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Tuesday, June 30, 2015

ONCE THE LABOUR COURT HAS EXERCISED THE DISCRETION JUDICIALLY, THE HIGH COURT CAN INTERFERE WITH THE AWARD, ONLY IF IT IS SATISFIED THAT THE AWARD OF THE LABOUR COURT IS VITIATED BY ANY FUNDAMENTAL FLAWS

ONCE THE LABOUR COURT HAS EXERCISED THE DISCRETION JUDICIALLY, THE HIGH COURT CAN INTERFERE WITH THE AWARD, ONLY IF IT IS SATISFIED THAT THE AWARD OF THE LABOUR COURT IS VITIATED BY ANY FUNDAMENTAL FLAWS

The appellant was served with article of charge alleging that he had secured appointment by producing a false transfer certificate. The enquiry officer submitted the report holding the appellant guilty for his misconduct. After affording opportunity to the appellant to show cause against the proposed punishment, the disciplinary authority passed the order imposing punishment of dismissal from service.

The appellant raised an industrial dispute before the III Additional Labour Court, Bangalore. The Labour Court directed the management of the corporation to reinstate the appellant in his original post with continuity of service but without backwages. In the Labour Court, appellant has produced notarized copies of orders passed by the respondent-Corporation in respect of other workmen, who have committed similar misconduct but were awarded lesser punishments.

The respondent-Corporation filed a writ petition before the High Court. The learned Single Judge allowed the writ petition holding that the punishment of dismissal from service was proportionate to the proved misconduct against the appellant.

The Supreme Court observed that the High Court did not keep in view the parameters laid down by this Court for exercise of jurisdiction by the High Court under Articles 226 and/or 227 of the Constitution of India. The High Court can interfere with the award, only if it is satisfied that the award of the Labour Court is vitiated by any fundamental flaws.


The Supreme Court held that they do not find that the award passed by the Labour Court suffers from any such flaws. The appeal was allowed and the order of the High Court was set aside and the award passed by the Labour Court is restored. [K.V.S. Ram Vs. B.M.T.C]

Prepared by: S. Hemanth
Advocate at Hemanth & Associates

Monday, September 22, 2014

COURTS TERRITORY JURISDICTION REGARDING CRIMINAL COMPLAINTS FOR DISHONOURS CHEQUES UNDER NEGOTIABLE INSTRUMENTS ACT 1881

Dishonour of Cheque cases can be filed only to the Court within whose local jurisdiction, the offence was Committed; i.e., where the cheque is dishonoured by the bank on which it is drawn. Bhaskaran Vs Balan (1999) which allowed five territorial Jurisdictions overruled.

A three Judge Bench of the Supreme Court finally held that  a Complaint of Dishonour of Cheque can be filed only  to  the  Court  within  whose  local jurisdiction the offence was committed, which  in  the  present  context  is where the cheque is dishonoured by the bank on which it is drawn. The Court clarified that the Complainant is statutorily bound to comply with Section 177 etc, of the Criminal Procedure Code and therefore the place or situs where the Section 138 Complaint is to be filed is not of his choosing.

Overruled the two Judge Bench Judgment in K. Bhaskaran v. Sankaran Vaidhyan Balan (1999) 7 SCC 510 wherein it was held that “the offence under Section 138 of the Act can be completed only with the concatenation of a number of acts. Following are the acts which are components of the said offence: (1) Drawing of the cheque, (2) Presentation of the cheque to the bank, (3) Returning the cheque unpaid by the drawee bank, (4) Giving notice in writing to the drawer of the cheque demanding payment of the cheque amount, (5) failure of the drawer to make payment within 15 days of the receipt of the notice. “If the five different acts were done in five different localities any one of the courts exercising jurisdiction in one of the five local areas can become the place of trial for the offence under Section 138 of the Act. In other words, the complainant can choose any one of those courts having jurisdiction over any one of the local areas within the territorial limits of which any one of those five acts was done.” 

Justice T.S. Thakur summarized the principals as follows:-
(i) An offence under Section 138 of the Negotiable Instruments Act, 1881 is committed no sooner a cheque drawn by the accused on an account being maintained by him in a bank for discharge of debt/liability is returned unpaid for insufficiency of funds or for the reason that the amount exceeds the arrangement made with the bank.

(ii) Cognizance of any such offence is however forbidden under Section 142 of the Act except upon a complaint in writing made by the payee or holder of the cheque in due course within a period of one month from the date the cause of action accrues to such payee or holder under clause (c) of proviso to Section 138.

(iii) The cause of action to file a complaint accrues to a complainant/payee/holder of a cheque in due course if,

(a) The dishonoured cheque is presented to the drawee bank within a period of six months from the date of its issue.

