SC upholds legality of Justice Yashwant Varma in-house procedure

A bench of Justices Dipankar Datta and Augustine George Masih on 7 August 2025 have upheld the constitutionality of the in-house procedure in the Justice Yashwant Varma as having legality under Article 141 of the Constitution and Section 3(2) of the Judges (Protection) Act. A fire breakout at the bungalow of the petitioner Allahabad HC judge resulted in the detection of burned currency notes, which entailed a confidential investigation under the Supreme Court’s “In-house Procedure.”

The petitioner had challenged the procedural fairness of the investigation after the committee, having found substance in the allegations, recommended further action by an inquiry report. Mr. Kapil Sibal appearing for the petitioner called it a violation of Articles 14 and 21, considering the public release of the incriminating photograph/video footage. 

The Court referred to the precedent in the C. Ravichandran Iyer case and reaffirmed that the evolution of the law post the judgement has consistently upheld the in-house mechanism of discipline as self-regulation by this Court. The ruling in the Sub-Committee on Judicial Accountability cannot be read as limitation on the powers and responsibilities of the Chief Justice of India, especially in matters concerning internal judicial discipline and preservation of institutional integrity. The bench recognized that there is a constitutional silence on internal mechanisms but that does not prohibit judicial innovation that has stood the test of time. 

Questioning why the petitioner delayed from objecting to the publication of the photographs of video footage, the Court also mentioned that the same is not a procedural requirement nor is it proper. Though it does not give rise to any benefits to the petitioner at this stage. The Petitioner should not have waited for completion of the fact- finding inquiry set in motion by the CJI before challenging the footage. 

Section 3(1) of the Judges (Protection) Act, while Section 3(1) grants judges immunity from civil or criminal proceedings for acts done in the discharge of judicial functions. This immunity is subject to proceedings initiated by the Central Government, State Government, the Supreme Court, any High Court, or any other legally empowered authority under “any law for the time being in force.” as per Section 3(2) of the Act. The procedure stems from the scope of power defined in Article 141 of the Constitution. The in-house inquiry is itself not a removal mechanism but a preliminary fact-finding process, and the Parliament continues to have the intact and unfettered constitutional power for removal of a judge.

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Mental Incapacity in Contracts – Section 12 of ICA, 1872

The concept of mental incapacity plays a pivotal role in determining the validity of contracts under the Indian Contract Act, 1872 (ICA). Section 12 of the ICA specifies that a person is capable of contracting only if they can understand the terms and implications of the agreement. Mental incapacity, including temporary conditions like intoxication, can vitiate this capacity under certain conditions.

UNSOUNDNESS DUE TO ALCOHOL

CHACKO V. MAHADEVAN

    (Inadequate consideration though not invalid can be a ground to see whether consent was freely given- Sc.25)

    • P sold one cent of land to D for Rs.18,000 and another for Rs.1000 each.
    • P filed a suit to set aside the transaction alleging that he was given alcohol by D and it was under its influence that the document was signed.
    • Medical certificate showing that P was not of sound mind (MENTAL INCAPACITY) at the time of signing.
    • Res ipsa loquitor- One cent for 18,000 and then one for Rs.1000.
    • Sale deed quashed.

    SELF-INDUCED ALCOHOL CONSUMPTION

    S BASAVARAJ V. V.N ADILAKSHMAMMA

    • D borrowed money from P and refused to reply on the ground that he was of unsound mind while entering into the contract.
    • The medical certificate was generic in nature and failed to address the mental capacity at the time of making the contract.
    • The court would be extremely cautious when a person brings himself in a position of alcohol addiction and then claims to be of unsound mind.
    • Even those suffering from long term addiction would have lucid breaks where they can enter into contracts.
    • AVOIDANCE OF CONTRACT IS NOT ONLY EXCEPTIONAL BUT GRANTED ONLY IN THE RAREST OF RARE CASES.
    • Lack of conclusive proof; Appeal fails.

      COMMON LAW POSITION ON MENTAL INCAPACITY

      THE IMPERIAL LOAN COMPANY LTD. V. STONE –

      • D signed a promissory note and it was later claimed that he was of unsound mind while executing it. D claimed that P knew of it when entering into the contract.
      • Insanity will lead to a contract becoming void when
      • The person was of unsound mind when entering into the contract.
      • This was known to the plaintiff while entering into the contract (Not applicable in India).

        MENTAL INCAPACITY

        CHARANJITH SINGH V. CHATTRANJA.N PAL

        • Plaintiff was alleged to be of unsound mind and filed a suit(through his brother) claiming possession of property which had been transferred via a sale deed.
        • D claimed that the deed was signed in the presence of P’s father and was valid.
        • Conclusive medical certificate of incapacity produced. Once the party establishes mental incapacity, then onus shifts to the other to prove that he was mentally sound while entering the contract.
        • The presence of father does not validate a contract otherwise invalid of mental incapacity.

          NILIMA GHOSE CASE

          1. Appellant could not prove that she was of unsound mind at the time of entertain into the contract.
          2. U/s 12 of ICA, unsoundness of mind would vitiate the capacity of a party to enter into a contract only if the party was of unsound mind, (i.e., incapable of forming a rational judgment as to the effects of the contract upon himself/herself) AT THE TIME OF THE MAKING OF THE CONTRACT – proving general unsoundness is insufficient.

          Conclusion

          Courts examine claims of mental incapacity with strict scrutiny. While contracts can be voided for incapacity, the burden of proof lies heavily on the claimant to establish incapacity at the time of agreement. This legal stance safeguards fairness in commercial dealings while preventing misuse of such defenses.


          Read – Hussainara Khatoon & Ors. v. Home Secretary, State of Bihar

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