GST Registration Can Be Restored On Filing Pending Returns, Clearing Dues Under Rule 22(4): Gauhati HC

The Gauhati High Court on 1 June held that a taxpayer whose GST registration has been cancelled for non-filing of returns can seek restoration of registration by furnishing pending returns and clearing tax dues, interest, penalty and late fees in terms of the proviso to Rule 22(4) of the CGST Rules, 2017. A Bench of Justice Kardak Ete disposed of the petition filed by Md. Nekib Hussain, proprietor of Nekib Hussain, who challenged the cancellation of his GST registration and sought restoration...

Delhi High Court Refuses To Lift Injunction Against KS Agro's Rice Packaging Over Similarity To Zarda King

The Delhi High Court has refused to lift an interim injunction restraining KS Agro Impex from selling Golden Sella Basmati Rice in packaging alleged to imitate GRM Foodkraft's 'Zarda King' trade dress. The court held that KS Agro's packaging was deceptively similar to GRM's. It further held that GRM had established a prima facie case of passing off and copyright infringement. Justice Jyoti Singh observed that a comparison of the rival packaging revealed striking similarities. The court found...

Section 11 Arbitration Orders Not Reviewable, Article 215 Powers Limited: Allahabad High Court

On 14 May, the Allahabad High Court held that it cannot review an order passed under Section 11 of the Arbitration and Conciliation Act, 1996, while exercising its statutory jurisdiction. However, as a Court of Record, it may invoke its inherent powers under Article 215 of the Constitution to correct the record or remedy a grave error that may otherwise result in a failure of justice. A Bench of Justice Jaspreet Singh dismissed an application seeking recall of an earlier order constituting a...

Bombay High Court Orders No Coercive Action Against Anil Ambani Pending Challenge To Black Money Act

The Bombay High Court on Monday directed that no coercive action, including prosecution or penalty proceedings, be taken against industrialist Anil Ambani pending the final disposal of his writ petition challenging certain provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Ambani has challenged certain provisions of the Act as being ultra vires the Constitution of India. A division bench of Justices B.P. Colabawalla and Firdosh P. Pooniwalla...

Kerala High Court Quashes GST Notice Issued For Multiple Assessment Years Through Single Proceeding

On 1 June, the Kerala High Court held that the GST Department cannot issue a composite show-cause notice covering more than one assessment year, as such a notice is legally unsustainable and cannot form the basis of adjudication. Justice Ziyad Rahman A.A. quashed the show-cause notice and the consequential Order-in-Original issued against Malabar Trade Links, while granting liberty to the GST Department to initiate fresh proceedings in accordance with law. He held: “The Division Bench has...

Patent Illegality Ground Unavailable To Challenge Awards In International Commercial Arbitrations: Bombay HC

The Bombay High Court has reiterated that an arbitral award arising from an international commercial arbitration seated in India cannot be set aside on the ground of patent illegality. The court held that allegations that an arbitral tribunal ignored evidence or arrived at perverse findings fall within the ground of patent illegality, which is unavailable for challenging such an award. It dismissed Oil and Natural Gas Corporation Ltd.'s challenge to an award in favor of Malaysia-based...

Delhi High Court Grants Relief To Acharya Manish Against AI-Generated Fake Endorsements

The Delhi High Court has granted temporary protection to the personality rights of Manish Grover, popularly known as 'Acharya Manish' or 'Chikitsaguru,' after finding a prima facie case that unknown persons used artificial intelligence to create fake endorsements of health products using his voice and videos. Granting an ad-interim injunction on June 5, a vacation bench of Justice Saurabh Banerjee observed that the unknown operators of various social media accounts had “gone a step further”...

Mere 'Criminal Overtones' Or Claimed 'Public Overtones' Do Not Make Dispute Non-Arbitrable: Bombay High Court

The Bombay High Court has held that a dispute does not become non-arbitrable merely because one side alleges fraud or claims that it has criminal or public overtones. Referring a dispute between television production company Shashisumeet Production Pvt. Ltd. and investor Kuresh R. Kushesh to arbitration, the Court said such allegations, by themselves, do not take the matter outside the jurisdiction of an arbitral tribunal. "Merely on the ground that there are “criminal overtones” or because a...

Bombay High Court Quashes Awards Against Guarantors Despite IBC Moratorium On Debt

The Bombay High Court on Tuesday held that arbitral awards resulting in enforcement of a debt that has become temporarily unenforceable due to a statutory moratorium run contrary to the fundamental policy of Indian law. The court consequently quashed two awards obtained by Abhyudaya Co-operative Bank against guarantors of insolvency resolution bound Nirmangold Alloys Pvt. Ltd. and Nirmangold Plasttech Pvt Ltd. Justice Sharmila U. Deshmukh held that the arbitral tribunal continued proceedings...

Bombay High Court Holds DIFC Penal Notice And Certificate Satisfy CPC Requirement For Foreign Decree Execution

The Bombay High Court has rejected an objection by two guarantors of a USD 5 million factoring facility to the maintainability of execution proceedings initiated by Malta-based Fimbank P.L.C. to enforce a Dubai International Financial Centre (DIFC) Court judgment in India. Justice Abhay Ahuja held that a penal notice issued by the DIFC Court and a subsequent certificate relating to satisfaction of the judgment fulfilled the requirement of a certificate regarding satisfaction or adjustment of...

Evidence Of Person Without Direct Knowledge Insufficient In Cheque Bounce Case: Kerala High Court

The Kerala High Court has observed that a complainant in a cheque dishonour case cannot rely on evidence from a person who lacks direct knowledge of the transaction and execution of the cheque to prove those facts. “Indubitably such evidence shall be given by the person, who had direct knowledge regarding the transaction and execution of the cheque and the evidence of a person, who does not know the same is insufficient to prove the transaction and the execution of the cheque.” Justice A....

Calcutta High Court Holds No Title Passed Under Tenancy Created After SARFAESI Notice

The Calcutta High Court on Tuesday set aside a trial court order directing parties to maintain status quo in a tenancy dispute over a property. It held that a tenancy created after issuance of a demand notice under the SARFAESI Act could not confer any rights on the tenant. A Division Bench of Justice Sabyasachi Bhattacharyya and Justice Supratim Bhattacharya held that the tenancy relied upon by Julien Educational Trust had been created years after issuance of the demand notice and without any...