Supreme Court Digest: Key Rulings on Corporate Compliance, Liability, and Justice

Stay informed with the Supreme Court's latest pronouncements that reshape legal interpretations and set new precedents across diverse sectors. This edition brings you essential insights from crucial judgments, designed for legal professionals, corporate executives, and compliance officers.

Featured Case: Unpacking the Supreme Court's Landmark Insider Trading Ruling

The Supreme Court has delivered a decisive verdict in the *SEBI vs. Rajeev Vasant Sheth & Ors.* case, significantly clarifying the scope of defenses under the SEBI (Prohibition of Insider Trading) Regulations, 2015. This ruling underscores SEBI's robust stance against insider trading, emphasizing the 'rebuttable presumption' of motivation when trading in possession of Unpublished Price Sensitive Information (UPSI). It also firmly distinguishes the 2015 regulations from the 1992 regime, disallowing previously acceptable 'legitimate corporate purpose' defenses. This judgment is crucial for corporate boards, compliance officers, and legal counsel in navigating sensitive information and strict trading windows, reaffirming SEBI's power to disgorge 'loss averted' in such cases.

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SECURITIES AND EXCHANGE BOARD OF INDIA VS RAJEEV VASANT SHETH & ORS., decided on 11-08-2026

Other Supreme Court Decisions You Might Find Interesting:

Acquittal in Homicide Case: Scrutinizing Evidence and Doubtful Dying Declarations

In a significant criminal appeal (*Jupudi Suresh VS The State of Andhra Pradesh*), the Supreme Court overturned a marital homicide conviction, emphasizing the critical need for corroboration of dying declarations and rigorous examination of circumstantial evidence. The ruling highlights judicial scrutiny of inconsistencies in statements, delayed FIRs, and the weight of hostile witness testimony in serious criminal matters, ultimately granting the accused the benefit of doubt.

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Jupudi Suresh VS The State of Andhra Pradesh, decided on 11-08-2026

Procedural Rigour in Criminal Complaints: The Mandate of Section 195 Cr.P.C.

The Supreme Court underscored the importance of procedural compliance, quashing criminal proceedings under Section 182 IPC for false information in *Lilly Goyal VS State of Himachal Pradesh & Anr.*. This judgment reaffirms that cognizance for such offenses requires a written complaint from the specific public servant to whom the false information was given, not a private party or an unauthorized police officer, providing a vital safeguard against the misuse of criminal law.

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Lilly Goyal VS State of Himachal Pradesh & Anr., decided on 11-08-2026

Delegation of Authority in Labour Disputes: Limits of State Government Powers

The Court clarified the non-delegable nature of the State Government's power to refer disputes to Labour Courts under Section 17(2) of the Working Journalists Act in *SUDHIR & ORS. VS. HEAD OF HUMAN RESOURCE, DAINIK BHASKAR GROUP*. This ruling is crucial for administrative law and employment law, emphasizing that powers requiring 'satisfaction' cannot be delegated without explicit legislative authorization. While striking down the delegation, the Court exercised Article 142 powers to ensure existing proceedings continue and the State re-examines the disputes.

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SUDHIR & ORS. VS. HEAD OF HUMAN RESOURCE, DAINIK BHASKAR GROUP (D.B. CORP. LTD.) & ORS., decided on 11-08-2026

Quashing Dowry Death Proceedings: Consideration of Official Alibi Records

In *RAHUL VS STATE OF UTTAR PRADESH AND ANOTHER*, the Supreme Court quashed dowry death proceedings against an accused, accepting his unimpeachable alibi supported by official BSF duty records. The Court highlighted that such undisputed documentary evidence, combined with the prior acquittal of co-accused parents on identical charges, warrants quashing proceedings at the pre-trial stage to prevent abuse of process, offering a vital safeguard against unjust prosecution.

