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  • Madras High Court on Illegality of Construction Without Environmental Clearance, RERA Applicability, and Homebuyer Rights in Ongoing Real Estate Projects

    Madras High Court on Illegality of Construction Without Environmental Clearance, RERA Applicability, and Homebuyer Rights in Ongoing Real Estate Projects

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 07.09.2026

    Madras High Court on Illegality of Construction Without Environmental Clearance, RERA Applicability, and Homebuyer Rights in Ongoing Real Estate Projects

    This Short Article has been prepared & written by Advocate Narendra Singh. The views expressed are based on his interpretation of the law. He can be reached at his email id amitnaren@outlook.com .  

    The Madras High Court’s decision in the case of Subashini Thulasiram v. SPR & RG Constructions Pvt. Ltd. is a significant milestone in the fight against illegal real estate practices, environmental violations, and the protection of homebuyers’ rights under the Real Estate (Regulation and Development) Act, 2016 (RERA). This article provides a detailed overview of the case, its background, legal findings, and its broader implications for the real estate sector.

    Background of the Case

    1. Parties Involved:
      • Appellant: Subashini Thulasiram, a homebuyer.
      • Respondent: SPR & RG Constructions Pvt. Ltd., the developer.
    2. Property Details:
      • Flat No. 9131, 13th floor, Block No. 9, Osian Chlorophyll project, Karambakkam Village, Ambattur Taluk, Thiruvallur District.
      • Sale cum construction agreement dated 27.11.2012.
      • Total cost: Rs. 11,49,500 (land) + Rs. 81,85,380 (construction).
    3. Key Issues Raised:
      • Delay in handing over possession.
      • Construction without mandatory environmental clearance.
      • Deviation from approved plans and increase in dwelling units without buyer consent.
      • Non-registration of the project under RERA.

    Timeline of Events

    • 2012: Agreement signed; possession promised by March 2015.
    • 2015: Developer seeks extension, citing pending approvals.
    • 2017: RERA Act comes into force (May 1); developer claims project completion (May 3) and applies for completion certificate (May 29).
    • 2018: Environmental clearance obtained (June 27); revised completion certificate for increased units (September 6).
    • Legal Proceedings: Multiple complaints and appeals filed by the buyer, culminating in the High Court judgment.

    Legal Findings and Analysis

    1. Environmental Clearance is Mandatory

    • The court emphasized that environmental clearance must be obtained before starting construction, as per the 2006 Central Government notification.
    • The developer began construction without this clearance, making the entire project illegal until the certificate was belatedly obtained in 2018.

    2. RERA Registration and Ongoing Projects

    • Under Section 3 of the RERA Act, projects without a completion certificate as of May 1, 2017, must register with RERA.
    • The developer applied for the completion certificate only on May 29, 2017, after the Act commenced, and received it much later.
    • The court held that the project was an “ongoing project” and not exempt from RERA registration, rejecting the developer’s reliance on state rules that conflicted with the central Act.

    3. Deviation from Approved Plans

    • The developer increased the number of dwelling units from 950 to 1050 without informing or obtaining consent from existing buyers, reducing their undivided share of land and violating their rights.
    • The revised plan and completion certificate were obtained after construction was already completed, raising questions about regulatory oversight and possible collusion.

    4. Accountability of Authorities

    • The judgment criticized the lack of proper inspection and due diligence by the Chennai Metropolitan Development Authority (CMDA) and other officials.
    • It called for action against both the developer and responsible officials for approving and regularizing illegal constructions.

    Directions Issued by the Court

    1. The project must be treated as an ongoing project and registered under RERA.
    2. The buyer’s complaint is maintainable and must be heard on merits.
    3. The authorities are directed to expedite the hearing and resolution of the complaint and any subsequent appeals.
    4. The developer’s actions in obtaining post-facto environmental clearance and revising plans without buyer consent are declared illegal.

    Broader Implications

    • For Homebuyers: The judgment reinforces the rights of buyers to demand transparency, adherence to approved plans, and timely possession.
    • For Developers: Strict compliance with environmental and regulatory approvals is mandatory. Post-facto clearances do not legalize prior violations.
    • For Regulatory Authorities: The case highlights the need for vigilant oversight and accountability in granting approvals and monitoring construction.

    Conclusion

    The Subashini Thulasiram judgment is a landmark in ensuring accountability in the real estate sector. It upholds the supremacy of the RERA Act, mandates strict adherence to environmental laws, and protects the interests of homebuyers against unscrupulous practices. This case serves as a warning to developers and a reassurance to buyers that the law will protect their rights and interests.

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    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Source: Madras High Court

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  • Delhi High Court Orders Immediate GST Refund: Upholding Taxpayer Rights and Rule of Law

    Delhi High Court Orders Immediate GST Refund: Upholding Taxpayer Rights and Rule of Law

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 07.09.2026

    Delhi High Court Orders Immediate GST Refund: Upholding Taxpayer Rights and Rule of Law

    This Short Article has been prepared & written by Advocate Madhumita Jha. The views expressed are based on her interpretation of the law. She can be reached at her email id jhamadhumita27@gmail.com .  

    The Delhi High Court recently delivered a significant judgment in the case of Brij Mohan Mangla vs. Union of India & Ors., addressing the issue of delayed GST refunds and the obligations of tax authorities to comply with appellate orders. This article provides a comprehensive overview of the case, its background, the legal proceedings, and the implications for taxpayers and authorities under the GST regime.

