PRESIDENT’S POWER TO ADJUDICATE UPON ELECTION PETITION
Why we are discussing this issue? Opening Remarks: In 2024 Lok Sabha general election was held in May. This was the 18th Lok Sabha election. All political parties offered in manifesto many promises. Freebies are offered by almost all political parties. In Delhi the local state government is sworn in thrice based on freebies. Similarly in Karnataka and Telangana the state government is elected based on freebies. The disadvantage of such freebies is the economy of the State is pulled back due to nonproductive expenses. The taxpayers do not get more advance facilities from the tax they have paid. PIL challenging freebies is pending before the Supreme Court. During Lok Sabha election we saw that one of the parties Congress have distributed a guaranteed cards along with the forms that if they come to power, they will give Rs.8500/- to every woman and Rs.1,000,00/- per year to meet major expenses. This party has won more seats than last two elections and there was religious concentration of votes. There was also a statement that the party if come to power would confiscate entire wealth and do caste survey and thereafter redistribute the same. The congress party won 99 Lok Sabha seats. However, they are in power in three states. Telangana, Himachal and Karnataka. They can offer them. But women who were given guarantee cards along with form started Queuing up outside Congress Party offices. They said we have lost. The question arise now is whether this is a blatant fraud? What does law say? The law which governs election is the Representation of peoples Act 1951 ( Said RP Act 1951) The question is whether all this statements go against the provisions of Section 123 of RP Act 1951 ? A complaint is pending before the President of India challenging election. Now question arises Can third party challenge in representative character the election of candidates who belong to a single largest party who won election on basis of guaranteed card? Who has jurisdiction to hear the election Petition under Section 123 and 8A of RP Act 1951? Does President of India have power under Section 123 or 8 A of the said R.P. Act 1951? This Act came into force on 17th July 1951. Preamble of the Act explains the purpose of its enactment. An Act to provide for the conduct of elections to the Houses of Parliament and to the House or Houses of the Legislature of each State, the qualifications and disqualifications for membership of those Houses, the corrupt 1*** practices and other offences at or in connection with such elections and the decision of doubts and disputes arising out of or in connection with such elections. The terms corrupt practices is defined in the Act as “corrupt practice means any of the practices specified in section 123” What does corrupt practices mean. Section 123 in The Representation of the People Act, 1951 provides for the same. Corrupt practices.— The following shall be deemed to be corrupt practices for the purposes of this Act:— (1)“Bribery”, that is to say— (A) any gift, offer or promise by a candidate […]
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WHAT HAPPENS WHEN MAKER OF THE WILL DIRECTS TO PAY THE EXECUTOR FROM A PARTICULAR FUND? CAN COURT ISSUE A PROBATE?
To understand the case query we must first learn the provisions of the Indian Succession Act of 1925 IS AN EXECUTOR A TRUSTEE? “There is a distinction between a trustee and an executor, in that the former has only the power to pay what is vested in him as trustee to the persons for whose use he holds it, but has no general power to receive and pay what is due to and from the estate, which is the office of the latter (vide paragraph 13, p. 12 of Williams). The same proposition appears in Halsbury’s Laws of England (3rd Edn., Vol. 16, p. 124, in paragraph 180)” Provisions of Indian Succession Act 1925 Sec 222: Probate only to appoint an executor. (1) Probate shall be granted only to an executor appointed by the will. (2) The appointment may be expressed or by necessary implication. Illustrations (i) A wills that C be his executor if B will not. B is appointed executor by implication. (ii) A gives a legacy to B and several legacies to other persons, among the rest to his daughter-in-law C, and adds “but should the within-named C be not living I do constitute and appoint B my whole and sole executrix”. C is appointed executrix by implication. (iii) A appoints several persons executors of his will and codicils and his nephew residuary legatee, and in another codicil are these words,– “I appoint my nephew my residuary legatee to discharge all lawful demands against my will and codicils signed of different dates”. The nephew is appointed an executor by implication. Grant of administration of universal or residuary legatees.