Dispute Over Partnership Deed Validity Cannot Defeat Arbitration Agreement: Calcutta High Court

The Calcutta High Court on 18 May held that a party cannot defeat an arbitration agreement merely by disputing the validity or genuineness of partnership deeds containing the arbitration clause. It observed that allowing such a challenge at the referral stage would undermine the doctrine of Kompetenz-Kompetenz under Section 16 of the Arbitration and Conciliation Act.Justice Gaurang Kanth allowed a Section 11 petition filed by Juli Bhagat and appointed Advocate Chayan Gupta as sole...

Calcutta High Court Denies Urgent Relief To Dabur In Suit Against Influencer Over 'Real Fruit Power' Videos

The Calcutta High Court on Tuesday issued notice to Avanish Agarwal and other respondents on a suit filed by Dabur India Ltd alleging that videos posted by Agarwal about its REAL Fruit Power brand were misleading, malicious, disparaging, and defamatory, while declining immediate interim relief. Justice Sugato Majumdar, hearing the matter on May 19, observed that while Dabur's right to seek legal recourse could not be denied, consumer interest and the dissemination of information relevant to...

Arbitration Clause Survives In Continuing Commercial Transactions Absent Clear Waiver: Calcutta High Court

The Calcutta High Court on 19 May held that where a series of agreements form part of a single, continuous commercial transaction, an arbitration clause in the original agreement survives in subsequent arrangements unless the later agreement clearly and unambiguously shows an intention to abandon arbitration. Justice Gaurang Kanth allowed a Section 11 petition filed by The Peerless General Finance and Investment Company Ltd and appointed former Judge of the Calcutta High Court, Justice Indra...

Calcutta High Court Says Municipal Tax Dispute Over Office Space Is Commercial Dispute

The Calcutta High Court has upheld the transfer of a civil suit over municipal tax liability arising from a property conveyance dispute to its Commercial Division. The court held that the dispute qualified as a commercial dispute because the immovable property was being used as office space when the suit was filed.A division bench of Justice Debangsu Basak and Justice Md. Shabbar Rashidi ruled, “As on the date of filing of the suit, the immovable property was used as office space,” and held that...

Pending Arbitration Does Not Bar Eviction Proceedings Under West Bengal Public Land Act: Calcutta High Court

The Calcutta High Court has recently held that pending arbitration over a lease dispute does not by itself prevent public authorities from initiating eviction proceedings under the West Bengal Public Land (Eviction of Unauthorised Occupants) Act against an alleged unauthorised occupant of public land. Justice Om Narayan Rai, however, set aside the impugned eviction notice after finding that the statutory authority had acted with a prejudged and influenced mind. Explaining why the pending...

Calcutta High Court Treats Polypropylene Sacks As Plastic, Not Textile Products In GST Dispute

The Calcutta High Court has held that polypropylene leno bags manufactured by Mega Flex Plastics Limited should be treated as plastic sacks, not textile products, for GST purposes. A Division Bench comprising Justice Debangsu Basak and Justice Md. Shabbar Rashidi observed that the company's bags were commonly known in the market as “plastic sacks” and not textile sacks. The court held, “The sacks manufactured by the appellant are commonly known in the market as plastic sacks. They are not...

Copyright Registration Cannot Be Granted Automatically If No Objection Is Filed: Calcutta High Court

The Calcutta High Court has recently held that copyright registration cannot be granted merely because no objection is received within the statutory period, holding that the Registrar of Copyright must independently verify the correctness of the application before granting registration. Interpreting the Registrar's obligations under the Copyright Rules in cases where no objection is received to a registration application, Justice Arindam Mukherjee observed, “On a conjoint reading of the...

Calcutta High Court Dismisses Challenge To IOCL's Revocation Of LPG Distributorship Reconstitution Approval

The Calcutta High Court has dismissed a challenge to Indian Oil Corporation Limited's decision revoking in-principle approval for reconstitution of an LPG distributorship from proprietorship to partnership, holding that the reconstitution process had not attained finality as the revised distributorship agreement remained unexecuted. Justice Smita Das De observed that while judicial review remained available against arbitrary State action, the court's role in the present dispute was limited. ...

Mortgage Suit Transferred From Civil Court To DRT Does Not Become Money Recovery Proceeding: Calcutta High Court

The Calcutta High Court has recently held that a mortgage suit does not become a simple money recovery proceeding merely because it is transferred from a civil court to the Debt Recovery Tribunal, holding that the lender's security interest and the borrower's equity of redemption continue to subsist. Justice Ajoy Kumar Mukherjee made the observation while allowing UCO Bank's challenge to orders of the Debt Recovery Tribunal and Debt Recovery Appellate Tribunal that had held the bank's SARFAESI...

MSME Pre-Deposit Non-Compliance Not Automatic Bar To Restoring Section 34 Petition: Calcutta High Court

The Calcutta High Court on 13 May held that non-compliance with the mandatory pre-deposit requirement under Section 19 of the Micro, Small and Medium Enterprises Development Act, 2006 does not, by itself, bar restoration of a petition under Section 34 of the Arbitration and Conciliation Act, 1996. A Bench comprising Justice Gaurang Kanth allowed a restoration application filed by the Public Health Engineering Department, Gorkhaland Territorial Administration and restored its Section 34 petition...

Calcutta High Court Says IDFC First Bank Lost Right To Seek Arbitration After Waiting 11 Months In Loan Suit

The Calcutta High Court has dismissed IDFC First Bank Limited's appeal against a trial court order that refused to send a loan dispute to arbitration and struck off the bank's defence for failing to act within time. A division bench of Justice Debangsu Basak and Justice Md. Shabbar Rashidi upheld the order, finding that the bank had waited nearly 11 months after entering appearance in the suit before seeking arbitration. “In the case at hand, as noted above, the appellant/defendant came up...

Calcutta High Court Refuses Arbitral Award Enforcement Over Indirect Unilateral Arbitrator Appointment

The Calcutta High Court has refused to enforce an ex parte arbitral award in favour of Cholamandalam Investment and Finance Company Ltd., holding that a lender cannot indirectly secure the appointment of a sole arbitrator through an arbitral institution of its own choosing when the borrowers have neither consented to the process nor participated in it. Justice Gaurang Kanth held, “The law does not permit such a stratagem. The prohibition engrafted by Section 12(5) and the judicial decisions...