Calcutta High Court Refers ₹38 Crore Railway Contract Dispute To Arbitration, Says No Claim Certificate No Bar

The Calcutta High Court has recently referred a ₹38.07 crore dispute arising out of an Eastern Railway bridge construction contract to arbitration, reiterating that the existence of a No Claim Certificate does not, by itself, render disputes non-arbitrable. Justice Gaurang Kanth constituted a three-member arbitral tribunal headed by former Supreme Court judge Justice Pinaki Chandra Ghose, with Senior Advocates Ritzu Ghosal and Saptangshu Basu as co-arbitrators. "It is well settled that the...

Company Court Can Transfer Winding-Up Proceedings To NCLT Without Formal Application: Calcutta High Court

The Calcutta High Court on 8 June held that a Company Court may transfer a pending winding-up proceeding to the National Company Law Tribunal (NCLT) even in the absence of a formal application by any party, provided it applies its mind and finds that the liquidation has not reached an irreversible stage. A Division Bench of Justices Debangsu Basak and Md. Shabbar Rashidi dismissed an appeal filed by creditor Anil Kumar Murarka and upheld the Company Court's order transferring the winding-up...

Officers Skipping Mandatory Learning Expose Bank To Risks: Calcutta HC Upholds SBI Reimbursement Policy.

The Calcutta High Court has upheld the State Bank of India's decision to withhold certain reimbursements from officers who fail to complete mandatory learning programmes. The Court observed that employees who do not update themselves expose the bank to risks relating to money laundering and cyber fraud. Justice Raja Basu Chowdhury, in a judgment delivered on June 18, dismissed a petition filed by the All India State Bank Officers Federation challenging SBI circulars issued in 2021 that linked...

Pecuniary Jurisdiction Alone Cannot Confer S.34 Jurisdiction In Arbitration Petitions: Calcutta High Court

On 18 June, the Calcutta High Court held that pecuniary jurisdiction alone cannot confer jurisdiction under Section 34 of the Arbitration and Conciliation Act, 1996, in the absence of territorial jurisdiction, reiterating that both conditions must coexist for a court to entertain a challenge to an arbitral award. Justice Gaurang Kanth dismissed a petition filed by Kanchan Konwer and another, the widow and son of late Tapan Konwer, who challenged an arbitral award passed in favour of developer...

Calcutta High Court Quashes Criminal Case Against SBI Officials, Says Dispute Was Purely Civil

On 17 June, the Calcutta High Court held that criminal proceedings cannot be used to pressurise parties in disputes that are essentially civil in nature and must disclose the essential ingredients of the alleged offences before a Magistrate can take cognisance. Justice Ajoy Kumar Mukherjee quashed criminal proceedings initiated against two State Bank of India officials who had been accused of offences under Sections 120B, 420, 409, 467, 468 and 471 of the IPC in connection with the auction sale...

Calcutta High Court Holds Prepayment And Contractual Charges Form Part Of 'Debt' Under RDB Act

The Calcutta High Court on 10 June held that prepayment charges, commitment charges and processing fees arising from a lending transaction constitute “debt” under Section 2(g) of the Recovery of Debts and Bankruptcy Act, 1993, and remain recoverable unless waived or extinguished, even after repayment of principal and interest. Justice Rai Chattopadhyay dismissed a writ petition filed by Maan Steel and Power Ltd challenging Indian Bank's refusal to release Fixed Deposit Receipts (FDRs) and issue...

Calcutta HC Keeps Arbitration Agreement Issue Open in Kobelco-Lara Mining Dispute, Declines Interim Relief

The Calcutta High Court has left open the question of whether an arbitration agreement contained in two Master Facility Agreements was validly assigned to Kobelco Construction Equipment India Pvt. Ltd. through a settlement with SREI Equipment Finance Ltd. The Court held that the issue should be decided by the appropriate forum and not in the present appeals. A Division Bench of Justices Debangsu Basak and Md. Shabbar Rashidi ruled that findings made by a Single Judge on the non-existence of...

Jute Commissioner Can't Rewrite Policy; Ignoring CCEA-Approved Pricing Formula Violates Article 14: Calcutta HC

The Calcutta High Court has held that the Jute Commissioner cannot rewrite economic policy and that any departure from a pricing formula approved by the Cabinet Committee on Economic Affairs (CCEA) is arbitrary, illegal, and violative of Article 14 of the Constitution. Quashing the impugned price fixation, the Court directed authorities to determine and notify the prices of jute bags for October and November 2025 in accordance with the formula communicated by the Ministry of Textiles on October...

Calcutta High Court Appoints Arbitrator in MHPL Infra-RITES Dispute Over Buxar Thermal Power Project Contract

The Calcutta High Court on Friday appointed a sole arbitrator to adjudicate disputes between MHPL Infra JV and RITES Ltd arising from a railway infrastructure contract connected with the Buxar Thermal Power Project at Chausa, Bihar. Justice Gaurang Kanth appointed Advocate Sabir Ahmed as the sole arbitrator. The Court held that a valid arbitration clause existed between the parties. It also found that the petition for appointment of an arbitrator had been filed within the prescribed limitation...

Calcutta High Court Holds No Title Passed Under Tenancy Created After SARFAESI Notice

The Calcutta High Court on Tuesday set aside a trial court order directing parties to maintain status quo in a tenancy dispute over a property. It held that a tenancy created after issuance of a demand notice under the SARFAESI Act could not confer any rights on the tenant. A Division Bench of Justice Sabyasachi Bhattacharyya and Justice Supratim Bhattacharya held that the tenancy relied upon by Julien Educational Trust had been created years after issuance of the demand notice and without any...

OTS Rejection Is Substantive Order, Pre-Deposit Mandatory Under SARFAESI: Calcutta High Court

The Calcutta High Court on 20 May held that rejection of a borrower's plea seeking implementation of a One Time Settlement (OTS) scheme constitutes a substantive adjudication affecting debt liability and not a mere procedural order. Justice Om Narayan Rai observed that any direction requiring a bank to implement an OTS scheme would amount to alteration of the borrower's outstanding liability. He held: “A direction to the bank to implement a scheme for one time settlement in support of a...

S.138 NI Act Case Cannot Fail For Non-Examination Of Authorised Representative: Calcutta High Court

The Calcutta High Court on 20 May held that a complaint under Section 138 of the Negotiable Instruments Act, 1881 cannot be rejected solely on the ground that the complainant's original authorised representative was not examined, where the court could have exercised powers under Section 311 CrPC to summon the witness and ensure a just decision. Justice Ajoy Kumar Mukherjee allowed the appeal filed by Shriram Transport Finance Co. Ltd. and set aside the judgment dated 27 August 2021 passed by...