100 Important Supreme Court Judgments of 2021
100 Important Supreme Court Judgments of 2021
100 Important Supreme Court Judgments of 2021
Of 2021 [Part 1]
As 2021 draws to a close, LiveLaw brings to you a round-up of the major
judgments of the Supreme Court of this year.
This year, in view of the huge number of significant judgments, the round-up is
done in two parts. This parts covers 52 major decisions from January to June
2021. The second part will cover the significant judgments delivered during the
second half of 2021.
January 2021
1. Supreme Court Upholds Centre's Plan For The Central Vista Project by 2:1
Majority, Justice Khanna Dissents
[Case: Rajeev Suri v. DDA & Ors.; Citation: LL 2021 SC 1; Order dated January 5,
2021]
The Supreme Court upheld the Central Government's plan for construction of the
Central Vista project and the government's proposal to construct a new
Parliament in Lutyen's Delhi. A Bench of Justices AM Khanwilkar, Dinesh
Maheshwari and Sanjiv Khanna pronounced the judgement, with Justices
Khanwilkar and Maheshwari forming the majority, and with Justice Khanna
pronouncing a separate judgement.
"We cannot be called upon to govern. For, we have no wherewithal or prowess and
expertise in that regard," remarked the Judges in majority. Justice Khanna on the
other hand expressed dissent on the aspects of public participation on
interpretation of the statutory provisions, failure to take prior approval of the
Heritage Conservation Committee and the order passed by the Expert Appraisal
Committee.
12. Supreme Court Closes Suo Moto Case Taken To Probe "Larger Conspiracy"
Behind Sexual Harassment Allegations Against Ex-CJI Gogoi
[Case: In Re: Matter Of Great Public Importance Touching Upon The
Independence Of Judiciary; Citation: LL 2021 SC 95]
A bench comprising of Justices Sanjay Kishan Kaul, AS Bopanna and V.
Ramasubramanian closed the suo moto proceedings which were instituted to
examine if there was a "larger conspiracy" behind the allegations of sexual
harassment against the then Chief Justice of India Ranjan Gogoi.
The bench observed that enquiry panel headed by former SC judge Justice AK
Patnaik has submitted a report opining that a conspiracy behind the sexual
harassment allegations cannot be "ruled out". The report also surmised that
certain tough stances taken by ex-CJI Gogoi during his tenure could have
triggered the allegations. The report also referred to an Intelligence Bureau input
that several persons were unhappy with Justice Gogoi for driving the Assam-NRC
process.
March 2021
13 . Whether Day Of Remand Is To Be Included For Considering A Claim For
Default Bail? Supreme Court Refers To Larger Bench
[Case: Enforcement Directorate v. Kapil Wadhawan; Citation: LL 2021 SC 118]
Whether the day of remand is to be included or excluded, for considering a claim
for default bail? The Supreme Court referred this issue to a larger bench.
A bench comprising Justices Sanjay Kishan Kaul and Hrishikesh Roy noticed
that, in State of MP v. Rustom & Ors.1995 (Supp) 3 SCC 221 , Ravi Prakash Singh
v. State of Bihar (2015) 8 SCC 340 and M. Ravindran v. Intelligence Officer,
Director of Revenue Intelligence, it was held that the date of remand is to be
excluded for computing the permitted period for completion of investigation. On
the other hand, the judgments in Chaganti Satyanarayan v. State of Andhra
Pradesh (1986) 3 SCC 141 , CBI v. Anupam J Kulkarni (1992) 3 SCC 141 , State v.
Mohd. Ashraft Bhat (1996) 1 SCC 432, State of Maharashtra v. Bharati Chandmal
Varma (2002) 2 SCC 121, and Pragyna Singh Thakur v. State of
Maharashtra (2011) 10 SCC 445, have held that the date of remand must be
included for computing the available period for investigation for determining
entitlement to default bail.
