Auction Purchaser Can Seek Refund If Material Title Defects Were Not Disclosed: Andhra Pradesh High Court

The Andhra Pradesh High Court has directed Indian Bank to refund the entire auction consideration paid by an auction purchaser, along with stamp duty, registration charges, and 9% simple interest, after holding that he could not be compelled to continue with a purchase clouded by title disputes. The court also set aside the sale certificate and the registered sale deed issued in his favour. A Division Bench of Justice Battu Devanand and Justice A. Hari Haranadha Sarma observed that an auction...

AP High Court Sets Aside VAT Orders On ISRO's Satish Dhawan Space Centre, Flags National Interest

The Andhra Pradesh High Court on 22 June set aside VAT assessment orders passed against Satish Dhawan Space Centre SHAR, a unit of the Indian Space Research Organisation, holding that an improper tax burden on an institution engaged in critical space programmes could adversely affect national interest. A Division Bench of Justices R. Raghunandan Rao and T. C. D. Sekhar allowed the writ petition, set aside the assessment orders, and remanded the matter to the assessing authority for fresh...

Absence Of Signature On GST Assessment Order Renders It Legally Invalid: Andhra Pradesh High Court

On 15 June, the Andhra Pradesh High Court held that an unsigned GST assessment order suffers from an inherent legal defect and cannot be sustained in law, reaffirming that statutory orders must bear proper authentication to be enforceable. A Division Bench of Justices R. Raghunandan Rao and T.C.D. Sekhar set aside the impugned assessment order while allowing the writ petition filed by Nominee Works Committee Kalavalla and remanded the matter for fresh adjudication. The judges held: “This Court...

Arbitral Mandate Can Be Extended After Expiry; No Limitation Prescribed: Andhra Pradesh High Court

The Andhra Pradesh High Court has recently reiterated that applications seeking extension of an arbitral tribunal's mandate can be filed even after expiry of the prescribed period and that courts must adopt a liberal approach while considering whether sufficient cause exists for granting such extensions. Relying on the Supreme Court's decision in Rohan Builders (India) Private Limited v. Berger Paints India Limited and its own earlier ruling in Chidepudi Bhanu Srivastava v. Kancharla...

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...