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RAHUL VS STATE OF UTTAR PRADESH AND ANOTHER, decided on 11-08-2026

Employment & Disclosure: The Two-Pronged Test for Criminal Antecedents

The Court, in *SHATRUGHN YADAV VS THE FERTILIZERS AND CHEMICALS TRAVANCORE LTD. (F.A.C.T.) AND OTHERS*, reinstated an employee terminated for non-disclosure of criminal antecedents. It ruled that employers must conduct a nuanced 'two-pronged inquiry' – verifying actual suppression and then applying mind to the nature of allegations, offense gravity, and eventual outcome – rather than automatic termination. This is a critical directive for HR professionals and recruitment policies, emphasizing genuine knowledge and due process.

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SHATRUGHN YADAV VS THE FERTILIZERS AND CHEMICALS TRAVANCORE LTD. (F.A.C.T.) AND OTHERS, decided on 11-08-2026

Evidentiary Standards in Sexual Assault Cases: Reversing Conviction on Discrepancies

In *RAM SINGH VS THE STATE OF HIMACHAL PRADESH*, the Supreme Court restored an acquittal in a Section 376 IPC case, highlighting significant contradictions between ocular evidence (statements of victim and mother) and medical/forensic reports. The judgment reinforces the paramount importance of concrete scientific evidence, such as medical examinations and FSL reports, and the high standard of proof required in criminal proceedings, especially when overturning a well-reasoned acquittal.

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RAM SINGH VS THE STATE OF HIMACHAL PRADESH, decided on 11-08-2026

Arbitration & Interim Relief: Safeguarding Claims Post-Award

The Supreme Court affirmed the maintainability of a Section 9 application under the Arbitration and Conciliation Act by an unsuccessful party at the post-award stage, particularly for preserving funds to prevent irreparable prejudice and ensure efficacy of the Section 34 challenge. In *National Projects Construction Corporation Ltd. VS Ishvakoo (India) Pvt. Ltd.*, this decision is vital for arbitration practitioners, emphasizing the court's equitable powers to secure the subject matter of a dispute even after an award, in 'rare and compelling cases' to prevent unjust enrichment.

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National Projects Construction Corporation Ltd. VS Ishvakoo (India) Pvt. Ltd., decided on 11-08-2026

Civil Procedure Clarified: Composite Appeals for Suit & Counterclaim

Addressing a divergence of judicial opinion, the Supreme Court, in *Basudev & Ors. VS Sanjay Kumar & Ors.*, ruled that a single, composite appeal is maintainable against a common judgment disposing of both a suit and a counterclaim. This pragmatic approach streamlines appellate processes but mandates clear articulation of separate grounds and appropriate court fees for both components, offering crucial clarity for civil litigators and aiming to avoid procedural complexities.

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Basudev & Ors. VS Sanjay Kumar & Ors., decided on 11-08-2026

NDPS Act Compliance: Balancing Safeguards and Enforcement

In *KASHMIR RAM @ PAPPI VS STATE OF PUNJAB*, the Supreme Court upheld a conviction under the NDPS Act, clarifying critical aspects of procedural safeguards. The judgment reiterates that Section 50 applies strictly to personal searches, delayed compliance with Section 42 can be excused with a satisfactory explanation in emergent situations, and judicial verification can cure sample dispatch delays. This provides vital insights for law enforcement and defense counsel in drug-related cases, while confirming the admissibility of the Chemical Analyst's report if unchallenged at trial.

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KASHMIR RAM @ PAPPI VS STATE OF PUNJAB, decided on 12-08-2026

Electricity Theft: Proving Dishonest Intent and Writ Petition Maintainability

The Court, in *M/S. HIMADRI STEEL PVT.LTD. VS JHARKHAND URJA VIKAS NIGAM LIMITED & ORS.*, clarified that writ petitions against provisional assessment orders for electricity theft are maintainable, as no statutory appeal exists for such orders. Critically, it reinforced that 'theft of electricity' under Section 135 of the Electricity Act requires proof of 'dishonest intention' (mens rea) and 'actus reus' beyond reasonable doubt, not just suspicion. This offers crucial protection for consumers and guides utility companies on robust enforcement standards.