14. Moratorium Under Section 14 IBC Covers Section 138 NI Act Proceedings
Against Corporate Debtor For Cheque Dishonour : Supreme Court
Case: P Mohanraj & Ors. v. M/s Shah Brothers Ispat Ltd.; Citation: LL 2021 SC
120]
The Supreme Court held that the declaration of moratorium under Section 14 of
the Insolvency and Bankruptcy Code(IBC) covers criminal proceedings for
dishonour of cheque under Section 138 of the Negotiable Instruments Act
against the corporate debtor.
"We hold that a Section 138/141 NI Act proceeding against a corporate debtor is
covered by Section 14(1)(a) of the IBC", Justice RF Nariman said reading out the
operative portion of the judgment.
A Bench comprising of Justices RF Nariman, Navin Sinha and KM Joseph also
observed that an application under Section 34 of the Arbitration and Conciliation
Act to set aside an award is covered by moratorium under Section 14 of the
Insolvency and Bankruptcy Code.
Section 34 proceeding is a proceeding against the corporate debtor in a court of
law pertaining to a challenge to an arbitral award and would be covered just as
an appellate proceeding in a decree from a suit would be covered
15. Amounts Paid By Indian Companies To Use Foreign Software Not
'Royalty';Not Income Taxable In India; No TDS Liability : Supreme Court
[Case: Engineering Analysis Centre for Excellence Private Ltd vs The
Commissioner of Income Tax; Citation: LL 2021 SC 124]
Settling an important issue in the income tax law, a bench comprising Justices R
F Nariman, Hemant Gupta and BR Gavai held that the amounts paid by Indian
companies for the use of softwares developed by foreign companies do not
amount to 'royalty' and that such payment do not give rise to income which is
taxable in India. Therefore, there is no liability for Indian companies to deduct tax
at source with respect to purchase of software from foreign companies.
16. Limitation Period For Filing 'Section 34' Petition Commences From Date Of
Receipt Of Signed Copy Of Arbitral Award By Parties: Supreme Court
[Case: Dakshin Haryana Bijli Vitran Nigam Ltd. v. M/S Navigant Technologies Pvt.
Ltd.; Citation: LL 2021 SC 126]
A bench comprising Justices Indu Malhotra and Ajay Rastogi observed that the
period of limitation for filing the Petition under Section 34 of the Arbitration and
Conciliation Act would commence from the date on which the signed copy of the
award was made available to the parties
17. OBC Reservation Cannot Exceed 50%: Supreme Court Reads Down Section
12(2)(c) Maharashtra Zilla Parishads and Panchayat Samitis Act
[Case: Vikas Kishanrao Gawali v. State Of Maharashtra; Citation: LL 2021 SC
132]
The Supreme Court read down Section 12(2)(c) of the Maharashtra Zilla
Parishads and Panchayat Samitis Act, 1961 which provides reservation of 27 per
cent of seats in the Zilla Parishads and Panchayat Samitis.
"Reservation in favour of OBCs in the concerned local bodies can be notified to the
extent that it does not exceed aggregate 50 per cent of the total seats reserved in
favour of SCs/STs/OBCs taken together," the bench comprising Justices AM
Khanwilkar, Indu Malhotra and Ajay Rastogi observed.
19. All Consumer Complaints Filed Before CPA 2019 Should Be Heard By Fora
As Per Pecuniary Jurisdiction Under CPA 1986: Supreme Court
[Case: Neena Aneja & Ors. v. Jai Prakash Associates Ltd.; Citation: LL 2021 SC
164]
The Supreme Court held that consumer complaints filed before the coming into
effect of the Consumer Protection Act 2019(CPA 2019) should continue in the
fora in which they were filed as per the pecuniary jurisdiction under the previous
Consumer Protection Act of 1986(CPA 1986).
A bench comprising Justices DY Chandrachud and MR Shah set aside the
directions of the National Consumer Disputes Redressal Commission that the
previously instituted cases as per the 1986 Act should be transferred to the
respective fora as per the new pecuniary limits under the 2019 Act.
