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Union Budget 2024: Sectors and Stocks Poised to Benefit from Fiscal Policies

Axis Securities anticipates that the upcoming Union Budget 2024 will strike a balance between capital expenditure (capex) and addressing rural challenges, buoyed by a higher-than-expected RBI dividend

The brokerage suggests that any deviation from market expectations, particularly concerning capital gains tax, could trigger short-term negative reactions in the stock market.

Key sectors and stocks likely to benefit from Budget 2024 announcements include:

BFSI:

The budget is expected to emphasize capital expenditure, with a focus on power and renewable energy sectors. Potential privatization of certain PSU banks may also be announced. Beneficiaries could include SBI, Bank of Baroda, Canara Bank, HDFC Bank, and ICICI Bank.

Infrastructure:

Focus is anticipated on key segments such as roads, railways, airports, and urban infrastructure. Companies like KNR Constructions, PNC Infratech, RITES, KEC International, J Kumar Infraprojects, and Ahluwalia Contracts are poised to benefit from increased allocations to infrastructure projects.

Cement:

Increased funding for rural infrastructure development and government schemes like PM Gram Sadak Yojna are expected to boost cement consumption. Companies like UltraTech Cement, Ambuja Cements, Dalmia Bharat, JK Cement, JK Lakshmi, and Birla Corp could benefit.

Auto & Auto Ancillary:

Rural-focused two-wheeler and entry-level four-wheeler makers, along with auto ancillary companies, are likely to benefit. Mahindra & Mahindra, Hero MotoCorp, Minda Corp, Sansera Engineering, Servotech Power, and Bosch are highlighted as potential beneficiaries.

Utilities & Power Ancillary:

The sector anticipates reductions in GST on renewable energy components and custom duties on imported components. Stocks such as NTPC Ltd, CESC Ltd, Tata Power Ltd, JSW Energy Ltd, Inox Wind, Suzlon Energy Ltd, Sterling & Wilson Renewable Energy, Power Grid, and Jyoti Structures could gain from budgetary allocations.

Real Estate:

Expectations are for initiatives related to PMAY-HFA and digital infrastructure enhancement. Companies like Prestige Estates, Macrotech Developers, Godrej Properties, MICL, and TARC are seen as favorable picks.

The brokerage underscores the importance of a sustainable roadmap in the PLI space, particularly for MSMEs, and anticipates supportive measures for the transition to sustainable energy sources.

Source: Business Today

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INDIA Alliance Triumphs in By-Elections, Securing 10 Out of 13 Assembly Seats

The Opposition INDIA alliance has triumphed in the by-elections for 13 Assembly seats across seven states, securing 10 seats while the BJP, fresh off its third consecutive term after the Lok Sabha polls, won just two

The INDIA bloc, comprising parties like Congress, Trinamool Congress (TMC), AAP, and Dravida Munnetra Kazhagam (DMK), fielded candidates in the bypolls held on Wednesday in Punjab, Himachal Pradesh, Uttarakhand, West Bengal, Madhya Pradesh, Bihar, and Tamil Nadu.

In Punjab, AAP’s Mohinder Bhagat secured the Jalandhar West seat with a lead of over 23,000 votes. In West Bengal, TMC candidates won all four contested seats. In Himachal Pradesh, Chief Minister Sukhvinder Singh Sukhu’s wife, Kamlesh Thakur, won the Dehra seat in her electoral debut, while Congress also claimed the Nalagarh seat. BJP’s Ashish Sharma, however, emerged victorious in Hamirpur.

The TMC’s candidates in West Bengal defeated their BJP rivals by substantial margins to claim four seats. In Tamil Nadu, DMK’s Anniyur Siva won the Vikravandi seat with a near 60,000 vote lead. Congress candidates clinched both the Badrinath and Manglaur seats in Uttarakhand, while in Madhya Pradesh, BJP’s Kamslesh Pratap Shahi won the Amarwar seat.

Vote counting for the 13 legislative assembly seats began on Saturday morning following Wednesday’s voting. These bypolls were the first since the 2024 Lok Sabha elections, where the BJP won 240 seats—32 short of the majority—but the NDA managed to surpass the halfway mark with a total of 293 seats. The Congress-led INDIA bloc secured 232 seats.

