarik Suraksha Sanhita, 2023

Case
Ramswarup Alias Swarup Laxman Phalke vs The State Of Maharashtra
Citation
Bombay High Court · Criminal Application No.2630 of 2026 · 2026:BHC-AUG:30344 · 23.07.2026
Bench
Justice Abhay S. Waghwase

Tribunals

7TribunalContracts & Business Disputes
Thus, there is a clear violation of procedure prescribed for 'Transfer of Property' u/s Section 54 of Transfer of Property Act, 1882 and Section 17 of the Registration Act, 1908 and also violation of the procedure prescribed under Section 56 of the Companies Act for the transfer of shares.
From the judgment

For your practice. Practitioners must ensure strict compliance with Section 56 procedures for share transfers and Section 17 Registration Act for property transfers to avoid invalidation of transactions.

The order. NCLAT dismissed the appeal, affirming the NCLT order dated 08.10.2021. Respondents declared as 100% shareholders of Vivid Solutions Pvt Ltd. Alleged share transfer and property transfer declared illegal, null, and void for non-compliance with Section 56 Companies Act and Section 17 Registration Act read with Section 54 Transfer of Property Act.

Section 56, Companies Act, 2013

Case
Vovid Solutions Pvt. Ltd. & ors. vs Mukesh Jain & ors.
Citation
National Company Law Appellate Tribunal · Company Appeal (AT) No.125 of 2021 · 24.07.2026
Bench
Justice Yogesh Khanna, Mr Ajai Das Mehrotra
8TribunalConsumer & Service Problems
The policy document, when examined in isolation, undoubtedly suffers from lack of clarity. The placement of the figure 'Rs.62,500/-' in the printed format is capable of creating uncertainty, particularly because no figure appears against the column meant for the Maturity Sum Assured. However, a contract cannot be interpreted by isolating a single printed entry divorced from the remaining contractual documents forming part of the same transaction.
From the judgment

For your practice. Insurers cannot be held liable for clerical errors in policy documents unless the error creates an enforceable obligation. Practitioners must scrutinize policy documents and scheme terms to determine true contractual obligations.

The order. Appeal allowed in part. A/Os directed to pay maturity amount with admissible bonus as per approved scheme terms after adjustment of any payment already made. Consolidated compensation of Rs.50,000/- awarded for deficiency in service. Litigation cost of Rs.10,000/- affirmed. Amounts to be paid within 45 days from 23.07.2026

Section 3, Consumer Protection Act, 1986

Case
The Branch Manager, LIC vs Sri Samir Kumar Nandy
Citation
National Consumer Disputes Commission · First Appeal No. SC/19/A/1206/2017 · 23.07.2026
Bench
Mr. Rajes Guha Ray, Mr. Santanu Saha
9TribunalTort and Personal Injury
The survey findings suggest a most likely association of the outbreak with the domestic water supply. A large proportion of admitted patients reported altered taste and smell of drinking water, which may indicate possible contamination of municipal pipelines, including potential sewage ingress.
From the judgment

For your practice. Municipal authorities must now adopt real-time monitoring systems, GIS-based mapping, and third-party audits to comply with CPHEEO and MoHUA standards, with costs borne by the polluter.

The order. NGT directed IMC to implement a 29-point action plan within a phased timeline, including immediate measures (shock chlorination, alternate water supply), infrastructure reforms (pipeline replacement, adherence to CPHEEO guidelines), monitoring systems (real-time monitoring, GIS mapping), and regulatory compliance (BIS 10500, NABL-accredited testing). Compliance report to be filed within three weeks.

Section 17, National Green Tribunal Act, 2010

Case
Mr. Rashid Noor Khan vs Collector Indore
Citation
National Green Tribunal · Original Application No. 05/2026(CZ) and Original Application No. 06/2026(CZ) · 23.07.2026
Bench
Sheo Kumar Singh, Sudhir Kumar Chaturvedi, JJ

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