— When—(a)the deceased has made a Will, but has not appointed an executor, or (b)the deceased has appointed an executor who is legally incapable or refuses to act, or who has died before the testator or before he has proved the Will, or (c)the executor dies after having proved the will, but before he has administered all the estate of the deceased, a universal or a residuary legatee may be admitted proving the Will and letters of administration with the Will annexed may be granted to him of the whole estate, or of so much thereof as may be unadministered. Narration: Thus, the test for finding out whether a person is an executor according to the tenor is to find out whether he is, by necessary implication, nominated by the testator in his stead to generally administer the estate and to pay the testator’s debts and to receive his dues in the performance of his will. An executor is placed in the stead of the testator and he has the right of action against the testator’s debtors and has also the right to dispose of the goods of the testator towards the payment of his debts and the performance of his will. An executor need not be expressly nominated; and if by necessary implication the testator recommends or commits to one or more the charge and office, or the rights which appertain to an executor, it amounts to as much as the ordaining or constituting him or them to be […]
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Redevelopment and Property Rights: Key Insights
Today, we will discuss a very critical issue: redevelopment. Redevelopment involves fundamental rights, Article 300A, Guideline 79A, and managing committees. Before we proceed, I kindly request you to like, subscribe, and share my channel since it is free of cost and the issues discussed here are relevant to the general public. Let’s move forward with redevelopment. Redevelopment is a hot topic, and roughly every third building is undergoing redevelopment. It’s true. Just as in life, according to Hindu scriptures, when we leave our body, our soul enters a new body and takes a new birth, similarly, an old building must be given new life through redevelopment. The first movement for redevelopment started in the Island City of Mumbai because all the old buildings, known as chawls, would get flooded during the monsoon season, and there were no laws to address this. Murli Deora, a senior leader, introduced a law for the redevelopment of dilapidated buildings. This law provided many benefits and initially applied to cess buildings from Churchgate, Colaba to Bandra. Gradually, in 1991, the Development Control Regulations (DCR) were introduced, covering provisions for redevelopment of Mhada lands, slums, army and police headquarters, BMC properties, and housing societies. I have discussed all these in my book, "Commentary on Development Control Regulations 1991," which is now in its 15th edition. Moving past 1991, in 2009, Guideline 79A was introduced for cooperative societies. Most redevelopment projects in Mumbai today are under this guideline. On January 3, 2009, these guidelines mandated that redevelopment projects be prepared by the managing committee. However, many complaints arose, such as managing committees not keeping members informed, lack of transparency, arbitrary appointments, and mismanagement during meetings like AGMs and SGMs. Often, committees behaved as if they were landlords and the flat owners were their tenants or slaves. They even recorded videos but did not share them with the members. When members approached the registrar, orders would take months or even a