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Recovery: Lump-sum amount granted as Full and Final

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The petitioners challenged the concurrent findings of the Trial Court and the Madhya Pradesh High Court, which had decreed a 1998 suit in favor of the Respondent (Madhya Pradesh Electricity Board) for the recovery of outstanding hire charges, depreciation value, and ongoing monthly compensation for two hired tractor trailers, while dismissing the petitioners’ counter-claim.

Without conducting a detailed re-appreciation of the facts, the Supreme Court exercised its equitable jurisdiction to bring a three-decade-old litigation to a quietus. The Court modified the decree by fixing the final lump-sum liability at ₹62,00,000 as full and final satisfaction of the Respondent’s claims, directing the release of the accumulated amounts already deposited by the petitioners across the different court registries.

1. Factual Background

On April 22, 1992, the Madhya Pradesh Electricity Board (the plaintiff) entered into a hire contract with M/s Shivhare Roadlines Pvt. Ltd. (the defendants). Under this agreement, two tractor trailers belonging to the plaintiff were hired out to the defendants:

  • One tractor trailer had a capacity of 100 metric tonnes at a monthly hire rate of ₹55,000.
  • The second tractor trailer had a capacity of 50 metric tonnes at a monthly hire rate of ₹35,000.

While the defendants initially paid the hire charges regularly, they stopped making payments from June 1994, asserting that they were providing services directly to the plaintiff and were entitled to a waiver. Due to non-payment of the outstanding hire dues, the plaintiff filed a recovery suit on August 1, 1998.

The defendants denied the claims and filed a counter-claim worth ₹73,19,372 for unpaid transportation bills, which the plaintiff opposed. Evidence led before the Trial Court revealed that the tractors were manufactured in America (1982) and the trailers in India (1979). Crucially, the fitness certificates for the vehicles had expired in 1991 and 1992, and the plaintiff had not renewed them because it intended to sell the fleet on an “as is where is basis”.

2. Lower Courts’ Adjudication

  • Trial Court (Judgment dated July 30, 2011): Decreed the suit in favor of the plaintiff. It ordered the defendants to pay the depreciated value of the vehicles (₹23,02,932.28), outstanding rent (₹23,56,752) with 6% interest per annum, and monthly compensation of ₹90,000 with 6% interest from the date of the suit until the return of the vehicles. The defendants’ counter-claim was dismissed as time-barred.
  • High Court of Madhya Pradesh: The defendants filed a first appeal under Section 96 of the Code of Civil Procedure, 1908. The Single Judge re-considered the matter, upheld the Trial Court’s decree, and dismissed the appeal.

3. Supreme Court’s Analysis and Mediation Attempt

Aggrieved by the High Court’s affirmation, the petitioners approached the Supreme Court. Upon issuing notice, the Supreme Court directed the parties to attempt a resolution via mediation and ordered the defendants to deposit ₹20,00,000 to stay execution of the decree.

Although the mediation process ultimately failed, the Senior Advocates representing both sides agreed to submit to an equitable order from the Court to permanently put an end to the protracted legal battle.

The Bench took note of several critical factors:

  • The vintage of the vehicles (manufactured in 1979 and 1982) and the long-expired fitness certificates.
  • The fact that the litigation had dragged on for nearly 30 years.
  • The total amounts already secured during the appellate stages. Specifically, the defendants had deposited ₹12,00,000 before the High Court, ₹20,00,000 with the Supreme Court registry on February 27, 2026, and an additional ₹30,00,000 pursuant to a subsequent apex court order dated April 30, 2026.

4. Final Order and Relief

The Supreme Court concluded that the interests of justice would be fully met by awarding a consolidated sum of ₹62,00,000 to the plaintiff to completely wrap up the dispute.

The Special Leave Petition was disposed of with the following operational directives:

  1. The plaintiff (Respondent) is held entitled to a total amount of ₹62,00,000 towards full satisfaction of the Trial Court’s decree in Civil Suit No. 6-B/2006.
  2. The Respondent is permitted to withdraw the ₹12,00,000 (along with any accrued interest) currently lying in deposit with the Madhya Pradesh High Court in First Appeal No. 893 of 2011.
  3. The Registry of the Supreme Court is directed to release the remaining ₹50,00,000 (along with accrued interest) in favor of the Respondent.
  4. Each party was left to bear their own costs.

