The courts in India saw a lot of action in 2023, especially since it was the first year of this decade without the threat of the COVID-19 pandemic. From determining the limitations of free speech for legislators to penalising X (formerly Twitter) for non-compliance and protecting the personality traits of a Bollywood star, Indian courts have done it all.
The year also saw the apex court hold a bench of the National Company Law Appellate Tribunal (NCLAT) guilty of contempt for flouting its orders.
Moneycontrol takes a look at the interesting developments in courts across India in 2023.
January - No restriction on free speech for MP/MLAs
Days after the Supreme Court reopened after the winter break in 2023, it ruled that additional restrictions on freedom of speech cannot be imposed on the Members of Parliament (MPs) and the Members of Legislative Assembly (MLAs), even though they hold sway with the public.
The court ruled that the right to freedom of speech and the restrictions can be exercised not only against the state but also against non-state actors. The bench held that statements made by a minister about government affairs cannot be held against the government. The issue has its genesis in a speech made by Samajwadi Party legislator Azam Khan criticising a rape victim in 2016.
February - Victoria Gowri’s elevation as a judge
In February 2023, the appointment of lawyer Victoria Gowri as a judge of Madras High Court created a controversy over allegations of her giving ‘hate speeches’ against minorities in her capacity as a worker of the Bharatiya Janata Party (BJP). Her swearing-in ceremony was announced despite lawyers writing against her elevation.
The issue reached the SC hours before her swearing-in, and the SC rejected the plea, clearing her way for judgeship merely minutes before the swearing-in could happen. The SC held that the collegium would have considered all the materials about Gowri, and it would not be possible to re-examine them at this stage.
March - Adani-Hindenburg row
Pursuant to short-seller Hindenburg publishing a report making various allegations against the Adani group, the SC received a flurry of public interest litigations (PILs) on the subject. The SC directed the Securities and Exchange Board of India (SEBI) to look into the issue and constituted a panel led by retired SC judge Abhay Manohar Sapre to look into the existing regulations and decide how they could be enhanced to protect investor wealth. The committee submitted a report in May 2023. However, the SC is now looking into what other aspects could be looked into.
April - SC says no to sealed covers
The usual practice in the courts in India is that when one party refers to a document while arguing, the opposing party has the right to have access to the documents. However, when confidential and sensitive documents are to be shared with the court, they are submitted in a sealed cover without giving copies of the document to the opposing party.
In April 2023, the SC decisively deprecated the practice of sealed cover in order to enhance transparency in court proceedings. The SC held that sealed cover proceedings infringe the principles of natural and open justice.
May - SC can grant divorce when there is irretrievable damage to marriage
In May 2023, a five-judge bench of the Supreme Court held that it could dissolve a marriage on the grounds of irretrievable breakdown without referring the couple to a family court. This decision will prevent the protracted delays often seen in such cases. The bench also said that the waiting period of six months after marriage to apply for divorce under the Hindu Marriage Act can be done away with if both parties consent to it.
June - Karnataka HC fines X (formerly Twitter) for non-compliance
In June 2023, the Karnataka High Court imposed a fine of Rs 50 lakh on X (formerly Twitter) for not complying with the government’s takedown orders. The court also dismissed X's plea challenging the government’s order to block some accounts, saying the Elon Musk-owned company’s petition was devoid of merit. The case is currently pending before a division bench of the HC. In August 2023, the penalty was stayed subject the company depositing Rs. 25 lakh with the registry.
July - Coffee Day Global admitted to insolvency
In a surprising move, the National Company Law Tribunal (NCLT) in Bengaluru admitted Coffee Day Global Ltd (CDGL), which owns and operates the popular chain Cafe Coffee Day (CCD), to initiate a Corporate Insolvency Resolution Process (CIRP). The order was passed in a plea by IndusInd Bank over a default of Rs 94 crore. The insolvency plea was withdrawn, and the matter finally came to an end in September after the parties settled.
August - Supreme Court summons SpiceJet supremo Ajay Singh
Low-cost airline SpiceJet and Swiss Bank Credit Suisse have been involved in a legal tussle over loan repayment. The issue reached SC, where it moderated a settlement between the two warring parties and set a payment schedule. However, when SpiceJet did not comply with the schedule, Singh was summoned to court. Though SpiceJet has more or less regularised its payment, the court has yet to dispense with Singh’s presence.
September - Anil Kapoor’s Jhakaas order
In September 2023, the Delhi High Court protected Bollywood star Anil Kapoor’s personality rights by restraining 16 entities from unauthorisedly using his name, likeness, voice, image, or any other aspect of his personality for commercial purposes. The court also restrained these entities from using the term ‘jhakaas’ in the manner Kapoor says it.
October - NCLAT members held guilty of contempt
In October 2023, the apex court pulled up a bench of the NCLAT for passing an order despite explicitly asking them not to do so. A judicial member and a technical member were summoned to the court, where they were declared guilty of contempt of court. However, it did not punish them for the same. In the aftermath of these proceedings, the judicial member resigned.
November - SC pulls up Punjab for not stopping crop burning
While hearing a petition on pollution in Delhi, the Supreme Court pulled up Punjab for not doing enough to curtail crop burning, a major contributor to Delhi’s bad air. The court also ordered the cabinet secretary to hold a meeting with the chief secretaries of Delhi’s adjoining states to discuss measures to immediately curtail pollution.
December - Nominees can’t claim ownership of shares/debentures
In December 2023, the SC ruled that people named as nominees in share/debenture certificates cannot claim ownership of these instruments after the lifetime of the owner. The court held that the inheritance or the succession of these instruments will be determined by the contents of the deceased's will or as per the succession laws. Succession in India is determined either by a will written by the owner or by laws such as the Hindu Succession Act or the Indian Succession Act.
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