Entry-Tax Interest & Penalty From Employer's Delay Cannot Be Shifted To Contractor In Arbitration: HP High Court

The Himachal Pradesh High Court has recently clarified that statutory interest and penalty arising from delayed payment of entry tax cannot be shifted onto a contractor when the delay was caused by the employer's own failure to act in time, and where the arbitral tribunal had consciously restricted the contractor's scope of liability. Justice Ajay Mohan Goel in an order dated December 29, 2025, dismissed a challenged filed by Himachal Pradesh State Electricity Board Ltd (HPSEBL) under...

HP High Court Questions Shifting Of RERA Office From Shimla To Dharamshala; Interim Order Restraining Shift To Continue

The Himachal Pradesh High Court admitted a petition challenging the decision of the State Government to shift the Real Estate Regulatory Authority office from Shimla to Dharamshala.The Court remarked that RERA was a small institution with limited manpower and that the State ought to consider relocating larger offices instead of burdening a statutory authority with minimal staff.A Division Bench of Chief Justice G.S. Sandhawalia and Justice Jiya Lal Bhardwaj remarked that: “the interim order is...

Mere Interest In Project Does Not Justify Impleadment Of Non-Signatory In Arbitration Without Contractual Participation: HP High Court

The Himachal Pradesh High Court dismissed a writ petition holding that mere financial or consequential interest was insufficient to implead a non-signatory in the arbitration proceedings unless the stringent tests as laid down by the Supreme Court which include participation in the negotiation, performance or termination of contract were satisfied. Justice Ajay Mohan Goel observed: “Merely because the petitioner had a substantial interest in the subject matter of the contract, the same...

State & Union Failed To Enforce CSR Obligations After 2025 Rainfall Disaster: Himachal Pradesh High Court

The Himachal Pradesh High Court, while taking suo motu cognisance of the devastation caused by the excess rainfall in 2025, held that both the State Government and the Union of India failed to effectively enforce Corporate Social Responsibility obligations under the Companies Act, 2013. The Court noted that despite a clear statutory framework, no steps were taken to utilise the CSR funds for disaster relief and rehabilitation of infrastructure. Division Bench of Chief Justice G.S....

Central & State GST Authorities Must Coordinate To Avoid Multiple Adjudications On Same Issue: Himachal Pradesh High Court

The Himachal Pradesh High Court, applying the Supreme Court's Armour Security case, held that once proceedings are initiated by either the State or Central GST authority, parallel adjudicatory proceedings on the same issue are barred under Section 6(2)(b) of the CGST Act. The Court directed both authorities to coordinate and ensure that the assessee is not subjected to multiple adjudicatory processes on the same subject matter. Justices Vivek Singh Thakur and Sushil Kukreja examined...

Personal Criminal Liability Of Directors U/S 138 NI Act Survives Corporate Liquidation Under IBC: Himachal Pradesh High Court

The Himachal Pradesh High Court has reiterated that liquidation of a company under the IBC does not shield its directors from personal criminal liability in cheque bounce cases under Section 138 of the Negotiable Instruments Act, 1881(“N.I Act”) “15. ….Therefore, the orders passed by the learned Trial Court ordering the continuation of the proceedings against accused nos. 2 and 3 cannot be faulted.” Justice Rakesh Kainthla dismissed two petitions filed under Section 482 CrPC by...

Himachal Pradesh High Court Denies Zydus Interim Relief In 'Glucon-D v Glucose-D' Trademark Case

The Himachal Pradesh High Court has recently refused to grant interim relief to Zydus Wellness Products Ltd., which had sought to restrain Leeford Healthcare Ltd. from using the marks “Glucose-D” and “Glucose-C” for its glucose-based products. A single bench of Justice Sandeep Sharma, in an order dated November 11, 2025, held that a company cannot claim exclusive rights over descriptive trade terms such as “glucose.”Zydus, which owns the registered trademarks “Glucon-D” and “Glucon-C,” argued...

Arbitral Award Without Corroboration Of Claim Certificate Patently Illegal: Himachal Pradesh High Court

The Himachal Pradesh High Court has held that when there is no appearance of a qualified person to corroborate the claim certificate, the arbitral award suffers patent illegality.A Division Bench of Chief Justice G.S. Sandhawalia and Justice Ranjan Sharma remarked that: “In the absence of corroboration of the certificate… and any qualified person putting in appearance, the award of ₹3.82 crore along with lease money is arbitrary and constitutes patent illegality.”The Court partly...

Casual Absence Of Govt Officials Not “Sufficient Cause” To Condone Delay In Challenging Arbitral Award: HP High Court

The Himachal Pradesh High Court has dismissed an application filed by the Himachal Pradesh State Electricity Board seeking condonation of delay in filing objections against an arbitral award passed in favour of HCL Infotech Ltd., holding that bureaucratic delays and internal movement of files do not constitute sufficient cause for delay.Rejecting the State's contention, the Court remarked that: “The Decision with regard to filing of objections, approval whereof ultimately...

Employer Liable To Reimburse Customs Duty Paid By Contractor If Exemption Certificate Not Provided At Import Stage: HP High Court

The Himachal Pradesh High Court dismissed an appeal under section 37 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) filed by Himachal Pradesh Power Corporation Ltd. (HPPCL) upholding an arbitral award in favour of Orange Business Service India Technology Pvt. Ltd. The court held that the failure to provide exemption certificate by employer at the time of importation of goods for ADB funded project made it liable to reimburse the customs duty paid by the contractor. A...

Closure Of Partnership Activities Till Dissolution Of Firm Cannot Be Granted As Interim Relief U/S 9 Of A&C Act: HP High Court

The Himachal Pradesh High Court bench of Justice Jyotsna Rewal Dua has observed that an interim relief petition under Section 9, Arbitration and Conciliation Act, 1996 (“ACA”) claiming closure of business and manufacturing activities of the partnership business cannot be granted when the principal dispute pertains to the business activities of that partnership. Granting such a relief would amount to the destruction of the subject matter of arbitration and would defeat the very intent and...

Pre-Institution Mediation Is Mandatory When Plaint Is Filed U/S 12A Of Commercial Courts Act Unless Genuine Urgency Exists: HP High Court

The Himachal Pradesh High Court held that when a plaint is filed under Section 12A of the Commercial Courts Act, 2015, the plaintiff cannot bypass the mandatory pre-institution mediation unless the relief sought is urgent. The Court remarked that a commercial suit filed without undergoing pre-institution mediation, in cases where no genuine urgency exists, must be rejected under Order VII Rule 11(d) of the Code of Civil Procedure,1908. After perusing the plaint Justice Ajay...