20. Default Bail: State Cannot Take Advantage Of Filing One Charge Sheet First
And Seeking Time To File Supplementary Charge-sheets To Extend The Time
Limit U/S 167(2)
[Case: Fakhrey Alam v. State of Uttar Pradesh; Citation: LL 2021 SC 165]
A bench comprising Justices Sanjay Kishan Kaul and R. Subhash
Reddy observed that the time period for investigation specified under Section
167 of the Code of Criminal Procedure cannot be extended by seeking to file
supplementary charge sheet qua UAPA offences.
The Court while granting default bail to Fakhrey Alam, a person accused under
Section 18 of the UAPA Act, reiterated that default bail under first proviso of
Section 167(2) of the Cr.P.C. is a fundamental right and not merely a statutory
right.
22. Courts Should Avoid Patriarchal & Stereotypical Notions About Women:
Supreme Court Issues Guidelines For Dealing With Sexual Crimes
Case: Aparna Bhat v. State of Madhya Pradesh; Citation: LL 2021 SC 168]
While setting aside the "rakhi-for-bail" order of the Madhya Pradesh High Court,
the Supreme Court issued a set of guidelines to be followed by Courts while
dealing with sexual crimes.
The Supreme Court suggested that gender sensitization training should be
imparted to Judges and public prosecutors.
The bench comprising Justices AM Khanwilkar and S. Ravindra Bhat also
observed that each High Court should formulate a module on judicial sensitivity
to sexual offences, to be tested in the Judicial Services Examination. It also
directed the Bar Council of India to take steps to include such courses as part of
LLB and AIBE syllabus.
23. SC Overrules 'NV International' Verdict Which Held Delay Beyond 120 Days
For Arbitration Appeal Under Section 37 Can't Be Condoned
[Case: Government of Maharashtra v. Borse Brothers Engineers and Contractors
Pvt Ltd.; Citation: LL 2021 SC 170]
A two-judge bench comprising Justices RF Nariman and S Ravindra
Bhat overruled its 2019 verdict in the case M/s NV International vs State of
Assam which had strictly held that a delay of more than 120 days in filing of
appeals under Section 37 of the Arbitration and Conciliation Act 1996 cannot be
condoned.
The Top Court has now held that delay beyond 90, 60 or 30 days for filing
appeals under Section 37, depending on the forum, can be condoned. But the
Court added a rider that such condonation of delay should be an exception and
not the norm, having regard to the objective of the Arbitration Act for expeditious
settlement of claims.
24. Supreme Court Bars Charging Compound Interest Or Penal Interest On Any
Borrower During Loan Moratorium; Refuses Moratorium Extension
[Case: Small Scale Industrial Manufactures Association(Regd) v. Union of
India; Citation: LL 2021 SC 175]
A Bench of Justices Ashok Bhushan, R Subhash Reddy and MR Shah directed
that there should be no charging of compound interest, interest on interest or
penal interest on the instalments which were due during the loan moratorium
period from March 1 to August 31 last year on any borrower, irrespective of the
loan amount. If such interest has already been collected, it should be either
refunded to the borrower or adjusted towards the next instalments.
It observed that there is no rationale in the Centre's policy to limit the benefit of
waiver of compound interest only to certain loan categories less than Rs Two
Crores. Last year, the Centre had taken a decision to allow waiver of interest on
interest in eight specified categories for loans up to Rupees 2 crores.
The Court observed that there is no justification shown to restrict the relief of not
charging interest on interest with respect to the loans up to Rs. 2 crores only and
that too restricted to the aforesaid categories.
25. 'Structures Of Our Society Created By Males For Males': Supreme Court
Holds Army's Evaluation Criteria To Grant Permanent Commission For Women
Officers Arbitrary
[Case: Lt. Col Nitisha & Ors. v. Union of India & Ors; Citation: LL 2021 SC 181]
A Division Bench comprising of Justice DY Chandrachud and Justice MR
Shah declared that the evaluation criteria adopted by the Indian Army to consider
the grant of permanent commission for women officers to be "arbitrary and
irrational". The Court directed the Army to reconsider the pleas of women Short
Service Commission officers for grant of PC within two months in accordance
with the fresh directions issued by the Court.