2026 INSC 556

M/S Shivhare Roadlines Pvt. Ltd. And Anr.   V. Madhya Pradesh Electricity Board (D.O.J. 26.05.2026)

2026 INSC 556 click here to view full text of judgment

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Arbitration: Withdrawal of Petition Following Bank Guarantee Expiry

August 15, 2026 No Comments

This commercial miscellaneous petition (O.M.P.(I) (COMM.) 319/2026) was filed under the Arbitration and Conciliation Act, 1996, by the petitioner, D C Ajmera, against the National Highways and Infrastructure Development Corporation Limited (NHIDCL) and the Bank of Maharashtra. During the proceedings, counsel for the respondent bank explicitly stated that the original bank guarantee had expired without being invoked within the stipulated period and therefore could not be encashed. In light of this submission, the petitioner sought and was granted leave to withdraw the petition, resulting in the matter being dismissed as withdrawn by the High Court of Delhi.

  • Procedural Context: The matter came up for hearing before the High Court of Delhi on August 12, 2026, under the coram of Hon’ble Mr. Justice Om Prakash Shukla.
  • Bank’s Submission: Respondent No. 2 (Bank of Maharashtra), through its counsel Mr. Santosh Kumar Rout, informed the court that the original bank guarantee in question was never invoked within its stipulated validity period and had since expired, rendering its encashment legally impossible.
  • Petitioner’s Stance: Acknowledging the submission made by the bank regarding the expiration and un-invoked status of the guarantee, the Senior Counsel for the petitioner sought permission from the court to withdraw the present petition.
  • Final Order: Accepting the petitioner’s request, the High Court dismissed the petition as withdrawn, along with the accompanying interlocutory applications (I.A. 20903/2026 and I.A. 20904/2026).

2026 DHC 6570

D C Ajmera v. National Highways and Infrastructure Development Corporation Limited & Anr. (D.O.J. 12.08.2026)

2026 DHC 6570 click here to view full text of judgment

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Grant of Regular Bail to Alleged Drug Syndicate Kingpin Due to Lack of Direct Evidence and Protracted Delay

August 15, 2026 No Comments

This regular bail application was filed under the NDPS Act by the applicant, who was arrested on July 24, 2025, at Cochin Airport via a Look Out Circular (LoC) and accused by the Narcotics Control Bureau (NCB) of being the kingpin of an international drug cartel. The High Court of Delhi allowed the bail application, noting that no contraband was recovered from the applicant, the primary evidence against him consisted of co-accused disclosure statements, telephonic records lacked intercepted proof, and bank transactions were consistent with a legitimate spice business. Furthermore, the court considered the fact that charges had not even been framed yet and co-accused individuals had already been released on bail.

  • Factual Background:
    • Following a 2021 raid where the NCB recovered charas and methamphetamine from a parcel service and various co-accused residences, the applicant was implicated based on disclosure statements alleging he directed the booking as a cartel kingpin.
    • An LoC was issued, and he was apprehended at Cochin Airport on July 24, 2025.
  • Arguments of the Applicant:
    • The applicant maintained his innocence, stating he had been in custody since July 2025 without legally admissible evidence.
    • It was explained that his financial transactions with co-accused individuals were related to his legitimate spice trade business, and the original 2021 complaint did not implicate him.
  • Arguments of the Respondent (NCB):
    • The NCB contended that the applicant was an absconder against whom an LoC had to be executed.
    • They argued that apart from disclosure statements, there was evidence of telephonic connectivity and money transactions between the applicant and co-accused parties.
  • High Court’s Analysis and Findings:
    • Weakness of Evidence: The court observed that no incriminating substances were recovered from the applicant. Furthermore, simple call detail records without intercepted conversations do not prove criminal complicity, and minor bank transfers do not inherently suggest contraband financing.
    • Delayed Action by Authorities: The court noted that although the initial complaint was filed in 2021, little was done to formally summon or investigate the applicant until the LoC was issued in July 2025.
    • Parity and Trial Status: Given that charges were still pending framing and co-accused persons (such as Paschal) had already been granted bail, the court found no justification to continue the applicant’s incarceration.
  • Final Directions:
    • The bail application was allowed.
    • The applicant was ordered to be released on regular bail upon furnishing a personal bond of Rs. 1,00,000/- with one surety in the like amount to the satisfaction of the trial court.