    Background of the Case

    Brij Mohan Mangla, a manufacturer of liquid printing inks, was registered under the Central Goods and Services Tax Act, 2017 (GST Act). During the period from May 2019 to December 2019, he accumulated an input tax credit (ITC) of β‚Ή74,02,337 due to an inverted duty structure, which occurs when the tax rate on inputs is higher than the tax rate on outputs. Unable to utilize the ITC fully, Mangla filed six separate refund applications for the relevant period.

    Timeline of Refund Applications

    Date of FilingPeriodAmount (INR)
    09.12.2020May 20198,89,402
    23.12.2020June 20197,39,443
    07.01.2021July 201910,62,596
    07.01.2021August 201911,12,574
    22.01.2021September 20199,72,486
    16.03.2021Oct–Dec 201926,25,836
    Total74,02,337

    Initial Rejection and Appeals

    The refund claims were not processed. Instead, the authorities issued show cause notices, citing two main reasons for rejection:

    1. Non-existence at Registered Premises: Physical verification allegedly found the business non-existent at the declared address.
    2. Cancellation of GST Registration: The GSTIN was cancelled with effect from 19.02.2021.

    Mangla responded, clarifying that he had shifted his business premises after the relevant period. Despite this, the refund applications were rejected on the grounds that he was not a “registered person” at the time of application, as required under Section 54(3) of the GST Act.

    Mangla appealed these decisions. The Appellate Authority ruled in his favor, confirming that he was indeed a registered person during the relevant period and entitled to the refund. The Authority also directed restoration of his GST registration.

    Continued Non-Compliance by Authorities

    Despite the appellate orders, the authorities did not process the refunds. Instead, they issued deficiency memos and repeated the same objections already settled by the Appellate Authority. The authorities argued that they intended to appeal the appellate orders and thus withheld the refunds.

    High Court’s Judgment

    The Delhi High Court found the authorities’ conduct unacceptable, emphasizing the following points:

    1. Obligation to Implement Appellate Orders: Authorities cannot ignore or withhold implementation of appellate orders merely because they intend to file an appeal, unless a stay is obtained.
    2. Rule of Law: Allowing authorities to disregard appellate decisions undermines the rule of law.
    3. Direction to Disburse Refunds: The Court directed the authorities to process and disburse the refunds, including applicable interest, without further delay.
    4. Right to Appeal Preserved: The authorities retain the right to challenge the appellate orders, but must comply with them unless and until they are set aside.

    Implications and Takeaways

    • For Taxpayers: This judgment reinforces the rights of taxpayers to timely refunds and the enforceability of appellate decisions.
    • For Authorities: Tax authorities must comply with appellate orders unless a stay is granted by a higher forum. Delays or non-compliance can be challenged in court.
    • For the GST Regime: The case highlights the importance of procedural fairness and the need for efficient dispute resolution mechanisms under GST.

    Conclusion

    The Brij Mohan Mangla case sets a precedent for the prompt implementation of appellate orders in GST matters. It serves as a reminder that administrative authorities are bound by the rule of law and must respect judicial and quasi-judicial decisions, ensuring justice for taxpayers.

    Connected Matter

    Bombay High Court Orders Refund of Pre-Deposit for Dropped GST Demand Despite Pending Appeal

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Source: Delhi High Court

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  • Arbitration Awards and the Importance of Reasoned Decisions: Necessity for Clarity in Arbitration Decisions

    Arbitration Awards and the Importance of Reasoned Decisions: Necessity for Clarity in Arbitration Decisions

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 07.09.2026

    Arbitration Awards and the Importance of Reasoned Decisions: Necessity for Clarity in Arbitration Decisions

    This Short Article has been prepared & written by Arbitrator Shobhit Mallik. The views expressed are based on his interpretation of the law. He can be reached at his email id shobhit.Ica23@gmail.com .

    The Supreme Court of India’s decision in the case of Dyna Technologies Pvt. Ltd. v. Crompton Greaves Ltd. serves as a significant precedent on the necessity for reasoned arbitral awards and the boundaries of judicial intervention in arbitration. This article explores the background, legal issues, and implications of the judgment, providing valuable insights for businesses, legal professionals, and arbitrators.

    Background of the Dispute

    • Parties Involved:
      • Appellant: Dyna Technologies Pvt. Ltd.
      • Respondent: Crompton Greaves Ltd. (CGL)
    • Contractual Context:
      • Dyna Technologies was contracted by CGL for construction works related to an aquaculture unit for DCM Shriram Aqua Foods Limited.
      • The contract included provisions for compensation in case of idle equipment and manpower due to delays not attributable to the contractor, as well as clauses allowing CGL to terminate the contract under certain conditions without compensation.
    • Dispute Origin:
      • CGL instructed Dyna Technologies to stop work prematurely in January 1995.
      • Dyna Technologies claimed compensation for losses due to idle machinery, unproductive use of resources, loss of profit, interest, and costs, totaling over Rs. 53 lakhs after deductions.

    Arbitration and Legal Proceedings

    1. Arbitral Tribunal:
      • Dyna Technologies’ claims were referred to a three-member Arbitral Tribunal.
      • The Tribunal awarded compensation for losses due to unproductive use of machinery (Claim No. 2), but did not provide detailed reasoning for its decision.
    2. High Court Proceedings:
      • The award was challenged under Section 34 of the Arbitration and Conciliation Act, 1996.
      • The Single Judge upheld the award, emphasizing limited grounds for judicial interference.
      • On appeal, the Division Bench set aside the award for Claim No. 2, citing lack of sufficient reasoning and the contract’s exclusion of such compensation.