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M/S. HIMADRI STEEL PVT.LTD. VS JHARKHAND URJA VIKAS NIGAM LIMITED & ORS., decided on 12-08-2026

POCSO Act Amendments: No Retrospective Application of Enhanced Sentences

In a crucial judgment on child protection, *BALESH KUMAR KURAITI VS STATE OF CHHATTISGARH*, the Supreme Court ruled against the retrospective application of the 2019 POCSO Act amendment that enhanced minimum punishments. This reaffirms constitutional protections against ex post facto laws (Article 20(1)), while emphasizing the judiciary's role in ensuring fair sentencing. The Court restored the trial court's life imprisonment, clarifying that prior to the 2019 amendment, 'life imprisonment' allowed for statutory remedies like remission.

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BALESH KUMAR KURAITI VS STATE OF CHHATTISGARH, decided on 12-08-2026

IBC Dynamics: Operational Debt, Limitation, and Pre-existing Disputes in EPC Contracts

The Supreme Court dismissed an IBC application against an EPC contractor in *SRINIVASA REDDY VELAGALA VS SRAVANTHI INFRATECH PVT. LTD.*, clarifying that claims for damages do not constitute 'operational debt' without prior crystallization. Crucially, it re-emphasized that the IBC is not for reviving time-barred debts, stressing the importance of prompt action and discrediting 'afterthought' disputes. This provides vital guidance for creditors, corporate debtors, and legal strategists engaging with the Insolvency and Bankruptcy Code.

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SRINIVASA REDDY VELAGALA VS SRAVANTHI INFRATECH PVT. LTD., decided on 12-08-2026

NPA Recovery: Courts Cannot Override Banking Norms on Interest

In a significant ruling for the banking sector, *Punjab National Bank VS M/s. Shree Jyoti Education and Management Trust World and others*, the Supreme Court overturned a High Court order that directed a loan settlement for an NPA by ignoring the interest component. The judgment firmly upholds standard banking practices for NPAs, reaffirming that the definition of 'debt' explicitly includes interest and courts cannot interfere with commercial lending rates. This offers crucial protection for financial institutions and clarifies the limits of judicial intervention in debt recovery.

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Punjab National Bank VS M/s. Shree Jyoti Education and Management Trust World and others, decided on 12-08-2026

Customs Duty & Classification: Laser Imagers as Accessories

The Supreme Court ruled on the classification of imported 'Dryview 6850 Laser Imagers' for customs duty in *M/s. Carestream Health India Pvt. Ltd. VS Commissioner of Customs*, holding them as 'accessories' under Customs Tariff Heading (CTH) 9033 00 00. This judgment provides valuable clarification on interpreting Chapter 90 of the Customs Tariff Act, particularly for goods compatible with multiple diagnostic machines across different tariff headings, impacting importers and customs compliance strategies.

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M/s. Carestream Health India Pvt. Ltd. VS Commissioner of Customs, decided on 12-08-2026

Judicial Efficiency: Composite Appeals for Clubbed Civil Suits

Mirroring its stance on suits with counterclaims, the Supreme Court, in *BASSANNA SINCE DECEASED BY LRS. AND OTHERS VS BHIMANNA AND OTHERS*, affirmed the maintainability of a single composite appeal against a common judgment in clubbed civil suits. This decision prioritizes substance over form in procedural law, aimed at reducing litigation burden and ensuring timely justice by allowing a single memorandum of appeal (with requisite fees for each suit) to challenge common judgments.

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BASSANNA SINCE DECEASED BY LRS. AND OTHERS VS BHIMANNA AND OTHERS, decided on 12-08-2026

Partnership Law & Limitation: When Recovery Suits Fall Short

In *Mageba Bridge Products Private Limited VS M/s. Trade Centre*, the Supreme Court upheld the registration of a partnership firm but dismissed its recovery suit as time-barred. This judgment reinforces the strict application of the Limitation Act, clarifying that time spent in other legal proceedings (like winding-up petitions) cannot automatically extend the limitation period for recovery suits. This is a crucial point for commercial entities and legal strategists to ensure claims are pursued within statutory limits.

