Outgoing Partner's Consent Not Required To Record Firm Reconstitution: Karnataka High Court

The Karnataka High Court has held that the signature or consent of an outgoing partner is not required for recording a change in the constitution of a registered partnership firm under Section 63 of the Indian Partnership Act, 1932. Justice Sachin Shankar Magadum allowed a petition filed by Y. Mahabaleshwarappa and Sons, a registered mining partnership firm, and quashed the District Registrar's refusal to record the firm's reconstitution on the ground that the deed did not bear the signature of...

Madras High Court Dismisses 'Dr. WASH' Infringement Suit Over 'Dr. Bright' Soap, Says Packaging Distinct

On 21 September, the Madras High Court dismissed a trademark infringement and passing off suit filed by Ashique Exports against Koyenco Soaps and Detergents over its “Dr. Bright” washing soap, holding that the rival product's packaging was not deceptively similar to Ashique's “Dr. WASH” brand. Justice K. Kumaresh Babu also dismissed Koyenco's separate rectification petition seeking cancellation of Ashique's “Dr. WASH” trademark registration, finding that the disclaimer relied upon by Koyenco...

Delhi High Court Declines Writ On Jurisdiction Issue As Statutory Appeal Against Assessment Order Is Pending

The Delhi High Court has declined to exercise its writ jurisdiction in a challenge concerning the jurisdiction of an Income Tax Officer to pass an assessment order, noting that the assessee had already availed the statutory remedy of appeal against the assessment order and the appeal had been pending before the Commissioner of Income Tax (Appeals) since January 2020.The Division Bench of Justices Dinesh Mehta and Rajneesh Kumar Gupta, however, requested CIT(A) to decide the pending appeal...

Validity Of Arbitration Agreement Needs Examination Where Partnership Deed Is Challenged: MP High Court

On 16 September, the Madhya Pradesh High Court held that where a party challenges the very execution and validity of a partnership deed containing an arbitration clause on grounds of fraud, conspiracy and lack of informed consent, the existence of a valid arbitration agreement must be examined before the dispute can be referred to arbitration. Justice Ramkumar Choubey dismissed a miscellaneous appeal against the 23rd District Judge, Bhopal's order restoring a civil suit after setting aside the...

Delhi High Court Sets Aside Copyright Registration For 'Radhey Radhey Barsane Wali Radhey'

The Delhi High Court on 8 September set aside a 2020 copyright registration for the sound recording “Radhey Radhey Barsane Wali Radhey” after finding that the Registrar had granted the registration without prior notice to a rival claimant. Justice Jyoti Singh allowed the rectification petition filed by Vipul Music Company, a proprietorship firm of Santosh Goswami, and directed fresh consideration of the respondent's application after allowing the petitioner to file objections. The Bench held: ...

Unable To Pay Arbitration Fees? Law Provides No Waiver On Financial Grounds: Delhi High Court

The Delhi High Court has ruled that an arbitral tribunal cannot ordinarily be required to continue adjudicating a claim or counter-claim when the requisite deposit towards arbitration costs has not been paid.“The statutory scheme, therefore, recognises that an Arbitral Tribunal cannot ordinarily be required to continue adjudicating upon a claim or counter-claim in the absence of the requisite deposit towards the costs of such proceedings,” Justice Amit Mahajan ruled.The ruling came while...

Delhi High Court Restrains Gold Flake Counterfeiters After Police Seize 11.28 Lakh Cigarettes

The Delhi High Court has granted ITC Limited an ad interim injunction against a counterfeiting operation that was manufacturing fake "Gold Flake" cigarettes out of an old school building disguised as a cattle shed, after police seized goods and machinery worth an estimated ₹1.44 crore from the premises.Justice Jyoti Singh passed the order on September 16 in a suit filed by ITC against Ravi Kishor and his associates running the operation.ITC's "Gold Flake" trademark, adopted by its predecessor in...

Karnataka High Court Modifies HMT's 20% Interest On ₹1.39 Crore Damages To Ex-Employees Turned Entrepreneurs

The Karnataka High Court has modified the interest payable by HMT on ₹1.39 crore in damages awarded to eight former employees-turned-entrepreneurs for the loss caused by a shortfall in the assured workload.The entrepreneurs will get 20% annual interest on the damages only for the period during which they were repaying their Karnataka State Financial Corporation (KSFC) loans. For the remaining period, HMT will have to pay interest at 12% per annum. A Division Bench of Justice Anu Sivaraman...

Karnataka HC Sets Aside Notice Seeking Revision Of ₹27.13 Crore Tax Refund To Myntra Co-Founder Mukesh Bansal

The Karnataka High Court has set aside income tax revision proceedings initiated against entrepreneur and Myntra and Cult. fit co-founder Mukesh Bansal in connection with a refund of over ₹27.13 crore for AY 2019-20.Justice S. Sunil Dutt Yadav held that an intimation issued under Section 143(1) of the Income Tax Act, without any adjustment, could not be treated as an order for exercising revisionary powers under Section 263.Bansal had originally declared a total income of ₹231.73 crore and tax...

Personal Loans Cannot Be Treated As MSME Borrowings Merely Due To MSME Link: Karnataka High Court

The Karnataka High Court has ruled that personal loans taken by borrowers cannot be treated as MSME borrowings merely because they are connected with an MSME.“The benefit available to an MSME must be considered in relation to the enterprise and the credit facility covered by the framework. Independent personal borrowings do not acquire the character of MSME borrowings merely because the borrowers are also connected with an MSME,” Justice Lalitha Kanneganti observed.The court was dealing with a...

Vuenow Cloud Storage Investment Case: Punjab & Haryana HC Denies Bail To Founder Sukhwinder Kharour

The Punjab and Haryana High Court has dismissed the regular bail plea of Sukhwinder Singh Kharour, founder and CEO of the Vuenow Group, in a money laundering case linked to the group's alleged “cloud particle” investment model.Justice Sumeet Goel noted a prima facie disparity between the cloud-storage capacity allegedly sold to investors and the actual operational capacity found during searches. The Court also noted prosecution statements indicating that rental payments to earlier investors were...

Lessee Can't Re-Litigate SARFAESI Grievance After Adverse DRT Order: Kerala High Court

The Kerala High Court on 15 September held that a lessee who has already invoked the statutory remedy before the Debt Recovery Tribunal and suffered an adverse order cannot subsequently maintain a civil suit raising the same grievance against proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Justice Easwaran allowed a petition filed by IFCI Limited and set aside the Sub Court, Nedumangad's order refusing to reject a suit...