year, by which time the entire process was often derailed. Another issue was lack of coordination between architects and project consultants, who often worked at cross purposes. Redevelopment projects were prepared without proper planning, and tenders were finalized unfairly. Agreements with developers lacked parity and clarity. After these concerns were raised, the government revised the guidelines through a Government Resolution (GR) on July 4, 2019, under Section 79A of the Maharashtra Cooperative Societies Act, 1960. I will share the link to this GR in the video description so you can read it. The 2019 guidelines state that one-fifth of society members can represent the committee to propose redevelopment, along with submitting schemes and suggestions. Within 8 days of receiving the application, the society must issue a notice for an SGM, which should be held within 14 days, followed by convening AGMs or SGMs. Quotations must be obtained from three architects and project management consultants to assess the viability of the redevelopment project. However, problems persist. Sometimes the committee claims members’ consent without any scheme or decision in place. Is this legal? Often, committees record videos but do not share them with members. Can a committee take a […]
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पुनर्विकास परियोजनाओं के लिए न्यायिक निकाय की आवश्यकता
पुनर्विकास परियोजनाओं के लिए न्यायिक निकाय की आवश्यकता आज हम बात करेंगे एक बहुत क्रिटिकल मुद्दा है रीडवलपमेंट। रीडवलपमेंट फंडामेंटल राइट, आर्टिकल 300 ए, गाइडलाइन 79 ए और मैनेजिंग कमेट। अब हम आगे बढ़ते हैं। उसके पहले मैं आपसे निवेदन करूंगी कि मेरे यह चैनल को लाइक, सब्सक्राइब और शेयर कीजिए क्योंकि यह फ्री ऑफ कॉस्ट है और आपको यह जो है मुद्दे वो आपके जनरल पब्लिक के काम में आते हैं वैसे मुद्दे हैं। चलो आगे बढ़ते हैं हम रीडवलपमेंट में। रीडवलपमेंट एक बहुत हॉट केक है और ये हर एक तीसरा बिल्डिंग रीडवलपमेंट में जा रहा है। सही बात है। जैसे हमारी लाइफ है तो हम यह जैसे हमारे हिंदू शास्त्रों में लिखा है कि हम शरीर छोड़ के हमारा आत्मा नए शरीर में जाता है और नया जन्म लेता है। तो जो इधर है उसको नया जन्म लेना ही पड़ता है। तो वैसे ही अगर बिल्डिंग पुराना हो जाए तो उसको नया बनाना पड़ता है। तो उसके लिए सबसे पहले जो मूवमेंट शुरू हुई थी वो आइलैंड सिटी ऑफ मुंबई से हुई थी क्योंकि सारे के सारे जो पुराने बिल्डिंग्स थे जो चॉल्स थी वो मसून के सीजन में कॉलेज हो जाती थी उसके लिए कोई कानून नहीं थे और मुरली देवरा जो हमारे बहुत वरिष्ठ नेता थे उन्होंने एक कानून लाया और रीडवलपमेंट ऑफ डाई लेपिटेटेड बिल्डिंग्स। तो इसके तहत उन लोगों को काफी सुविधा मिली और यह शुरुआत में जो थी वो सेस बिल्डिंग के लिए थी और वो चर्च गेट्स कुलाबा से लेके बैंड्रा तक एप्लीकेबल थी। धीरे-धीरे 1991 आया जो डीसीआर 1991 डेवलपमेंट कंट्रोल रेगुलेशन 1991 आया और उसके अंदर सारे प्रावधान किए गए। माड़ा की लैंड को रीडवलप कैसे किया जाए? स्लम को कैसे रीडवलप किया जाए? आर्मी वाली जो है पुलिस हेड क्वार्टर्स कैसे डेवलप किया जाए? बीएएमसी की जो प्रॉपर्टीज है उसको कैसे डेवलप किया जाए? और जो हाउसिंग सोसाइटी है उसे कैसे डेवलप किया जाए? यह सारे प्रावधान मैंने अपनी बुक कमेंट्री ऑन डेवलपमेंट कंट्रोल रेगुलेशन 1991 जिसकी 15 एडिशंस आ चुकी है आई थी वो उसके अंदर हमने मैंने डिस्कस किया है। आगे बढ़ते हैं 1991 के बाद क्या हुआ? इसके बाद 2009 के तहत एक 79 ए का गाइडलाइंस आया। यह गाइडलाइंस थी कोऑपरेटिव सोसाइटी क्योंकि मेजरिटी जो रीडवलपमेंट है वह कोऑपरेटिव हाउसिंग सोसाइटी जो अभी लागू होता है पूरे बंबई में और इसके तहत थर्ड जनवरी 2009 में एक गाइडलाइंस आई वो गाइडलाइंस के तहत रीडवलपमेंट के प्रोजेक्ट्स तैयार करने होते थे मैनेजिंग कमेट को इसके अंदर बहुत सारी कंप्लेंट्स आई कि जो मैनेजिंग कमेट है वह रीडवलपमेंट प्रोसेस में मेंबर्स को कॉन्फिडेंस में नहीं लेती। ट्रांसपेरेंसी नहीं है। आर्बिटरी अपॉइंटमेंट्स होती है। बिजनेस जो होता है वह कंडक्टिंग बिजनेस मतलब कि वह चाहे एजीएम हो, एसजीएम हो तो वो लोग सही जवाब नहीं देते हैं। ऐसे करली बिहेव करते हैं जैसे वो लोग जमींदार है और बाकी के जो फ्लैट ओनर्स हैं वो उनके स्लेव्स है, टेनेंट्स हैं। तो ऐसे भी बिहेव करते हैं और वो लोग वीडियो उतारते हैं तो वीडियो वो लोग शेयर नहीं करते हैं मेंबर्स के साथ में क्योंकि वो अपने पास ही रखते हैं। रजिस्ट्रार में जाते हैं तो वो […]
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CAN SUPREME COURT IMPOSE TIME LIMIT UPON PRESIDENT OF INDIA OR GOVERNOR OF STATE FOR SIGNING BILL? DISCUSSION AND SUGGESTIONS.