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Supreme Court Affirms Central Information Commission’s Authority to Form Benches, Frame Regulations, and Establish Committees

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Supreme Court Upholds CIC’s Powers to Manage Operations, Frame Rules, and Form Committees

The Supreme Court has clarified that the Central Information Commission (CIC) possesses the authority to manage its operations through the formation of benches, creation of regulations, and establishment of external committees, as outlined under the RTI Act.

In a recent landmark decision, the Supreme Court of India upheld the CIC’s broad powers to organize its functions and maintain its independence under the Right to Information Act (RTI Act). The ruling came from a case involving the Delhi Development Authority (DDA), which challenged the CIC’s authority to summon its officials and form committees to review DDA’s operations.

Key Points from the Supreme Court Ruling:

  • Autonomy of the CIC: The Court emphasized that the independence of administrative bodies like the CIC is crucial for them to effectively perform their specialized tasks. The Court rejected any arguments that sought to limit the CIC’s powers or intervene in its administrative functions, stating that such actions would undermine the integrity and efficiency of these bodies.
  • Inherent Powers Under RTI Act: The Court noted that while the RTI Act does not explicitly grant the CIC the power to frame regulations, Section 12(4) of the Act inherently provides the CIC with the authority to manage its own affairs. This includes forming benches, issuing orders, and creating regulations necessary for the Commission’s effective functioning.
  • Importance of Internal Management: The Court recognized that the ability to establish procedures, frame regulations, and form committees is essential for the CIC to manage its workload and uphold the citizens’ right to information. The Court affirmed that these powers are instrumental in ensuring the Commission’s operations are carried out in a fair and efficient manner.
  • Historical Context: The Court’s decision also addressed and overturned a previous Delhi High Court judgment from May 2010 that had restricted the Chief Information Commissioner’s powers under Section 12(4). The High Court had previously ruled that such powers did not extend to forming benches or issuing regulations, a position that the Supreme Court has now reversed.
  • Broader Implications: By affirming the CIC’s authority to manage its functions autonomously, the Supreme Court reinforced the principle that administrative bodies must operate without undue external interference. This independence is vital for upholding transparency and accountability as envisioned under the RTI Act.

The Supreme Court’s verdict marks a significant reinforcement of the CIC’s role and powers, ensuring it can effectively discharge its duties in line with the RTI Act’s objectives.

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Justice P Somarajan Bids Farewell to Kerala High Court, Leaving Legacy of Record Case Disposals

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Kerala High Court Honours Justice P Somarajan for Record-Setting Tenure and Commitment to Justice

Kerala High Court judge, Justice P Somarajan, bid farewell to the High Court on Friday, his last working day before demitting office on Saturday, July 13.

In his farewell speech at the full court reference held in his honor, Justice Somarajan highlighted his record-setting case disposal achievements during his tenure.

“I have the enviable distinction of a record disposal of second appeals in India,” he stated, emphasizing his role in ensuring the speedy resolution of longstanding cases.

Justice Somarajan detailed his efforts over nearly eight years to expedite case resolutions, including cases that had been pending for decades. Notably, he mentioned disposing of a case filed on the day of his birth, underscoring the historical significance of his tenure.

“I ensured the speedy disposal of almost all old civil appeals, including second appeals ranging from 10 to 65 years old during my stint,” he said. He humbly acknowledged his achievements, viewing them as part of his duty rather than seeking applause.

Expressing gratitude to the Bar and the Bench for their support, Justice Somarajan acknowledged the personal sacrifices required of a judge and thanked his family for their unwavering support.

Acting Chief Justice A Muhamed Mustaque, Additional Advocate General Ashok M Cherian, and President of the Kerala High Court Advocates’ Association Yeshwant Shenoy also spoke at the event, praising Justice Somarajan’s integrity, impartiality, and commitment to justice.

Born on July 14, 1962, in Kollam, Justice Somarajan graduated from SN College and earned his law degree from Government Law College, Thiruvananthapuram. He began his judicial career as a District & Sessions Judge in 2001 and served in various significant roles before being elevated to the Kerala High Court as an Additional Judge in 2016. He was confirmed as a permanent judge in 2018.

