Diluting RBI's NBFC Capital Requirements Could Have Impact On India's Financial System: Bombay High Court

The Bombay High Court recently observed that permitting dilution of the Reserve Bank of India's directions on the minimum Net Owned Fund (NOF) requirement in favour of a Non-Banking Financial Company with weak financial standing and low NOF could have repercussions on the country's financial system. It upheld the Reserve Bank of India's decision cancelling the company's Certificate of Registration after it failed to achieve the prescribed NOF by the stipulated deadline. A division bench of...

Bombay High Court Sets Aside ITAT Order For Failing To Decide Challenge To Faceless Assessment Procedure

The Bombay High Court has recently set aside an order of the Income Tax Appellate Tribunal (ITAT), holding that the tribunal failed to adjudicate a taxpayer's jurisdictional objection alleging non-compliance with the mandatory assessment procedure. The court ruled that the issue went to the root of the matter and required adjudication by the tribunal. A division bench of Justice G.S. Kulkarni and Justice Aarti Sathe observed,"Even otherwise, on merits, the ITAT was required to consider and...

GST Notice To Amalgamated Company That Ceased To Exist Without Jurisdiction: Bombay High Court

The Bombay High Court has recently quashed a GST order against a real estate company. It held that a show cause notice issued after the company had ceased to exist pursuant to its amalgamation was without jurisdiction, making the proceedings that followed legally unsustainable. A division bench of Justice Suman Shyam and Justice Advait M. Sethna allowed the writ petition filed by Kanakia Spaces Realty Private Limited and set aside the Order-in-Original passed by the GST authorities. The bench...

Promoter Cannot Use Grace Period After Missing Fit-Out Possession Deadline Under RERA: Bombay High Court

The Bombay High Court on 8 June held that although the Real Estate (Regulation and Development) Act, 2016 does not recognise “fit-out possession”, a promoter cannot rely on its own failure to hand over fit-out possession within the agreed timeline to invoke a contractual grace period and defer final possession. Justice Sharmila U. Deshmukh dismissed second appeals filed by Macrotech Developers Ltd. (formerly Bellissima Hi-Rise Builders Pvt. Ltd.) and upheld a Maharashtra Real Estate Appellate...

Bombay High Court Sets Aside Revocation Of SAATHI's Patent For Natural Fibre Absorbent Article

The Bombay High Court has recently set aside an order revoking a patent granted to SAATHI Inc. for an absorbent article made from natural fibres. The court held that the Controller of Patents revoked the patent without giving reasons, departed from the Opposition Board's recommendation without explaining why, and failed to decide whether the opponent was entitled to maintain the post-grant opposition. Justice Arif S. Doctor delivered the judgment on June 15, 2026. The challenge arose from a...

Bombay High Court Sets Aside ₹32.79 Crore Arbitral Award To Adani Enterprises In Machhakata Coal Block Dispute

The Bombay High Court on Thursday set aside an arbitral award directing Mahaguj Collieries Ltd to pay about ₹32.79 crore to Adani Enterprises Ltd towards land acquisition expenses incurred for the Machhakata coal block in Odisha. The court held that the dispute could not have been decided through a summary award. Justice Somasekhar Sundaresan held that the arbitral tribunal had not analysed the Coal Mining Services Agreement (CMSA) or applied Sections 56 and 65 of the Contract Act to the...

RERA Registration Revocation Not A Panacea For Non-Compliance With Project Completion Orders: Bombay High Court

The Bombay High Court has held that the liberty granted to homebuyers to seek revocation of a project's registration does not foreclose their right to execute an order directing completion of the project through other modes available in law. Justice N.J. Jamadar delivered the ruling while allowing appeals filed by several allottees of the stalled "Shri Vallabh Residency" project in Kandivali (West), Mumbai. The court set aside a Maharashtra Real Estate Appellate Tribunal (MahaREAT) order...

Bombay HC Upholds MCX Circular Allowing Negative Crude Oil Settlement, Says Traders Must Bear Risks

On 24 June, the Bombay High Court upheld the validity of a Multi Commodity Exchange of India Ltd. (MCX) circular permitting negative settlement pricing in crude oil futures, holding that traders in derivative markets must bear the risk of extreme volatility, including unprecedented price crashes. Justices R.I. Chagla and Advait M. Sethna dismissed a batch of petitions filed by Dhanera Diamonds and others challenging MCX's circular dated 21 April 2020, which fixed the final settlement price of...

Trademark, Not Copyright Dispute: Bombay High Court Quashes FIR Over Fake Zara and Calvin Klein Apparel

The Nagpur bench of the Bombay High Court has quashed criminal proceedings against two traders accused of selling counterfeit Zara and Calvin Klein clothing. The court held that the allegations disclosed a trademark-related offence and not offences under the Copyright Act for which the FIR had been registered. Justice M.W. Chandwani observed that the prosecution's own case was that the two men were selling garments bearing the labels of the brands. It was not the prosecution's case that they...

Developer's Insolvency Cannot Block Housing Society's Bid For Conveyance Of Land And Building: Bombay High Court

A housing society's application for deemed conveyance of land and building cannot be put on hold merely because insolvency proceedings are pending against a developer, the Bombay High Court has held. The court ruled that a moratorium under the Insolvency and Bankruptcy Code (IBC) does not prevent authorities from deciding such applications under the Maharashtra Ownership Flats Act (MOFA). Justice Sandeep V. Marne set aside an order that had rejected a deemed conveyance application filed by...

TDR From Reserved Land Cannot Defeat Deemed Conveyance Rights Of Societies: Bombay High Court

On 18 June, the Bombay High Court upheld the grant of deemed conveyance in favour of three housing societies in Mumbai, holding that compensation or Transferable Development Rights (TDR) arising from acquisition of land reserved for a municipal market and a primary school cannot be treated as development potential of a residential layout so as to delay conveyance. Justice Sandeep V. Marne partly allowed a writ petition filed by Kiran Builders Pvt. Ltd. challenging the deemed conveyance order,...

Bombay High Court Says Homebuyers Retain Right To Delay Interest Despite Staying With Project

The Bombay High Court has held that homebuyers who continue with a housing project despite delayed possession do not lose their statutory right to claim interest for the delay. Justice Sharmila U. Deshmukh dismissed an appeal filed by CCI Projects Private Limited and upheld a Maharashtra Real Estate Appellate Tribunal order directing the developer to pay interest to purchasers of an apartment in the Wintergreen building of its Rivali Park project in Mumbai. “The unqualified absolute right of...