    Supreme Court’s Analysis

    Key Legal Issues

    • Requirement of Reasoned Awards:
      • Section 31(3) of the Arbitration Act mandates that arbitral awards must state the reasons upon which they are based, unless parties agree otherwise.
      • The Court clarified that reasons must be proper, intelligible, and adequate, though not as elaborate as a court judgment.
    • Judicial Intervention under Section 34:
      • The Court reiterated that arbitral awards should not be set aside lightly; intervention is warranted only for perversity or violation of statutory grounds.
      • Courts should distinguish between inadequate and unintelligible reasoningβ€”only the latter justifies setting aside an award.
    • Remand to Tribunal:
      • Section 34(4) allows courts to remit awards back to the tribunal to cure defects in reasoning, but the Supreme Court noted that after 25 years of litigation, further remand would not serve justice.

    Findings

    • The Tribunal’s award was found to be confusing, with mixed factual narration and arguments, lacking clear legal reasoning.
    • The Supreme Court held that the award was unintelligible and could not be sustained in its existing form.
    • To bring finality to the prolonged dispute, the Court directed CGL to pay Rs. 30 lakhs to Dyna Technologies in full and final settlement of Claim No. 2.

    Implications and Lessons

    For Arbitrators

    1. Clarity and Reasoning:
      • Awards must clearly state the basis for decisions, especially when dealing with complex contractual disputes.
    2. Form vs. Substance:
      • While awards need not be as detailed as court judgments, they must be intelligible and adequately reasoned.

    For Parties

    1. Contractual Clauses:
      • Parties should carefully draft and review compensation and termination clauses to avoid ambiguity and future disputes.
    2. Arbitration as a Remedy:
      • Arbitration is intended to be a speedy and final dispute resolution mechanism; unclear awards can undermine this purpose.

    For Courts

    1. Limited Intervention:
      • Courts should respect the autonomy of arbitral tribunals and intervene only on statutory grounds.
    2. Remand vs. Finality:
      • Remanding awards for clarification is appropriate, but not when it would prolong already lengthy litigation.

    Conclusion

    The Dyna Technologies v. Crompton Greaves case underscores the critical importance of reasoned arbitral awards and the need for clarity in both contractual drafting and arbitral decision-making. It also highlights the judiciary’s role in balancing the finality of arbitration with the need for fairness and transparency. This judgment serves as a cautionary tale for all stakeholders in the arbitration process, emphasizing that clarity and reasoning are essential to uphold the integrity and efficiency of alternative dispute resolution.

    Connected Matter

    Bombay High Court’s Analysis of Arbitral Award Challenge under Section 34 of the Arbitration and Conciliation Act, 1996 in a Cotton Supply Dispute

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Source: Supreme Court

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  • High Court of Karnataka Affirms Conviction Under Section 138 of the Negotiable Instruments Act

    High Court of Karnataka Affirms Conviction Under Section 138 of the Negotiable Instruments Act

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 07.09.2026

    High Court of Karnataka Affirms Conviction Under Section 138 of the Negotiable Instruments Act

    This Short Article has been prepared & written by Advocate G Sridharamurthy. The views expressed are based on his interpretation of the law. He can be reached at his email id sriadv3@gmail.com . 

    This article provides a comprehensive overview of a significant judgment delivered by the High Court of Karnataka in Criminal Revision Petition No. 1313 of 2017, involving a dispute under Section 138 of the Negotiable Instruments Act, 1881 (N.I. Act). The case highlights key legal principles, procedural aspects, and the importance of evidence in cheque dishonor cases.

    Background of the Case

    1. Parties Involved:
      • Petitioner: V K Lakshmidevi (mother-in-law of the complainant)
      • Respondent: Smt. Jayalakshmi (widow of the petitioner’s son)
    2. Nature of Dispute:
      • The dispute arose after the death of the complainant’s husband, leading to a partition suit over family property. A compromise was reached, allotting a share to the complainant.
      • The petitioner (mother-in-law) continued to occupy the property beyond the agreed period, leading to further negotiations and financial transactions between the parties.

    Sequence of Events

    1. Compromise and Continued Occupation:
      • Despite a compromise, the petitioner did not vacate the property allotted to the complainant.
      • The complainant allowed further stay on the petitioner’s request, but the petitioner failed to vacate even after the extended period.
    2. Financial Transaction:
      • The petitioner and her son requested the complainant to purchase the property for Rs. 23,00,000.
      • The complainant paid the amount in cash, expecting vacant possession and execution of a sale deed, which did not materialize.
    3. Issuance and Dishonor of Cheques:
      • On persistent demand, the petitioner issued a post-dated cheque for Rs. 10,00,000, and her son issued another for Rs. 13,00,000.
      • Both cheques were dishonored due to insufficient funds.
      • Legal notice was served, but the petitioner did not comply, leading to a private complaint under Section 138 of the N.I. Act.

    Legal Proceedings and Findings

    1. Trial and Appellate Court Decisions:
      • The trial court convicted the petitioner under Section 138 of the N.I. Act, sentencing her to pay a fine of Rs. 10,05,000.
      • The appellate court confirmed the conviction and sentence.
    2. Arguments in Revision Petition:
      • The petitioner argued procedural lapses, lack of notice, and insufficient evidence of payment.
      • The respondent countered that ample opportunity was given for cross-examination, which the petitioner did not utilize.
    3. High Court’s Analysis:
      • The court emphasized the presumption in favor of the complainant under the N.I. Act when a cheque is dishonored, unless rebutted by effective cross-examination or defense evidence.
      • The petitioner failed to cross-examine the complainant or provide substantive rebuttal evidence.
      • The court found that the notice was duly served, and the petitioner’s conduct did not warrant interference in revision.