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Mageba Bridge Products Private Limited VS M/s. Trade Centre, decided on 12-08-2026

Custodial Death: Supreme Court Directs CBI Inquiry & Enhances Compensation

In a strong rebuke to state authorities, the Supreme Court, in *LAHRA BAI TAMRE & ORS. VS STATE OF CHATTISGARH AND ORS.*, ordered a CBI inquiry into a custodial death and significantly enhanced compensation from Rs. 1 lakh to Rs. 25 lakhs for the victim's family. This landmark judgment underscores the State's accountability for human rights violations, highlights judicial intolerance for official inaction and cover-ups, and sets a precedent for exemplary damages in such cases, directing thorough investigation of responsible officers.

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LAHRA BAI TAMRE & ORS. VS STATE OF CHATTISGARH AND ORS., decided on 12-08-2026

Interim Injunctions: Appellate Courts' Restrained Discretion

The Supreme Court reinstated an interim injunction in a complex family asset dispute (*SHRUTI MANAV SHARMA & ANR. VS SUNA NINA SINGH & ORS.*), reinforcing the principle that appellate courts should not lightly interfere with the discretionary orders of a first instance court. This judgment provides critical guidance for litigators and judges on the limited scope of appellate review for interlocutory injunctions, emphasizing preservation of status quo and avoiding 'mini-trials' at preliminary stages of litigation.

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SHRUTI MANAV SHARMA & ANR. VS SUNA NINA SINGH & ORS., decided on 12-08-2026

Compassionate Appointment: Employer Delay Cannot Prejudice Eligibility

In a significant ruling for employment law, *RASPELLI BHAGYA KIS HAIYA & ORS. VS GENERAL MANAGER, WESTERN COALFIELDS LIMITED & ORS.*, the Supreme Court held that administrative delays by an employer cannot be used to disqualify an applicant for compassionate appointment on age grounds. This judgment prioritizes the welfare objective of compassionate schemes, directing expeditious processing of applications and preventing procedural inefficiency from harming eligible dependents. It’s a vital reminder for HR departments on equitable policy implementation.

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RASPELLI BHAGYA KIS HAIYA & ORS. VS GENERAL MANAGER, WESTERN COALFIELDS LIMITED & ORS., decided on 12-08-2026

Juvenile Justice: Sentencing and Statutory Protections Post-Conviction

The Supreme Court affirmed a conviction for murder and robbery based on circumstantial evidence in *DINESH KUMAR VS THE STATE OF HARYANA* but set aside the sentence due to the appellant's proven juvenility at the time of the offense. This ruling reiterates that juvenility benefits apply even post-conviction, ensuring statutory protections and preventing disproportionate sentencing for minors, while maintaining the validity of the conviction on merits. It also grants statutory protection against disqualification arising from the conviction.

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DINESH KUMAR VS THE STATE OF HARYANA, decided on 12-08-2026

Commercial Disputes & Criminalization: Quashing FIRs for Cheating and Trust Breach

The Supreme Court quashed an FIR alleging cheating and criminal breach of trust arising from a commercial dispute (*PARAG KISHORE SATOSKAR AND OTHERS VS STATE OF JHARKHAND AND ANOTHER*), stressing that a mere breach of contract does not automatically constitute a criminal offense. This judgment reinforces the clear distinction between civil and criminal matters, requiring dishonest intention from the inception for cheating and true 'entrustment' for criminal breach of trust, thus offering crucial protection against the abuse of criminal proceedings for commercial grievances.

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PARAG KISHORE SATOSKAR AND OTHERS VS STATE OF JHARKHAND AND ANOTHER, decided on 12-08-2026

Power Utilities & Liability: Navigating Electrocution Claims

The Supreme Court, in *KARNATAKA POWER TRANSMISSION CORPORATION LIMITED VS REKHA & ORS. AND MUIZZ AHMAD SHARIFF*, clarified that writ petitions for compensation in electrocution cases against power utilities are generally not maintainable due to significant disputed facts. It firmly established that 'strict liability' (subject to exceptions like act of God or plaintiff's fault) applies to such inherently dangerous activities, not 'absolute liability,' and that the Motor Vehicles Act's multiplier method is unsuitable. This is a critical decision for power companies, insurers, and legal professionals dealing with accident claims.

