State has power to increase royalty and dead rent rates during the subsistence of a mining lease.

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The Supreme Court of India upheld the State’s power to increase royalty and dead rent rates during the subsistence of a mining lease. The Court ruled that mining leases are statutory grants governed by the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) and the relevant rules, meaning the State’s power to revise rates under these statutes is an implied condition of the lease, even if not explicitly stated in the deed. Additionally, the Court held that the decision to enhance these rates was valid, as it was approved by the Chief Minister and did not violate the Rules of Business of the Government of Haryana, 1977.

1. Background and Issues

The dispute involved mining lessees challenging a 2005 notification by the State of Haryana that increased royalty and dead rent rates. The lessees argued that:

  • The lease deeds did not contain a provision for rate revision, making the enhancement invalid.
  • The enhancement was arbitrary and lacked a rational basis.
  • The notification violated the Rules of Business of the Government of Haryana, 1977, due to a lack of concurrence from the Council of Ministers and the Finance Department.

The High Court had previously ruled in favor of the lessees, leading to the State’s appeals.

2. Analysis and Findings

The Supreme Court addressed the issues as follows:

  • Statutory Power to Revise Rates: The Court determined that a mining lease is a statutory grant rather than a purely private contract. Consequently, the State cannot contract away its statutory power to regulate mines and minerals in the public interest. The liability to pay royalty and dead rent is governed by the MMDR Act and the 1964 Rules, which allow for periodic revisions, making these revisions an implied condition of the lease.
  • Arbitrariness and Material: The Court found the enhancement was not arbitrary. It noted that the revision occurred after more than five years, stayed within reasonable limits, and was based on the State’s assessment of revenue needs and mineral value.
  • Rules of Business: Regarding the contention that the Rules of Business were violated, the Court distinguished this case from MRF Limited v. Manohar Parrikar. Because the decision was approved by the Chief Minister (who heads the Council of Ministers), it satisfied the constitutional requirement for collective responsibility. Furthermore, in the absence of evidence that the Finance Minister disagreed with the decision, the Court found there was “deemed consent” from the Finance Department.

3. Final Order

The Supreme Court allowed the State’s appeals, setting aside the High Court’s judgment. The Court directed that the respondents pay the arrears of royalty and dead rent, with interest on such arrears limited to 12% per annum.

2026 INSC 690

State of Haryana & Ors. vs. M/s Faridabad Gurgaon Minerals & Anr. (D.O.J. 13.07.2026)

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Supreme Court Acquits Appellant in the Absence of Corroborating Circumstances Beyond Last Seen Theory

August 5, 2026 No Comments

In this criminal appeal, the Supreme Court addressed whether a conviction for murder can be sustained solely on the basis of a weak “last seen” theory without any other corroborating incriminating circumstances. The appellant, who was the son-in-law of PW1, was convicted alongside other co-accused based on testimonies of witnesses including PWs 1 to 4, some of whom were initially declared hostile before turning to implicate the accused. Although the appellant had already been released on remission, he pursued the appeal seeking a clean acquittal. The Supreme Court allowed the appeal and set aside the conviction, holding that the testimonies regarding the last seen theory did not inspire confidence and that a conviction cannot rest merely on the last seen theory in the complete absence of other incriminating evidence.

  • Unreliable Testimony: The testimonies of witnesses (PW1 to PW4), some of whom were initially declared hostile before alleging assault by PW1’s husband and the appellant, failed to inspire judicial confidence.
  • Limitation of the Last Seen Theory: A conviction cannot be based solely on the last seen theory without any other supporting incriminating circumstances.
  • Acquittal Granted: The Supreme Court set aside the judgments of the lower courts and granted a clear acquittal to the appellant, directing the cancellation of any bonds executed for earlier remission releases.

2026 INSC 780

Munu Sen v. The State of Chhattisgarh (D.O.J. 29.07.2026)

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Proving Adultery at the Threshold: Supreme Court Rules on Interim Maintenance and Private Investigation Evidence

August 5, 2026 No Comments

In this criminal appeal, the Supreme Court examined whether a husband’s application under Section 125(4) of the Code of Criminal Procedure, 1973 (CrPC) alleging adultery by the wife can be deferred until the final adjudication of the main maintenance proceedings, or if it must be considered at the threshold when determining interim maintenance. The appellant-husband had opposed interim maintenance by presenting electronic evidence (photographs and videos) indicating an adulterous relationship, but the lower courts dismissed his application on the grounds that such allegations could only be proved during final trial. The Supreme Court allowed the appeal, set aside the High Court’s order, and remanded the matter to the Trial Court. The Court held that if a husband presents clear, cogent, and ex-facie evidence at the threshold establishing adultery, interim maintenance can be barred or suspended, and such applications cannot be routinely postponed to the final judgment. Additionally, the Supreme Court highlighted the legal lacuna surrounding unregulated private detective agencies and directed that a copy of the judgment be forwarded to the Ministry of Law and Justice and the Law Commission of India for appropriate legislative consideration.