2026 DHC 6565

Nafi Nazar v. Narcotics Control Bureau (D.O.J. 12.08.2026)

2026 DHC 6565 click here to view full text of judgment

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Grant of Regular Bail to Foreign National Under NDPS Act Due to Protracted Trial Delay

August 15, 2026 No Comments

This criminal bail application was filed under the NDPS Act seeking regular bail by a foreign national detained since December 8, 2021, for alleged possession of intermediate and commercial quantities of narcotics (60 grams of cocaine and 55 grams of methamphetamine). The High Court of Delhi allowed the application and granted regular bail primarily on the ground of inordinate trial delay, noting that only 8 out of 22 prosecution witnesses had been examined over a prolonged period and the end of the trial was nowhere in sight. To address concerns regarding his status as a foreign national with an expired visa, the court directed that his custody be handed over directly to the Foreigners Regional Registration Office (FRRO) upon release.

  • Factual and Procedural Background:
    • The applicant/accused sought regular bail in connection with a complaint case registered by PS NCB Delhi for offenses under Sections 8(c), 20(b), 21(b), 22(c), 23, 25, and 29 of the NDPS Act.
    • The applicant had been incarcerated since December 8, 2021. An earlier bail application (Bail Application No. 1950/2025) was dismissed by the bench on May 20, 2025.
  • Core Grounds for Bail:
    • The primary ground pressed by the applicant’s counsel was the severe delay in the progress of the trial.
    • It was pointed out that when the previous bail application was dismissed, 7 out of 22 prosecution witnesses had been examined, and even after more than a year, only 1 additional witness had been examined, bringing the total to just 8 out of 22 witnesses examined.
  • Respondent NCB’s Stance:
    • The NCB did not dispute the slow pace of the trial.
    • However, opposing the bail, the NCB requested that the trial court instead be directed to expedite the trial, highlighting the added risk because the applicant is a foreign national.
  • High Court’s Observations and Findings:
    • Prolonged Incarceration: The court observed that despite diligence by the trial court, the reality remained that the applicant had been in custody for over four and a half years and the trial’s conclusion was not in sight.
    • Addressing Flight Risk of Foreign Nationals: To mitigate the NCB’s apprehension regarding his foreign nationality and expired visa, the court structured the bail release conditional upon transferring his custody directly to the FRRO.
  • Final Directions:
    • The bail application was allowed.
    • The applicant was ordered to be released on regular bail upon furnishing a personal bond of Rs. 1,00,000/- with one surety in the like amount to the satisfaction of the trial court, subject to his immediate custody handover to the FRRO.

2026 DHC 6561

Paschal Obinna Nwagbaoso v. Narcotic Control Bureau (D.O.J. 12.08.2026)

2026 DHC 6561 click here to view full text of judgment

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Grant of Regular Bail on Grounds of Parity in Money Laundering Case

August 15, 2026 No Comments

This judgment resolves two regular bail applications (BAIL APPLN. 2363/2026 and BAIL APPLN. 2382/2026) filed under the Prevention of Money Laundering Act (PMLA) arising from case ECIR/DLZO-II/03/2024. The High Court of Delhi accepted the Directorate of Enforcement’s concession that co-accused persons had already been granted bail and that the said orders remained unchallenged, thereby extending regular bail to the petitioners Tushar Chauhan and Akshay Kumar on grounds of parity.

  • Factual Background: The applicants, Tushar Chauhan and Akshay Kumar, sought regular bail in connection with an ECIR registered by the Directorate of Enforcement (DoE) under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002.
  • Respondent’s Stance: At the very outset of the hearing, the counsel appearing for the Directorate of Enforcement conceded that several co-accused persons—namely Pravez Khan, Suraj Shat, Neeraj Chauhan, Rajesh Kumar, and Lovee Narula—had already been granted bail by the High Court, and that those orders had not been challenged by the DoE. Consequently, the DoE submitted that the present applicants could also be granted regular bail on the principle of parity.
  • High Court’s Directions and Conditions:
    • Considering the factual and legal matrix established in the prior bail orders of the co-accused, the High Court allowed both bail applications.
    • The applicants were directed to be released on regular bail upon furnishing a personal bond of Rs. 1,00,000/- each, along with one surety in the like amount to the satisfaction of the trial court.
    • A specific condition was imposed restricting the applicants from leaving India without prior permission from the trial court.
    • A copy of the order was ordered to be transmitted immediately to the concerned Jail Superintendent for execution.

2026 DHC 6560

Tushar Chauhan v. Directorate of Enforcement (D.O.J. 12.08.2026)

2026 DHC 6560 click here to view full text of judgment

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