Bombay High Court
Bombay High Court Directs Mumbai Stamps Collector To Expedite Decision On Developer's Representation
The Bombay High Court has directed the Additional Collector of Stamps, Mumbai, to expeditiously decide a representation filed in 2022 by a Mumbai-based developer seeking reconsideration of the Ready Reckoner rates applicable to its residential project. A Division Bench of Justice M. S. Karnik and Justice S. M. Modak granted the Additional Collector twelve weeks from the date of communication of the order to hear the developer and decide the representation on merits. The Court also directed the...
Bombay High Court Upholds NMC Regulation Allowing Only Non-Profit Companies To Set Up Medical Colleges
The Bombay High Court at Aurangabad recently upheld Regulation 6 of the Establishment of Medical Institutions, Assessment and Rating Regulations, 2023, which allows only non-profit companies to establish new medical colleges and hospitals. A division bench of Justices Sandipkumar C. More and Abasaheb D. Shinde held that the rule is a valid exercise of regulatory power and is consistent with the National Medical Commission Act, 2019. The regulations were framed by the National Medical...
DRT Can Hear Only Banks' Recovery Applications Against Borrowers Under RDB Act: Bombay High Court
The Bombay High Court has clarified that under the Recovery of Debts and Bankruptcy Act, the Debts Recovery Tribunal (DRT) has jurisdiction only over recovery applications filed by banks and financial institutions and cannot entertain suits or proceedings initiated by borrowers or third parties against banks.Justice N. J. Jamadar said that while the Recovery of Debts and Bankruptcy Act bars civil court jurisdiction in respect of matters the DRT is empowered to decide, that bar does not extend to...
Pending CBI Probe Not Adjudication: Bombay High Court Upholds Arbitral Award Against Central Railway
The Bombay High Court on Wednesday held that Central Railway cannot withhold undisputed payments to a contractor merely because a criminal case is pending in relation to another supply. The Court said a CBI investigation does not amount to adjudication under a contract and cannot, by itself, justify retaining money that is otherwise payable. A single bench of Justice Gauri Godse held that the Railways were required to first raise a recovery claim and subject it to adjudication before...
Mandatory Pre-Deposit For SARFAESI Appeal Applies To Mortgagor Who Secured Another's Loan: Bombay High Court
The Bombay High Court has clarified that, in the facts before it, a person who mortgages property to secure another party's loan is treated as a “borrower” under the SARFAESI Act and must comply with the mandatory pre-deposit before an appeal can be heard by the Debts Recovery Appellate Tribunal. A Division Bench of Justices R.I. Chagla and Farhan P. Dubash said the statute leaves no scope to exclude such mortgagors from the deposit requirement. “We are of the view that there is no need and...
Bombay High Court Refuses To Quash FIR, ED Probe Against Ex-Religare Chairperson Rashmi Saluja
The Bombay High Court has dismissed writ petitions filed by Dr Rashmi Saluja, former Executive Chairperson and key managerial person of Religare Enterprises Limited (REL), challenging an FIR registered against her in September 2024 and the proceedings initiated by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act. A Division Bench of Chief Justice Shree Chandrashekhar and Justice Gautam A Ankhad refused to interfere with and FIR registered at Matunga Police Station,...
Arbitral Tribunals Cannot Grant Equity-Based Relief Unless Authorised By Contract: Bombay High Court
The Bombay High Court has held that arbitral tribunals must decide disputes strictly in accordance with the contract and applicable law and cannot grant relief based on "notions of equity or fairness" unless the parties have expressly authorised such an approach. Setting aside an arbitral award directing a refund of brokerage, the court held that arbitrators are not courts of law empowered to dispense equitable relief and that once transactions are held to be authorised, their contractual...
Bombay High Court Sets Aside ₹1.17-Crore Arbitral Award Enforcing Off-Book Cash Claims
The Bombay High Court has set aside an arbitral award directing a real estate partnership to pay over Rs 1.17 crore to a former partner, holding that the award sought to enforce rights allegedly arising from illegal and undocumented cash transactions.Allowing the challenge, Justice Somasekhar Sundaresan held that the arbitral tribunal had enforced rights flowing from a partnership arrangement that was shown to operate entirely outside lawful accounting. The court warned that if such...
SARFAESI Involves Enforcement, Not Adjudication; Does Not Bar Arbitration: Bombay High Court
The Bombay High Court on Monday held that initiation of proceedings under the SARFAESI Act does not bar arbitration between a lender and a borrower. The court clarified that SARFAESI proceedings are meant only for enforcement of security and do not involve adjudication of disputes. Arbitration, it held, is an adjudicatory process and can proceed in parallel. Justice Sandeep V. Marne made the observations while hearing petitions filed by Tata Capital Housing Finance Ltd seeking appointment of...
Bombay High Court Says Award-Holder Has No Right to Retain Deposit After Arbitral Award Is Set Aside
The Bombay High Court recently held that Rashtriya Chemicals and Fertilizers Limited has no right to retain Rs 218.45 crore deposited by Thermax after the arbitral award in its favour was set aside, making it clear that the pendency of an appeal cannot be used to hold on to the money. A Division Bench of Chief Justice Shree Chandrashekhar and Gautam A. Ankhad said the legal position was straightforward once the award no longer existed. The court noted, “There is no arbitral award in...
MSME Revival Benefits Depend On Loan Limit, Not Outstanding Dues: Bombay High Court
The Bombay High Court recently held that eligibility for benefits under the Reserve Bank of India's framework for revival and rehabilitation of MSMEs depends on the sanctioned loan limit and not on the outstanding amount. The court, thus, cleared the way for Union Bank of India to continue insolvency proceedings against Vardhan Agro Processing Limited. A Division Bench of Justice Manish Pitale and Justice Shreeram V. Shirsat heard the case. While explaining the scope of the RBI framework, the...
Commercial Courts Act | Institution Of Suit Means Presentation, Not Registration, For Mandatory Mediation: Bombay High Court
The Bombay High Court has held that the requirement of pre-institution mediation under Section 12-A of the Commercial Courts Act does not apply where a suit was instituted before the provision was declared mandatory, even if the suit was registered after that date. The court clarified that, for the purposes of Section 12-A, a suit is instituted when the plaint is presented before the court and not when it is subsequently registered by the registry. A Single Judge Bench of Justice Gauri...