    Key Legal Takeaways

    1. Presumption under Section 138:
      • Once a cheque is dishonored, the law presumes liability unless the accused rebuts it with credible evidence.
    2. Importance of Cross-Examination:
      • Failure to cross-examine the complainant or present defense evidence can lead to adverse inference and uphold conviction.
    3. Limited Scope of Revision:
      • The High Court reiterated that revision jurisdiction is limited to examining the legality and correctness of lower court orders, not to reappreciate evidence unless there is a gross miscarriage of justice.

    Conclusion

    The High Court of Karnataka dismissed the revision petition, upholding the conviction and sentence under Section 138 of the N.I. Act. This judgment underscores the importance of procedural diligence, timely defense, and the evidentiary burden in cheque dishonor cases. It serves as a crucial reference for legal practitioners and individuals involved in negotiable instrument disputes.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Source: Karnataka High Court

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  • Judicial Scrutiny of Confiscation and Penalty Orders on Restricted Second-Hand Imports

    Judicial Scrutiny of Confiscation and Penalty Orders on Restricted Second-Hand Imports

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 07.09.2026

    Judicial Scrutiny of Confiscation and Penalty Orders on Restricted Second-Hand Imports

    This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .  

    The recent decision by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore, in the case of M/s. Ascent Circuits Pvt. Ltd. versus the Commissioner of Customs, highlights critical aspects of Indian customs law, particularly regarding the import of second-hand goods and the exercise of discretion in confiscation and penalty proceedings. This article provides a detailed overview and analysis of the case, its legal context, and its broader implications for importers and regulatory authorities.

    Case Background

    M/s. Ascent Circuits Pvt. Ltd. imported a “Posalux Machine DLR Measuring Unit.” Upon examination, customs authorities determined the goods were second-hand and classified as restricted under the Foreign Trade Policy (FTP). The original adjudicating authority ordered the goods to be released upon payment of a redemption fine of Rs. 30,000 under Section 125 of the Customs Act, 1962, and imposed a penalty of Rs. 10,000 under Section 112(a) of the Act.

    Both the importer and the Revenue appealed. The Commissioner (Appeals) dismissed the importer’s appeal, allowed the Revenue’s appeal, ordered absolute confiscation (no redemption), and enhanced the penalty to Rs. 1,00,000 under Section 114AA.

    Key Legal Issues

    1. Classification and Restriction of Goods

    • The core issue was whether the imported machine was a second-hand good and thus restricted under the FTP.
    • The examination report and a Chartered Engineer’s certificate confirmed the goods were second-hand, aged over six months, with a residual life of over six years.
    • As per FTP 2015-2020, import of second-hand goods (other than capital goods) is restricted and requires authorization.

    2. Confiscation and Redemption Fine

    • Section 125 of the Customs Act allows authorities discretion to offer redemption of confiscated goods upon payment of a fine, except in cases where absolute confiscation is warranted.
    • The Tribunal emphasized that this discretion must be exercised judiciously, with clear reasoning, and not as a mere formality.
    • The Commissioner (Appeals) relied on Supreme Court precedent (Union of India vs. Raj Grow Impex LLP) to justify absolute confiscation, but the Tribunal found the facts distinguishable and the reasoning insufficient for denying redemption.

    3. Penalty Provisions and Enhancement

    • The original penalty was imposed under Section 112(a), but the Commissioner (Appeals) enhanced it under Section 114AA, which deals with fraudulent documents.
    • The Tribunal held that these sections address different types of violations and that the enhancement was not justified in this context.

    Tribunal’s Findings and Decision

    • The Tribunal found that the goods were indeed second-hand and restricted, but not absolutely prohibited.
    • There was no evidence of fraud or mala fide intent by the importer.
    • The original authority’s decision to allow redemption on payment of fine was appropriate.
    • The enhancement of penalty and order of absolute confiscation by the Commissioner (Appeals) were set aside.
    • The appeal was allowed, restoring the original order: goods could be redeemed on payment of fine, and the lower penalty was reinstated.

    Legal and Practical Implications

    1. Discretion in Confiscation: Authorities must provide clear, reasoned justification when exercising discretion, especially when opting for absolute confiscation over redemption.
    2. Penalty Assessment: Penalties must be proportionate and based on the specific nature of the violation; enhancement requires a solid legal basis.
    3. Importer Responsibilities: Importers must ensure compliance with FTP and maintain documentation to establish the nature and condition of imported goods.
    4. Precedent Value: The case clarifies the application of Supreme Court judgments and the limits of administrative discretion in customs matters.

    Conclusion

    The Ascent Circuits Pvt. Ltd. case underscores the importance of reasoned decision-making in customs adjudication and the need for proportionality in penalties. It serves as a valuable reference for importers, legal practitioners, and customs officials navigating the complexities of restricted goods under Indian law.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Source: CESTAT Bangalore

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Supreme Court Sets Zero Tolerance for AI-Generated Fake Legal Citations

    Supreme Court Sets Zero Tolerance for AI-Generated Fake Legal Citations

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 07.09.2026

    Supreme Court Sets Zero Tolerance for AI-Generated Fake Legal Citations

    This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .  