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Talaq Pronouncement Alone Insufficient to End Marriage or Avoid Maintenance: Jammu and Kashmir High Court

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Jammu and Kashmir High Court Emphasizes Necessary Conditions for Valid Talaq Pronouncement

The Jammu and Kashmir High Court recently ruled that the mere pronouncement of “Talaak” or “Talaq” (a form of divorce in Islamic law) three times by a husband is insufficient to dissolve a Muslim marriage or evade maintenance obligations towards one’s wife.

Justice Vinod Chatterji Koul emphasized that for a Talaak pronouncement to be valid, several specific conditions must be met, including pronouncing Talaak at specified intervals, doing so in the presence of witnesses, and making sincere efforts at reconciliation.

“For making divorce (Talaak) valid, it is not enough that it is pronounced in presence of two witnesses. The witnesses must be endued with justice as the purpose is to ensure that the witnesses, prompted by their sense of justice, may request and persuade the spouses on the verge of separation to calm down, resolve their disputes and lead a peaceful marital life,” the Court said.

Justice Koul referred to the High Court’s 2012 ruling in *Mohammad Naseem Bhat v. Bilquees Akhter and another* to support this position. He elaborated that a husband attempting to avoid maintenance obligations by claiming divorce must prove several key points:

– Efforts by representatives of both husband and wife to reconcile were unsuccessful.
– There was a valid reason and genuine case for the divorce.
– Talaak was pronounced in the presence of two just witnesses.
– Talaak was pronounced during a period of *tuhr* (between two menstrual cycles) without indulging in sexual intercourse with the wife during this period.

The Court stated, “It is only after the husband pleads and proves all the above ingredients that divorce-Talaak would operate and marriage between the parties would stand dissolved so as to enable husband to escape obligations under the marriage contract, including one to maintain his wife. The Court in all such cases would give a hard look to the case projected by the husband and insist on strict proof.”

The High Court was dealing with a case where an estranged wife had initially secured an ex-parte maintenance order in 2009. This was challenged by the husband and remitted back to a trial court in 2013. In February 2018, the trial court ruled in favor of the husband, finding that the parties were no longer married. However, an additional sessions court overturned this order and mandated the husband to pay ₹3,000 monthly maintenance to the wife. The husband then challenged this decision in the High Court in 2018.

The petitioner clarified that he did not pronounce instant triple talaq, which was declared unconstitutional by the Supreme Court in the *Shayaro Bano* case. He also presented a *Talaknama* (divorce deed) to the Court. However, the Court found these arguments unconvincing.

“Petitioner has placed on record copy of Talaknama … penultimate paragraph thereof reveals that petitioner in order to put an end to the wedlock has made three pronouncements of Talak, thereby declaring that he has divorced her and relieved her out of the wedlock. According to the petitioner, he has conveyed Talaknama to respondent (wife). It may be made clear that such a practice in law is deprecated,” the Court said.

The High Court determined that the man was rightly ordered to pay maintenance, noting that there were no proper reconciliation efforts made by the husband to resolve the marital discord. Consequently, it upheld the revision court’s judgment and dismissed the appeal.

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Patna High Court Grants CBI Custody of 13 Accused in NEET UG 2024 Paper Leak Case

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High Court Overturns Magistrate’s Order, Grants 15 Days Custody to CBI

A CBI Exclusive Magistrate had on July 2 rejected the CBI’s application seeking remand of the accused persons.

The Patna High Court on Friday permitted the Central Bureau of Investigation (CBI) to take custody of 13 individuals accused in a National Eligibility cum Entrance Test undergraduate (NEET-UG 2024) paper leak case [The Central Bureau of Investigation v. Nitish Kumar & Ors].

Justice Sandeep Kumar of the High Court acknowledged the seriousness of the case and stayed the CBI Exclusive Magistrate’s order that had earlier rejected the CBI’s application for remand.

“Considering the seriousness of the case and in the interest of justice, the operation of the order dated 02.07.2024 passed by the Exclusive Magistrate, C.B.I., Patna in F.I.R. No. RC.2212024E0006-CBI/EO-III/New Delhi shall remain stayed,” the Court stated in its July 12 order.

The Court granted the CBI fifteen days of custody of the accused individuals. It also instructed the Superintendent of the Jail, where the accused are currently detained, to hand them over to the CBI on July 12 without any delay.

