Service Of Arbitral Award Through Spouse At Same Address Triggers Limitation: Bombay High Court

The Bombay High Court on 28 July held that delivery of a signed copy of an arbitral award to one party on behalf of another party residing at the same address constitutes valid delivery under Section 31(5) of the Arbitration and Conciliation Act, 1996, and triggers the limitation period for challenging the award. Justice Sharmila U. Deshmukh held that K. Samad had received the signed copy of the arbitral award passed in favour of Reliance Capital Limited on behalf of his wife Mekarunisa Samad...

Three Days To Reply To Income Tax SCN Not Reasonable: Gujarat High Court Quashes Assessment

The Gujarat High Court recently held that granting a taxpayer only three days to respond to an income tax show cause notice does not amount to a reasonable opportunity of hearing and violates the principles of natural justice.Setting aside an income tax assessment order passed after scrutiny proceedings, a Division Bench of Justice A.S. Supehia and Justice Vaibhavi D. Nanavati observed, "Thus, in view of the settled legal position, granting only three days' time to file a reply cannot be said to...

Sole Proprietor's Family Members Can't Be Held Vicariously Liable U/S 141 NI Act: Calcutta High Court

The Calcutta High Court on 29 July held that vicarious liability under Section 141 of the Negotiable Instruments Act cannot be imposed on family members of a sole proprietor merely by alleging that they are partners of the proprietorship concern. Justice Uday Kumar quashed the criminal proceedings against Prakash Sharma, who was prosecuted under Sections 138 and 141 of the NI Act in connection with the dishonour of two cheques allegedly issued by S.R. Telematics. He held: "Section 141 of the...

Acquittal In Cheque Bounce Case Doesn't Bar Civil Recovery Suit On Same Cheque: Kerala High Court

The Kerala High Court on 29 July held that an acquittal in proceedings under Section 138 of the Negotiable Instruments Act, 1881 (dishonour of cheque for insufficiency of funds) does not prevent a civil court from deciding a recovery suit based on the same cheque, as findings recorded in criminal proceedings do not bind civil courts. A Bench comprising Justice Mohammed Nias C.P. allowed Prameela Varghese's appeal, set aside the Trial Court's decree directing her to pay the cheque amount with...

Jurisdiction Order U/S 16 Arbitration Act Cannot Be Independently Challenged: Bombay High Court

The Bombay High Court on 27 July held that an arbitral tribunal's ruling under Section 16 of the Arbitration and Conciliation Act, 1996 (which empowers a tribunal to decide its own jurisdiction) cannot be challenged under Section 34 merely because it upholds the existence of a valid arbitration agreement, as such a ruling is not an interim award. Justice Sharmila U. Deshmukh dismissed a petition filed by I.A. & I.C. Private Limited & Ors. challenging an arbitral tribunal's order...

Delhi High Court Flags Misuse Of Meta's Copyright Strike System, Calls It 'Platform For Extortion By Bad Actors'

The Delhi High Court has recorded Meta Platforms' assurance that it will ensure user accounts are not blocked due to fraudulent copyright strikes, while observing that the platform's current enforcement mechanism has become a tool for "blackmail" and "extortion." Justice Anup Jairam Bhambhani made the observations while hearing two separate suits filed by content creators Mohammed Nawaz Shaikh and Prateek Sahni. The matters reached the Court after the plaintiffs' accounts or videos were taken...

Kerala High Court Dismisses SEBI Appeal Over Escrow Funds Linked To Atlas Ramachandran

The Kerala High Court on Thursday dismissed a writ appeal filed by the Securities and Exchange Board of India (SEBI) challenging a single judge's judgment in Axis Bank's writ petition against an Income Tax Department recovery order concerning funds lying in an escrow account maintained by late Atlas Ramachandran (M.M. Ramachandran).A Division Bench of Justice Devan Ramachandran and Justice Basant Balaji held that SEBI, which was not the writ petitioner, could not maintain a collateral challenge...

Delhi High Court Refuses Disclosure Of MCA Orders In SFIO Probe Into Anil Ambani Group Companies

The Delhi High Court has recently refused to direct the Ministry of Corporate Affairs (MCA) and the Serious Fraud Investigation Office (SFIO) to disclose orders directing an investigation into the affairs of Reliance Home Finance Limited, Reliance Communications Limited, and other Anil Ambani companies under Section 212 of the Companies Act, 2013. The court held that the Mandke Foundation had no enforceable right to seek disclosure of those orders or the material forming their basis while the...

Bombay High Court Says Freezing Bank Accounts Cannot Be Routine Interim Relief Under Arbitration Act

The court partly allowed Tata Capital's petitions seeking freezing of borrowers' bank accounts, disclosure of assets, and appointment of a court receiver.

Gujarat High Court Quashes Reassessment Notice Issued Beyond COVID-Era TOLA Deadline

The Gujarat High Court has quashed a reassessment notice issued under Section 148 of the Income Tax Act, holding that it was issued beyond the "surviving time" available under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA), as interpreted by the Supreme Court in Union of India v. Rajeev Bansal.TOLA was enacted to extend statutory timelines for tax and other legal proceedings during the COVID-19 pandemic.A Division Bench of Justice A.S. Supehia and...

Manipur High Court Sets Aside Arbitral Award On Parties' Consent In Thoubal Multipurpose Project Dispute

The Manipur High Court has, recently, with the consent of Progressive Construction Limited and the State of Manipur, set aside an arbitral award relating to the Thoubal Multipurpose Project (Construction of Earth Dam) and ordered a de novo arbitration.Chief Justice M. Sundar, while disposing of an arbitration petition filed by Progressive appointed former Chief Justice of the Manipur High court Justice D. Krishnakumar as the substitute sole arbitrator to conduct the arbitration proceedings and...

Letters Patent Appeal Not Maintainable Against Single Judge's Order Under Trade Marks Act: Gujarat High Court

The Gujarat High Court has ecently held that a Letters Patent Appeal (LPA), an intra-court appeal before a Division Bench, is not maintainable against a Single Judge's decision in a statutory appeal under Section 91 of the Trade Marks Act, 1999.Holding so, the Division Bench of Chief Justice Sunita Agarwal and Justice D.N. Ray said such appeals are barred by Section 100A of the Code of Civil Procedure (CPC), read with Clause 15 of the Letters Patent. The bench also held that Parliament's...