(b) If the complainant has demanded payment of cheque amount within thirty days of receipt of information by him from the bank regarding the dishonour of the cheque and

(c) If the drawer has failed to pay the cheque amount within fifteen days of receipt of such notice.

(iv) The facts constituting cause of action do not constitute the ingredients of the offence under Section 138 of the Act.

(v) The proviso to Section 138 simply postpones/defers institution of criminal proceedings and taking of cognizance by the Court till such time cause of action in terms of clause (c) of proviso accrues to the complainant.

(vi) Once the cause of action accrues to the complainant, the jurisdiction of the Court to try the case will be determined by reference to the place where the cheque is dishonoured.

(vii) The general rule stipulated under Section 177 of Criminal Procedure Code applies to cases under Section 138 of the Negotiable Instruments Act. Prosecution in such cases can, therefore, be launched against the drawer of the cheque only before the Court within whose  jurisdiction the dishonour takes place except in situations where the offence of dishonour of the cheque punishable under Section 138 is committed along with other offences in a single transaction within the meaning of Section 220(1) read with Section 184 of the Code of Criminal Procedure or is covered by the provisions of Section 182(1) read with Sections 184 and 220 thereof.”

Prepared by: S. Hemanth

COURTS TERRITORY JURISDICTION REGARDING CRIMINAL COMPLAINTS FOR DISHONOURS CHEQUES UNDER NEGOTIABLE INSTRUMENTS ACT 1881

Dishonour of Cheque cases can be filed only to the Court within whose local jurisdiction, the offence was Committed; i.e., where the cheque is dishonoured by the bank on which it is drawn. Bhaskaran Vs Balan (1999) which allowed five territorial Jurisdictions overruled.

A three Judge Bench of the Supreme Court finally held that  a Complaint of Dishonour of Cheque can be filed only  to  the  Court  within  whose  local jurisdiction the offence was committed, which  in  the  present  context  is where the cheque is dishonoured by the bank on which it is drawn. The Court clarified that the Complainant is statutorily bound to comply with Section 177 etc, of the Criminal Procedure Code and therefore the place or situs where the Section 138 Complaint is to be filed is not of his choosing.

Overruled the two Judge Bench Judgment in K. Bhaskaran v. Sankaran Vaidhyan Balan (1999) 7 SCC 510 wherein it was held that “the offence under Section 138 of the Act can be completed only with the concatenation of a number of acts. Following are the acts which are components of the said offence: (1) Drawing of the cheque, (2) Presentation of the cheque to the bank, (3) Returning the cheque unpaid by the drawee bank, (4) Giving notice in writing to the drawer of the cheque demanding payment of the cheque amount, (5) failure of the drawer to make payment within 15 days of the receipt of the notice. “If the five different acts were done in five different localities any one of the courts exercising jurisdiction in one of the five local areas can become the place of trial for the offence under Section 138 of the Act. In other words, the complainant can choose any one of those courts having jurisdiction over any one of the local areas within the territorial limits of which any one of those five acts was done.” 

Justice T.S. Thakur summarized the principals as follows:-
(i) An offence under Section 138 of the Negotiable Instruments Act, 1881 is committed no sooner a cheque drawn by the accused on an account being maintained by him in a bank for discharge of debt/liability is returned unpaid for insufficiency of funds or for the reason that the amount exceeds the arrangement made with the bank.

(ii) Cognizance of any such offence is however forbidden under Section 142 of the Act except upon a complaint in writing made by the payee or holder of the cheque in due course within a period of one month from the date the cause of action accrues to such payee or holder under clause (c) of proviso to Section 138.

(iii) The cause of action to file a complaint accrues to a complainant/payee/holder of a cheque in due course if,

(a) The dishonoured cheque is presented to the drawee bank within a period of six months from the date of its issue.

(b) If the complainant has demanded payment of cheque amount within thirty days of receipt of information by him from the bank regarding the dishonour of the cheque and

(c) If the drawer has failed to pay the cheque amount within fifteen days of receipt of such notice.

(iv) The facts constituting cause of action do not constitute the ingredients of the offence under Section 138 of the Act.

(v) The proviso to Section 138 simply postpones/defers institution of criminal proceedings and taking of cognizance by the Court till such time cause of action in terms of clause (c) of proviso accrues to the complainant.

(vi) Once the cause of action accrues to the complainant, the jurisdiction of the Court to try the case will be determined by reference to the place where the cheque is dishonoured.