Advocate Avanish Kumar Singh appeared for the CBI, while Advocate Jharkhandi Upadhyay represented the thirteen accused.

During a hearing before the Supreme Court on Thursday, the Central government and the National Testing Agency (NTA) stated that there was no need to cancel the NEET exam or hold a re-examination, as there was no evidence of large-scale breaches of confidentiality. The NTA informed the top court that no question paper was reported missing, and no breaches were found in Patna.

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Shishir Vayttaden Joins Khaitan & Co, Boosting Corporate and M&A Practice Alongside Two Partners from Cyril Amarchand Mangaldas

Leading law firm Khaitan & Co has announced the addition of Shishir Vayttaden, along with partners K Aishwarya and Aditi Singhvi, from rival Cyril Amarchand Mangaldas

They will join Khaitan & Co’s Corporate and M&A practice.

Vayttaden, a specialist in public and private M&A and private equity transactions, regularly serves as external counsel to several major private equity funds and Fortune 500 companies. A 2005 graduate of NLSIU Bengaluru, Vayttaden joined Amarchand Mangaldas Suresh A Shroff as a partner in 2014. After the firm’s split in 2015, he continued with Cyril Amarchand Mangaldas. Prior to that, he spent nearly nine years at Luthra & Luthra Law Offices.

He is also the author of a highly respected textbook on the Indian takeover code and a best-selling fiction author of “Kill the Lawyers.”

The official announcement from Khaitan & Co stated, “This move is part of our ambitious strategy to continue investing in growth, attract top talent, and reinforce our position as a leading law firm in the country. Recently, we boosted our employment practice with the addition of two key Partners in Bengaluru and Delhi. Earlier this year, we announced the opening of our Ahmedabad office with two Partner appointments, along with the expansion of our Mumbai office. Today, the firm has over 250 Partners and Counsel across offices in India and Singapore.”

Source: Moneycontrol

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Ananya Sharma Appointed Group General Counsel for JSW Group

Ananya Sharma Appointed Group General Counsel for JSW Group

Ananya Sharma, previously a Partner at AZB & Partners, has been appointed as the Group General Counsel of JSW Group

An alumnus of Symbiosis International University, graduating in 2007, Ananya has nearly 17 years of professional experience, with close to 16 years spent at AZB & Partners, including nearly nine years as a Partner.

Throughout her career, Ananya has overseen significant private equity transactions in India, specializing in areas such as Private Equity, Real Estate, Infrastructure, Venture Capital, Corporate Law, Defence, and M&A.

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Vivek Bajoria Joins Khaitan Legal Associates as Partner, Spearheads Logistics and Corporate Law Practice

Baker McKenzie Expands Global India Practice Steering Committee with 3 New Partners

Punjab & Haryana High Court Encourages Lawyers to Adapt to New Criminal Laws

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New Criminal Laws Enhance Confidence in Justice System

The Punjab and Haryana High Court recently highlighted the significance of new criminal laws in enhancing the Indian justice system, while also acknowledging potential challenges for those familiar with the old legal framework.

Justice Sumeet Goel emphasized that the enforcement of the Bharatiya Nagarik Suraksha Sanhita (BNSS), the Bharatiya Nyaya Sanhita (BNS), and the Bharatiya Sakshya Adhiniyam (BSA) represents a critical advancement in India’s judicial administration. He stated:

“The new legislations draw upon Indian Jurisprudence, infusing a renewed confidence in the justice system. The Indian laws have now been unburdened of colonial and imperial remnants, which were causing a slow and sure attrition upon the confidence of the Indian Justice System and impeding the actualization of its full potential.”

However, Justice Goel acknowledged that those well-versed in the old criminal laws and procedures might face difficulties adapting to the changes. He urged legal professionals to embrace these new legislations positively:

“Instead of giving way to cognitive dissonance and a tendency to fortify against changes, the spirit of the time demands veritable engagement with these new legislations.”

Justice Goel expressed optimism about the new laws’ potential to enhance prosecution processes and achieve a balance between the State, victims, and the accused. He stated that these laws would strengthen deterrence, justice, and the process of justice itself.

