Writ Jurisdiction Can Be Exercised Despite Arbitration Remedy In Exceptional Cases: Calcutta High Court

The Calcutta High Court has held that where a contract contains an arbitration clause, parties have an alternative remedy of invoking arbitration, particularly when the dispute involves questions of fact that cannot be adjudicated in writ jurisdiction under Article 226 of the Constitution. Justice Ajay Kumar Gupta, relying on the judgment of Whirlpool Corporation v. Registrar of Trade Marks, Mumbai and others reiterated that writ jurisdiction may still be exercised in exceptional...

Calcutta High Court Quashes Income-Tax Reassessment Against McNally Bharat After IBC Resolution Plan

The Calcutta High Court has quashed income-tax reassessment proceedings against McNally Bharat Engineering Company Limited, holding that the authorities failed to satisfy the statutory conditions for reopening the assessment and acted contrary to the company's NCLT-approved resolution plan. Justice Smita Das De allowed the company's writ petition and set aside the notice and order issued by the tax authorities along with all consequential proceedings. The authorities were also...

Calcutta HC Quashes Pranabananda Cooperative Bank Winding-Up, Says Liquidator Can't Judge Own Cause

On 16 September, the Calcutta High Court held that requiring appellants to challenge the appointment of a liquidator through the liquidator himself would amount to an “appeal from Caesar to Caesar's wife”, as it would require the liquidator to act as a judge in his own cause. A Division Bench of Justices Shampa Sarkar and Arjun Ray Mukherjee set aside the winding-up of Pranabananda Cooperative Bank Limited, as well as the orders of the West Bengal Cooperative Tribunal and Single Judge upholding...

Calcutta High Court To Examine If Customs Can Treat 'Obscene Adult Sex Toys' As Prohibited Goods

The Calcutta High Court is set to examine whether goods described as “obscene adult sex toys” can be treated as “prohibited goods” under the Customs Act without identifying a specific statutory or notification-based prohibition. Justice Smita Das De is hearing a petition filed by Pracha Aalloy Private Limited against a July 22, 2026, Customs order. The key question is whether describing the goods as “obscene adult sex toys” and invoking Section 292 of the Indian Penal Code, 1860 can, by...

Appealability Of Order Has No Bearing On Whether Suit Is Commercial Dispute: Calcutta High Court

The Calcutta High Court has held that the availability or absence of an appeal against an order passed in a suit has no bearing on determining whether the dispute is a commercial dispute under Section 2(1)(c) of the Commercial Courts Act, 2015. The Court said the test is whether on a meaningful and purposive reading of the plaint, the dispute falls within Section 2(1)(c) of the Act."Availability of an appeal or its absence against an order passed in a suit has no manner of bearing on the...

Arbitrator's Elevation As Judge Did Not Affect Award Passed Before Taking Oath: Calcutta High Court

The Calcutta High Court has held that the elevation of an arbitrator as a High Court judge did not affect the validity of an arbitral award passed by him. The award was passed hours before he took oath as a judge on the same day.The order was passed by Justice Gaurang Kanth, who rejected Acumen (J) Marketing Private Limited's objection to sole arbitrator Partha Pratim Roy's competence after his elevation as an Additional Judge of the Calcutta High Court. The bench noted that the award was...

Pre-Dispute Clause Cannot Replace Post-Dispute Written Waiver Of Arbitrator Ineligibility: Calcutta High Court

The Calcutta High Court has upheld the setting aside of an arbitral award passed by an arbitrator appointed unilaterally by the Managing Director of the Central Warehousing Corporation. It held that a contractual clause permitting such appointment could not override the post-dispute written waiver requirement under Section 12(5) A Division Bench of Justice Debangsu Basak and Justice Ajay Kumar Gupta dismissed an appeal filed by contractor Amal Krishna Dey against the Commercial Court's...

MSME Council Location Does Not Determine Court's Jurisdiction In Post-Award Proceedings: Calcutta HIgh Court

The Calcutta High Court has reiterated that the location of an MSME Facilitation Council does not, by itself, determine the territorial jurisdiction of courts over proceedings arising from an arbitral award.Applying this principle, the court held that an exclusive-jurisdiction clause in favour of the New Delhi courts governed a Section 29A application seeking an extension of the arbitral mandate after an award was passed by the West Bengal Micro Small Enterprises Facilitation Council (WBMSEFC),...

Calcutta High Court Sets Aside Restraint On Arbitrator, Stresses Limited Judicial Intervention In Arbitration

The Calcutta High Court on Friday set aside an order of the Darjeeling District Judge restraining a Sole Arbitrator from proceeding with a pending application under Section 33 of the Arbitration and Conciliation Act, 1996, holding that courts must exercise restraint in interfering with an ongoing arbitral process.A bench of Justice Ravi Kishan Kapur and Justice Supratim Bhattacharya was hearing an appeal against an order of the District Judge, Darjeeling, in a dispute between family...

Gold Imported In Violation Of Restrictions Is 'Prohibited Goods' Under Customs Act: Calcutta High Court

On Thursday, 10 September, the Calcutta High Court held that gold imported into India in violation of applicable import restrictions can be treated as “prohibited goods” under Section 2(33) of the Customs Act, 1962, even though gold is not absolutely prohibited from being imported into the country. A Division Bench comprising Justices Debangsu Basak and Aryak Dutt allowed the Customs Department's appeals and dismissed the appeals filed by Gopal Saha and Ajgar Seikh, setting aside the Single...

Calcutta High Court Says MSME Can't Seek Revival Benefit After SARFAESI Action, Rejects Debpara Claim

The Calcutta High Court on 2 September dismissed a writ petition filed by Debpara Tea Company Ltd against State Bank of India (SBI), which sought the benefit of the Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises (MSMEs) and challenged the classification of its account as a Non-Performing Asset (NPA). Justice Krishna Rao held that an MSME cannot seek the benefit of the Framework at a belated stage after the bank has issued a notice under Section 13(4) of the...

Development Agreement Involves Commercial Exploitation; Dispute Is Commercial: Calcutta High Court

The Calcutta High Court has held that a development agreement concerning immovable property involves commercial exploitation of the property and that a dispute arising from such an agreement can therefore be treated as a commercial dispute.“A development agreement in respect of an immovable property by its sheer nature encompasses trade or commerce in relation to the immovable property concerned. Development Agreement per se involves commercial exploitation of an immovable property. Therefore,...