Background: The Legislature for the State of Tamil Nadu, between 13.01.2020 and 28.04.2023, enacted and forwarded 12 Bills to the Governor for the grant of assent as per Article 200 of the Constitution. Even though the present Governor took charge of the office with effect from 18.11.2021, he did not take the necessary action on any of the said Bills forwarded to his office till October 2023. The State of Tamil Nadu, being aggrieved by the inaction on the part of the Governor, had to ultimately file the present writ petition before Court. The same was filed on 31.10.2023. The State Legislature, on 18.11.2023, convened a special session and repassed the 10 bills which were returned by the Governor after withholding of assent. The bills were passed without any material change and were forwarded to the Governor’s Secretariat on the same day for his assent in accordance with the first proviso to Article 200. This Court, in its order dated 20.11.2023, noted that since the re-passed 10 bills were pending with the Governor, the hearing of the writ petition be adjourned to 01.12.2023 and issued directions that this Court shall be apprised of the progress in the matter. On 28.11.2023, the Governor, without the aid and advice of the Council of Ministers of the State, in exercise of his discretion, reserved the said re-passed Bills for the consideration of the President. The letter of the Governor to the Union Government referring the said Bills for the consideration of the President mentioned that the Bills were re-considered and passed again by the State Legislature. Interestingly, although the Governor noted that the Bills were intra-vires the competence of the State Legislature having been legislated under Entry 66 of List I, Entry 32 of List II and Entry 25 of List III, yet he reserved the said Bills for the consideration of the President in the second round on the ground that the Bills suffered from repugnancy on account of being contrary to Entry 66 of the Union List i.e., List I. These grounds have been taken by the Governor to reserve the 10 Bills for consideration of the President. In the premises Chief Minister asked the Governor to (i) Recall the 10 Bills reserved for the consideration of the President and grant assent expeditiously;(ii) In future, grant assent to Bills passed by the State Legislature within 30 days and avoid unnecessary reservation of the bills for the consideration of the President; (iii) Act in accordance with the aid and advice tendered by the Council of Ministers. Matter went up to the Supreme Court COMMENTS OF AUTHOR Before going into the details of the Judgement, it is not highlighted that even the state government of Tamil Nadu was playing mischief with provisions of the Constitution. Question arises, how? Article 200 of the Constitution provides that if the Bill is returned by the Governor, the State Assembly may re-pass the Bill with or without modification and the Governor cannot withhold the same. (The said Article text is given herein below) Here also, the State Assembly re-passed the Bills without any amendments and without implementing the suggestions […]
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LAW OF PRIVATE DEFENSE
SELF DEFENSE WHY? Nowadays we see violence attack on Hindus, in West Bengal, Jammu and Kashmir and so on. Hindus are submissive by nature and do not believe in violence. Peace is their religion, and inner peace is their yog. But now with increase in violence on Hindus, there is a hot discussion whether we can keep arms with us for self -defence? I feel its just not due to such incidents like Pahalgam but in general, all children must be trained in self-defence from school. It should be compulsory in curriculum. ARMS ACT 1959 So lets start to learn the legal provisions. One cannot keep arms with him/her. Why? Because they are governed by Arms Act 1959. “arms” means articles of any description designed or adapted as weapons for offense or defense, and includes firearms, sharp-edged and other deadly weapons, and parts of, and machinery for manufacturing, arms, but does not include articles designed solely for domestic or agricultural uses such as a lathi or an ordinary walking stick and weapons incapable of being used otherwise than as toys or of being converted into serviceable weapons; Here we are not talking about ammunition. Which is very dangerous like bombs, rockets, grenades etc. To possess arms, one requires license under Sec 3 of said Arms Act. Certain arms and ammunition are totally prohibited under the said Act. Now let us see which arms are permissible under the law or can say are out of reach of Arms Act. Gun with License, however, certain firearms and ammunition, such as those of .303, 7.62mm, 9mm, and .455 bore, are prohibited and not available for civilian ownership. Pepper Spray is legal in India for self-defence, stun gun, telescopic baton, lipstick stun gun, electroshock weapon, flashlights, red pepper gel spray. Difference between Self-Defense and Private Defense: While self-defense primarily focuses on personal protection, private defense extends to protecting others or one’s belongings. The principles of proportionality and reasonableness in using force also apply to private defense. The right to protect oneself, others, or property from harm or unlawful aggression. The terms “self-defense” and “private defense” are essentially synonymous in Indian law. They refer to the right to use force to protect one’s own body, or the body and property of another, against an immediate threat. While the terms are used interchangeably, “private defence” is sometimes used to encompass a broader range of situations, including defending others or one’s property, in addition to self-defense BNS Act 2023 provides Private Defence as under: RIGHT OF PRIVATE DEFENSE Nothing is an offense which is done in the exercise of the right of private defence. Every person has a right, subject to the restrictions contained in section 37, to defend— (a) his own body, and the body of any other person, against any offence affecting the human body; (b) the property, whether movable or immovable, of himself or of any other person, against any act which is an offence falling under the definition of theft, robbery, mischief or criminal trespass, or which is an attempt to commit theft, robbery, mischief or criminal trespass. When an act, which would otherwise […]
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WHETHER COURT HAS POWER TO AMEND THE ARBITRATION AWARD? CAN COURT REVIEW PENDING BILL BEFORE PARLIAMENT?
