Thursday, 8 October 2026

The dispute. An insurer engaged a contractor for civil works and unilaterally appointed its own executive director as sole arbitrator to decide payment disputes. The Single Judge held the appointment invalid but restricted relief to the specifically challenged claims, prompting the insurer's appeal seeking total.

The reasoning. A unilaterally appointed arbitrator lacks inherent jurisdiction under statutory eligibility bars, rendering the entire arbitral proceedings non-est.

The defect goes to the root of the constitution of the Arbitral Tribunal and, consequently, to the validity of the Arbitral Award itself.

For your practice. Parties challenging an ineligible tribunal's award must seek comprehensive setting aside, as courts will not allow them to approbate and reprobate by preserving favourable.

The order. The High Court allowed the appeal and set aside the entire arbitral award dated 10 January 2022. The contractor was granted liberty to pursue separate legal proceedings for recovering sums already paid under the invalidated award.

Section 12(5), Arbitration and Conciliation Act, 1996

Case

LIFE INSURANCE CORPORATION OF INDIA vs N.S. ASSOCIATES PVT. LTD

Citation

Delhi High Court · FAO(OS) (COMM)-261/2026 · 2026:DHC:8751-DB · 06.10.2026

Bench

Anil Kshetarpal

The dispute. A daughter sought probate of her late father's will bequeathing the entire estate to her, while her brother claimed the father died intestate. The brother challenged execution as suspicious, citing the testator's Parkinson's disease, shaky signature, and total exclusion of natural heirs. The Single Judge granted probate after accepting attesting witness testimony, prompting the son's legal heirs to challenge the decree in appeal.

The reasoning. Direct testimony of a credible attesting witness outweighs expert opinion when proving the valid execution of a will.

For your practice. Caveators must specifically plead suspicious circumstances in caveat affidavits and target attesting witnesses rather than relying on handwriting experts to dispute capacity.

The order. The High Court dismissed the appeal and upheld the probate granted on 13 February 2020. The interim application seeking a stay on the probate grant was consequently disposed of without costs.

Section 63, Indian Succession Act, 1925

Case

ASHIM CHATTERJEE AND ANR. vs SHANTA ASHOK TOLAT

Citation

Bombay High Court · APP/69/2021 · 2026:BHC-OS:21891-DB · 07.10.2026

Bench

Ranjitsinha Raja Bhonsale

The dispute. A salon owner borrowed funds at exorbitant interest from private lenders, delivering blank signed cheques as security. Subjected to persistent repayment demands and aggressive recovery visits, he consumed poison and died, leading his family to lodge an abetment complaint. After the police charge-sheeted the lenders for abetment of suicide and extortion, the accused moved the High Court seeking quashing of all proceedings.

The reasoning. Abetment of suicide requires an active, proximate act of instigation or intentional aid, which mere financial pressure and repayment demands cannot establish.

Mere quarrels, disputes, or allegations of harassment are not by themselves sufficient unless they amount to abetment.

For your practice. Defence counsel can seek quashing of suicide abetment charges where complaints disclose only aggressive debt recovery without contemporaneous, active provocation triggering.

The order. The High Court allowed the applications and quashed the First Information Report, the charge-sheet, and all consequential criminal proceedings qua the applicant lenders. Rule was made absolute with direct service permitted.

Section 306, Indian Penal Code, 1860

Case

Khodabhai Dhanabhai Jograna v. State of Gujarat & ors.

Citation

Gujarat High Court · R/CR.MA/6657/2018 · 2026:GUJHC:62738 · 07.10.2026

Bench

P. M. Raval

The dispute. A fatal road accident in December 2017 killed an executive earning thirty-six thousand rupees monthly, leaving behind dependent legal heirs. The criminal court convicted the driver and directed payment of ten lakh rupees as compensation to the family for their pain and suffering. The Claims Tribunal awarded fifty-six lakh rupees refusing to deduct the criminal compensation, prompting the insurer to appeal alleging double recovery.

The reasoning. Criminal compensation for pain and suffering addresses distinct legal loss from tribunal compensation awarded for loss of dependency.

For your practice. Insurers claiming set-off must establish that criminal and civil damages cover identical heads of loss, while claimants should seek explicit itemisation of dependency components.

The order. The High Court upheld the award of fifty-six lakh rupees with nine percent interest, refusing any deduction. It directed the tribunal to retain the disputed ten lakh rupees in an interest-bearing fixed deposit pending the criminal appeal.

Section 357, Code of Criminal Procedure, 1973

Case

M/S UNITED INDIA INSURANCE COMPANY LTD vs SMT USHA RANA & ors.

Citation

Delhi High Court · MAC.APP.-65/2022 · 2026:DHC:8741 · 06.10.2026

Bench

Anish Dayal

The dispute. Police seized a sports utility vehicle during a narcotics operation, leaving it exposed to weather at the station yard. The registered owner sought interim custody of his vehicle, asserting that third parties used it without his knowledge and that he faced no criminal charges. The special court rejected the release plea citing offence gravity and possible reuse, prompting the owner to file a criminal revision petition.

The reasoning. Denying interim custody solely due to offence gravity is impermissible when the registered owner faces no criminal accusations.

In our view, whatever be the situation, it is of no use to keep such seized vehicles at the police stations for a long period.

For your practice. Petitioners seeking interim vehicle release should establish the absence of accusations and tender adequate indemnity bonds, shifting the burden to the prosecution to demonstrate.

