Rajasthan High Court Upholds GST Penalty Order Despite Absence Of DIN, Says RFN Is Sufficient

The Rajasthan High Court has held that a GST order communicated through statutorily recognised modes such as the GST portal, registered post or e-mail cannot be invalidated merely because it does not mention a Document Identification Number (DIN), where the communication carries a verifiable Reference Number (RFN). “Once service has been effected in any of the recognised statutory modes, we are of the view that the requirement of lawful communication clearly stands satisfied,” a division bench...

Calcutta HC Refuses To Reject Suit, Says Lender Licence Question Under Bengal Money Lenders Act Is Triable

The Calcutta High Court has held that whether a lender company possessed the requisite licence under the Bengal Money Lenders Act, 1940 at the time of advancing loans is a triable issue and cannot be decided at the threshold to reject a recovery suit. Justice Aniruddha Roy observed: “Thus, on a harmonious and meaningful reading of the provisions laid down under Section 13 of BML Act, this Court is of the firm and considered view that, the instant application claiming rejection of plaint is not...

Delhi High Court Reiterates Mandatory 120-Day WS Deadline In Commercial Disputes, Dismisses Appeal

The Delhi High Court on 4 May reaffirmed that the 120-day outer limit for filing written statements in commercial disputes under the Commercial Courts Act, 2015 is mandatory, holding that once the statutory period expires, courts have no discretion to condone delay or permit filing. The Division Bench of Justices Anil Kshetarpal and Amit Mahajan dismissed the appeal filed by Avon Enterprises, upholding the decree passed by the District Judge, Saket Courts, on 16 January 2024 in favour of Chibba...

Calcutta High Court Temporarily Stays Arbitral Award In Tata Nano Singur Land Acquisition Dispute

The Calcutta High Court on Thursday (May 7) temporarily stayed for eight weeks the enforcement of a ₹765.78 crore arbitral award passed in favour of Tata Motors Ltd against the West Bengal Industrial Development Corporation Ltd (WBIDC) in the dispute over the acquisition of land in Singur for Tata's Nano factory. An arbitral tribunal had, on October 30, 2023 directed WBIDC to pay Tata Motors ₹765.78 crore with interest at 11% per annum. Justice Aniruddha Roy granted an unconditional interim...

Cognizance Of SCRA Offences Requires Complaint By Government, SEBI Or Stock Exchange: Gujarat High Court

The Gujarat High Court has quashed criminal proceedings against an accused in an alleged illegal securities trading case, holding that courts cannot take cognizance of offences under the Securities Contracts (Regulation) Act on the basis of a police report alone. “A plain reading of Section 26 of the Act suggests that no court can take cognizance of any offense punishable under the Act except on a complaint made by the Central Government, the State Government, the Securities and Exchange Board...

Limitation In Arbitration Begins From Denial Of Claim, Not Section 21 Notice: Madhya Pradesh High Court

The Madhya Pradesh High Court on 4 May held that limitation for an arbitral claim begins when the claim is denied or repudiated, and not from the date of issuance of notice under Section 21 of the Arbitration and Conciliation Act, 1996. It further held that an arbitral tribunal commits patent illegality if it treats the Section 21 notice as the starting point of limitation. A Bench of Justice Vivek Jain partly allowed the appeal filed by Northern Coal Fields Ltd. (NCL) and set aside portions of...

Financial Institution Need Not Be Secured Creditor To Invoke SARFAESI Arbitration: Bombay High Court

The Bombay High Court has held that a financial institution need not already be a secured creditor to invoke statutory arbitration under the SARFAESI Act, while referring a loan takeover dispute between Aditya Birla Housing Finance Ltd. and Axis Bank to arbitration.Justice Sandeep V. Marne held that Section 11 of the SARFAESI Act does not require a bank or financial institution invoking arbitration to already be a secured creditor. The court observed, “Section 11 of the SARFAESI Act by itself...

Arbitrator Cannot “Conjure” Mesne Profit Figure Solely On “Guesswork”: Delhi High Court

The Delhi High Court on 13 April held that an arbitral tribunal cannot award mesne profits solely on “guesswork” without any foundational material or reasoning supporting the quantification and clarified that while exact proof of unliquidated damages is not necessary, the award must disclose a rational basis linking the material on record to the amount awarded. A Division Bench of Justices Om Prakash Shukla and C. Hari Shankar upheld an order setting aside the arbitral award to the extent it...

AP High Court Dismisses Plea Against NPA Classification; Says It Seeks To “Bypass” SARFAESI, IBC Proceedings

The Andhra Pradesh High Court has dismissed a writ petition filed by businessman Omkaram Venkata Ramana challenging the Bank of India's decision to classify his group companies' loan accounts as Non-Performing Assets (NPA). The court held that the petition sought to bypass proceedings already pending under the SARFAESI Act and Insolvency and Bankruptcy Code (IBC). "In our considered opinion there cannot be any blanket orders passed as is prayed in this writ petition, which itself is not...

Arbitrators Cannot Import Notions Of Fairness And Equity Into Commercial Contracts: Bombay High Court

The Bombay High Court has held that arbitral tribunals cannot import principles of fairness and natural justice into commercial contracts contrary to their express terms. The court made the observation while setting aside an arbitral award passed against Nayara Energy Ltd. that had directed restoration of a petrol pump dealership in Barmer and payment of ₹4 lakh compensation to the franchisee. The court held that the tribunal acted contrary to Sections 28(2) and 28(3) of the Arbitration Act...

State Cannot “Unjustly Enrich Itself” By Denying Refund Of Wrongly Paid Stamp Duty Over Delay: Bombay HC

The Bombay High Court has held that the government cannot retain stamp duty wrongly paid by a citizen merely because there was a short delay in seeking a refund. The Court said procedural delay cannot defeat a person's substantive right to recover money mistakenly paid under a wrong stamp duty head, particularly when the transaction could not proceed further. A single-judge bench of Justice Milind N. Jadhav observed that the state cannot “unjustly enrich itself” by forfeiting money paid due to...

Bombay High Court Condones 430-Day Delay By Charitable Trust In Filing Declaration For Tax Exemption

The Bombay High Court has condoned a 430-day delay by Bombay Prathana Samaj, a charitable trust, in submitting a mandatory declaration required for claiming a tax exemption benefit, after finding that the trust had shown reasonable cause for the delay and would otherwise suffer genuine hardship. “The approach of the authority ought to be equitious, balancing and judicious and availing of exemption should not be denied merely on the bar of limitation,” the Court observed while referring to the...