Mere Filing Of One Plea Before A Court Doesn't Confer Jurisdiction For Subsequent Arbitration Pleas: Delhi HC

The Delhi High Court has held that merely filing a petition before a particular court cannot fix jurisdiction under Section 42 of the Arbitration and Conciliation Act, 1996, especially where the petition is withdrawn without any adjudication. Section 42, which centralises all subsequent applications in the first court approached, cannot be invoked in such circumstances as the jurisdiction contemplated must be “real, effective, and legally sustainable”, the court said. A Single Bench of Justice...

MP High Court Restores Suit, Says Bar On Unregistered Partnerships Not Applicable As Claim Not Made As Partner

The Madhya Pradesh High Court at Jabalpur has set aside a trial court order rejecting a suit at the threshold, holding that the bar on suits by unregistered firms could not be invoked where the plaintiff was seeking declaration of his rights in the land on the basis of the money he had invested. A single judge bench of Justice Deepak Khot observed, "In fact, it is a case of the appellant that the appellant has invested money with defendants, who are said to be partners in the partnership firm...

Award Granting Statutorily Barred Relief Suffers From Patent Illegality: Madras High Court

The Madras High Court on 18 March held that determining whether an arbitral award grants relief barred by law or beyond the contract is a question of legality, not of re-examining evidence. Courts can intervene under Section 34(2A) of the Arbitration and Conciliation Act, 1996 only if the award shows patent illegality. A Division Bench of Justice P. Velmurugan and Justice K. Govindarajan Thilakavadi allowed Southern Railway's appeal and set aside the arbitral award that directed continuation...

State GST Authorities Cannot Detain Or Confiscate Goods Merely In Transit: Andhra Pradesh High Court

The Andhra Pradesh High Court held on 1 April that State GST authorities cannot invoke detention or confiscation powers for goods merely passing through the State in the course of inter-State trade, including on grounds such as valuation discrepancies or mismatch in quantity. A Division Bench of Justices R. Raghunandan Rao and T.C.D. Sekhar held that such action exceeds jurisdiction in cases involving inter-State movement under the IGST framework. The Court stated: "Amounts rightfully due to...

Delay In Filing Objections Excused Where Arbitral Tribunal Fails To Provide Signed Award: HP High Court

The Himachal Pradesh High Court held on 19 March that a party cannot be held responsible for delay in filing objections where the arbitral tribunal fails to furnish a signed copy of its award, despite specific requests. Justice Ajay Mohan Goel, while condoning a 16-day delay in filing objections in the dispute between the Chief Engineer, HP PWD National Highway Division, Shimla, and Ceigall India Limited, observed: "This Court is of the considered view that the learned Arbitral Tribunal should...

Retaining Tax Paid Twice Violates Article 265, Section 54 CGST Limitation Not A Bar: Orissa High Court

The Orissa High Court at Cuttack held that tax authorities cannot retain amounts deposited twice under a mistaken belief, as such retention would violate Article 265 of the Constitution. A Division Bench comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman set aside an order rejecting the refund claim filed by the petitioner, Rajendra Narayan Mohanty, and allowed him to seek a fresh refund. It held: “There is no escape than to say that the Revenue is unjustified to withhold or...

Bombay HC Quashes Rs. 1.26 Crore Service Tax Demand For Failure To Comply With Pre-SCN Process

The Bombay High Court on 12 March, quashed a service tax show cause notice, holding that failure to conduct mandatory pre-show cause notice (pre-SCN) consultation, as required under CBEC circulars, vitiates the entire proceedings. A Bench of Justices G. S. Kulkarni and Aarti Sathe held that pre-SCN consultation, mandated by circulars issued under Section 37B of the Central Excise Act, is a binding requirement and cannot be bypassed merely because summons were issued to the taxpayer. The Bench...

Non-Signatory To Cheque From Joint Account Cannot Be Prosecuted Under NI Act: Madras High Court

The Madras High Court on 3 March held that a joint account holder cannot be prosecuted under Section 138 of the Negotiable Instruments Act unless they have signed the cheque in question. Justice G. K. Ilanthiraiyan quashed cheque dishonour proceedings against G. Revathi, a co-accused, pending before the Judicial Magistrate, Puducherry, while directing that the trial continue against the other accused. He held: “In the case on hand, admittedly the second respondent herein alone signed the...

Delhi High Court Injuncts 'HALESAGA' Mark, Finds It Similar To Saga Lifesciences' 'SAGA'

The Delhi High Court has granted an interim injunction in favour of Saga Lifesciences Limited, restraining Anaadi Global from using the mark 'HALESAGA / ' or any other mark deceptively similar to 'SAGA' for pharmaceutical and medicinal preparations. The court held that the rival mark is prima facie deceptively similar and likely to cause confusion. Justice Tejas Karia held that the defendants' mark incorporates the plaintiff's mark in its entirety and cannot be distinguished merely by...

Failure To Reply To SCN Or Absence From Hearing Not Ground To Cancel GST Registration: Allahabad High Court

The Allahabad High Court on 17 March held that GST registration cannot be cancelled merely because a taxpayer fails to reply to a show cause notice or appear on the date fixed for hearing, and that authorities must record reasons before taking such a drastic step. A Bench of Justice Saumitra Dayal Singh and Justice Vivek Saran set aside the cancellation of GST registration of Jubair Enterprises and granted the petitioner liberty to file a reply to the show cause notice. The judges held: “A...

After Cancellation Of GST Registration, Show Cause Notice Should Be Served Physically: Allahabad High Court

The Allahabad High Court has recently held that adjudication notice ought to be served through physical mode after cancellation of GST registration, as the taxpayer cannot access the portal thereafter. A bench of Justice Saumitra Dayal Singh and Justice Vivek Saran held: “Once the registration is cancelled and the registered persons thus disabled from working on the Common Portal and in any case, are relieved of obligation to check the Common Portal thereafter, it is wholly natural and...

Telangana High Court Disposes Plea After State Assures Missing GST Documents Won't Be Relied Upon in Adjudication

The Telangana High Court has disposed of a writ petition filed by Bengal Cold Rollers Pvt. Ltd., recording the State's statement that seized documents whose originals are missing will not be relied upon in adjudication, while permitting proceedings to continue on the basis of available material. A Bench of Chief Justice Apresh Kumar Singh and Justice G.M. Mohiuddin observed that once the State clarified that such missing documents would not be relied upon, the grievance of the petitioner stood...