    The Supreme Court of India recently delivered a landmark judgment in the case of Vijay Ghanshyam Gadiya vs. Union of India & Anr., addressing the critical issue of artificial intelligence (AI)-generated fake legal citations in judicial proceedings. This article explores the background, key findings, and broader implications of the judgment for the legal community and the use of AI in courts.

    Background of the Case

    • Case Origin: The appellant, Vijay Ghanshyam Gadiya, was penalized by the Additional Commissioner of Customs, Surat, for mis-declaring a consignment of natural diamonds as lab-grown diamonds to evade higher tariffs. The penalty imposed was Rs. 425,27,99,100 under Section 114 of the Customs Act, 1962.
    • Legal Journey: Gadiya’s challenge to the penalty was dismissed by the High Court of Gujarat. The matter was then appealed to the Supreme Court.

    Discovery of AI-Generated Fake Citations

    • Appellant’s Contention: During the Supreme Court proceedings, it was argued that several judgments and articles cited by the customs authority in their original order were generated using AI and were either non-existent or had fake citations.
    • Supreme Court’s Verification: The Court independently verified these references and found that:
      • Some cited case laws did not exist or had fabricated citations.
      • Some existing cases were misrepresented, with AI “hallucinating” legal principles not actually present in those judgments.

    Supreme Court’s Observations and Ruling

    Zero Tolerance for Fake AI-Generated Precedents

    • The Court emphasized a zero-tolerance policy for producing, citing, or using AI-generated precedents without proper verification.
    • It declared that:
      1. Advocates citing such unverified AI-generated judgments commit misconduct.
      2. Judges relying on fake or hallucinated AI-generated material commit a serious lapse.
      3. Any decision influenced by such material is invalid and must be set aside, even if the fake material had only an indirect impact.

    Integrity in Judicial Decision-Making

    • The Court stressed the necessity of maintaining the sanctity and integrity of the adjudication process.
    • It clarified that while AI can be a valuable assistive tool, it must never replace human adjudication. AI should serve as “training wheels,” not as the “pilot” in judicial decision-making.

    Outcome of the Case

    • The Supreme Court set aside both the High Court’s order and the original penalty order.
    • The case was remanded for fresh adjudication by a different officer of the same rank.
    • The Court left it to the appointing authority to consider disciplinary action against the author of the flawed order.

    Broader Implications for the Legal System

    Responsible Use of AI in Courts

    • The judgment acknowledges the growing role of AI in legal research and court processes, referencing the Supreme Court’s draft Regulations for Use of Artificial Intelligence in Courts (2026).
    • However, it draws a clear line: AI-generated content must be rigorously verified before being used in legal arguments or judgments.

    Safeguarding Legal Integrity

    • The ruling serves as a warning to both the Bar and the Bench against the uncritical adoption of AI-generated legal materials.
    • It reinforces the principle that the legitimacy of judicial decisions depends on the authenticity and accuracy of the sources relied upon.

    Conclusion

    The Vijay Ghanshyam Gadiya judgment is a pivotal moment in the intersection of law and technology in India. It sets a strong precedent for the responsible use of AI in the legal system, ensuring that technological advancements do not compromise the integrity of judicial decision-making. Legal professionals and courts must exercise due diligence and uphold the highest standards of verification when engaging with AI-generated content.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Source: Supreme Court

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Gujarat High Court on RERA Jurisdiction, Completed Projects, and Scope of Adjudicating Officer’s Powers

    Gujarat High Court on RERA Jurisdiction, Completed Projects, and Scope of Adjudicating Officer’s Powers

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 05.09.2026

    Gujarat High Court on RERA Jurisdiction, Completed Projects, and Scope of Adjudicating Officer’s Powers

    This Short Article has been prepared & written by Advocate Narendra Singh. The views expressed are based on his interpretation of the law. He can be reached at his email id amitnaren@outlook.com .  

    A recent judgment by the Gujarat High Court in the case of Hiren Sureshbhai Patel vs. State of Gujarat has clarified crucial aspects of the Real Estate (Regulation & Development) Act, 2016 (RERA), particularly regarding the jurisdiction of RERA authorities and the rights of homebuyers and promoters. This article provides a detailed analysis of the case, its background, legal arguments, and the implications for real estate stakeholders.

    Background of the Case

    • Project: Landmark Harmony, a residential complex of 120 flats developed by Landmark Probuild Pvt. Ltd. in Gandhinagar, Gujarat.
    • Parties:
      • Petitioner: Hiren Sureshbhai Patel, Director of Landmark Probuild Pvt. Ltd.
      • Respondent No. 3: Shyamsundar Ghasitasingh Karhana (homebuyer)
    • Dispute:
      • An agreement to sell (Banakhat) was entered in 2014 between the company and the respondent and his wife.
      • The respondent failed to pay the full consideration amount.
      • Initially, a consumer complaint was filed and later withdrawn; subsequently, a complaint was filed before the RERA Adjudicating Officer seeking compensation for non-delivery of the flat.

    Key Legal Issues Raised

    1. Jurisdiction of RERA Authorities:
      • Whether the RERA Adjudicating Officer had the authority to order possession of the flat and compensation, especially when the project had received a completion certificate before RERA came into force.
    2. Proper Parties to the Complaint:
      • The complaint before RERA was filed only against the Director, not the company or the co-signatory (wife), raising issues of mis-joinder and non-joinder of necessary parties.
    3. Scope of Relief under RERA:
      • Whether the Adjudicating Officer could grant relief beyond compensation, such as ordering possession, under Section 71 of the Act.

