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Contractual Bars Defeated Pre-Award Interest, but Post-Award Interest Was Retained at a Reduced Rate
Union of India & Ors. v. Larsen & Tubro Limited (L&T)
The Supreme Court held that the arbitral tribunal could not award pre-award or pendente lite interest contrary to the contract, but it upheld post-award interest while reducing the rate from 12% to 8%.
Post-Bid Clarifications Do Not Justify Reopening a CoC-Approved Resolution Plan Absent Statutory Breach
Torrent Power Ltd. v. Ashish Arjunkumar Rathi & Ors.
The Supreme Court affirmed approval of a resolution plan after holding that the Committee of Creditors' commercial decision could not be disturbed merely because unsuccessful bidders characterised later clarifications as post-bid modifications.
A Surety Is Not Automatically Liable for Unauthorized Overdrawings Beyond the Guaranteed Limit
Bhagyalaxmi Co-Operative Bank Ltd. v. Babaldas Amtharam Patel (D) Through Legal Representatives & Ors.
The Supreme Court held that where a creditor permits the principal debtor to draw far beyond the sanctioned limit without the surety’s consent, the surety is discharged only as to the transactions subsequent to that variance and not necessarily for the entire original liability.
A Civil Suit Cannot Be Rejected Just Because Khatedari Rights Must Be Determined by the Revenue Court
Arjun & Anr. v. Mukesh & Ors.
The Supreme Court restored a civil suit challenging a gift deed and held that the plaint could not be rejected merely because the issue of khatedari rights fell within the revenue court's domain.
Coal-Block Cancellation Was a Change in Law, But Pre-Cancellation Fuel Shortfall Costs Were Not Pass-Through
West Bengal State Electricity Distribution Co. Ltd. v. Adhunik Power & Natural Resource Ltd. & Ors.
The Supreme Court held that cancellation of the Ganeshpur coal block and the later statutory regime amounted to a Change in Law event entitling the generator to compensation from 25 August 2014, but denied pass-through for e-auction and import coal costs incurred before that date to cover shortfall in tapering linkage.
High Court Could Not Disturb Relief Already Granted by the Supreme Court to Non-Parties in Service Litigation
Dr. Jiji K.S. & Ors. v. Shibu K & Ors.
The Supreme Court held that a High Court judgment in later service litigation could not prejudice employees who had already obtained and enforced relief from the Supreme Court, while other affected non-parties were left free to pursue independent remedies.
Open Correctional Institutions Must Be Expanded, Standardised, and Made Real for Eligible Prisoners
Suhas Chakma v. Union of India & Ors.
The Supreme Court issued nationwide directions to strengthen and standardise Open Correctional Institutions, stressing their constitutional and rehabilitative value in addressing overcrowded prisons.
Simultaneous CIRP Against a Principal Debtor and Corporate Guarantor Was Reaffirmed as Legally Maintainable
ICICI Bank Limited v. Era Infrastructure (India) Limited and connected matters
The Supreme Court reaffirmed that simultaneous insolvency proceedings against a principal debtor and its corporate guarantor are maintainable, while cautioning that creditors cannot recover more than what is actually due.
A Promise-to-Marry Prosecution Was Quashed Where the FIR Itself Showed a Consensual Relationship and No Possible Deception
Ankit Tomar v. State of Haryana
The Supreme Court quashed rape proceedings after holding that the FIR itself disclosed a consensual relationship and did not support a case of inducement or deception on a false promise of marriage.
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Understanding Landmark Judgments in India
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