Recently, this query was referred to 5-Judge Bench of the Supreme Court in the matter of Gayatri Balasamy The facts of the case and the reference points are as under: Gayatri Balasamy vs M/S Isg Novasoft Technologies Limited on 30 April, 2025 This reference to a Bench of five judges is primarily to decide the correctness of the judgment of this Court in Project Director, National Highways No. 45 E and 220 National Highways Authority of India Vs. M. Hakeem and Anr., (2021) 9 SCC 1. In the said judgment, this Court held that while exercising powers under Section 34 of the Arbitration and Conciliation Act, 1996 (‘A&C Act’ for short), a Court hearing the petition had no power to “Modify” the Award. A three- Judge Bench of this Court on 20.02.2024, after noticing that there are decisions of this Court which have either modified the awards of the Arbitral Tribunals or upheld orders challenging modified awards and after observing that an authoritative pronouncement is required on this issue, placed the matter before the Hon’ble Chief Justice for constitution of an appropriate Bench. On 23.01.2025, by an order, this Court directed the matter to be placed before a Constitution Bench and that is how the matter has presented itself. THE FOLLOWING QUESTIONS OF LAW WERE REFERRED TO A LARGER BENCH: “1. Whether, the powers of the Court under Sections 34 and 37 of the Arbitration and Conciliation Act 1996 will include the power to modify an arbitral award? If the power to modify the award is available, whether such power can be exercised only where the award is severable, and a part thereof can be modified? Whether the power to set aside an award under Section 34 of the Act, being a larger power, will include the power to modify an arbitral award and if so, to what extent? Whether the power to modify an award can be read into the power to set aside an award under Section 34 of the Act? Whether the judgment of this Court in Project Director NHAI vs. M. Hakeem (2021) 9 SCC 1, followed in Larsen Air Conditioning and Refrigeration company vs. Union of India, (2023) SCC OnLine SC 982 and SV Samudram vs. State of Karnataka, (2024) SCC OnLine SC 19 lay down the correct law, as other benches of two Judges (in Vedanta Limited vs. Shenzden Shandong Nuclear Power Construction Company Limited, (2019) 11 SCC 465, Oriental Structural Engineers Pvt. Ltd. vs. State of Kerala, (2021) 6 SCC 150 and M.P. Power Generation Co. Ltd. vs. Ansaldo Energia Spa, (2018) 16 SCC 661 and three Judges (in J.C. Budhraja vs. Chairman, Orissa Mining Corporation Ltd. (2008) 2 SCC 444, Tata Hydroelectric Power Supply Co. Ltd. vs. Union of India, (2003) 4 SCC 172 and Shakti Nath vs. Alpha Tiger Cyprus Investment No.3 Ltd., (2020) 11 SCC (a) The Courts exercising power under Section 34 and Courts hearing appeals thereunder have no power to “modify” an award. (b) The power to modify is not a lesser power to that of the power to set aside, as the two operate in separate […]
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Are Governors of States bound by orders of court in India?
