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Non Signatories

Chloro Controls (I) P. Ltd v. Severn Trent Water Purification, (2013) 1 SCC 641

ISSUE:

Whether a non-signatory or third party can be subjected to arbitration without their consent in exceptional circumstances?

What is the ambit and scope of section 45 of the Arbitration and Conciliation Act 1996?

RULE:

The “Group of Companies” doctrine, was observed in this case for the first time in Indian legal history, and it stated that an arbitration agreement entered into by a company, being one within a group of companies, can bind its non- signatory affiliates or sister or parent concerns, if the circumstances demonstrate, that the mutual intention of all the parties was to bind both- the signatories and the non-signatory affiliates, while being in accordance with the Arbitration and Conciliation Act.

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Validity of Arbitration Agreements

Caravel Shipping Services Private Limited v. Premier Sea Foods Exim Private Limited, (2019) 11 SCC 461

ISSUE:

Whether an arbitration clause will not form a part of the Bill of Lading merely because it is formed in the annexure to the agreement?

Whether an arbitration clause is required to be signed by all parties in order for it to be binding on the parties?

RULE:

The arbitration clause in an annexure of an agreement is considered to be part of the main agreement based on the intention of the parties.

The only pre-requisite for valid arbitration agreement is it must be in writing as stated in Section 7(3) of the Arbitration and Conciliation Act, 1996. Signing by the parties is not necessary.

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Legislative Competence

Wallace Brothers & Co., Ltd. v. CIT, Bombay City and Bombay Suburban District (1948) 50 BOMLR 482

ISSUE:

Whether a Foreign company can be taxed in India under Indian laws?

Whether Sections 3,4, 4A, and 64 of the Indian Income-tax Act, 1922-1939, are valid by virtue of which there was made on the appellant company an assessment to income-tax on income which included income arising without British India?

Whether a particular Income-tax Officer have the jurisdiction to make that assessment?

RULE:

The general conception as to the scope of the legislative practice in the United Kingdom with regard to income tax is that given a sufficient territorial connection between the person sought to be charged and the country seeking to tax him income tax may properly extend to that person in respect of his foreign income. That general conception, both on a consideration of the British legislation and the Government of India Act, 1935, finds a place in the phrase “taxes on income” as used in that Act and the principle of sufficient territorial connection is implicit in the power conferred by the Government of India Act, 1935.

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Constitutional Emergencies

The State of Rajasthan v. Union of India AIR 1977 SC 1361

ISSUE:

Whether the Court can look into the validity of the proclamation made under Article 356 of the Constitution of India?

Whether, in the present case, the proclamation was unconstitutional?

RULE:

Article 356 of the Constitution of India says if the President, on receipt of a report from the Governor of a State or otherwise, is satisfied that a situation has arisen in which the Government of the State cannot be carried on by the provisions of this Constitution, the President may by proclamation assume to himself all or any of the functions of the Government of the State, declare that the powers of the Legislature of the State shall be exercisable by or under the authority of Parliament and make such incidental and consequential provisions as appear to the President to be necessary or desirable for giving effect to the objects of the proclamation.

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Legislative Competence

State of Bihar v. Charusila Dasi (1959) AIR 1002, (1959) SCR Supl. (2) 601

ISSUE:

Whether the Act extends to trust assets located outside of Bihar?

Can the Bihar legislature pass a legislation related to a trust located in Bihar and other assets belonging to the same trust that are located outside of Bihar?

RULE:

The Doctrine of Territorial Nexus argues that laws enacted by a state legislature are only effective inside the state's territorial boundaries unless there is a substantial connection between the Object and the State.

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Union and State

Shamsher Singh v. State of Punjab AIR 1974 SC 2192

ISSUE:

Can the Governor exercise discretion on appointing and removing members of the Subordinate Judicial Service?

Whether the constitutional requirement of the satisfaction of the President/Governor mean his satisfaction?

RULE:

The satisfaction required by the Constitution of India is not the personal satisfaction of the President or Governor but the satisfaction of the President or Governor in the constitutional sense in the Cabinet system of the Government, that is, the satisfaction of his Council of Ministers.

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Union and State

S.R. Chaudhuri v. State of Punjab AIR 2001 SC 2707

ISSUE:

Whether the appointment of Shri Tej Parkash Singh for a second time during the term of the same Legislature, without being elected as a Member of the Legislature, violative of the constitutional provisions?

RULE:

Article 164 (4) of the Constitution of India states that a Minister who for any period of six consecutive months is not a member of the Legislature of the State shall at the expiration of that period cease to be a Minister.

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Constitutional Emergencies

SR Bommai v. Union of India AIR 1994 SC 1918

ISSUE:

Whether the President’s rule imposed in the six states were constitutionally valid?

Whether the proclamations were amenable to judicial review?

Whether the fact that no floor test was conducted can be a ground to challenge the validity of the proclamation of the state of Karnataka?

RULE:

Article 356 of the Constitution of India says if the President, on receipt of a report from the Governor of a State or otherwise, is satisfied that a situation has arisen in which the Government of the State cannot be carried on by the provisions of this Constitution, the President may by proclamation assume to himself all or any of the functions of the Government of the State, declare that the powers of the Legislature of the State shall be exercisable by or under the authority of Parliament and make such incidental and consequential provisions as appear to the President to be necessary or desirable for giving effect to the objects of the proclamation.

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Union and State

S.P. Anand, Indore v. H.D. Deve Gowda AIR 1997 SC 272

ISSUE:

Whether a person who is not a member of either House of Parliament can be appointed as the Prime Minister of India?

RULE:

Article 75(5) of the Constitution of India permits the President of India to appoint a person who is not a member of either House of Parliament as a Minister, including a Prime Minister subject to the possibility of his commanding the support of the majority of members of the Lok Sabha.

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Union and State

R.K. Garg & Ors. v. Union of India & Ors. (1981) 4 SCC 675

ISSUE:

To what extent Article 14 of the Constitution of India renders the Ordinance and the Act to be extra vires?

Whether the President's promulgation of the Ordinance go beyond his authority granted by Article 123 of the Constitution of India?

Whether the classification made under the Bond Bearer Act, 1981 between the holders of black money and others is not practical, real, intelligible and not arbitrary, and irrational and therefore violative of the equal protection clause in Article 14 of the Constitution of India?

RULE:

The right to equality is enshrined in Article 14 of the Constitution of India. By its terms, discrimination of any kind is forbidden by law, and all people are treated equally.

Article 123 of the Constitution of India mentions the Ordinance-making power of the President. He can promulgate Ordinances either when both the houses or either of the Houses is not in session.

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