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KARNATAKA POWER TRANSMISSION CORPORATION LIMITED VS REKHA & ORS. AND MUIZZ AHMAD SHARIFF, decided on 12-08-2026

GST Act Arrests: Mandatory Communication of Arrest Orders

The Supreme Court, in *UNION OF INDIA VS SUNIL BIYANI*, mandated that an order passed by the Commissioner under Section 69 of the CGST Act, authorizing arrest, must be communicated to the person sought to be arrested *before* any arrest is made. This crucial judgment reinforces principles of natural justice and due process in tax-related criminal matters, providing significant protection for individuals by enabling them to seek anticipatory bail and guiding tax authorities on proper procedural compliance.

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UNION OF INDIA VS SUNIL BIYANI, decided on 12-08-2026

Pay Scale Fixation: Judicial Review and Re-employed Officers' Rights

The Supreme Court dismissed a challenge to pay scale fixation for Presiding Officers of Central Government Industrial Tribunals-cum-Labour Courts (CGIT-cum-LCs) in *R.K. Yadav & Anr. VS Union of India and Others*. The Court affirmed that pay fixation is primarily an executive function with limited judicial review, and that re-employed government officers constitute a distinct class. This decision differentiates between regular and re-employed officers, highlighting that re-employed personnel are governed by specific pay rules, impacting HR policies in public sector employment and judicial compensation structures.

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R.K. Yadav & Anr. VS Union of India and Others, decided on 12-08-2026

Murder Conviction Overturned: Reaffirming Evidentiary Scrutiny in Death Cases

The Supreme Court overturned a murder conviction in *Taher Vajiyuddin Rangwala & Anr. VS The State of Gujarat*, concluding the death was accidental drowning due to insufficient homicidal proof and a significant delay in the FIR. The judgment reiterates the critical importance of medical and forensic evidence aligning with ocular testimony, and casts doubt on delayed accusations and unreliable witness identification. This serves as a crucial precedent for criminal defense, emphasizing the need for proof beyond reasonable doubt.

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Taher Vajiyuddin Rangwala & Anr. VS The State of Gujarat, decided on 13-08-2026

Will Execution: Strict Proof and Removing Suspicious Circumstances

In a family partition dispute, *PAZHANATHAL (DEAD) THROUGH LRS. & ORS VS ALAMATHAL (DEAD) THROUGH LRS. & ORS*, the Supreme Court invalidated a Will, emphasizing the strict requirements for its proof under the Indian Succession and Evidence Acts. The ruling highlights the propounder's heavy burden to remove all suspicious circumstances, especially concerning unnatural dispositions, exclusion of natural heirs without valid reason, and non-examination of crucial witnesses. This offers vital lessons for estate planning and testamentary litigation, requiring meticulous attention to legal formalities.

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PAZHANATHAL (DEAD) THROUGH LRS. & ORS VS ALAMATHAL (DEAD) THROUGH LRS. & ORS, decided on 13-08-2026

Witch-Hunting Conviction Upheld: Justice Prevails Over Superstition

The Supreme Court, in *BALKU ORAM VS STATE OF ODISHA*, upheld a murder conviction in a chilling witch-hunting case, condemning the barbaric practice as violative of human dignity and constitutional morality. This judgment reaffirms the validity of credible eyewitness testimony, even from a close relative, and the court's limited interference with concurrent findings. It sends a strong message against social prejudices and violence driven by superstitious beliefs, emphasizing that justice must prevail.