The order. The High Court set aside the rejection order and directed interim release of the Tata Safari to the petitioner.

Section 497, Bharatiya Nagarik Suraksha Sanhita, 2023

Case

AMAR SINGH KANWAR vs STATE OF CHHATTISGARH AMAR SINGH KANWAR VS STATE OF CHHATTISGARH

Citation

Chhattisgarh High Court · CRMP/1992/2026 · 2026:CGHC:43331 · 06.10.2026

Bench

Parth Prateem Sahu

The dispute. The complainants surrendered their ancestral land share to Skyline Developers for an allotted flat, FSI compensation, and transit rent. Delivering possession 23 months late, the developer withheld ₹88 lakh in FSI dues, unpaid rent, and failed to register the statutory agreement. The complainants filed a consumer complaint before the Maharashtra SCDRC, where the developer failed to appear and was proceeded against ex-parte.

The reasoning. Landowners surrendering property rights for constructed flats are consumers whose redevelopment agreements must be registered under MOFA.

For your practice. Counsel should tie redevelopment claims to explicit contractual clauses and MOFA mandates, ensuring comprehensive documentary proof to secure full recovery in ex-parte matters.

The order. The Commission directed the developer to register the agreement within 60 days and pay ₹88 lakh FSI compensation with 8% interest.

Section 2(11) and Section 2(47), Consumer Protection Act, 2019

Case

MS SEJAL PRAVIN SHAH vs M.S SKYLINE DEVELOPERS & ors.

Citation

State Consumer Disputes Redressal Commission · SC/27/CC/80/2023 · 07.10.2026

Bench

Poonam V. Maharshi, Nisha Amol Chavhan

The dispute. SBI Life repudiated a ₹10.50 lakh death claim, alleging that the deceased insured misstated her age and occupation in the proposal form. The nominee contested the denial, arguing that the insured met entry age criteria and the policy incorporated an express age adjustment clause. The District Commission directed payment of ₹7 lakh, prompting the insurer to appeal the award before the Uttarakhand SCDRC.

The reasoning. Insurers cannot repudiate claims for age discrepancies where policy adjustment clauses exist and the insured met entry age limits at commencement.

For your practice. Counsel resisting repudiation must invoke policy adjustment clauses and prove inception eligibility, forcing insurers to demonstrate material risk alteration.

The order. The SCDRC dismissed the appeal, modifying the award to treat the sum assured as ₹10.50 lakh. After crediting ₹3 lakh previously refunded, SBI Life was directed to pay ₹7.50 lakh with 6% annual interest.

Clause 16.9 of the policy document

Case

REGIONAL MANAGER SBI LIFE INSURANCE COMPANY LTD vs Dharmanand Sharma and another & ors.

Citation

State Consumer Disputes Redressal Commission · SC/5/A/113/2017 · 06.10.2026

Bench

Kumkum Rani, C.M. Singh

The dispute. A consumer company acquired a business division under a sanctioned demerger, claiming depreciation on goodwill and distribution networks. The assessing officer disallowed depreciation exceeding fifteen hundred crore rupees and added eight crore rupees for exempt dividend expenses. Following binding directions from the Dispute Resolution Panel confirming the additions, the assessing officer finalised the assessment.

The reasoning. Goodwill and brands acquired under demergers remain depreciable because the statutory prohibition operates prospectively from assessment year 2021-22.

We find that resort can be had to rule 8D only after rejection of the assessee's apportionment on cogent grounds.

For your practice. Taxpayers can defend demerger goodwill depreciation for prior years and resist dividend expense disallowances lacking recorded dissatisfaction.

The order. The tribunal allowed depreciation of eight hundred ninety crore rupees on goodwill and six hundred fourteen crore on brands, reducing the expense disallowance to sixty-two lakh rupees.

Section 14A, Income Tax Act, 1961

Case

Tata Consumer Products ... vs A.C.I.T., Circle - 4(1), Kolkata, ...

Citation

Income Tax Appellate Tribunal · ITA No.1604/KOL/2024 · 07.10.2026

Bench

Rajesh Kumar, Pradip Kumar Choubey

The dispute. Following her bankruptcy declaration as a personal guarantor, the appellant withdrew ₹19.18 lakh from her bank account. She resisted the bankruptcy trustee's refund claim by arguing the funds were excluded jewellery sale proceeds and family transfers. The NCLT ordered repayment of the ₹19.18 lakh and dismissed a recall petition, prompting the guarantor's appeals before the NCLAT.

The reasoning. Estate property vests automatically in the trustee upon appointment under Section 154 IBC, making subsequent withdrawals unauthorised regardless of debtor knowledge.

For your practice. Trustees should freeze accounts upon appointment, while debtors cannot justify post-vesting withdrawals by pleading personal hardship or tracing cash to exempt assets.

The order. The NCLAT dismissed the appeals without costs, affirming the orders that declared the withdrawal of ₹19,17,500 unauthorised and directed the guarantor to return the entire sum to the bankruptcy trustee.

Section 154, Insolvency and Bankruptcy Code, 2016

Case

Ms. Manju Sirohi vs Assets Care & ors.

Citation

National Company Law Appellate Tribunal · Comp. App. (AT) (Ins) No. 1772 of 2026 & I.A. No. 6703 of 2026 · 07.10.2026

Bench

Naresh Salecha, Mohammad Faiz Alam Khan