    Court’s Analysis and Findings

    1. Applicability of RERA to Completed Projects

    • Completion Certificate Pre-RERA:
      • The project received its completion certificate on 27.09.2016, before RERA’s commencement on 01.05.2017.
      • Section 3(2)(b) of RERA exempts such projects from registration and the Act’s rigors.
      • The Court cited the Bombay High Court’s Neelkamal Realtors and Supreme Court’s New Tech Promoters decisions, confirming that RERA does not apply to projects completed before its enforcement.

    2. Jurisdiction and Powers of the Adjudicating Officer

    • Limited to Compensation:
      • Section 71 of RERA restricts the Adjudicating Officer’s powers to adjudging compensation for violations under Sections 12, 14, 18, and 19.
      • Reliefs like possession or specific performance must be sought before the Regulatory Authority, not the Adjudicating Officer.
      • The complaint format (Form-B) and rules reinforce this separation of powers.

    3. Defective Complaint Due to Mis-joinder/Non-joinder

    • Necessary Parties Not Included:
      • The original agreement involved both the respondent and his wife as buyers and the company as seller.
      • The RERA complaint was filed only against the Director, omitting the company and the wife, making the complaint defective.

    4. Change in Relief Sought

    • Consumer Forum vs. RERA:
      • The respondent initially sought withdrawal and refund before the Consumer Forum, but later sought compensation and possession before RERA.
      • The Court held that the scope of relief cannot be expanded in this manner, especially when the Adjudicating Officer lacks jurisdiction for possession orders.

    Final Judgment

    • The High Court quashed the RERA Adjudicating Officer’s order, holding it was beyond jurisdiction and based on a defective complaint.
    • The petition by the Director was allowed, and the impugned order was set aside.

    Key Takeaways for Real Estate Stakeholders

    1. RERA’s Applicability:
      • Projects with completion certificates before 01.05.2017 are not subject to RERA’s registration or its dispute resolution mechanisms.
    2. Jurisdictional Clarity:
      • The Adjudicating Officer under RERA can only award compensation, not order possession or specific performance.
      • Reliefs like possession must be sought before the Regulatory Authority, following the correct procedure and forms.
    3. Proper Party Inclusion:
      • Complaints must include all necessary parties as per the original agreement to avoid dismissal on technical grounds.
    4. Consistency in Relief Sought:
      • Applicants cannot change the nature of relief sought across different forums without following due process.

    Conclusion

    This judgment reinforces the importance of understanding the scope and limitations of RERA, both for homebuyers and developers. It highlights the need for precise legal strategy, correct party inclusion, and adherence to procedural requirements when seeking remedies in real estate disputes. The decision also provides clarity on the non-applicability of RERA to completed projects and the distinct roles of the Adjudicating Officer and Regulatory Authority.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Source: Gujarat High Court

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  • Bombay High Court on Rejection of Suit for Joint Ownership of Common Amenities

    Bombay High Court on Rejection of Suit for Joint Ownership of Common Amenities

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 05.09.2026

    Bombay High Court on Rejection of Suit for Joint Ownership of Common Amenities

    This Short Article has been prepared & written by Advocate Madhumita Jha. The views expressed are based on her interpretation of the law. She can be reached at her email id jhamadhumita27@gmail.com .  

    A recent judgment by the Bombay High Court has brought clarity to the rights of cooperative housing societies regarding common amenities and conveyance of property in large residential layouts. The case, involving Laxmi Charitable Trust and several cooperative societies, revolved around the ownership and use of recreation grounds and internal roads within a multi-plot layout in Andheri, Mumbai.

    Background of the Dispute

    The plaintiffs, three cooperative housing societies, filed a suit seeking joint ownership and conveyance of common amenitiesβ€”specifically, recreation grounds (RG) and internal access roadsβ€”under the Maharashtra Ownership Flats Act (MOFA) and its Rules. The societies had already secured deemed conveyance of their respective plots (A, B, and C) but claimed further rights over RGs and roads situated on plots D, E, and F, which were owned by educational trusts.

    The defendants, including Laxmi Charitable Trust and Mathuradas Vissanji Female Education Trust, challenged the suit, arguing that:

    • The trusts acquired ownership of plots D and E before MOFA came into force.
    • The trusts were not promoters under MOFA and had no statutory obligation to convey land to the societies.
    • The suit was based on non-existent legal provisions and lacked a valid cause of action.

    Key Legal Issues

    1. Cause of Action: Did the societies have a legal basis to claim joint ownership and conveyance of common amenities on plots not owned by them?
    2. Applicability of MOFA: Could MOFA obligations be enforced against trusts that acquired property before the Act’s commencement and were not promoters?
    3. Validity of Cited Rules: The plaintiffs relied on sub-rules (2) and (3) of Rule 9 of the MOF Rules, which, as the Court found, do not exist.
    4. Interpretation of Layout Conditions: Did the sanctioned layout and municipal conditions mandate joint ownership or only maintenance of RGs?

    Court’s Analysis and Findings

    1. Ownership and Timing

    • The trusts acquired plots D and E in 1962 and 1963, before MOFA became applicable in Mumbai (1964).
    • The societies admitted in their pleadings that the trusts were the owners of these plots prior to MOFA.

    2. No Statutory Obligation for Conveyance

    • The trusts were not promoters under MOFA and thus had no statutory duty to convey land or amenities to the societies.
    • The plaintiffs’ reliance on non-existent sub-rules of Rule 9 was unfounded; Rule 9 only prescribes the period for conveyance, not the obligation to convey common amenities in the manner claimed.