CONSTITUTIONAL POWERS OF GOVERNOR IN INDIA Let us first see the provision. Article 154 in Constitution of India Executive power of State (1) The executive power of the State shall be vested in the Governor and shall be exercised by him either directly or through officers subordinate to him in accordance with this Constitution. (2) Nothing in this article shall– (a)be deemed to transfer to the Governor any functions conferred by any existing law on any other authority; or (b)prevent Parliament or the Legislature of the State from conferring by law functions on any authority subordinate to the Governor. Now we go to next Article 175 Right of Governor to address and send messages to the House or Houses (1)The Governor may address the Legislative Assembly or, in the case of a State having a Legislative Council, either House of the Legislature of the State, or both Houses assembled together, and may for that purpose require the attendance of members. (2)The Governor may send messages to the House or Houses of the Legislature of the State, whether with respect to a Bill then pending in the Legislature or otherwise, and a House to which any message is so sent shall with all convenient dispatch consider any matter required by the message to be taken into consideration. Assent to Bills When a Bill has been passed by the Legislative Assembly of a State or, in the case of a State having a Legislative Council, has been passed by both Houses of the Legislature of the State, it shall be presented to the Governor and the Governor shall declare either that he assents to the Bill or that he withholds assent therefrom or that he reserves the Bill for the consideration of the President: Provided that the Governor may, as soon as possible after the presentation to him of the Bill for assent, return the Bill if it is not a Money Bill together with a message requesting that the House or Houses will reconsider the Bill or any specified provisions thereof and, in particular, will consider the desirability of introducing any such amendments as he may recommend in his message and, when a Bill is so returned, the . House or Houses shall reconsider the Bill accordingly, and if the Bill is passed again by the House or Houses with or without amendment and presented to the Governor for assent, the Governor shall not withhold assent therefrom: Provided further that the Governor shall not assent to, but shall reserve for the consideration of the President, any Bill which in the opinion of the Governor would, if it became law, so derogate from the powers of the High Court as to endanger the position which that Court is by this Constitution designed to fill. Comments: Do you notice there is no time limit provided within which a Governor has to sign a Bill. Why? Constituent Assembly on Signing of Bill: This issue was discussed in detail in the Constituent Assembly. Following are excerpts A detailed discussion was held in the Constituent Assembly. I reproduce below the excerpt of the discussion and why […]
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THE INSOLVENCY AND BANKRUPTCY CODE (IBC) AND THE STATE REGULATORY AUTHORITY (SRA) CAN HAVE CONFLICTS IN HOW THEY HANDLE CORPORATE INSOLVENCY.
The Slum Rehabilitation Scheme (SRS) and the Insolvency and Bankruptcy Code (IBC) are different frameworks that are used to address housing issues and insolvency. Slum Rehabilitation Scheme (SRS) A PPP scheme that encourages private developers to invest in slum rehabilitation projects The Slum Rehabilitation Authority (SRA) oversees, coordinates, and approves the SRS The SRS offers extra Floor Square Index (FSI) to developers in exchange for their investment Insolvency and Bankruptcy Code (IBC) A structured framework that helps resolve insolvencies The IBC aims to recover maximum asset value and resolve distressed entities quickly. The IBC has a stipulated resolution time of 330 days, including litigations POWERS OF SRA Attachment of property The SRA (Slum Rehabilitation Authority) may want to attach property under the PMLA, but the IBC’s Section 32A protects property from confiscation. Pre-CIRP electricity dues The SRA shouldn’t be held liable for pre-CIRP electricity dues once a resolution plan is approved. Stay of acquisition process The RP may want to stay the SRA’s acquisition process, but the HC ruled that the IBC doesn’t allow staying the operation of another law remove defaulting developers under the Insolvency and Bankruptcy Code (IBC). How the SRA can pursue avoidance applications If the Resolution Plan gives the SRA the power to pursue avoidance applications, then the SRA can do so. The SRA can pursue avoidance applications that were filed by the erstwhile Administrator and are pending before the NCLT. How the IBC prevails over other laws The IBC’s Section 238 states that the IBC prevails over other laws in cases of conflict. In the case of Rakesh Kumar Gupta v. Mahesh Bansal, the NCLT ruled that the IBC’s Section 7 can be applied even if there are proceedings pending under other laws. The IBC is a more recent special legislation, so it prevails over earlier laws. However, the IBC is a special legislation that prevails over other laws, including the SRA, in cases of conflict. the Insolvency and Bankruptcy Code (IBC) of 2016 prevails over other laws if there is a conflict, according to Section 238 of the IBC. This means that the IBC takes precedence over any other law, including state enactments. How IBC prevails over other laws. Section 238 includes a “non-obstante clause” that neutralizes any contrary provisions. The IBC’s provisions have effect notwithstanding anything inconsistent with any other law. The IBC’s overriding effect has been upheld by the Supreme Court. Examples of IBC overriding other laws: In Leo Edibles & Fats Ltd v. the Income-tax Department, the court ruled that the IBC overrides the Income Tax Act when determining dues during liquidation. In Alchemist Asset Reconstruction Company Limited v Hotel Gaudavan Private Limited and Others, the Supreme Court ruled that the IBC prevails over state enactments. BUT SLUM LAW AND IBC VIEW OF COURT IS AS UNDER: The provisions of the IBC are not meant to defeat slum redevelopment and similar or allied statutes. To hold otherwise would simply be unthinkable. It would mean that a Writ Court would put a premium on corporate wrongdoing and that even a defaulting corporate debtor who had not complied with the terms of a LoI […]
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SETTING ASIDE AND OR MODIFICATION OF AN ARBITRATION AWARD SHOULD BE PERMITTED?
