Allahabad HC Flooded With Pleas Seeking Expeditious Disposal Of Section 14 SARFAESI Matters, Directs UP Govt To Issue Instructions

Observing a “flood” of petitions over delays in processing applications for assistance in taking possession of secured assets and non-compliance with earlier directions, the Allahabad High Court has cautioned that such inaction defeats the purpose of the SARFAESI Act. “Recently we have seen a flood of writ petitions before this Court in which the secured creditor or auction purchaser comes for the expeditious disposal of the application under Section 14 of the SARFAESI Act, 2002 and further in...

Allahabad High Court Upholds Ghaziabad Property Tax Revision Based On Minimum Monthly Rent Rate

The Allahabad High Court has upheld the Ghaziabad Municipal Corporation's revision of property tax based on minimum monthly rent rates (MMRR) under the U.P. Municipal Corporations Act, 1959.In a PIL challenging the revision of property tax and its enhancement based on MMRR, the bench of Chief Justice Arun Bhansali and Justice Kshitij Shailendra held: “we neither find any error in determination of 'MMRR' based upon categorization/classification of the properties nor any illegality in the...

Demonetisation Deposits From Cash In Hand Cannot Be Rejected Without Evidence: Allahabad High Court

The Allahabad High Court on 8 April held that where a taxpayer explains cash deposits during 2016 Indian demonetization as arising from cash in hand, the Assessing Officer cannot reject the explanation in the absence of any material to the contrary. A Bench comprising Justices Shekhar B. Saraf and Abdhesh Kumar Chaudhary dismissed the appeal filed by the Principal Commissioner of Income Tax, Lucknow against Medharaj Techno Concept Pvt. Ltd. and upheld the order of the Income Tax Appellate...

NCLT Bar Body Moves Allahabad HC Against Joint Scrutiny Of Allahabad Bench Filings, Alleges Repeated Defect Objections

The Company Law Tribunal Bar Association, Prayagraj, has moved the Allahabad High Court challenging a public notice dated February 27, 2026 issued by the Registrar of the National Company Law Tribunal (NCLT), Principal Bench, which alters the scrutiny mechanism for filings before the Jaipur and Allahabad Benches. Under the impugned notice, scrutiny of matters filed before the NCLT Jaipur Bench is to be undertaken by the Jaipur registry itself, while scrutiny of matters filed before the...

Only NCLT Can Decide Premature Loan Repayment Disputes Under RBI Act: Allahabad High Court

The Allahabad High Court on 31 March held that under Section 45QA of the Reserve Bank of India Act, 1934 read with Section 430 of the Companies Act, 2013, only the National Company Law Tribunal (NCLT) has the jurisdiction to decide disputes regarding premature repayment of a loan. A Single-Judge Bench of Justice Sandeep Jain dismissed the appeal filed by Shivam Traders And Hire Purchase Pvt. Ltd. against Madhusudan Vehicles Pvt. Ltd., holding that the civil court had no jurisdiction over...

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...

NBFCs With Assets Over ₹100 Crore Can Invoke SARFAESI Act: Allahabad High Court

On 24 March, the Allahabad High Court held that non-banking financial companies (NBFCs) with assets of Rs. 100 crore or more qualify as financial institutions under the SARFAESI Act, 2002 and can enforce security interest in secured debts. A Bench comprising Justices Ajit Kumar and Swarupama Chaturvedi referring to the Ministry of Finance notification dated 24 February 2020, observed: “With the plain reading of the notification, it is clear that through the above notification the Central...

Order By Govt. Secretary Cannot Be Recalled Without Fraud Or Misrepresentation: Allahabad High Court

The Allahabad High Court has held that an order passed by the Secretary on behalf of the State Government cannot be recalled unless it suffers from misrepresentation, fraud, or is without legal authority. A Bench of Justice Ajit Kumar and Justice Swarupama Chaturvedi observed: “In our considered view an order if does not suffer from any misrepresentation or fraud or an order is not bad for want of authority of law, it is to be taken as genuine order passed after due application of mind and...

Once Goods Found Of Indian Origin, Customs Seizure Arbitrary And Malafide: Allahabad High Court

The Allahabad High Court at Lucknow has expressed surprise at the seizure and detention of areca nuts by the customs authority on the ground that they were of foreign origin despite one lab test indicating Indian origin and a government laboratory test failing to determine their origin. The bench of Justice Shekhar B. Saraf and Justice Manjive Shukla was dealing with a batch of writ petitions involving seizure of the goods by customs authorities and held: “In such a situation, when the goods...

Meerut Development Authority's Re-Auction Of Plot After Price Rise Arbitrary; Allahabad High Court Orders Reconsideration

Questioning the fairness of the Meerut Development Authority's actions in a land allotment dispute, the Allahabad High Court has held that the authority acted arbitrarily in cancelling the allotment and re-auctioning the plot after its value increased, and directed that the allottee's claim be reconsidered strictly in accordance with clause 6(10) of the auction brochure governing restoration of cancelled plots. Setting aside the re-auction and subsequent sale, the court observed that a public...

Contractual Disputes Involving Tax Compliance Arbitrable, Not Sovereign Tax Levy Issues: Allahabad High Court

The Allahabad High Court has recently reiterated that while disputes relating to sovereign functions such as imposition or levy of tax are non-arbitrable, but disputes arising out of contractual obligations between parties, even if they involve issues of tax reimbursement or GST compliance, remain arbitrable. A bench of Justice Vikas Budhwar relying on rulings in Vidya Drolia vs. Durga Trading Corporation and other precedents, observed, "From the law laid down in the aforesaid decisions,It is...