(vii) The general rule stipulated under Section 177 of Criminal Procedure Code applies to cases under Section 138 of the Negotiable Instruments Act. Prosecution in such cases can, therefore, be launched against the drawer of the cheque only before the Court within whose  jurisdiction the dishonour takes place except in situations where the offence of dishonour of the cheque punishable under Section 138 is committed along with other offences in a single transaction within the meaning of Section 220(1) read with Section 184 of the Code of Criminal Procedure or is covered by the provisions of Section 182(1) read with Sections 184 and 220 thereof.”

Prepared by: S. Hemanth

COURTS TERRITORY JURISDICTION REGARDING CRIMINAL COMPLAINTS FOR DISHONOURS CHEQUES UNDER NEGOTIABLE INSTRUMENTS ACT 1881

Dishonour of Cheque cases can be filed only to the Court within whose local jurisdiction, the offence was Committed; i.e., where the cheque is dishonoured by the bank on which it is drawn. Bhaskaran Vs Balan (1999) which allowed five territorial Jurisdictions overruled.

A three Judge Bench of the Supreme Court finally held that  a Complaint of Dishonour of Cheque can be filed only  to  the  Court  within  whose  local jurisdiction the offence was committed, which  in  the  present  context  is where the cheque is dishonoured by the bank on which it is drawn. The Court clarified that the Complainant is statutorily bound to comply with Section 177 etc, of the Criminal Procedure Code and therefore the place or situs where the Section 138 Complaint is to be filed is not of his choosing.

Overruled the two Judge Bench Judgment in K. Bhaskaran v. Sankaran Vaidhyan Balan (1999) 7 SCC 510 wherein it was held that “the offence under Section 138 of the Act can be completed only with the concatenation of a number of acts. Following are the acts which are components of the said offence: (1) Drawing of the cheque, (2) Presentation of the cheque to the bank, (3) Returning the cheque unpaid by the drawee bank, (4) Giving notice in writing to the drawer of the cheque demanding payment of the cheque amount, (5) failure of the drawer to make payment within 15 days of the receipt of the notice. “If the five different acts were done in five different localities any one of the courts exercising jurisdiction in one of the five local areas can become the place of trial for the offence under Section 138 of the Act. In other words, the complainant can choose any one of those courts having jurisdiction over any one of the local areas within the territorial limits of which any one of those five acts was done.” 

Justice T.S. Thakur summarized the principals as follows:-
(i) An offence under Section 138 of the Negotiable Instruments Act, 1881 is committed no sooner a cheque drawn by the accused on an account being maintained by him in a bank for discharge of debt/liability is returned unpaid for insufficiency of funds or for the reason that the amount exceeds the arrangement made with the bank.

(ii) Cognizance of any such offence is however forbidden under Section 142 of the Act except upon a complaint in writing made by the payee or holder of the cheque in due course within a period of one month from the date the cause of action accrues to such payee or holder under clause (c) of proviso to Section 138.

(iii) The cause of action to file a complaint accrues to a complainant/payee/holder of a cheque in due course if,

(a) The dishonoured cheque is presented to the drawee bank within a period of six months from the date of its issue.

(b) If the complainant has demanded payment of cheque amount within thirty days of receipt of information by him from the bank regarding the dishonour of the cheque and

(c) If the drawer has failed to pay the cheque amount within fifteen days of receipt of such notice.

(iv) The facts constituting cause of action do not constitute the ingredients of the offence under Section 138 of the Act.

(v) The proviso to Section 138 simply postpones/defers institution of criminal proceedings and taking of cognizance by the Court till such time cause of action in terms of clause (c) of proviso accrues to the complainant.

(vi) Once the cause of action accrues to the complainant, the jurisdiction of the Court to try the case will be determined by reference to the place where the cheque is dishonoured.

(vii) The general rule stipulated under Section 177 of Criminal Procedure Code applies to cases under Section 138 of the Negotiable Instruments Act. Prosecution in such cases can, therefore, be launched against the drawer of the cheque only before the Court within whose  jurisdiction the dishonour takes place except in situations where the offence of dishonour of the cheque punishable under Section 138 is committed along with other offences in a single transaction within the meaning of Section 220(1) read with Section 184 of the Code of Criminal Procedure or is covered by the provisions of Section 182(1) read with Sections 184 and 220 thereof.”

