Thursday, 24 September 2026

Edition No. 62. The day’s most significant judgments from India’s courts.

In today’s digest

  • Custody | Child welfare overrides tender years in relocation : SC
  • S.89 MHCA | Rehab detention without dual medical exam illegal : Uttarakhand HC
  • S.381 UCC | Police protection for live-in partners : Uttarakhand HC
  • S.69 IT Act | Bank credits alone not unexplained investment : ITAT
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Supreme Court

1Supreme CourtRelationships & Family Matters

The dispute. A mother secured academic employment at an overseas university offering substantial remuneration and sought permission to relocate with her minor children. The father opposed removal citing tender years and parental alienation, while facing pending criminal allegations. The Family Court and High Court denied permission to relocate abroad, prompting the mother to appeal before the Supreme Court.

The reasoning. Paramount consideration in custody rests on the overall welfare and development of minor children. The tender years doctrine cannot subordinate a custodial parent career when relocation provides superior educational and living environments.

For your practice. Matrimonial practitioners can defend international relocation by proving enhanced living standards, defeating rigid objections founded on tender age alone.

The order. The Supreme Court set aside the impugned orders, permitted relocation to the United Kingdom, and directed schooling details to be submitted within six weeks.

Section 3, Juvenile Justice (Care and Protection of Children) Act, 2015

Case
DEBARATI BHUNIA CHAKRABORTY vs SUMAN SANKAR BHUNIA
Citation
Supreme Court of India · C.A. No.-012774-012774 - 2026 · 2026 INSC 1043 · 23.09.2026
Bench
Sandeep Mehta

High Courts

2High CourtCriminal Issues

The dispute. A private wellness centre admitted and confined an individual against his will following family representations regarding substance abuse. Confinement was sustained solely on a general practitioner screening report without psychiatric evaluation or mental illness diagnosis. The detenu filed a writ of habeas corpus challenging his involuntary institutionalisation as unconstitutional and violative of statutory safeguards.

The reasoning. Section 89 of the Mental Healthcare Act mandates certification by two medical practitioners, including a psychiatrist, for involuntary admission. Addiction alone does not establish mental illness justifying custodial confinement without consent.

For your practice. Counsel pursuing habeas corpus against de-addiction facilities can secure immediate discharge by demonstrating non-compliance with dual-certification mandates.

The order. The High Court declared the confinement illegal, ordered the detenu immediate release, and issued directions to state authorities to inspect rehabilitation centres.

Section 89, Mental Healthcare Act, 2017

Case
Ankush Chauhan v. State of Uttarakhand & ors.
Citation
Uttarakhand High Court · HABC/44/2026 · 2026:UHC:8601-DB · 23.09.2026
Bench
Ravindra Maithani, Siddhartha Sah
3High CourtRelationships & Family Matters

The dispute. Two consenting adult partners living together faced imminent violent threats, intimidation, and familial harassment from opposing relatives. The couple sought protective intervention while preparing statutory registration on the state Uniform Civil Code portal. The partners filed a criminal writ petition seeking police protection against private interference with their life and liberty.

The reasoning. Consensual cohabitation between adults is a protected liberty under Article 21. Procedural compliance with Section 381 UCC registration mandates cannot operate as an obstacle to immediate state protection against familial intimidation.

For your practice. Counsel defending inter-community live-in couples can obtain immediate protective orders without waiting for formal completion of UCC portal formalities.

The order. The High Court directed local police to assess threat levels immediately and provide necessary security, with liberty to complete portal registration.

Section 381(1), Uttarakhand Uniform Civil Code, 2024

Case
Najuk v. State Of Uttarakhand
Citation
Uttarakhand High Court · WPCRL/1962/2026 · 2026:UHC:8597 · 23.09.2026
Bench
Alok Mahra
4High CourtRelationships & Family Matters

The dispute. A wife endured persistent verbal harassment, humiliation, and abandonment by her spouse shortly after their marriage. In matrimonial proceedings, she submitted extensive abusive electronic chat transcripts alongside contemporaneous police complaints, which remained unrefuted during trial. The Family Court dismissed her divorce petition for want of physical injury evidence, which she challenged on first appeal.

The reasoning. Cruelty under matrimonial law is not restricted to physical violence and encompasses severe psychological trauma. Unchallenged electronic communications reflecting sustained hostility provide cogent foundation to dissolve the marital tie.

For your practice. Matrimonial advocates can prove mental cruelty by proving electronic chat histories where opposing parties fail to specifically cross-examine or deny them.

The order. The High Court set aside the Family Court decree, dissolved the marriage under Section 13(1)(i-a), and granted liberty to seek permanent alimony.

Section 13, Hindu Marriage Act, 1955

Case
ARCHANA SINGH vs ANAND KUMAR GUPTA ARCHANA SINGH VS ANAND KUMAR GUPTA
Citation
Chhattisgarh High Court · FA(MAT)/189/2024 · 2026:CGHC:41301-DB · 23.09.2026
Bench
Parth Prateem Sahu, Sushma Sawant
5High CourtContracts & Business Disputes

The dispute. A beverage franchisor granted exclusive regional bottling rights subject to strict non-compete and confidentiality covenants. The franchisee incorporated an associate enterprise through immediate family members to manufacture and distribute an identical competing packaged water brand. The franchisor initiated Section 9 arbitration proceedings seeking urgent pre-arbitral injunctive relief against both entities.

