Calcutta High Court Flags Prima Facie Fraud In CIRP Against Alchemist Group, Seeks Reports From CBI, ED And SEBI

The Calcutta High Court recently directed the CBI, Enforcement Directorate (ED), and SEBI, which are already examining the affairs of the Alchemist Group amid allegations of running ponzi-style schemes, to file fresh status reports to examine whether the corporate insolvency process (CIRP) was fraudulently initiated. The court also asked them to look into the movement of funds abroad, possible round-tripping through foreign entities, and protection of investor assets. It noted a prima facie...

Can Dept. Issue One GST Notice Under Sections 73/74 Of CGST Act For Multiple Years? Bombay HC Refers Issue To Larger Bench

The Bombay High Court has referred to a Larger Bench the question of whether the GST Department can issue a single consolidated show cause notice covering multiple financial years under Sections 73 and 74 of the CGST Act. Section 73 of the CGST Act deals with the determination of tax not paid or short paid in cases not involving fraud or suppression, while Section 74 governs such determinations in cases involving fraud, wilful misstatement or suppression of facts. A Bench of Justices G. S....

Offences Under IBC Triable By Special Court Where Registered Office Is Located: Madhya Pradesh High Court

The Madhya Pradesh High Court on 9 April held that offences under the Insolvency and Bankruptcy Code, 2016 (IBC) must be tried by the Special Court having jurisdiction over the place where the company's registered office is situated, and not on the basis of the residence of directors or the place of alleged non-compliance. A Single-Judge Bench of Justice Rajesh Kumar Gupta directed the Insolvency and Bankruptcy Board of India to file its complaint against Vinay Bhadauria before the...

Statutory Bar On Arbitrability Can Be Examined While Granting Interim Relief: Bombay High Court

The Bombay High Court on 16 April held that courts can examine arbitrability, including statutory bars, while deciding petitions under Section 9 of the Arbitration and Conciliation Act, 1996, especially where no Arbitral Tribunal exists.Section 9 allows a Court to grant interim protection measures before, during, or after arbitral proceedings to safeguard the subject matter of the dispute.A Bench of Justice Somasekhar Sundaresan allowed the review petitions filed by the Airports Authority of...

Section 17 Security In Tribunal Domain, Courts To Interfere Only On Perversity: Calcutta High Court

The Calcutta High Court on 1 April, held that courts can interfere with interim measures granted by an Arbitral Tribunal under Section 17 of the Arbitration and Conciliation Act, 1996 only in cases of perversity or arbitrariness and affirmed that the Tribunal retains discretion to determine the quantum of security. A Bench of Justice Gaurang Kanth dismissed the appeal filed by Saltee Infrastructure Limited and upheld the Arbitrator's order dated 16 May 2025 directing furnishing of security,...

Failure To Exercise Due Diligence By CA Is Professional Misconduct, No Dishonest Intent Needed: Gujarat High Court

The Gujarat High Court has recently held that a Chartered Accountant can be found guilty of professional misconduct solely for failing to exercise due diligence, rejecting the argument that absence of dishonest intent shields an auditor from liability. A Bench of Justices A.S. Supehia and Pranav Trivedi, interpreting the provision in the Chartered Accountants Act that defines professional misconduct (Clause 7 of Part I of the Second Schedule), said, “Thus, a Chartered Accountant in practice...

Chhattisgarh High Court Sets Aside Arbitral Award Against BSNL For Granting Interest Despite Contractual Bar

The Chhattisgarh High Court has recently set aside an arbitral award against Bharat Sanchar Nigam Limited (BSNL), holding that the arbitrator granted interest despite a clear contractual prohibition and awarded loss of profit without any supporting evidence, rendering the award legally unsustainable. Justice Bibhu Datta Guru found that the arbitrator had acted contrary to the terms agreed between the parties. The court said, “A perusal of the aforesaid clause would clearly reveal that the...

Gujarat High Court Sets Aside Move For Income Tax Reassessment In Land Sale, Bars Differing Stand On Evidence

The Gujarat High Court has set aside a tax reassessment notice issued in a land sale case, holding that the Income Tax Department cannot rely on the same evidence to take opposite positions against the buyer and the seller.The Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi was dealing with a writ petition challenging a notice issued under Section 148 of the Income Tax Act for Assessment Year 2020–21.The case arose from a search conducted under Section 132 of the Income...

Gujarat High Court Quashes Move To Reopen Income Tax Assessment Over Vague Third-Party Material

The Gujarat High Court has quashed reassessment notices against a taxpayer, ruling that the Income Tax Department cannot reopen completed assessments based on vague third-party documents that have no clear link to the person concerned.The ruling was delivered by a Division Bench comprising Justice A. S. Supehia and Justice Pranav Trivedi in a batch of petitions led by Bhavnaben Darshanbhai Patel, challenging reassessment proceedings for Assessment Year 2020–21.The case arose after a search under...

Relevant Date Under GST Refund Varies By Claim Type; 2019 Amendment Not Retrospective: Delhi High Court

The Delhi High Court has clarified that the determination of the “relevant date” for computing limitation under Section 54 of the Central Goods and Services Tax Act, 2017 (CGST Act) depends on the nature of the refund claimed, and that the 2019 amendment to the provision cannot be applied retrospectively to defeat vested rights of taxpayers.A Division Bench of Justices Prathiba M. Singh and Shail Jain was dealing with petitions challenging rejection of refund claims for unutilised input tax...

Writ Maintainable After Income Tax Assessment If Order Is Ex Facie Without Jurisdiction: Delhi High Court

The Delhi High Court has held that a writ petition under Article 226 is maintainable even after completion of assessment proceedings, where the impugned action is ex facie without jurisdiction.A Division Bench of Justices Dinesh Mehta and Vinod Kumar observed that “simply because the proceedings have culminated into an assessment order, the petitioner cannot be made to suffer the agony of an order which is without jurisdiction on the face of it, until the appellate authority does a formal act of...

'May Refer To Arbitration' Clause Valid Where Agreement Shows Clear Intent: Punjab and Haryana HC

The Punjab and Haryana High Court has held that a clause in a Leave and License Agreement between Realsta Infratech Pvt Ltd and Pace Stock Broking Services Pvt Ltd constituted a valid arbitration clause, despite using the expression “may refer to arbitration," as the provision, read as a whole, reflected a clear intention to arbitrate upon failure of amicable settlement. Justice Jasgurpreet Singh Puri appointed former Delhi High Court judge Justice Talwant Singh as the sole arbitrator to decide...