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BALKU ORAM VS STATE OF ODISHA, decided on 13-08-2026

Property Law: Tenancy, Agreements to Sell, and Section 53A Limitations

In *NAZIM SHAIKH HASAN VS NASIR MUSHTAQ SHAIKH AND OTHERS*, the Supreme Court clarified that an unregistered agreement to sell does not automatically terminate a subsisting tenancy or allow a tenant to claim protection under Section 53A of the Transfer of Property Act, especially if executed post-2001 (requiring registration). This ruling emphasizes the distinct jural relationships of landlord-tenant and vendor-vendee, reinforcing the mandatory registration requirements for property transactions and impacting real estate and contractual disputes.

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NAZIM SHAIKH HASAN VS NASIR MUSHTAQ SHAIKH AND OTHERS, decided on 13-08-2026

Civil Procedure: Appellate Remands - A Rare Recourse

The Supreme Court set aside a High Court's remand order in a partition suit (*Shivappa VS Shantavva and Others*), directing the appellate court to decide the matter on existing merits and available evidence. This judgment discourages unnecessary remands, advocating for expeditious resolution of disputes by appellate courts exercising their full jurisdiction. It offers crucial guidance for civil litigators and aims to reduce judicial backlog by preventing protracted litigation due to procedural re-do's.

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Shivappa VS Shantavva and Others, decided on 13-08-2026

Excise Duty & Limitation: No Extended Period Without Willful Suppression

In a significant customs and excise ruling, *Audi Automobiles & Ors. VS Commissioner of Central Excise and Service Tax, Indore*, the Supreme Court allowed appeals, setting aside duty demands where the extended period of limitation was invoked without clear proof of 'wilful misstatement' or 'suppression' with intent to evade duty. While affirming the valuation principle for body-built vehicles to include a 10% profit margin, the judgment underscores that departmental knowledge of facts precludes the invocation of the extended limitation period. This is vital for manufacturing industries and tax compliance strategies.

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Audi Automobiles & Ors. VS Commissioner of Central Excise and Service Tax, Indore, decided on 13-08-2026

Commercial Litigation: Curbs on Prolongation and Irrelevant Evidence

The Supreme Court, in a long-standing commercial dispute between RIL and NTPC (*RELIANCE INDUSTRIES LIMITED VS NTPC LIMITED*), firmly dismissed an appeal attempting to introduce oral evidence on previously deemed irrelevant internal documents. Highlighting judicial efficiency, the Court imposed significant costs of Rs. 10 lakhs on RIL for contributing to protracted litigation. This judgment sends a clear message against tactics that prolong commercial suits and the indirect reintroduction of excluded evidence, urging expeditious disposal of cases.

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RELIANCE INDUSTRIES LIMITED VS NTPC LIMITED, decided on 14-08-2026

Debt Recovery: Auction Validity and Exemption for Legal Heirs

In *SHEELA GEHLOT & PUNJAB & SIND BANK & JAGMINDER SINGH VS MOHINI HARDAYAL SINGH & ORS.*, the Supreme Court upheld an auction sale in debt recovery proceedings. It clarified that actual knowledge of execution proceedings by legal representatives negates claims of non-service of formal notice, and the personal exemption of a residential house under Section 60(1)(ccc) CPC does not extend to legal heirs. This judgment provides critical clarity for banks, judgment-debtors, and legal professionals in execution proceedings, particularly concerning property exemptions.

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SHEELA GEHLOT & PUNJAB & SIND BANK & JAGMINDER SINGH VS MOHINI HARDAYAL SINGH & ORS., decided on 14-08-2026

Motor Accident Claims: Enhancing Compensation for Loss of Consortium

The Supreme Court, in *SAMEEM BEGUM AND OTHERS VS K. VENKAT SWAMY AND ANOTHER*, significantly enhanced motor accident compensation, providing crucial clarification on the integral concept of 'consortium' for spouses (spousal consortium), children (parental consortium), and parents (filial consortium). The judgment emphasized the proper application of fixed amounts for conventional heads (with periodic enhancement), ensuring 'just and fair compensation' aligns with established legal principles. This decision is vital for insurance companies, legal practitioners, and claimants in motor accident cases.

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SAMEEM BEGUM AND OTHERS VS K. VENKAT SWAMY AND ANOTHER, decided on 14-08-2026