Friday, 18 September 2026

Edition No. 56. The day’s most significant judgments from India’s courts.

In today’s digest

  • S.26 Comp Act | No CCI suo motu probe in state liquor monopoly : MP HC
  • S.36 Arb Act | Executing court cannot bind non-debtor officers : CG HC
  • S.66 IBC | Circumstantial asset removal proves fraud : NCLAT
  • S.2(14) JJ Act | CWC cannot seize child absent statutory care : Cal HC
  • S.2(1)(g) CPA | Parked burnt truck satisfies care : Maha SCDRC
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High Courts

1High CourtRelationships & Family Matters

The dispute. Prospective adoptive parents challenged the Child Welfare Committee's sudden removal of an infant from their care. The committee seized the child without recording any finding that the minor was abandoned, destitute, or in need of care. The Calcutta High Court allowed the writ petition and ordered immediate restoration of the child's physical custody.

The reasoning. Statutory authority of the Child Welfare Committee to assume custody arises strictly when the minor falls within Section 2(14) of the JJ Act. Arbitrary removal without establishing abuse or destitution violates parental rights and child welfare.

For your practice. Guardians facing administrative child seizures can immediately seek writ relief where the Child Welfare Committee acts without a formal finding of statutory endangerment.

The order. Writ petition allowed; committee directed to restore custody of the child to the petitioners by 18 September 2026 with periodic welfare reporting.

Section 2(14), Juvenile Justice (Care and Protection of Children) Act, 2015

Case
Smt. Aparna Das & ors. v. The State of West Bengal & ors.
Citation
Calcutta High Court · WPA/13525/2026 · 2026:CHC-AS:1561 · 17.09.2026
Bench
Gaurang Kanth
2High CourtCriminal Issues

The dispute. A complainant challenged the discharge of an accused under Section 3(1)(w) of the SC/ST Act in an assault case. The trial court declined to frame charges on the ground of delay in lodging allegations regarding caste identity. The Delhi High Court allowed the criminal revision in part and directed the trial court to frame additional charges.

The reasoning. At the stage of framing charges, prima facie knowledge of the victim's caste or tribal status is sufficient to attract Section 3(1)(w). Delay in alleging caste-based intent cannot justify pre-trial discharge when personal acquaintance is admitted.

For your practice. Complainants resisting discharge under special penal statutes need only demonstrate the accused's prior knowledge of protected status, deferring strict motive proof to trial.

The order. Revision petition partly allowed; trial court directed to frame additional charge under Section 3(1)(w) against respondent number two while upholding other discharges.

Section 3(1)(w), Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989

Case
PROSECUTRIX R vs STATE OF NCT OF DELHI
Citation
Delhi High Court · CRL.REV.P.-410/2017 · 2026:DHC:7978 · 17.09.2026
Bench
Manoj Kumar Ohri
3High CourtContracts & Business Disputes

The dispute. Bangalore Metro challenged an arbitral award that awarded compensation for idling overheads and price revisions to a contractor. The construction contract explicitly stipulated that delay would be remedied solely by time extensions without financial compensation. The High Court of Karnataka partly allowed the Section 37 appeal and set aside the monetary claims awarded by the tribunal.

The reasoning. An arbitral tribunal is bound by the contractual terms agreed upon by the parties. Granting monetary compensation in the face of an express clause restricting remedies to time extension constitutes patent illegality under Section 34.

For your practice. Commercial litigators challenging construction awards must scrutinise express negative covenants on prolongation costs, as tribunals cannot override contractual risk allocations.

The order. Section 37 appeal partly allowed; monetary claims awarded contrary to contractual prohibition set aside while maintaining undisputed findings.

Section 34, Arbitration and Conciliation Act, 1996

Case
LARSEN AND TOUBRO LIMITED vs BANGALORE METRO RAIL CORPORATION LIMITED
Citation
Karnataka High Court · COMAP/116/2025 · 16.09.2026
Bench
Vibhu Bakhru, K.S. Hemalekha
4High CourtContracts & Business Disputes

The dispute. A contractor sought execution of an arbitral money award against the State of Chhattisgarh. The executing court directed the personal appearance and individual asset affidavits of administrative secretaries who were not parties to the contract. The High Court of Chhattisgarh allowed the civil revision filed by the State and set aside the coercive directions.

The reasoning. Execution under Section 36 of the Arbitration Act must adhere strictly to Order XXI of the CPC. An executing court cannot impose personal liability or compel attendance of departmental officers who are not judgment-debtors under the award.

For your practice. Advocates defending public authorities in arbitral execution must object to personal coercive processes against officers, confining enforcement solely to government funds.

The order. Civil revision allowed; impugned orders directing personal appearance and asset disclosure of administrative secretaries set aside with direction to proceed in accordance with law.