  • Nature and Object of Section 125 CrPC: Proceedings under Section 125 CrPC are summary and civil in nature, designed to prevent vagrancy, destitution, and neglect by ensuring a dignified life for dependents through social justice.
  • Bar Under Section 125(4) CrPC: Section 125(4) acts as an exception, explicitly barring a wife from receiving maintenance (interim or final) if she is living in adultery, refuses to live with her husband without sufficient reason, or lives separately by mutual consent.
  • Timing of Section 125(4) Adjudication: An application under Section 125(4) does not have to wait until the final conclusion of the main petition. If the husband produces ex-facie, clear evidence establishing adultery or mutual consent at the threshold, interim maintenance is impacted; if evidence requires formal proof, interim maintenance continues in the interregnum until the Section 125(4) application is decided.
  • Evidentiary Standard for Electronic Records: Evidence procured through private investigators (such as digital photographs and videos) must satisfy strict admissibility and verification standards, including compliance with Section 65B of the Indian Evidence Act / Bharatiya Sakshya Adhiniyam (BSA) and the foundational tests of relevancy and accuracy.
  • Need for Regulation of Private Investigators: Acknowledging the absence of statutory regulation for private detective agencies in India, the Supreme Court directed the Ministry of Law and Justice and the Law Commission of India to examine the framework for regulating private investigators, balancing evidence collection with privacy and data protection rights.

2026 INSC 778

Himanshu Chordia v. State of Rajasthan & Anr. (D.O.J. 31.07.2026)

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Supreme Court Bars Late-Stage Counter-Claim Court Fee Deposit After Conclusion of Evidence

August 5, 2026 No Comments

In this civil appeal, the Supreme Court examined the legality of an order permitting a defendant to pay court fees on a counter-claim with a delay of four years, specifically after the entire evidence in the suit had been closed. When the written statement and counter-claim were initially filed, the defendant did not pay the required court fees due to financial constraints, and only the written statement was taken on record, leaving the counter-claim non-existent. Years later, after the plaintiff’s evidence and the cross-examination of PW1 concluded, the trial court permitted the defendant to deposit the court fees and prosecute the counter-claim. The Supreme Court allowed the appeal and set aside the orders of the High Court and Trial Court, holding that since the counter-claim was never formally on record and the trial had already concluded, introducing it at that belated stage violated the strict parameters of Order VI Rule 17 of the Civil Procedure Code, 1908 (CPC), as no due diligence or foundational grounds were established.

  • Non-Existence of Counter-Claim Without Court Fees/Taking on Record: Where a defendant fails to pay court fees upon raising a counter-claim and explicitly requests the court to take only the written statement on record due to lack of financial capacity, the counter-claim does not legally exist on record.
  • Limits of Section 149 CPC: While Section 149 CPC grants courts the discretionary authority to allow the payment of deficient court fees at any stage of the suit, it presupposes that the pleading or claim itself is validly and properly on record.
  • Application of Order VI Rule 17 CPC Post-Trial: Introducing a counter-claim after the conclusion of trial amounts to an amendment of the pleadings. Under the proviso to Order VI Rule 17 CPC, such amendments post-commencement of trial are barred unless the party proves that, despite due diligence, they could not have raised the matter earlier.
  • Prejudice to the Plaintiff: Permitting a counter-claim after the entire evidence is closed causes severe prejudice, as the plaintiff has had no opportunity to adduce evidence to controvert the new claims.
  • Final Direction of the Supreme Court: The Supreme Court allowed the appeal, set aside the High Court’s affirmation of the trial court’s order, and directed that the suit shall proceed and be adjudicated strictly without the counter-claim.

2026 INSC 777

IJM Corporation Berhad v. M/s Lakshmi Sai Constructions Company and Anr. (D.O.J. 28.07.2026)

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Navigating Discretionary Equity: Supreme Court Restores Trial Court Decree Denying Specific Performance

August 5, 2026 No Comments

In this civil appeal arising from a property transaction spanning over two decades, the Supreme Court examined the limits of appellate interference with the discretionary and equitable relief of specific performance under Section 20 of the Specific Relief Act, 1963. The sole appellant (original defendant) had entered into an agreement to sell a property in Udhagamandalam for ₹2,25,00,000, but the transaction collapsed amid allegations of bounced cheques, mutual lack of candor, inconsistent pleadings, and criminal complaints. While the trial court decreed only a refund of the advance amount of ₹85,00,000 with interest, the High Court reversed it and granted specific performance. The Supreme Court allowed the appeals, set aside the High Court’s judgment, and restored the trial court’s decree. It held that the plaintiffs failed to prove continuous readiness and willingness, approached the court with unclean hands due to retaliatory criminal proceedings, took contradictory stances regarding property assignment, and that the long passage of time combined with the advanced age of the appellant rendered specific performance inequitable.

  • Scope of Order XLI Rule 22 CPC: A respondent supporting a decree can impugn an adverse finding without filing cross-objections, provided they seek no relief beyond what the decree already grants.
  • Maintainability Without Declaration: Where an agreement does not confer a contractual right of unilateral termination, such termination amounts to repudiation, and the aggrieved party may sue for specific performance without seeking a separate declaratory relief as to the invalidity of the cancellation.
  • Continuous Readiness and Willingness: The plaintiff in a specific performance suit must prove continuous readiness and availability of funds from the date of the agreement up to the date of the decree. Dishonour of advance cheques and absence of concrete fund-raising material at the time of the suit demonstrate a lack of continuous financial readiness.
  • Conduct and “Clean Hands” Principle: Specific performance is an equitable and discretionary remedy. Plaintiffs who adopt contradictory stands across litigation (such as blowing hot and cold regarding assignment of rights) and file retaliatory criminal complaints seeking recovery of money rather than upholding the contract are not entitled to equitable relief.
  • Hardship and Delay: An inordinate lapse of time (over two decades), coupled with the advanced age of the vendor and the death of a key plaintiff, constitutes severe hardship and makes specific performance inequitable, warranting the restoration of the trial court’s alternative remedy of refund with interest.

2026 INSC 776

V.N.A.S. Chandran v. S. Venila and Others (D.O.J. 31.07.2026)

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