The top court held that the evaluation criteria adopted by the Army to benchmark
the women officers with the lowest credentials of their male counter-parts and to
freeze their ACR evaluation at the 5th or 10th years of their services to be
"arbitrary and irrational", causing women officers "systemic discrimination".
26. Call For Justice Not Hate Speech": Supreme Court Quashes FIR Against
Journalist Patricia Mukhim
[Case: Patricia Mukhim v. State of Meghalaya & Ors.; Citation: LL 2021 SC 182]
A bench comprising Justices L. Nageswara and S. Ravindra Bhat quashed a FIR
registered against Shillong Times Editor Patricia Mukhim over a Facebook post
on violence against non-tribal people in Meghalaya. The Court noted that the
Facebook post was directed against the apathy shown by the Chief Minister of
Meghalaya, the Director General of Police and the Dorbar Shnong of the area in
not taking any action against the culprits who attacked the non-tribals
youngsters.
The Court allowed the appeal filed by Mukhim challenging the Meghalaya High
Court order which had dismissed her plea to quash the FIR.
28. Supreme Court Allows Tata Sons Appeal Against NCLAT Order To Reinstate
Cyrus Mistry As Chairman
[Case: Tata Sons Ltd v. Cyrus Mistry & Ors; Citation: LL 2021 SC 184]
In a big win for Tata Sons Ltd, the Supreme Court bench headed by CJI SA
Bobde allowed its appeal against the order of the National Company Law
Tribunal, which had ordered to reinstate the ousted Chairman Cyrus Mistry.
The Court held that the actions of Tata Sons board against Mistry did not amount
to oppression of minority shareholders or mismanagement. The bench also said
that it was open for Tatas and Mistry to work out their separation terms.
On December 18, 2019, The National Company Law Appellate Tribunal restored
Cyrus Mistry as the Executive Chairman of Tata Group. Allowing Mistry's appeal,
the Appellate Tribunal had set aside the judgment of Mumbai bench of National
Company Law Tribunal (NCLT) that had upheld the appointment of N
Chandrasekharan as Chairman in his place. The said NCLAT order was stayed by
the Apex Court in January 2020 whereas the judgment was reserved on 17th
December 2020.
April 2021
29. 'Right Not To Be Deported' Is Ancillary To A Fundamental Right Available
Only To Indian Citizens: Supreme Court In Rohingyas Case
[Case: Mohammad Salimullah v. Union Of India; Citation: LL 2021 SC 202]
While rejecting a plea to stop the deportation of Rohingya refugees detained in
Jammu, a bench comprising of then CJI SA Bobde, Justices AS Bopanna and V.
Ramasubramanian observed that the right not to be deported is ancillary to the
fundamental right to reside or settle in any part of India guaranteed under Article
19(1)(e) of the Constitution.
It thus dismissed an interlocutory application filed seeking (i) the release of the
detained Rohingya refugees; and (ii) a direction to the Union of India not to
deport them. The Court however clarified that the Rohingyas in Jammu shall not
be deported unless the procedure prescribed for such deportation is followed.
30. High Courts Shall Not Pass Order Of 'Not To Arrest' Or 'No Coercive Steps'
While Dismissing/Disposing Petition U/s 482 CrPC: Supreme Court
[Case: M/s Neeharika Infrastructure Pvt. Ltd. v. State of
Maharashtra; Citation: LL 2021 SC 211]
A bench comprising Justices DY Chandrachud, MR Shah and Sanjiv Khanna held
that a High Court, while dismissing/disposing of the quashing petition under
Section 482 CrPC and/or under Article 226 of the Constitution of India, shall not
pass order of not to arrest and/or "no coercive steps" either during the
investigation or till the investigation is completed and/or till the final
report/chargesheet is filed under Section 173 CrPC.
