Supreme Court: G.R. Infra Projects Ltd. vs. The state of M.P. & Ors. [Civil Appeal No. 11277 of 2026]
The appellant contended that the SCN was barred by limitation under Section 73 and that it did not contain any specific allegations establishing fraud, wilful misstatement or suppression of facts, as required for invoking Section 74. The State sought to rely upon allegations elaborated in its counter-affidavit to justify invocation of Section 74.
The Supreme Court held that the limitation for issuing a notice under Section 73 had expired on 28.02.2025, whereas the SCN was issued on 13.06.2025. Further, the Court held that a notice invoking Section 74 must itself contain the material allegations and circumstances demonstrating fraud, wilful misstatement or suppression of facts. A mere mechanical reference to these expressions is insufficient, and deficiencies in the SCN cannot be supplemented or cured through a counter-affidavit filed before the Court.
Key Takeaway: Section 74 requires specific allegations of fraud, wilful misstatement or suppression in the SCN; mere bald assertions are insufficient.
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