Prepared by: S. Hemanth

Friday, September 19, 2014

SUPREME COURT CONCLUSION ON SEC. 2(1)(e) AND SEC. 42 OF THE ACT 1996, IN RESPECT OF JURISDICTION FOR SETTING ASIDE THE AWARD

The Hon’ble Supreme Court clarified behind doubt as to which court will have the jurisdiction to entertain and decide an application for setting aside the award under section 34 of the Act

The Hon’ble Supreme Court of India in civil appeal No.6691 of 2005 with civil appeal No.4808 of 2013, between State of West Bengal and others V/s Associated contractors, the larger bench decided the jurisdiction to entertain and decide an application for setting aside the award under section 34 of the Act. The Hon’ble Supreme Court concluded that:

“(a) Section 2(1)(e) contains an exhaustive definition marking out only the Principal Civil Court of original jurisdiction in a district or a High Court having original civil jurisdiction in the State, and no other court as "court" for the purpose of Part-I of the Arbitration Act, 1996.

(b) The expression "with respect to an arbitration agreement" makes it clear that Section 42 will apply to all applications made whether before or during arbitral proceedings or after an Award is pronounced under Part-I of the 1996 Act.

(c) However, Section 42 only applies to applications made under Part-I if they are made to a court as defined. Since applications made Under Section 8 are made to judicial authorities and since applications Under Section 11 are made to the Chief Justice or his designate, the judicial authority and the Chief Justice or his designate not being court as defined, such applications would be outside Section 42.

(d) Section 9 applications being applications made to a court and Section 34 applications to set aside arbitral awards are applications which are within Section 42.

(e) In no circumstances can the Supreme Court be "court" for the purposes of Section 2(1)(e), and whether the Supreme Court does or does not retain seisin after appointing an Arbitrator, applications will follow the first application made before either a High Court having original jurisdiction in the State or a Principal Civil court having original jurisdiction in the district as the case may be.

(f) Section 42 will apply to applications made after the arbitral proceedings have come to an end provided they are made under Part-I.

(g) If a first application is made to a court which is neither a Principal Court of original jurisdiction in a district or a High Court exercising original jurisdiction in a State, such application not being to a court as defined would be outside Section 42. Also, an application made to a court without subject matter jurisdiction would be outside Section 42”.

 Consequently the Hon’ble High Court of Kolkata conclusion that “since the parties already had submitted to the jurisdiction of this Court in its Ordinary Original Civil jurisdiction in connection with different earlier proceedings arising out of the said contract, as indicated above, the jurisdiction of the court of the learned District Judge at Jalpaiguri to entertain the said application for setting aside of the award was excluded Under Section 42 of the said Act. Thus, I find that this Court in its Ordinary Original Civil Jurisdiction is the only court which can entertain an application for setting aside the said award”, was held to be correct by the 3 bench of the Hon’ble Supreme Court on a reference made by division bench.

Prepared by: S. Hemanth

Friday, November 29, 2013

LIVE-IN-RELATIONSHIP NOT ENTITLED TO BENEFITS UNDER THE DOMESTIC VIOLENCE ACT

Whether a “live-in-relationship” would amount to a “relationship in the nature of marriage” falling within the definition of “domestic relationship”?

A women, entered into a live-in-relationship with a man knowing that he was married person with wife and children where a man and a woman are proved to have lived together as husband and wife, the law presumes that they are living together in consequence of a valid marriage will not apply and, hence, the relationship between the appellant and the respondent was not a relationship in the nature of a marriage, and the status of the appellant was that of a concubine. A concubine cannot maintain a relationship in the nature of marriage because such a relationship will not have exclusivity and will not be monogamous in character, the continuous cohabitation of man and woman as husband and wife may raise the presumption of marriage, but the presumption which may be drawn from long cohabitation is a rebuttable one and if there are circumstances which weaken and destroy that presumption, the Court cannot ignore them. Polygamy, that is a relationship or practice of having more than one wife or husband at the same time, or a relationship by way of a bigamous marriage that is marrying someone while already married to another and/or maintaining an adulterous relationship that is having voluntary sexual intercourse between a married person who is not one’s husband or wife, cannot be said to be a relationship in the nature of marriage.

A relationship between a women and a married man could not be termed a relationship in the nature of marriage. The Hon’ble Supreme Court in Indra Sarma Versus V.K.V. Sarma observed.

In the instant case, the appellant was aware that the respondent was a married person even before the commencement of their relationship, hence the status of the appellant is that of a concubine or a mistress, who cannot enter into relationship in the nature of a marriage. Long standing relationship as a concubine, though that not a relationship in the nature of a marriage, of course, may at times, deserves protection because that woman might not be financially independent, but the Domestic Violence Act does not take care of such relationships.