It observed that when the investigation is in progress and the facts are hazy and
the entire evidence/material is not before the High Court, the High Court should
restrain itself from passing the interim order of not to arrest or "no coercive steps
to be adopted" and the accused should be relegated to apply for anticipatory bail
under Section 438 CrPC before the competent court.
32. Balance Sheets Entries Can Amount To Acknowledgement Of Debt U/s 18
Limitation Act: Supreme Court Sets Aside NCLAT Full Bench Ruling
[Case: Asset Reconstruction Company (India) Limited v. Bishal
Jaiswal; Citation: LL 2021 SC 215]
A bench comprising of Justices RF Nariman, BR Gavai and Hrishikesh Roy held
that entries in balance sheets can amount to acknowledgement of debt for the
purpose of extending limitation under Section 18 of the Limitation Act. It referred
to an old Calcutta High Court decision in Bengal Silk Mills Co. v. Ismail Golam
Hossain Ariff, AIR 1962 Cal 115, the bench observed.
33.'Amend Section 138 NI Act To Allow One Trial For Multiple Cases From
Single Transaction' : Supreme Court Issues Directions For Expeditious Trial Of
Cheque Cases
[Case: In Re Expeditious Trial Of Cases Under Section 138 of N.I Act; Citation: LL
2021 SC 217]
A constitution bench of the Supreme Court issued a set of directions to expedite
the trial of cheque dishonour cases under Section 138 of the Negotiable
Instruments Act.
34. High Courts Are In A Crisis Situation': Supreme Court Lays Down Time Line
For Appointment Of High Court Judges
[Case: PLR Projects Ltd v. Mahanadi Coalfields Pvt Ltd; Citation: LL 2021 SC 223]
Expressing grave concerns at the mounting vacancies of High Court judges, a
bench comprising of then CJI SA Bobde, Justices Sanjay Kishan Kaul and Surya
Kant emphasized that the Central Government should proceed to make
appointments immediately after the Supreme Court Collegium has cleared the
names.
If the Government has any reservation over the Collegium recommendations, it
should send back the names with specific reasons for reservations. Once the
Supreme Court Collegium reiterates the names, the Centre should make the
appointment within 3-4 weeks of such reiteration
35. Supreme Court Asks High Courts To Adopt Draft Rules Of Criminal Practice
Within 6 Months
[Case: In Re To Issue Certain Guidelines Regarding Inadequacies and
Deficiencies in Criminal Trial v. State of Andhra Pradesh; Citation: LL 2021 SC
224]
A bench comprising of then CJI SA Bobde, Justices L Nageswara Rao and S
Ravindra Bhat directed the High Courts to adopt the draft rules of criminal
practice, which has been prepared by amici curiae Senior Advocates R Basant,
Sidharth Luthra and Advocate K Paremshwar, within a period of 6 months
37.Section 3(2)(v) of SC/ST Act Will Attract As Long As Caste Identity Is One Of
The Grounds For The Occurrence Of Offence: SC Doubts Earlier Judgments
[Case: Patan Jamal Vali v. State of Andhra Pradesh; Citation: LL 2021 SC 231]
A bench comprising Justices DY Chandrachud and MR Shah doubted the earlier
judgments which interpreted Section 3(2)(v) of the Scheduled Castes and the
Scheduled Tribes (Prevention of Atrocities) Act,1989, to mean that the offence
should have been committed "only on the ground that the victim was a member
of the Scheduled Caste".
It observed that this provision will attract as long as caste identity is one of the
grounds for the occurrence of the offence. To deny the protection of Section 3
(2) (v) on the premise that the crime was not committed against an SC & ST
person solely on the ground of their caste identity is to deny how social
inequalities function in a cumulative fashion, the court said.