The above issue is sub-judice in the matter of GAYATRI BALASAMY Versus M/S ISG NOVASOFT TECHNOLOGIES LIMITED| SLP(C) No. 15336-15337/2021 While writing this blog there is no intention to impress upon views but this is just a small educational analysis. I am not in possession of the reference papers but expressing my views on Section. 33 of the Act. This I am writing solely on basis on press reports available. Let us first see the concerned provisions of the Indian Arbitration Act 1996. Once the Award is made affecting party has remedy under Section 34 of the said 1996 for setting aside the Award. It reads as under: CHAPTER VII Recourse against arbitral award (1) Recourse to a Court against an arbitral award may be made only by an application for setting aside such award in accordance with sub-section (2) and sub-section (3). (2) An arbitral award may be set aside by the Court only if– (a) the party making the application 1[establishes on the basis of the record of the arbitral tribunal that]– (i) a party was under some incapacity, or (ii) the arbitration agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law for the time being in force; or (iii) the party making the application was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or (iv) the arbitral award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the scope of the submission to arbitration: Provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, only that part of the arbitral award which contains decisions on matters not submitted to arbitration may be set aside; or (v) the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties, unless such agreement was in conflict with a provision of this Part from which the parties cannot derogate, or, failing such agreement, was not in accordance with this Part; or (b) the Court finds that– (i) the subject-matter of the dispute is not capable of settlement by arbitration under the law for the time being in force, or (ii) the arbitral award is in conflict with the public policy of India. 1[Explanation 1.–For the avoidance of any doubt, it is clarified that an award is in conflict with the public policy of India, only if,– (i) the making of the award was induced or affected by fraud or corruption or was in violation of section 75 or section 81; or (ii) it is in contravention with the fundamental policy of Indian law; or (iii) it is in conflict with the most basic notions of morality or justice. Explanation 2.–For the avoidance of doubt, the test as to whether there is a contravention with the fundamental policy of Indian law shall not entail a review on the merits of […]
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FORFEITURE AND WITHDRAWAL FROM AGREEMENT TO BUY A FLAT
BLANKET CONSENT An agreement with the builder includes pre-printed clauses that secure the interests of the promoter or builder. In a way it’s a business because the promoter is investing huge sums of money, and he wants its security. Godrej Projects Development Limited vs Anil Karlekar on 3 February, 2025 A question arose in the matter of Godrej Properties at Gurgaon, Haryana. Mr. A books a flat and pays a sum of Rs.51 lakhs approx. But upon issuing letter of allotment, the buyer instead of taking possession of the flat agreed he opted for cancellation of the Agreement. He cited the recession in the real estate industry and sought a full refund of the money. A legal notice was served and subsequently flat buyer filed a consumer complaint. The NCDRC disposed of the Consumer Complaint by directing the Appellant to deduct only 10% of the BSP ( Base Sale Price) only towards cancellation of the Complainants’ Apartment and refund the balance amount Rs.34 lakhs along with simple interest @ 6% per annum from the date of each payment till the date of refund within three months. The standard clause in the purchase agreement was : Agreement entered into between the Parties, which read thus: “2.6 It has been specifically agreed between the Parties that, 20% of the Basic Sale Price, shall be considered and treated as earnest money under this Agreement (“Earnest Money”), to ensure the performance, compliance and fulfillment of the obligations and responsibilities of the Buyer under this Agreement. It has been made clear by the Developer and the Buyer has understood that the Sale Consideration and Statutory Charges as mentioned in Schedule VI hereto have been computed on the basis of Super Built Up Area of the Apartment. The Buyer agrees that the calculation of Super Built Up Area in respect of the Apartment is tentative at this stage and subject to variations till the Completion of Construction. In case such variations are beyond +/- 5%, then the Developer shall take prior consent of the Buyer. 