These observations were made while addressing a petition seeking the quashing of a First Information Report (FIR). The State challenged the petition’s maintainability since it was filed on July 3 under the Code of Criminal Procedure (CrPC) instead of the BNSS, which came into effect on July 1.

The Court analyzed the BNSS provisions and concluded that the CrPC immediately ceased to be valid when the new criminal procedure came into force. Justice Goel noted:

“The earlier procedural statute, namely CrPC, 1973, is wiped off the statute book and resultantly pales into insignificance except to the extent it is preserved by the repealing and savings clause contained in Section 531 of BNSS.”

The Court reached several key conclusions:

– Any appeal/application/revision/petition filed on or after July 1, 2024, under the CrPC, 1973, is non-maintainable and deserves dismissal/rejection.
– If any appeal/application/revision/petition filed up to June 30, 2024, has a defect and the defect is cured/removed on or after July 1, it will be deemed to have been validly filed on or after July 1 and thus be non-maintainable.
– Section 531 of BNSS applies to “revision,” “petition,” and “petition of complaint” (complaint before a magistrate) with the same force as it does to “appeal/application/trial/inquiry or investigation.”

Given these findings, the Court deemed the present petition filed under the CrPC to be non-maintainable and subsequently rejected it.

Advocate Ujwal Anand represented the petitioner, while Public Prosecutor Manish Bansal, Advocate Shubham Mangla, and Advocate Diksha Sharma represented the Union Territory of Chandigarh.

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Himachal Pradesh High Court: Continuous 7 Years’ Practice Not Required for District Judge Appointment

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Himachal Pradesh High Court Rules Continuous 7 Years’ Practice Not Necessary for District Judge Eligibility

The Himachal Pradesh High Court ruled on Thursday that an advocate does not need continuous seven years of practice to be eligible for appointment as an Additional District and Sessions Judge [Sandeep Sharma v. Hon’ble High Court of Himachal Pradesh and others].

A Division Bench comprising Chief Justice MS Ramachandra Rao and Justice Satyen Vaidya clarified that Rule 5(c) of the Himachal Pradesh Judicial Service Rules, 2004, only requires an advocate to have a minimum of seven years of experience on the last date fixed for the receipt of applications.

“There is no requirement that such practice as an Advocate must be continuous as on the date of making an application for the said post,” the Court stated.

The Court further emphasized that Article 233(2) of the Constitution, which provides for the appointment of advocates as district judges, “does not support the view” that the candidate’s seven-year experience must be continuous.

The Bench disagreed with a Delhi High Court decision that held the experience must be continuous and also distinguished the decisions of other High Courts on this matter.

This ruling came while hearing a petition challenging the selection of another candidate, Advocate Parveen Garg, who had tied with the petitioner, Sandeep Sharma, in the written examination.

Sharma argued that Garg could not have been appointed as Additional District and Sessions Judge last year because he did not have a continuous seven years of practice as an advocate, citing Garg’s employment as District Legal Officer and Civil Judge-II in Madhya Pradesh as a break in practice.

Additionally, it was noted that Garg had previously applied for the Delhi Higher Judicial Service Examination but was disqualified for not having continuous practice of seven years. This decision was upheld by the Delhi High Court.

The petitioner also contended that the “Note” below Clause (c) in Rule 5 of the Himachal Pradesh Judicial Service Rules, which allows the period during which an advocate held judicial office to be counted towards their experience, contradicts a Supreme Court decision.

However, the Court found no requirement for continuous seven years of practice for eligibility. It noted that Garg was in active practice from 2012 to 2015 and then from 2018 to 2022, cumulatively exceeding seven years of active practice, making him eligible under Rule 5 (c).

The Court agreed that the Supreme Court ruled that experience obtained in judicial service cannot be counted towards the requisite experience of advocacy. Consequently, it quashed the Note under Clause (c) of Rule 5 but upheld Garg’s appointment as Additional District Judge.

Senior Advocate Sanjeev Bhushan and Advocate Sohail Khan represented the petitioner. Senior Advocate JL Bhardwaj, along with Advocate Komal Chaudhary, represented the High Court. Deputy Advocate General Arsh Rattan represented the State, and Advocates Prateek Gupta, Praveen Chandel, and Ashwani Sharma represented the respondent.

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