    3. Misinterpretation of Layout and FSI

    • The sanctioned layout required maintenance of RGs but did not mandate joint ownership for the entire layout.
    • Each society’s building plans and FSI (Floor Space Index) calculations were plot-specific, not based on the entire layout.
    • The plaintiffs’ claims that RGs and FSI were shared across all plots were contradicted by the sanctioned plans and municipal records.

    4. Vexatious Litigation and Lack of Cause of Action

    • The Court found that the suit was based on false premises and clever drafting, creating an illusion of a cause of action where none existed.
    • The suit was deemed vexatious and an abuse of the judicial process, as it sought to claim playgrounds used by schools and colleges for the societies’ benefit.

    Final Judgment

    • The Bombay High Court set aside the City Civil Court’s order and allowed the revision applications filed by the trusts and Wallace Flour Mills Co. Ltd.
    • The plaint in L.C. Suit No. 3712 of 2017 was rejected under Order VII Rule 11 of the Code of Civil Procedure for not disclosing a cause of action.
    • The suit was dismissed, and all interim applications were disposed of.

    Key Takeaways for Housing Societies and Trusts

    1. Statutory Rights Must Be Clearly Established: Societies must base their claims on existing statutory provisions and not on imagined or non-existent rules.
    2. Ownership and Timing Matter: Rights under MOFA cannot be enforced against parties who acquired property before the Act’s commencement and are not promoters.
    3. Layout Conditions Are Binding: Maintenance obligations in sanctioned layouts do not automatically confer ownership rights over common amenities.
    4. Courts Will Dismiss Vexatious Suits: The judiciary will not entertain cleverly drafted suits that lack real substance or are contrary to documentary evidence.

    Conclusion

    This judgment reinforces the importance of clear legal foundations for property claims and the need for societies to carefully examine statutory provisions and documentary evidence before initiating litigation. It also protects educational trusts and similar entities from unwarranted claims over their properties by neighboring societies.

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    Source: Bombay High Court

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  • Kerala High Court Clarifies Mandatory Compliance with Section 42 NDPS Act for Searches of Private Vehicles at Night: Bail Granted for Procedural Lapses in Narcotics

    Kerala High Court Clarifies Mandatory Compliance with Section 42 NDPS Act for Searches of Private Vehicles at Night: Bail Granted for Procedural Lapses in Narcotics

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 05.09.2026

    Kerala High Court Clarifies Mandatory Compliance with Section 42 NDPS Act for Searches of Private Vehicles at Night: Bail Granted for Procedural Lapses in Narcotics

    This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .  

    A recent order by the Kerala High Court, delivered by Honourable Dr. Justice Kauser Edappagath on June 22, 2026, has significant implications for bail applications under the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act). The order addresses the procedural requirements for search and seizure in narcotics cases, especially when conducted in private vehicles at public places between sunset and sunrise.

    Background of the Case

    The order pertains to two bail applications:

    1. Bail Appl. No. 2849 of 2026: Filed by Muhammed Sahal, accused in Crime No. 60/2025 of Malappuram Excise Range Office.
    2. Bail Appl. No. 2650 of 2026: Filed by Akshay Saju and Revins Raj, accused in Crime No. 111/2026 of Peechi Police Station, Thrissur.

    All applicants were charged under Section 22(c) of the NDPS Act for alleged possession of narcotic drugs in commercial quantities and had been in judicial custody for several months.

    Core Legal Issue

    The central question was whether the search and seizure of narcotics from private vehicles, conducted between sunset and sunrise based on prior information, complied with the mandatory procedural safeguards under Section 42 of the NDPS Act. The applicants argued that the authorities failed to obtain a warrant or properly record and forward the grounds of belief as required by law, thus vitiating the search and entitling them to bail.

    Legal Provisions Discussed

    Section 42 NDPS Act

    • Governs search, seizure, and arrest without warrant in buildings, conveyances, or enclosed places based on prior information.
    • Requires the officer to record information in writing and, if the search is between sunset and sunrise, to record and forward the grounds of belief to a superior within 72 hours.

    Section 43 NDPS Act

    • Applies to search and seizure in public places or in transit.
    • Does not require the same procedural safeguards as Section 42 for searches in public places.

    Judicial Reasoning

    • The Court clarified that private vehicles, even when located in public places, are considered private places for the purpose of Section 42.
    • Supreme Court precedents (e.g., Boota Singh v. State of Haryana, Jagraj Singh v. State of Rajasthan) were cited, affirming that compliance with Section 42 is mandatory for searches of private vehicles in public places, especially between sunset and sunrise.
    • In both cases, the officers failed to provide adequate grounds of belief justifying the absence of a warrant, as required by the proviso to Section 42(1).
    • The documents labeled as “grounds of belief” did not contain the statutory satisfaction that obtaining a warrant would have led to concealment of evidence or escape of offenders.

    Outcome and Bail Conditions

    Given the total non-compliance with Section 42, the Court granted bail to the applicants, subject to strict conditions:

    1. Execution of a bond for Rs. 1,00,000 with two solvent sureties.
    2. Full cooperation with the investigation.
    3. Mandatory weekly appearance before the investigating officer.
    4. No commission of similar offences while on bail.
    5. No contact with prosecution witnesses or tampering with evidence.
    6. No travel outside Kerala without court permission.
    7. Any application for modification or cancellation of bail conditions to be filed in the jurisdictional court.

