Calcutta HC Refuses To Reject Suit, Says Lender Licence Question Under Bengal Money Lenders Act Is Triable

The Calcutta High Court has held that whether a lender company possessed the requisite licence under the Bengal Money Lenders Act, 1940 at the time of advancing loans is a triable issue and cannot be decided at the threshold to reject a recovery suit. Justice Aniruddha Roy observed: “Thus, on a harmonious and meaningful reading of the provisions laid down under Section 13 of BML Act, this Court is of the firm and considered view that, the instant application claiming rejection of plaint is not...

Calcutta High Court Temporarily Stays Arbitral Award In Tata Nano Singur Land Acquisition Dispute

The Calcutta High Court on Thursday (May 7) temporarily stayed for eight weeks the enforcement of a ₹765.78 crore arbitral award passed in favour of Tata Motors Ltd against the West Bengal Industrial Development Corporation Ltd (WBIDC) in the dispute over the acquisition of land in Singur for Tata's Nano factory. An arbitral tribunal had, on October 30, 2023 directed WBIDC to pay Tata Motors ₹765.78 crore with interest at 11% per annum. Justice Aniruddha Roy granted an unconditional interim...

Loan Repayment Not Contingent On Third-Party Performance, Unless Agreed: Calcutta High Court

The Calcutta High Court has held that a borrower cannot avoid repayment of a loan on the ground that a third party failed to perform its obligations, ruling that such liability flows from the contract between the borrower and the lender. Justice Ajay Kumar Gupta, while dismissing the writ petition filed by Jayanti Karmakar, rejected her contention that she should not be saddled with liability due to the alleged default of the supplier. “The contention of the petitioner that she should not be...

Mere Delay Or Inaction Does Not Amount To Abandonment Of Arbitration: Calcutta High Court

The Calcutta High Court has held that mere delay or inaction cannot, by itself, lead to an inference of abandonment of arbitration, emphasising that there must be a clear and conscious intention to relinquish the arbitral remedy. Justice Gaurang Kanth allowed a petition by MIPL DRAIPL JV in a dispute with Eastern Railway and appointed a substitute arbitrator after terminating the earlier arbitrator's mandate.“In law, abandonment cannot be readily inferred from mere inaction or delay. It must be...

Calcutta High Court Says Parties Can't Object To Kolkata Arbitration Venue After Failing To Do So Earlier

The Calcutta High Court has held, in the facts of a loan dispute, that borrowers who failed to object to the choice of arbitration venue despite notice and participated in earlier proceedings before Kolkata courts could not later challenge jurisdiction, as their conduct amounted to consent. A Single Bench of Justice Shampa Sarkar allowed an application filed by Electronica Finance Limited and appointed advocate Deepan Kumar Sarkar as the sole arbitrator to adjudicate disputes with Quality...

Calcutta High Court Quashes LOC Against Ex-Elder Pharma Employee In ₹1,300 Crore SFIO Probe

The Calcutta High Court has quashed a Look Out Circular against Debanjan Hazra, a former Elder Pharmaceuticals employee living in China since 2013, holding that it violated his right to personal liberty under Article 21.Earlier, a single judge of the Calcutta High Court had refused to quash the Look Out Circular. A Division Bench of Justices Shampa Sarkar and Ajay Kumar Gupta, in appeal, held the LOC was based on “speculative apprehension” and was “arbitrary and disproportionate,”...

Bombay High Court Rules Damages Under Arbitral Award Not Taxable Under GST In Tata Sons–NTT Docomo Case

The Bombay High Court has held that the Rs. 8,450 crore paid by Tata Sons to NTT Docomo under an arbitral award cannot be subjected to GST.The payment arose from a dispute over Docomo's exit rights under a shareholders' agreement in Tata Teleservices, and the Court rejected the tax department's claim that it amounted to a taxable service. A Division Bench of Justices G.S. Kulkarni and Aarti Sathe was considering whether settlement of the arbitral award and the accompanying consent terms could...

Deductions For Captive Power Profits Cannot Reduce Export Profit Deduction When Businesses Are Separate: Calcutta HC

The Calcutta High Court has ruled that deductions claimed on profits from captive power generation and export businesses must be computed independently and cannot be reduced against each other where the incomes arise from distinct sources. “The deduction granted under Section 80-IA cannot be reduced while computing profits eligible for deduction under Section 80HHC where the deductions arise from independent businesses,” the court held. A division bench of Justice Rajarshi Bharadwaj and...

Bidder Cannot Reopen Concluded E-Auction Due To Own Technical Glitch: Calcutta High Court

On 23 April, the Calcutta High Court held that a bidder cannot seek reopening of a concluded e-auction process on the ground of a technical glitch arising at its own end, as such a plea cannot justify a second opportunity once the auction has closed. A Bench of Justice Krishna Rao dismissed a writ petition filed by City Mall Vikash Pvt Ltd and another against the Union of India and Syama Prasad Mookerjee Port (Kolkata), which had issued a tender for allotment of land inside the CME compound at...

Calcutta High Court Orders Enforcement of ₹1.34 Crore Arbitral Award Against L&T

The Calcutta High Court recently directed enforcement of an arbitral award of about Rs.1.34 crore in favour of UK Mechanical Engineering Pvt. Ltd. against Larsen & Toubro Ltd., holding that the award had attained finality and must be executed as it stands, while declining to grant any enhanced interest on the differential amount.Justice Gaurang Kanth was dealing with an execution petition filed under Section 36 of the Arbitration and Conciliation Act seeking enforcement of the arbitral award...

Calcutta High Court Dismisses Appeal Seeking Modification Of Arbitral Award Stay, Says Plea Not Appealable

The Calcutta High Court has dismissed an appeal seeking modification of the conditions of stay of an arbitral award to permit withdrawal of about Rs. 61.20 crore, holding that such orders are not appealable under Section 37 of the Arbitration Act. The court clarified that a post-award application that does not seek protection or preservation of the subject matter cannot be treated as an interim measure appealable. Rejecting Mackintosh Burn Limited's bid to withdraw about Rs 61.20 crore...

Calcutta High Court Restores Arbitral Award In Bhubaneswar Airport Terminal Construction Dispute

The Calcutta High Court on Thursday set aside a Single Judge's order that had interfered with an arbitral award in a dispute over construction of a terminal and allied buildings at Bhubaneswar Airport. The court held that the court exercising jurisdiction under Section 34 cannot substitute the arbitrator's plausible view with its own. A Division Bench of Justices Debangsu Basak and Md. Shabbar Rashidi was hearing appeals filed by NBCC India Limited against the July 1, 2024 order by which the...