Commercial Courts Act Amendment Lowering Threshold To ₹3 Lakh Took Effect In 2018, Andhra Pradesh HC Rules In 2:1 Ruling

The Andhra Pradesh High Court has, by a 2:1 majority, held that Parliament's 2018 amendment lowering the minimum threshold for commercial disputes from ₹1 crore to ₹3 lakh took effect immediately, bringing such disputes within the commercial courts' framework without any separate State notification.The Court held that the threshold that determines whether a dispute qualifies as a commercial dispute (specified value) is distinct from the monetary limits that determine which court hears it...

Arbitration Venue Cannot Become Seat Where Contra Indicia Exists In Agreement: Andhra Pradesh High Court

The Andhra Pradesh High Court on 7 May held that a mere stipulation in an arbitration agreement that proceedings “shall be held” at Hyderabad does not, by itself, make Hyderabad the juridical seat of arbitration, especially where the agreement separately confers exclusive jurisdiction on civil courts in East Godavari District. A Division Bench of Justices Ravi Nath Tilhari and Balaji Medamalli allowed a Commercial Court Appeal filed by Carolyn Joyce Tadamala against Royal City Developer Private...

Borrower Consent Mandatory For SARFAESI Sale At Reserve Price: Andhra Pradesh High Court

The Andhra Pradesh High Court has recently held that a bank cannot confirm the sale of a secured asset in a SARFAESI auction when the highest bid matches the reserve price unless the borrower consents. “The sale of the secured asset in the auction exactly at the reserve price cannot be confirmed by the Authorised Officer without the consent of the borrower,” the Court held. A Division Bench of Justice Cheekati Manavendranath Roy and Justice V. Gopala Krishna Rao dismissed writ petitions filed...

Andhra Pradesh HC Sets Aside Order Refusing Interim Arrest Protection As Debtor Was Yet To Be Adjudicated Insolvent

The Andhra Pradesh High Court has recently held said courts must exercise “extreme caution” in matters involving personal liberty even in civil proceedings, while granting relief to a man facing arrest in execution proceedings during the pendency of his insolvency case. Justice Ravi Cheemalapati observed, "It is relevant here to note that the Constitutional Courts have consistently emphasized that courts must exercise extreme caution when dealing with matters involving personal liberty,...

ONGC Cannot Seek Re-Deposit Of ₹42.89 Crore Withdrawn With Its “No Objection”: AP High Court

The Andhra Pradesh High Court on 7 May held that Oil and Natural Gas Corporation Ltd. (ONGC) cannot compel Deep Industries Ltd. (DIL) to re-deposit Rs. 42.89 crore or furnish security for amounts withdrawn in arbitration proceedings, particularly since ONGC had earlier given a written “no objection” permitting withdrawal without any condition. A Division Bench of Justices Ravi Nath Tilhari and Balaji Medamalli dismissed ONGC's interim application in its pending Section 37 appeal against an...

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...

University Affiliation, NOCs Not 'Supply', No GST On Statutory Functions: Andhra Pradesh High Court

The Andhra Pradesh High Court, on 27 April, held that services provided by universities, such as grant of affiliation and issuance of No Objection Certificates (NOCs), are not liable to GST, as these activities are statutory in nature and do not qualify as “business” or “supply” under GST law. A Division Bench of Justices R. Raghunandan Rao and T.C.D. Sekhar, while hearing a batch of writ petitions including those filed by Jawaharlal Nehru Technological University, Kakinada and other similarly...

Mere GST Deposit In Electronic Ledger Not Payment Until Appropriated To Government: Andhra Pradesh High Court

The Andhra Pradesh High Court has recently held that merely depositing GST in the electronic ledger does not amount to payment to the Government, while setting aside a tax and penalty order against Sona Enterprises. "The provisions of Section 49(1) of the CGST Act read with Rule 87(6) & (7) of the CGST Rules makes it clear that the deposit of cash or the credit of input tax credit into the electronic ledger of the tax payer would not amount to payment of tax. Such payment of tax would...

Andhra Pradesh High Court Sets Aside GST Order Against Mytrah Energy Over Failure To Examine Nature of Supply

The Andhra Pradesh High Court has set aside a GST assessment order against Mytrah Energy India Pvt. Ltd., holding that the assessing authority failed to properly examine the nature of the transaction and wrongly applied a notification retrospectively.The Division Bench of Justice R. Raghunandan Rao and Justice T.C.D. Sekhar held that the assessment order was unsustainable for failure to examine the nature of supply and accordingly remanded the matter for fresh adjudication.The petitioner,...

Andhra Pradesh High Court Sets Aside Execution In IKF Finance Case Over Unilateral Arbitrator Appointment

The Andhra Pradesh High Court on 10 April reiterated that unilateral appointment of a sole arbitrator by a finance company violated the principle of equal treatment under Article 14 of the Constitution, and set aside execution proceedings arising from an arbitral award passed for recovery of loan dues. A Division Bench of Justices Ravi Nath Tilhari and Balaji Medamalli allowed civil revision petitions filed by Katta Srinivasu and another petitioner against IKF Finance Limited, and held that the...

TTD A "Governmental Authority" For GST, 12% Rate For Contractors Not Automatic: Andhra Pradesh High Court

The Andhra Pradesh High Court on 3 March 2026 held that Tirumala Tirupati Devasthanams (TTD) qualifies as a “Governmental Authority” and “Governmental Entity” under GST notifications. However, the Court clarified that contractors can claim the concessional 12% GST rate only if the works they execute meet the conditions specified in the notifications. A Division Bench comprising Justices R. Raghunandan Rao and T.C.D. Sekhar was hearing a batch of writ petitions filed by contractors who executed...

GST Proceedings Against A Dissolved Company Lack Jurisdiction: Andhra Pradesh High Court

The Andhra Pradesh High Court on 3 March held that GST proceedings against a non-existent or dissolved company lack jurisdiction and cannot be sustained in law. A Division Bench of Justices R. Raghunandan Rao and T.C.D. Sekhar set aside an assessment order passed against Tata Capital Limited, observing: “The proceedings, which had been initiated, against the dissolved company, before the appointed date, would now have to be taken up against the petitioner company and not the dissolved...