Karnataka HC Strikes Down National Security Cess on Pan Masala Machines

The Karnataka High Court struck down the Health Security cess Act on pan masala manufacturers as violating Article 14, though it upheld Parliament’s power to levy such cess. Justice M Nagaprasanna found the cess—based on assumed machine capacity of 500 pouches/minute rather than actual production—arbitrary, since no machine matches that presumed output. The Rules’ 15-day suspension threshold for exemption was also held unreasonable. (Case: Dhariwal Industries v. Union of India)

Supreme Court Quashes POCSO Case Against Aunt in Matrimonial Fallout

The Supreme Court quashed a POCSO case against a woman accused of sexually assaulting her five-year-old nephew, calling it a counterblast to a separate case against the child’s maternal uncle. The Court criticized the Bombay High Court for refusing to quash the FIR without examining the Section 164 CrPC statement, which showed no assault occurred. It reiterated that in-laws are routinely dragged into matrimonial disputes, with children used as pawns. (Case: SLP CRL.2163/2026)

“Wrong Statement” Isn’t “False Statement”: SC Quashes Section 340 CrPC Proceedings

The Supreme Court quashed Section 340 CrPC prosecution against a litigant and counsel, clarifying that a “wrong statement” doesn’t equal a “false statement,” which requires deliberate intent to deceive. Citing Iqbal Singh Marwah, the Court held courts must record that prosecution is “expedient in the interests of justice”—a finding absent here. The High Court had also impermissibly upgraded the trial court’s findings on appeal without basis.

Supreme Court Sets Aside NI Act Conviction Over Visibly Altered Cheque

The Supreme Court set aside a Section 138 NI Act conviction after finding a cheque had been visibly altered from Rs 10,000 to Rs 1,10,000. Justices Sanjay Kumar and Sanjeev Sachdeva held that when alteration is patently clear on the cheque’s face, courts need not demand further proof. Both the Trial Court and Karnataka High Court had erred in accepting the altered amount despite the apparent tampering. (Case: Rajasab v. Hulagappa, 2026)

Patna HC Upholds Two-Year Blacklisting of ORS Supplier Over Quality Failure

The Patna High Court upheld BMSICL’s two-year blacklisting of a pharmaceutical company after seven ORS batches supplied to Patna, Purnia, and Muzaffarpur government warehouses failed quality tests. Acting Chief Justice Sudhir Singh and Justice Rajesh Kumar Verma held that public health interests override commercial claims, and that Article 226 courts cannot sit in appeal over expert quality assessments or contractually agreed procurement safeguards absent arbitrariness or mala fide.

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Editorial Note: This article has been reviewed by the LegalRath Editorial Team to ensure legal accuracy, editorial quality, and clarity before publication.