May 2021
39. State Regulation Of Profiteering By Schools Does Not Violate Managements'
Fundamental Rights Under Article 19(1)(g) : Supreme Court
[Case: Indian School, Jodhpur v. State Of Rajasthan; Citation: LL 2021 SC 240]
The Supreme Court has held that State's regulation of profiteering by education
institutions cannot be held to be violating the managements' fundamental right
to trade and profession under Article 19(1)(g) of the Constitution.
A bench comprising Justice AM Khanwilkar and Dinesh Maheshwari held so
while upholding the constitutional validity of the Rajasthan Schools (Regulation
of Fee) Act, 2016.
45. Phrase "Soon Before" Section 304B IPC Cannot Mean 'Immediately Before':
Supreme Court Issues Guidelines For Trial In Dowry Death Cases
[Case: Gurmeet Singh v. State of Punjab; Citation: LL 2021 SC 262]
A Bench of CJI NV Ramana and Justice Aniruddha Bose observed that the
phrase "soon before" as appearing in Section 304-B of the Indian Penal Code
cannot be construed to mean 'immediately before'. The prosecution must
establish existence of "proximate and live link" between the dowry death and
cruelty or harassment for dowry demand by the husband or his relatives. It also
observed that Section 304B, IPC does not take a pigeonhole approach in
categorizing death as homicidal or suicidal or accidental.
The bench observed thus while dismissing the appeal filed by accused who were
convicted under Section 304B IPC. Section 304B (1) provides that 'dowry death'
is where death of a woman is caused by burning or bodily injuries or occurs
otherwise than under normal circumstances, within seven years of marriage, and
it is shown that soon before her death, she was subjected to cruelty or
harassment by her husband or any relative of her husband, in connection with
demand for dowry.
46. Centre's Policy Of Paid Vaccination For 18-44 Years Prima Facie Arbitrary &
Irrational : Supreme Court
[Case: Re Distribution of Essential Supplies and Services During
Pandemic; Citation: LL 2021 SC 263]
The Supreme Court has made a prima facie observation that the Centre's
vaccination policy, which does not provide free vaccination for those in the age-
group of 18 to 44 years, as "arbitrary and irrational" and asked the Centre to
revisit the same.
June 2021
47. 'Name Is An Intrinsic Element Of Identity': Supreme Court Issues Guidelines
For Recording Corrections & Changes In CBSE Certificates
[Case: Jigya Yadav v. C.B.S.E; Citation: LL 2021 SC 264]
A Bench comprising Justices AM Khanwilkar, BR Gavai and Krishna
Murari issued guidelines for the Central Board of Secondary Education to
process the applications for correction or change in the certificates issued by it.
The Court also directed CBSE to take immediate steps to amend its Byelaws so
as to incorporate these guidelines for recording correction or change in the
certificates already issued or to be issued by it.
51. States Must Implement 'One Nation, One Ration Card' Scheme By July 31;
Run Community Kitchens For Migrants
[Case: Re: Problems and Miseries of Migrant Labourers ; Citation: LL 2021 SC
274]
A Division bench comprising Justices Ashok Bhushan and MR Shah directed that
all states must implement the "one nation, one ration card" scheme - which
enables migrant workers to avail ration benefits from any part of the country - by
July 31. It also passed a slew of other directions for the benefit and welfare of
migrant workers. The Central government was directed to develop a portal in
consultation with the National Informatics Centre (NIC) for registration of the
unorganized labourers/migrant workers. Accordingly, all States and Union
territories were ordered to complete the process of establishment of the portal
and registration under National Data Base for Unorganised Workers (NDUW
Project) by not later than July 31. Further, the Central Government, Department of
Food and Public Distribution (Ministry of Consumer Affairs, Food and Public
Distribution) was also directed to allocate and distribute food grains as per the
demand of additional food-grains from the States for migrant labourers.
The Central Government was also ordered to undertake exercise under Section 9
of the National Food Security Act, 2013 to re-determine the total number of
persons to be covered under the Rural and Urban areas of the State. In order to
ensure that migrant labourers have access to food, the Bench also ordered the
Central and State governments to oversee the functioning of community
kitchens.