Alled Laws
 

  1. Construction of Document: Leave and Licence or Lease

It is settled law that the title of the document is hardly conclusive. It is the substance and not the form which has to be seen. Much importance cannot be attached to the nomenclature of the document and the real intention of the parties is required to be seen by perusing the contents thereof.

Smt. Raka Singal vs. Pushpa Builders Ltd. AIR 2007 Del 222

  1. Deficiency in service by banks: Consumer Protection Act

Due to presence of white ants/termites in bank locker currency notes, certificates and jewellery of hirer was damaged. Bank was bound to ensure that hirers locker remained safe in all respects. Bank was directed to pay compensation.

Union Bank of India vs. Smt. Kanak Choudhary & Anr. AIR 2007 (NOC) 2134 (NCC)

  1. Loan agreement — Public policy

The terms of loan agreement permitting forcible taking possession of the vehicle is opposed to public policy. The right to take possession by force overcoming the resistance if any and thereby igniting to a law and order situation etc. cannot be conferred by agreement by the party who is in need and who would be agreeable to sign on the dotted lines.

Shibi Francis vs. State of Kerala & Anr AIR 2007 Kerala 296

  1. Nominee: Insurance Act

On death of policy holder all his legal heirs are entitled to the amount due under insurance policy in accordance with Hindu Succession Act. Nominee alone is not entitled to the benefit. Nominee is only entitled to receive the amount.

Smt. Somwati & Ors. vs. Mahjpal & Ors AIR (2007) (NOC) 2538 (UTR)

  1. Professional misconduct by Chartered Accountant

The activity of Chartered Accountant in issuing a vague certificate with the intention of persuading the bank to grant his client a loan, amount to “other misconduct” within the meaning of the Act read with the Regulations framed thereunder.

Council of the Institute of C.A. of India vs. Dayal Singh F.C.A. & Anr. AIR (2007) DEL. 263

  1. Public Information Officer should give notice to third party if he intends to disclose information relating to third party

The third party is entitled to get written notice of request of applicant (who is seeking information) and get on opportunity of personal hearing before disclosure of information from the Public Information Officer.

Reliance Inds. Ltd. vs. Gujarat State Information Commission & Ors. AIR 2007 Gujarat 203

  1. Precedent — Article 141 of Constitution of India

Judgment is not to be read as statute. It must be construed upon reading the same as a whole. Ratio therefrom is required to be culled out from reading the same in its entirety and not only a part of it.

Smt. Sunita Jain & Ors vs. Kunwar Singh & Or AIR 2007 (NOC) 1893 (MP)

  1. Recovery of loan liability of principal debtor and surety is always joint and co-extensive

The liability of the principal and surety is always joint and co-extensive. Section 128 of the Contract Act lays down that the liability of the surety is co-extensive with that of the principal debtor unless it is otherwise provided by the contract. Such liability of the surety is co-extensive with that of the liability of the principal debtor to pay the entire amount if the liability is immediate and the creditor can proceed against the principal debtor or against the sureties.

A.N. Poonnappan vs. Kerala Financial Corpn & Anr. AIR 2007 Kerala 234 (FB)

  1. Tribunal must be manned by person of proven integrity and any doubt about person’s integrity should be considered for disqualification

It is only persons with unblemished record and high integrity who alone should be allowed to occupy the posts of Tribunal Member. Any adverse reference against the officer, specifically about integrity, even if it be a doubt must necessarily result in such officer being denied appointment to a quasi-judicial post. The Tribunals are part of judicial process and administration of justice over which High Court exercise the supervisory jurisdiction. The Court held that such Tribunals must be manned by persons of proven integrity and any doubt about a person’s integrity, should be considered as a disqualification.

Ramesh Motiram Ramchandi vs. UOI 2007 (216) ELT 192 (Bom)

  1. Valuation of shares

Valuation of shares is a technical and complex issue which may be appropriately left to the wisdom of the experts, having regard to the many imponderables which enter the process of valuation of shares. If the valuer adopts the method of valuation prescribed, or in the absence of any prescribed method, adopts any recognized method of valuation, his valuation cannot be assailed unless it is shown that the valuation was made on a fundamentally erroneous basis, or that a patent mistake had been committed, or the valuer adopted a demonstrably wrong approach or a fundamental error going to the root of the matter. Valuation of shares is a technical and complex problem which can be appropriately left to the consideration of experts in the filed of accountancy.

G. L. Sultania & Anr vs. SEBI & Ors AIR 2007 SC 2172