    Significance of the Order

    • Reinforces procedural safeguards: The order underscores the importance of strict compliance with Section 42 of the NDPS Act, especially in cases involving private vehicles.
    • Sets precedent for future cases: The decision provides clear guidance for law enforcement and the judiciary on the distinction between public and private places under the NDPS Act.
    • Protects individual rights: By insisting on adherence to statutory procedures, the Court ensures that the rights of the accused are protected against unlawful search and seizure.

    Conclusion

    This Kerala High Court order is a landmark in the interpretation of procedural requirements under the NDPS Act. It highlights the judiciary’s role in upholding the rule of law and ensuring that investigative agencies strictly follow legal mandates, especially in serious offences involving narcotics.

    Connected Matter

    Supreme Court Clarifies Applicability of Section 42 NDPS Act

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    Source: Kerala High Court

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Judicial Review of Arbitral Awards and the Public Policy Doctrine

    Judicial Review of Arbitral Awards and the Public Policy Doctrine

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 05.09.2026

    Judicial Review of Arbitral Awards and the Public Policy Doctrine

    This Short Article has been prepared & written by Arbitrator Shobhit Mallik. The views expressed are based on his interpretation of the law. He can be reached at his email id shobhit.Ica23@gmail.com .

    The Supreme Court of India’s decision in Associate Builders vs. Delhi Development Authority is a pivotal judgment in the field of arbitration law. This case addresses the scope of judicial intervention in arbitral awards, the application of public policy, and the standards for setting aside such awards under the Arbitration and Conciliation Act, 1996.

    Background of the Dispute

    • Parties Involved: Associate Builders (contractor) and Delhi Development Authority (DDA).
    • Project: Construction of 168 Middle Income Group and 56 Lower Income Group houses in Trilok Puri, Delhi.
    • Contract Value: Rs. 87,66,678/-
    • Stipulated Completion: 9 months; Actual Completion: 34 months (25 months delay).
    • Claims: The contractor raised 15 claims due to delays, damages, and additional costs, with the dispute referred to arbitration.

    Key Claims in Dispute

    The Supreme Court focused on the following claims:

    1. Hire Charges for Centering and Shuttering (Claims 9 & 10): Due to delays caused by DDA, the contractor incurred extra hire charges.
    2. Damages for Tools, Plants, and Scaffolding (Claim 11): Prolonged contract led to additional expenses.
    3. Establishment Expenses (Claim 15): Overhead costs due to extended project duration.
    4. Damages for Price Escalation (Claims 12 & 13): Compensation for increased costs of materials and labor during the delay.

    Arbitration and Court Proceedings

    • Arbitrator’s Award: The arbitrator found the delay entirely attributable to DDA and awarded Rs. 23.39 lakhs out of the total claim of Rs. 37.28 lakhs.
    • Single Judge (Delhi High Court): Upheld the arbitrator’s award, dismissing DDA’s objections.
    • Division Bench (Delhi High Court): Set aside several claims, reduced the awarded amount, and criticized the arbitrator’s use of standard formulas for calculating damages.

    Supreme Court’s Analysis

    Grounds for Setting Aside Arbitral Awards

    The Court clarified that under Section 34 of the Arbitration and Conciliation Act, an arbitral award can only be set aside on limited grounds:

    • Incapacity of a party
    • Invalid arbitration agreement
    • Lack of proper notice or inability to present the case
    • Award beyond the scope of arbitration
    • Composition or procedure not as per agreement
    • Conflict with public policy of India

    Public Policy and Patent Illegality

    The Court elaborated on what constitutes β€œpublic policy of India,” including:

    • Fundamental policy of Indian law
    • Interest of India
    • Justice or morality
    • Patent illegality (must go to the root of the matter)

    Judicial Approach to Arbitral Awards

    • Courts should not act as appellate bodies over arbitral awards.
    • Errors of fact or law by the arbitrator are not grounds for setting aside unless they fall within the specific grounds under Section 34.
    • The arbitrator is the final judge of evidence and contract interpretation unless the decision is perverse or shocks the conscience of the court.

    Application to the Present Case

    • The Supreme Court found that the Division Bench exceeded its jurisdiction by re-evaluating evidence and substituting its own reasoning for that of the arbitrator.
    • The arbitrator’s use of standard industry formulas (like Hudson’s formula) for calculating damages was within his domain.
    • The Division Bench’s approach of β€œrough and ready justice” was inappropriate under the Arbitration Act.
    • The claims were not overlapping, and the arbitrator had properly considered the evidence and contract terms.

    Final Judgment and Impact

    • Supreme Court Decision: Restored the arbitrator’s award and the Single Judge’s judgment, setting aside the Division Bench’s order.
    • Significance:
      • Reinforces the limited scope of judicial intervention in arbitral awards.
      • Clarifies the interpretation of β€œpublic policy” and β€œpatent illegality.”
      • Affirms the arbitrator’s authority in assessing evidence and applying industry standards.

    Conclusion

    The Associate Builders vs. DDA judgment is a cornerstone for arbitration law in India. It strengthens the autonomy of arbitral tribunals, limits court interference, and provides clear guidance on the grounds for setting aside arbitral awards. This decision is essential reading for legal professionals, contractors, and parties involved in construction and commercial arbitration.

    Connected Matter

    Bombay High Court’s Analysis of Arbitral Award Challenge under Section 34 of the Arbitration and Conciliation Act, 1996 in a Cotton Supply Dispute

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    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Source: Supreme Court

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