Allied Laws

Ajay R. Singh

1. Acceptance of the offer must be communicated to constitutes a binding contract – Contract Act 1872 – S. 3 &7

The rights and obligations of the parties thereto become enforceable only on completion of the contract. Unless such a stage is reached, no valid contact can be said to have come into force. Acceptance of an offer must, therefore, be communicated. Communication of acceptance of offer is necessary. An internal noting does not constitute a communication.

National Textile Corporation (M.P.) Ltd. vs. M.R. Jadhav (2008) 7 SCC 29

2. Deficiency in service on part of university – Consumer Protection Act, 1986 – s. 2(1)(g)

A student was not allowed to appear in MA Part I Examination, since list of students sent by university did not contain his name. Thereby the student was declared failed in the said paper. It was held by the Commission that the university was deficient in service.

Guru Nanak Dev University vs. Angrej Lal. AIR 2008 (NOC) 1993 (NCC)

3. Deficiency in service by company/dealer supplying LPG Cylinders & regulators – Consumer Protection Act 1986 – s. 2(1)(g).

Death caused due to leakage from LPG Cylinder/regulator. The NCDRC held that it was duty of Indian Oil Corporation (IOC) to provide technical facilities to its consumers and periodically examine cylinder or regulator to find out its defects.

As the Indian Oil Company also did not ask its dealer to get the regulator and cylinder examined by any expert, the dealer and Indian Oil Corporation were held jointly and severally liable to pay compensation to the complainant.

Regional Manager IOC ltd Bhopal vs. Rakesh Kumar Prajpati & Ors AIR 2008 (NOC) 1988 (NCC)

4. Guarantor – Liability – State Financial Corporation Act, 1951 – s. 29 & 31

The liabilities of a surety or the guarantor to repay the loan of the principal debtor arises only when a default is made by the latter. The liability of a surety is made co-extensive with the liability of the principal debtor only by virtue of s. 128 of Contract Act. The rights and liabilities of a surety and the principal borrower otherwise are different and distinct.

Karnataka State Financial Corporation vs. N. Narasimahaiah & Ors. AIR 2008 Supreme Court 1797

5. Medical negligence – Consumer Protection Act, 1986 – s. 2(1)(g)

A consulting doctor cannot defend an apparent mistake in noticing a tumour on the basis of MRI film by contending that MRI was taken by resident doctor (Radiologist) despite the fact that the said report was endorsed by the consulting doctor by mentioning that the tumour was at D10-11 position outside the spinal cord.

The consulting doctor who signs the report is responsible for misreading or not reading /looking at the MRI film correctly. In such a case., it would be gross negligence. It is the duty of the consulting doctor to correct such errors.

A senior Consultant is not expected only to sign whatever the junior medical staff suggest. If that is so, there is no use of having Consultant in the Hospital.

The duty of the Consultant begins and ends with correct interpretation of report of the films and scan the images presented to the Consultant by the hospital. i.e. Technical and junior medical staff. This would mean that the Consultant is required to interpret the MRI film and not to merely sign without referring (reading) the same. Consultant is the expert in the field. If he/she commits mistake or error in interpreting, it is his/her responsibility or liability.

Bombay Hospital & Medical Research Center vs. Sharifabai Ismail Syed & Ors. AIR 2008 (NOC) 1991 (All.)

6. Non payment of Telephone charges by wife – Husband’s telephone can be disconnected – Telegraph Act – s. 7 and Rules 443

The appellant’s wife is a housewife who is living with the appellant at his residential premises at Delhi. The appellant’s wife had no independent source of income by doing some business or by some service etc. In these circumstances, it was inferred that the payment of the bill of the telephone line in the name of the appellant’s wife was being made by the appellant himself, since his wife had no independent source of income and was economically dependent on him.

Hence the telephone line in the name of the person who is really paying the bills in connection with the telephone line in the name of another person who is economically dependent on the former can be disconnected for non payment of bills in connection with the telephone line in the name of the latter.

