Browsing: Legal Judgment

The Supreme Court has ruled that speculative investors cannot use Section 7 of the Insolvency and Bankruptcy Code (IBC) to initiate insolvency proceedings against real estate developers. Affirming the National Company Law Appellate Tribunal’s decision, a Bench of Justices J.B. Pardiwala and R. Mahadevan held that the IBC’s objective is to revive distressed companies and protect genuine homebuyers, not speculative actors seeking assured returns. The Court identified indicators of speculation such as buyback clauses, refusal of possession, high-interest refund demands, and deviations from the RERA Model Agreement, directing such investors to approach RERA, consumer fora, or civil courts instead.

The Supreme Court on Friday declined to entertain a writ petition filed under Article 32 seeking restoration of a blocked WhatsApp account, holding that there is no fundamental right to use the messaging app. A bench of Justices Vikram Nath and Sandeep Mehta questioned the maintainability of the plea and suggested users could opt for indigenous alternatives such as Arattai by Zoho. The petitioner, a doctor who relied on WhatsApp professionally, later withdrew the plea, with liberty to pursue civil or other legal remedies, amid wider discussions on digital platform accountability and user rights in India.

In a landmark ruling on September 3, 2025, the Supreme Court in Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari directed that when motor accident claimants cannot prove income, insurance companies must furnish applicable minimum wage notifications to tribunals. The bench of Justices Sanjay Karol and Prashant Kumar Mishra enhanced compensation for an 8-year-old Gujarat boy with 90% disability from ₹8.65 lakh to ₹35.90 lakh, fixing his income at skilled worker minimum wages.

The Court held that minors cannot be treated as non-earning individuals, emphasizing compensation based on skilled worker wages, with additions for future prospects. Insurance companies now bear responsibility to present wage data in disputed claims. The judgment, circulated nationwide to all Motor Accident Claims Tribunals, ensures uniform application. This decision strengthens claimants’ rights, curbs arbitrary awards, and sets higher benchmarks for fair compensation in accident cases across India.