The reasoning. Section 9 empowers courts to restrain non-signatories where necessary to preserve arbitral subject matter. Contractual prohibitions against indirect competition cannot be circumvented by establishing associate concerns through alter egos.

For your practice. Commercial litigators can seek Section 9 injunctions against third-party affiliates to prevent clandestine circumvention of negative covenants.

The order. The High Court restrained the respondent and its associate from manufacturing competing beverages, ordering compliance and asset disclosure within four weeks.

Section 9 of the Arbitration and Conciliation Act, 1996

Case
Parle Agro Private Limited vs Udayak Agro Products Pvt Ltd
Citation
Bombay High Court · CARBPL/25994/2026 · 2026:BHC-OS:20863 · 23.09.2026
Bench
Amit Borkar
6High CourtBanking Law, Debt & Money Matters

The dispute. Social insurance authorities issued coercive garnishee orders directing central bank recovery from a commercial bank for outstanding employer statutory dues. The defaulting enterprise account held with the bank was dormant, inoperative, and maintained a continuous zero balance. The bank challenged the garnishee proceedings before the High Court under Article 227 as unlawful and violative of natural justice.

The reasoning. Section 45G of the ESI Act attaches third-party liability only to money due or held on behalf of a defaulting employer. A financial institution cannot be deemed an employer in default when no funds exist to satisfy the attachment warrant.

For your practice. Banking litigators can quash administrative garnishee attachments against financial institutions where debtor customer accounts possess zero credit.

The order. The High Court quashed the garnishee notices and restraint orders against the bank, holding the recovery proceedings arbitrary and without authority of law.

Section 45G, Employees State Insurance Act, 1948

Case
State Bank of India & ors. Versus Employees State Insurance Corporation & ors.
Citation
Calcutta High Court · CO/822/2025 · 2026:CHC-AS:1614 · 23.09.2026
Bench
Shampa Dutt (Paul)
7High CourtConsumer & Service Problems

The dispute. A homebuyer booked a residential unit and deposited initial booking sums but failed to pay requisite stamp duty and registration fees despite repeated notices. Instead of paying the treasury directly, the buyer transferred partial amounts to the promoter account without official challans. MahaRERA and the Appellate Tribunal directed execution of the sale agreement, which the promoter challenged before the High Court.

The reasoning. Section 13 of RERA requires strict compliance with statutory registration charges before execution of agreements. Mere fund transfers to a developer without official tax challans do not discharge statutory obligations, justifying termination.

For your practice. Real estate counsel representing builders can sustain allotment cancellations where purchasers fail to provide valid government stamp duty receipts.

The order. The High Court set aside the tribunal orders, upheld cancellation, and directed the builder to refund the booking amount with SBI MCLR plus 2% interest.

Section 13, Real Estate (Regulation and Development) Act, 2016

Case
J P BUILDERS AND DEVELOPERS vs SANTOSH AMARSINGH SANDHU
Citation
Bombay High Court · IA/7688/2025 · 2026:BHC-AS:38974 · 23.09.2026
Bench
Sandeep V. Marne

Tribunals

8TribunalBanking Law, Debt & Money Matters

The dispute. Assessing authorities treated unexplained bank deposits as undisclosed investments under Section 69, levying consequential penalties for concealment. The assessee proved that no tangible or intangible assets were acquired from the credited sums. The CIT(Appeals) sustained the addition, which the taxpayer appealed before the Income Tax Appellate Tribunal.

The reasoning. Additions under Section 69 of the Income Tax Act require the identification of an underlying unrecorded asset or investment. Mere credit entries in a bank account cannot be treated as unexplained investments without linking them to specific acquisitions.

We note that the Assessing Officer has mechanically totaled all credit entries appearing on the credit side of the bank accounts (INR.36,48,231/- in UCO Bank + INR.91,29,343/- in Central Bank of India) and has made addition for the aggregate amount of INR.1,27,77,574/-. While doing so, the Assessing Officer has completely ignored the corresponding debit entries/withdrawals appearing in the very same bank accounts.
From the judgment

For your practice. Practitioners must now ensure that Assessing Officers identify a specific asset or investment before invoking Section 69, and must correlate bank credits with debit entries; otherwise additions and penalties are vulnerable to challenge.

The order. The Tribunal deleted the addition of INR 1.27 cr. under Section 69 and the penalty of INR 38 lakhs under Section 271(1)(c) for the assessment year 2012-2013, restoring the returned income of INR 1,24,670/-. No costs or interest were awarded.

Section 69, Income Tax Act, 1961

Case
Hasmukhlal Prabhulal Mehta,Ahmedabad vs The Ito, Ward-1(2)(2), Ahmedabad
Citation
Income Tax Appellate Tribunal · ITA No.1010/AHD/2017 & ITA No.1499/AHD/2024 · 23.09.2026
Bench
B.R.R. Kumar, Rahul Chaudhary

Also decided

Does the conferment of suo motu revisional jurisdiction 'at any time' allow revenue authorities to destabilise settled land rights after decades, or does constitutional rule of law impose an implied deadline of reasonable time?

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