Surjit Singh vs. Mahanagar Telephone Nigam Ltd. AIR 2008 SC 2226

7. Oral Partition of Joint family property is permissible and subsequent writing does not require registration or stamp duty – Hindu Law

Where document in respect of partition comes into existence after the oral partition has already taken place, it will neither require stamp nor registration. The partition deed would require registration and stamp duty only if interest is created in specific property by or under that document. If there is an oral partition, that oral partition itself creates interest in that specific property and not the document which comes into existence later. The document can be used for proving the severance of status.

Lilabai Chavan & Anr. vs. Deokabai Kadam & Anr. AIR 2008 (NOC) 2050 (Bom.)

8. Passport Renewal – Renewal of passport cannot be withheld indefinitely for want of police verification – Passport Act – Ss. 5, 6

On receipt of the application the Passport Authority is empowered to make such inquiry which he may consider necessary before issuance of a passport. It is because of such power of making inquiry the Passport Officer is entitled to seek Police verification report in regard to the antecedents of the person who has applied for the issuance of a passport. The purpose of such inquiry by the passport Authority is to enable himself to make up his mind as to whether the passport or travel documents should be issued or refused in the circumstances of each particular case.

Where complete police verification report has not been received within thirty days the Passport Authority is to take a decision by following instructions of Chief Passport Officer. Therefore, in no case the Passport Officer can withhold consideration of the question of issuance of passport or travel documents indefinitely and same shall be true about the cases of renewal or re-issue of passports or travel documents.

Anwar-ul-Haq vs. UOI & Ors. AIR 2008 Jammu and Kashmir 35

9. Rectification of Mistake – No finding on the decision cited by the appellant

The Hon’ble High Court observed that if in the opinion of the Tribunal, the judgments of the Tribunal on which the appellant was relying, were not relevant, the Tribunal could have said so in its judgment. The course adopted by the Tribunal, of even not referring to the judgments of the Tribunal of which the appellant was relying, is not proper. In view of the above the appeal was allowed by remanding the matter back to Tribunal.

Stanlek Engineering P. Ltd. vs. Commissioner of C. Ex. Mumbai 2008 (229) ELT 61 (Bom.)

10. Recovery Agents cannot resort to activities of using criminal force against card holders for recovery of dues – Banking Regulation Act, 1949

Recovery of any amounts due from customers of banks should be by method known to law or a fair practice of debit collection, which has approval of Reserve Bank of India, which enjoins the overall supervisory and monitoring power over all Banks in country. Taking notice of the criticism about the illegal methods being adopted by certain banks issuing credit cards for recovery of debts due under credit cards, Reserve Bank of India has issued certain guidelines to be adopted by all commercial banks issuing credit cards and which are employing recovery agents for collection of dues. It is categorically observed in guidelines that Banks or recovery agents should not resort to intimidation or harassment of any kind, either verbal or physical, against any person in their debt collection efforts, including acts intended to humiliate publicly or intrude privacy of credit card holders’ family members, referees and friends, making threatening and anonymous calls or making false and misleading representations. Therefore, Banks or recovery agents employed by them have to scrupulously follow the guidelines issued by Reserve Bank of India in matter from time to time and they cannot resort to activities of using criminal force against the card-holders for recovery of the amounts due.

B. V. S. P. Choudary vs. The Station House Officer Mahankali Police Station Secundrabad & Ors. AIR 2008 A.P. 147

11. Registration – Reconveyance deed not compulsorily registrable – Registration Act, 1908 – s. 17(1)(b)

Whether a non-testamentary document in respect of immovable properties is compulsorily registrable or not depends on the facts and circumstances and the terms of the document. No hard and fast rule can be laid down. The crucial test in each case is as to the nature of the document itself, if it does create a right, title or interest in itself, whether in present or in future, it is compulsory registrable under s. 17(1)(b). However, if by itself it does not create any right but visualizes creation or extinction of a right by some other document, then it falls squarely within the ambit of s. 17(2)(v) and, hence, not registrable.

Bhikkilal & Ors vs. Smt. Shanti Devi & Ors. AIR 2008 Rajasthan 128.