The Supreme Court has stated that if irregularity was detected in the selection of candidates for dealership of public sector Indian Oil Company, it was better to have a fresh selection instead of rearranging the panel which is found to be vitiated. In this case involving tussle for dealership for seven years, there were allegations of irregularity in the selection two times, and investigation was ordered in both cases. The ultimate selection was also challenged by those who could not get the dealership. The dispute was taken to the Bombay High Court. It asked the company’s panel to issue the letter of intent to the party who was rejected. The company moved the Supreme Court, and it quashed the high court order last fortnight. In such cases, the high court should not have interfered with the decision of the competent authority and cancelled the selection, the Supreme Court said.
Pledging fake gold in bank
The Supreme Court has acquitted a number of persons who were convicted for pledging fake gold ornaments to get loans from a bank. In this case, Kumar vs Karnataka Industrial Coop Bank, they were charged with breach of trust and cheating. The trial court acquitted them. On appeal, the Karnataka High Court ordered their conviction. The Supreme Court set aside the high court order stating that it had no power to convict persons who had been acquitted by the trial court. It can only order retrial. Moreover, the appeal was filed after a delay of more than a year and no reason was given for the delay.
Insurance Co to pay adopted son
The Supreme Court has asked National Insurance Company to pay the adopted son of a driver who died while driving in the course of duty. The company had argued that the adopted son has no locus standi to demand compensation under the Workman’s Compensation Act. It also argued that there was no casual connection between the death and the duty of the driver. The commissioner under the Act rejected the arguments and awarded Rs 2.20 lakh to the adopted son. The Delhi High Court set it aside. On the appeal of the son, the Supreme Court quashed the high court order. The appeal case, Param Pal Singh vs National Insurance Co, was allowed with the Supreme Court, stating that “the death was in an accident arising out of and in the course of his employment.” The driver, while driving 1,152 km from Delhi to a Jharkhand town, might have experienced stress. He was not simply travelling in the vehicle; he was on duty. Therefore, the compensation was justifiable.
Sale of company cars
A division bench of the Delhi High Court last week set aside the order of the Commissioner of Trade and Taxes, and accepted the argument of Panacea Biotech Ltd, a pharmaceutical firm, that the consideration it received for the sale of its old cars should not be included in its total turnover. “The selling of used cars cannot by any stretch of the imagination be characterised as “ancillary” or incidental to the business of a pharmaceutical company. It is not shown that the cars were of a special character e.g. air-conditioned vehicles especially designed to store and ferry pharmacy products. They were purchased for use of company employees and executives, for office purposes.” The court also noted that the company had already paid sales tax for the vehicle under the first point tax regime.
MMTC gets charge of gold
The Delhi High Court ruled last week that MMTC has the first charge over a stock of gold recovered from the factory premises of a Canadian NRI who vanished from the scene leaving the Customs Department, MMTC and Indian Bank to fight it out amongst them to claim whatever gold and property were left at the premises. MMTC, acting as a canalising agency, in response of the government’s policy to boost export of jewellery made from gold and silver was permitted duty free import of gold and silver on the condition that the metals would be got converted into jewellery and duly exported in a time bound manner. After import of the precious metals, MMTC would give them on loan to manufacturers of jewellery with the condition that the final product would be exported by them in a time bound manner and that the manufacturer would not create any encumbrance or charge of the said goods. The NRI, S S Kanda, got 45 kg of gold and partly re-exported according to the terms. But then he disappeared hypothecating the gold to Indian Bank, which acted with “gross negligence”. The customs department confiscated what was left over. Then the three parties and the auction purchaser litigated over the first charge. The Delhi High Court decided that MMTC has the first charge, overruling the decision of the Debt Recovery Appellate Tribunal.