Section 36, Arbitration and Conciliation Act, 1996

Case
STATE OF CHHATTISGARH vs ECI-KEYSTONE (JV) STATE OF CHHATTISGARH VS ECI-KEYSTONE (JV)
Citation
Chhattisgarh High Court · WP227/768/2026 · 2026:CGHC:40702 · 17.09.2026
Bench
Bibhu Datta Guru
5High CourtGovernment & Public Body Interactions

The dispute. In a direct two-candidate panchayat election, the returned sarpanch was found disqualified for not being registered as an elector in the constituency. The defeated candidate claimed declaration of election under the thrown-away vote doctrine. The Punjab and Haryana High Court dismissed the appeal and affirmed the election tribunal order declaring the election petitioner elected.

The reasoning. Where a disqualification is established in a two-candidate election, votes secured by the disqualified candidate are deemed thrown away. The sole remaining valid candidate is entitled to declaration without requiring proof of voter notice.

For your practice. Election petitions challenging a two-candidate poll should seek a direct declaration of election rather than a re-poll whenever fundamental disqualification is demonstrated.

The order. Appeal dismissed; the election tribunal's declaration seated the respondent as validly elected Sarpanch.

Section 89, Punjab State Election Commission Act, 1994

Case
NEELAM RANI vs PRESIDING OFFICER, ELECTION TRIBUNAL-CUM-SUB DIVISIONAL MAGISTRATE, SAMANA & ors.
Citation
Punjab and Haryana High Court · FAO/6346/2025 · 17.09.2026
Bench
Kuldeep Tiwari
6High CourtProperty & Asset Disputes

The dispute. A purchaser sued for specific performance of a registered agreement to sell immovable property. During the pendency of the suit, the original vendor executed sale deeds conveying portions of the suit property to third-party purchasers. The Madhya Pradesh High Court dismissed the first appeal and affirmed the trial court decree granting specific performance.

The reasoning. Section 52 of the Transfer of Property Act subordinates subsequent transfers pendente lite to the final decree. Transferees acquiring property during litigation cannot claim bona fide purchaser protection against an established agreement to sell.

For your practice. Claimants in specific performance suits need not institute separate proceedings against pendente lite purchasers, as the decree binds all subsequent transferees automatically.

The order. First appeal dismissed; defendants directed to execute the sale deed in favour of the plaintiff upon deposit of balance sale consideration.

Section 52, Transfer of Property Act, 1882

Case
Atmaram vs Tricon Project India Limited Through Authorised Signatory Rahul Sharma
Citation
Madhya Pradesh High Court · FA 513/2025 · 2026:MPHC-IND:25933 · 17.09.2026
Bench
Vinay Saraf

Tribunals

7TribunalBanking Law, Debt & Money Matters

The dispute. A resolution professional sought contribution from suspended directors for removing hypothecated machinery worth seventeen crore rupees prior to insolvency. The directors contended that no direct documentary proof of dishonest intent was established. The National Company Law Appellate Tribunal dismissed the appeal and upheld the NCLT order directing personal remittance by the directors.

The reasoning. Fraudulent trading under Section 66 does not require eyewitness or direct documentary proof of misappropriation. Circumstantial evidence demonstrating unauthorised asset substitution and depletion of corporate security suffices to infer fraudulent intent.

For your practice. Insolvency practitioners pursuing Section 66 avoidance applications can rely on asset ledger variances and collateral depletion without proving actual receipt of illicit funds.

The order. Company appeal dismissed; suspended directors directed to remit ₹17,23,05,603.50 to the corporate debtor's liquidation account.

Section 66, Insolvency and Bankruptcy Code, 2016

Case
Mr. Dinesh Keshawrao Atkare & ors. vs Palak Swapnil Desai & ors.
Citation
National Company Law Appellate Tribunal · Company Appeal (AT) (Insolvency) No. 325 of 2025 · 17.09.2026
Bench
Arun Baroka
8TribunalConsumer & Service Problems

The dispute. A commercial truck suffered a night tyre puncture on a highway and was parked securely on the shoulder, where it was later burnt down by miscreants. The insurance company repudiated the claim alleging breach of the policy's reasonable precaution clause. The Maharashtra State Consumer Commission allowed the consumer complaint and directed settlement of the total loss claim.

The reasoning. Parking and locking a disabled vehicle on a highway shoulder constitutes reasonable precaution under motor insurance policies. The Insured Declared Value is binding on the insurer in total loss cases without arbitrary administrative deductions.

For your practice. Consumer advocates handling motor claims can enforce the agreed Insured Declared Value as a contractual liquidated sum upon establishing total loss.

The order. Complaint allowed; insurer directed to pay the full IDV of ₹70,00,000 with 7% interest from repudiation plus ₹75,000 towards compensation and costs.

Section 2(1)(g), Consumer Protection Act, 2019

Case
RAVIKANT PATIL vs THE UNITED INDIA INSURANCE CO.LTD.
Citation
State Consumer Disputes Redressal Commission · SC/27/RBT/CC/18/1021 · 16.09.2026
Bench
Poonam V. Maharshi, Nisha Amol Chavhan

Also decided

When state legislation establishes an exclusive statutory monopoly, can federal competition regulators initiate inquiries on un-tabled audit reports without an executive reference?

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Curated by the Cassie editorial desk. Read earlier briefs