8.4 On and from the date of such termination on account of Buyer’s Event of Default as mentioned above (“Termination Date”), the Parties mutually agree that- (i) The Developer shall, out of the entire amounts paid by the Buyer to the Developer till the Termination Date, forfeit the entire Earnest Money and any other dues payable by the Buyer including interest on delayed payments as specified in this Agreement. (ii) After the said forfeiture, the Developer shall refund the balance amount to the Buyer or to his banker/financial institution, as the case may be, without any interest; (iii) On and from the Termination Date, the Buyer shall be left with no right, title, interest, claim, lien, authority whatsoever either in respect of the Apartment or under this Agreement and the Developer shall be released and discharged of all its liabilities and obligations under this Agreement. (iv) On and from the Termination Date, the Developer shall be entitled, without any claim or interference of the Buyer, to convey, sell, transfer and/or assign the Apartment in favour of third party(ies) or otherwise deal […]
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CONVEYANCE AND ASSIGNMENT THE DISTINCTION
ONCE THERE IS A DEED OF ASSIGNMENT EXECUTED BY THE LESSOR IN FAVOUR OF THE LESSEES CAN THERE BE DEEMED CONVEYANCE? Why am I writing this blog? You must be wondering! No noting without cause. Nowadays, in the name of redevelopment societies are collecting huge funds like 20-30 lakhs for Deemed Conveyance. But I am saying it’s wrong? The answer is this society already had a Deed of Assignment executed and registered in its name way back in 1970s. Now this is connivance or illiteracy of the committee that depends on documentary evidence. But this is no less serious offense. Why? It amounts to embezzlement of society funds by way of misrepresentation and fraud. ANALYSIS Let us analyse the question herein is to ascertain as to whether the deed in question is a deed of assignment of lease hold rights. Article 63 of Schedule 1-B of the Indian Stamp Act or would be an outright sale so as to be termed as ‘Conveyance” and would be covered by Article 23 of Schedule 1-B of the Indian Stamp Act. The word ‘sale’ has not been defined under the Indian Stamp Act, 1899. Section 2 (10) of the Act defines “Conveyance” as including a conveyance on sale and every instrument by which property, whether movable or immovable property is transferred inter vivos and which is not otherwise specifically provided for by Schedule 1-A or Schedule 1-B, as the case may be. Now let us see the difference in common parlance: Deed of Assignment: This document transfers interest in property from one person or entity to another. Purpose: It’s used when someone wants to transfer their interest in a property to someone else, such as in property sales or lease assignments. Nature of Transfer: It involves transferring existing property rights, not creating new ones. The Transfer is conditional subject to the terms of Lease Agreement and in case of breach the Lessor/Owner steps in. Execution: It requires the consent and signature of the person or entity giving up their rights. Stamp Duty and Registration: Depending on local laws, it may or may need to be stamped and registered with the land authority. Deed of Conveyance: This document transfers property ownership from a seller to a buyer. Purpose: Confirming Agreement for Sale to establish the buyer’s legal ownership. Nature of Transfer: It creates new property ownership and rights, transferring everything about the property to the new owner. Execution: Both the seller and the buyer must sign it. Requires to be stamped and registered mandatorily. Registration: It typically needs to be registered to show the change in property ownership. In short, Deeds of Assignment transfer existing property rights, while Deeds of Conveyance create new property rights and prove ownership. The word ‘Sale” has been defined under Section 54 of the Transfer of Property Act, 1882 which reads as under:- “Sale is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.” “Lease” has been defined under Section 105 of the Transfer of Property Act, 1882 and also in sub-section (16) of Section 2 of the Stamp Act, 1899 which […]
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