Appellant had entered into this relationship knowing well that the respondent was a married person and encouraged bigamous relationship. By entering into such a relationship, the appellant has committed an intentional tort, i.e. interference in the marital relationship with intentionally alienating respondent from his family, i.e. his wife and children. If the case set up by the appellant is accepted, we have to conclude that there has been an attempt on the part of the appellant to alienate respondent from his family, resulting in loss of marital relationship, companionship, assistance, loss of consortium etc., so far as the legally wedded wife and children of the respondent are concerned, who resisted the relationship from the very inception. Marriage and family are social institutions of vital importance. Alienation of affection, in that context, is an intentional tort, which gives a cause of action to the wife and children of the respondent to sue the appellant for alienating the husband/father from the company of his wife/children, knowing fully well they are legally wedded wife/children of the respondent.


Appellant and respondent were working together in a private company. The Respondent, who was working as a Personal Office of the Company, was a married person having two children and the appellant, aged 33 years, was unmarried. Constant contacts between them developed intimacy and in the year 1992, appellant left the job from the above-mentioned Company and started living with the respondent in a shared household. After several years, the man moved out of such live-in-relationship. The appellant preferred Criminal Miscellaneous Petition under section 12 of the Domestic Violence Act before the Magistrate, Bangalore. Seeking reliefs of independent residence, monetary order, compensation and maintenance. The learned magistrate found proof that the parties had lived together for a considerable period of time, for about 18 years, and then the respondent left the company of the appellant without maintaining her. Learned magistrate took the view that the plea of “domestic violence” had been established, due to the non-maintenance of the appellant and passed the order directing the respondent to pay an amount of Rs. 18,000/- per month towards maintenance from the date of the petition. Subsequently the Sessions Court upheld the Trial Court Decision.

But the Karnataka High Court set aside the Trial Court order saying that live-in- relationship did not fall within the ambit of “relationship in the nature of marriage”, a cardinal principal for one to invoke Domestic Violence Act.

The Hon’ble Supreme Court held that the appellant, having been fully aware of the fact that the respondent was a married person, could not have entered into a live-in- relationship in the nature of marriage. All live-in-relationships are not relationships in the nature of marriage. Appellant’s and the respondent’s relationship is, therefore, not a “relationship in the nature of marriage” because it has no inherent or essential characteristic of a marriage, but a relationship other than “in the nature of marriage” and the appellant’s status is lower than the status of a wife and that relationship whould not fall within the definition of “domestic relationship” under Section 2(f) of the Domestic Violence Act. If we hold that the relationship between the appellant and the respondent is a relationship in the nature of a marriage, we will be doing an injustice to the legally wedded wife and children who opposed that relationship. Consequently, any act, omission or commission or conduct of the respondent in connection with that type of relationship, would not amount to “domestic violence” under Section 3 of the Domestic Violence Act.

The Hon’ble Court Supreme Court further held that the appellant’s status was that of a mistress, who is in distress, a survivor of a live-in-relationship which is of serious concern, especially when such persons are poor and illiterate, in the event of which vulnerability is more pronounced, which is a societal reality. Children born out of such relationship also suffer most which calls for bringing in remedial measures by the Parliament, through proper legislation.

We are conscious of the fact that if any direction is given to the respondent to pay maintenance or monetary consideration to the appellant, that would be at the cost of the legally wedded wife and children of the respondent, especially when they had opposed that relationship and have a cause of action against the appellant for alienating the companionship and affection of the husband/parent which is an international tort.

Prepared by: S. Hemanth

Thursday, November 14, 2013

PRINCIPLE LAID DOWN WHILE EXERCISING POWER BY HIGH COURT TO QUASH CRIMINAL PROCEEDINGS

Whether breach of contract of an agreement for sale would constitute an offence under section 406 or 420 of the Indian Penal Code.

The Hon’ble Supreme Court in Dalip Kaur and Ors. Vs.  Jagnar Singh and Anr., observed that, if the dispute between the parties is a civil dispute resulting from a breach of contract by non-refunding the amount of advance then same would not constitute an offence of cheating.

The High Court would exercise its inherent jurisdiction only when one or the other propositions of law, as laid down in R. Kalyani Vs.  Janak C. Mehta and Ors., is attracted, which are as under:

(1)  The High Court ordinarily would not exercise its inherent jurisdiction to quash a criminal proceeding and, in particular, a First Information Report unless the allegations contained therein, even if given face value and taken to be correct in their entirety, disclosed no cognizable offence.

(2)  For the said purpose, the Court, save and except in very exceptional circumstances, would not look to any document relied upon by the defence.

(3)  Such a power should be exercised very sparingly. If the allegations made in the FIR disclose commission of an offence, the court shall not go beyond the same and pass an order in favour of the accused to hold absence of any mens rea or actus reus.

(4)  If the allegation discloses a civil dispute, the same by itself may not be a ground to hold that the criminal proceedings should not be allowed to continue.

Prepared by: S. Hemanth
Advocate at Hemanth & Associates