Legislative and Regulatory Update
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In This Issue [No.144] December 30, 2005
Supreme Court High Courts Ministry of Personnel, Public Grievances and Pensions RBI Ministry of Finance Ministry of Health and Family Welfare International Cases and News
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Harkirat Singh Vs. Amrinder Singh
An appeal was directed against the Order of the High Court of Punjab & Haryana in an Election Petition which allowed preliminary objection raised by the respondent that the petitioner had failed to disclose material facts as to corrupt practice constituting the cause of action in the election petition. The sole issue involved in this case was that whether the high Court was justified in dismissing election petition on the ground that it did not disclose cause of action.
The apex Court opined that an election petition must contain a concise statement of 'material facts' as allowing election petition involves serious consequence of nullifying elections. In the present case as all material facts are stated in accordance with provisions of the Representation of Peoples Act, 1951 the election petition suffers from no infirmity and the same could be allowed. The Order of High Court was liable to be set aside since the High Court was wrong in dismissing the election petition on the ground that material facts had not been set out in the election petition.
Kankavali Shikshan Sanstha and Ors. Vs. M.R. Gavali and Ors.
An appeal was filed against the judgment of the High Court of Bombay, which directed the reinstatement of the respondent in the service with continuity of service and back wages. The High Court held that the appointment of respondent No: 1was as per Rule 9 (9) of Maharashtra Employees of Private Schools Rules 1981 (Rules) and that the appointment in the reserveed category was justified.
The apex Court upholding the reasoning rendered by the High Court held that in terms of the provisions of Rule 9(9)(a) as no other candidate belonging to ST was available the appointment of respondent No: 1 who belonged to backward class (OBC) was justified. Hence respondent No: 1could be appointed on regular basis as the rule enjoins year to year appointment only if a available candidate does not belong to a backward class.
Siddartha Tubes Ltd. Vs. Commissioner of Central Excise, Indore (MP)
A civil appeal was filed under Section 35 L(b) of Central Excise Act, 1944 against declining of appellant’s claim of deduction of service charges and costs of sockets from assessable value of pipes by the authorities. The sole question involved in this case was whether the department was right in including the cost of sockets and the value of service charges in the assessable value of pipes.
The Supreme Court held that the service charges were includible in the assessable value because they were not in the nature of trade discount. As the deduction of service charges of the nature indicated in this case does not fall within the deductions contemplated by Section 4(4)(d)(ii), they are not in the nature of trade discount. A trade discount is admissible as deduction only if the discount is given to a consumer or the trader. In the present case, service charges were paid to a selling agent for services. In the circumstances, service charges were includible in the assessable value of. pipes.
State of U.P. Vs. Neeraj Awasthi and Ors.
The present appeal arose from judgment of the High Court of Allahabad disputing the jurisdiction of said Court to issue a direction for framing a scheme for regularization of the employees of the U.P. State Agricultural Produce Market Board.
The apex Court set aside the judgment delivered by High Court and issued certain guidelines as to making of appointments as per provisions of The Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964. The Court held that the appointments had to be made by the Board and Marketing Committees as per rules and regulations framed under the Act. The Board had no jurisdiction to frame any scheme for regularization in the pith of the statutory regulations operating in the field and any such legislation involving appointment and laying down of conditions of service would require prior sanction of state.
Delhi
Rajesh Chaudhary v. Nirmala Chaudhary
A writ petition was filed challenging the dismissal of application seeking permission to ascertain paternity of the minor child of petitioner and respondent. The sole issue involved in this case was whether estranged wife claming maintenance for herself and the child can be denied interim maintenance while the complex issue of DNA testing on an allegation of illegitimacy of the child awaits determination.
The court held that it was unjust for delaying maintenance until the final disposal of application of maintenance and till disposal of application of determination of DNA test. Hence the writ petition was dismissed.
Allahabad
Sadhana Srivastava v. Arvind Kumar Srivastava
An appeal was preferred against judgment of Family Court which allowed the application for divorce filed by husband. The main issue was whether the false allegations of having illicit relationship and extra marital affairs made by wife against husband amounts to cruelty and divorce on same ground was also justified.
The court held that the false criminal proceeding initiated against the husband, arrest and confinement in prison of the entire family including husband amounts to mental cruelty. Hence the court held that the husband is entitled to a decree of divorce under section 13(1)(i-a) of the Hindu Marriage Act. The appeal filed by the wife was liable to be dismissed.
Madras
The Deputy Superintendent of Police v. W.D.Sekaran and another
A writ petition was filed against order of Tamil Nadu Administrative Tribunal, which quashed the charge memo against the respondent referring to acquittal of respondent in a criminal case. The sole issue was whether the initiation of departmental proceedings after acquittal by criminal court grounded on same set of facts was permissible or not.
The court allowing the writ petition held that departmental proceedings can be continued even after the decision of the criminal court. The acquittal by criminal court was not to be taken as constraint to proceed with disciplinary proceedings. The tribunal went in error in quashing the charge memo.
Calcutta
TCI Finance Ltd. v. Calcutta Medical Centre Ltd. and another
An appeal was preferred against judgment of division bench directing parties to place contention before executing Court with regard to claim of tenancy made by respondent No:1. The core issue to be determined was whether the executing court could decide the question of tenancy.
The Court allowing the appeal held that the executing court could not decide the question of tenancy as they are not supposed to go beyond the original decree. The court set aside the impugned order of the Division Bench and stated that direction given by the executing court to decide the question of tenancy was legally impermissible.
Personnel and Training
All India Services (Death-cum-Retirement Benefits) Third Amendment Rules, 2005
Notification No: GSR727(E) Dated 19.12.2005. The Central Government vide the said notification has amended the All India Services (Death-cum-Retirement Benefits) Rules, 1958 which shall be deemed to have come into force with effect from the 30th August, 2004. These rules may be called the All India Services (Death-cum-Retirement Benefits) Third Amendment Rules, 2005. As per this amendment in Rule 22(B) for clause (ii) of sub-rule 3, the following shall be substituted, namely:-"(ii) in the case of a son or unmarried daughter till such son or daughter attains the age of 25 years or upto the date of his/her marriage, whichever is earlier;(ii a) in the case of a widowed/divorced daughter till her remarriage, subject to the income criterion as prescribed by the Central Government from time to time."
DBOD
Guidelines for Bank Finance to Employees/ Employee Trusts for Purchasing Banks’ Own Shares
Circular No: DBOD No.Dir.BC.51/13.07.05/2005-06 Dated 27.12.05. The Reserve Bank of India Vide the said circular clarified that banks are not allowed to extend advances including to their employees/ Employee Trusts set up by them for the purpose of purchasing their (banks’) own shares under ESOP/ IPO or from the secondary market. This prohibition will apply irrespective of whether the advances are unsecured or secured.
RPCD
Scheme to Cover Loans for General Purposes under General Credit Card (GCC)
Circular No: RPCD.CO.No.RRB.BC.59/03.05.33 (F)/2005-06 Dated 27.12.2005. The Reserve Bank of India Vide the said circular decided that banks can introduce a General Credit Card (GCC) Scheme for issuing GCC to their constituents in rural and semi-urban areas, based on the assessment of income and cash flow of the household similar to that prevailing under normal credit card. Under the scheme, there would not be any insistence on security and the purpose or end-use of the credit. Interest rate on the facility may be charged, as considered appropriate and reasonable. The limit may be periodically reviewed and revised/cancelled depending on track record of the account holder. And in order to target women as beneficiaries of bank credit, they may be given a preferential treatment under the GCC Scheme.
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