J&K and Ladakh High Court Dismisses Union's Challenge to Award In Army Northern Command Accommodation Project Dispute

The Jammu & Kashmir and Ladakh High Court has dismissed the Union of India's appeal against an order refusing to set aside an arbitral award after finding that it had failed to plead, point out or prove any perversity in the award. A Division Bench of Justice Rajnesh Oswal and Justice Rahul Bharti observed: "We find ourselves in cordial and in complete agreement with the court of learned Principal District Judge, Udhampur that the appellant failed to plead and point much less prove any...

J&K High Court Refers ₹34.88 Crore HRCC–ERA Dispute To Arbitration, Holds Non-Operational DRE No Bar

The Jammu & Kashmir and Ladakh High Court on 22 May held that the existence of a contractual pre-arbitration dispute resolution mechanism cannot defeat a party's right to invoke arbitration under Section 11(6) of the Arbitration and Conciliation Act, 1996, where such mechanism has not been operationalised. A Single-Judge Bench of Justice Sanjay Dhar appointed former Chief Justice of the High Court, Justice Ali Mohammad Magrey, as sole arbitrator to adjudicate disputes between Hassan Roads...

J&K and Ladakh High Court Rejects Arbitration Plea Against HPCL, Finds No Agreement In Ad Hoc Dealership

The Jammu & Kashmir and Ladakh High Court on 12 May dismissed a petition by Kanta Devi under Section 11(6) of the Arbitration and Conciliation Act, 1996, holding that no valid arbitration agreement existed in relation to an ad hoc petrol pump dealership governed through a temporary arrangement with Hindustan Petroleum Corporation Limited (HPCL).Justice Rajnesh Oswal held that applying operational terms of HPCL's Standard Dealership Agreement to a temporary arrangement did not amount to...

GST Audit Completion Does Not Bar Further Tax Proceedings for Unpaid Tax: J&K and Ladakh High Court

The High Court of Jammu & Kashmir and Ladakh has recently held that completion of a GST audit does not prevent tax authorities from initiating further proceedings for unpaid or short-paid tax.Referring to section 65(7) of the CGST Act, the court observed, “A plain reading thereof makes it abundantly clear that where an audit conducted under sub-section (1) of Section 65 results in detection of tax not paid, short paid, erroneously refunded, or input tax credit wrongly availed or utilized,...

Arbitral Tribunal's Mandate Not Automatically Terminated After Deadline: J&K & Ladakh High Court

The High Court of Jammu & Kashmir and Ladakh has reiterated that an arbitral tribunal does not permanently lose its authority merely because the deadline to pass an award has expired, holding that proceedings can continue if the Court later extends the time. A Bench of Justice Sanjay Dhar relying on the Supreme Court's ruling in Rohan Builders (India) Pvt. Ltd. v. Berger Paints India Ltd. observed: "it is clear that expiry of stipulated time period for making award only makes the Arbitral...

Limitation No Ground To Refuse Arbitration Reference Unless Claim Is Clearly Time- Barred: J&K&L High Court

The High Court of Jammu and Kashmir and Ladakh has reiterated that a plea of limitation cannot by itself block the appointment of an arbitrator unless the claim is clearly time-barred, and that such questions should ordinarily be left to the arbitral tribunal. A bench of Justice Sanjay Dhar relying on earlier precedents held,“at the time of considering a petition under Section 11(6) of the Act, unless it is shown that the claim is ex facie time barred or hopelessly time barred, the Court...

IT Appellate Authority Must Pass Speaking Order, Hear AO Before Admitting Fresh Evidence: J&K&L High Court

The Jammu and Kashmir and Ladakh High Court has recently held that an appellate authority under the Income Tax law cannot allow a taxpayer to file fresh evidence at the appeal stage without first passing a reasoned order and giving the tax officer a fair chance to respond. A bench of Justice Sanjeev Kumar and Justice Sanjay Parihar said, “We are also of the clear view that the opportunity to lead additional evidence at the appellate stage could not be granted by the First Appellate Authority...

State Cannot Defer MSME Payments Once Work Is Completed; Funds Shortage No Defence: J&K&L High Court

The Jammu & Kashmir and Ladakh High Court has recently held that under the Micro, Small and Medium Enterprises framework, once execution of work is admitted, the State and its instrumentalities cannot defer their obligation to make payment on the plea of paucity of funds or administrative approval. A bench of Justice Wasim Sadiq Nargal observed, “Once the execution of work is admitted, the obligation to make payment stands crystallized and cannot be deferred on the plea of paucity of funds...

Limitation For Plea-Seeking Arbitrator Appointment Begins From Failure Of Opposite Party To Act On Invocation Notice: J&K&L High Court

The High Court of Jammu & Kashmir and Ladakh recently held that an application under Section 11(6) of the Arbitration and Conciliation Act, 1996, which allows a party to approach the court for appointment of an arbitrator when the other side fails or refuses to do so, must be filed within three years from the date of such failure or refusal. The court clarified that the cause of action arises upon such failure or neglect, and once limitation begins to run, it continues without...

Direct Tax Vivad Se Vishwas Act | Revival On Default Applies To Proceedings Initiated By Both Department And Assessee: J&K&L High Court

The Jammu & Kashmir and Ladakh High Court has held that under the Direct Tax Vivad Se Vishwas Act, 2020, failure to comply with the conditions of the scheme results in automatic revival of all proceedings withdrawn earlier, irrespective of whether they were initiated by the assessee or the Income Tax Department. A Division Bench of Chief Justice Arun Palli and Justice Rajnesh Oswal ruled that Section 4(6) of the act applies to “all proceedings and claims” without distinction, and therefore...

J&K & Ladakh High Court Refers Contract Dispute To Arbitration, Leaves Limitation Issue To Tribunal

The High Court of Jammu & Kashmir and Ladakh has recently reiterated that while deciding petitions for appointment of an arbitrator, the court cannot undertake a detailed inquiry into limitation, and such issues must be decided by the arbitral tribunal. The court was hearing four petitions filed under Section 11(6) of the Arbitration and Conciliation Act, seeking appointment of an independent arbitrator to adjudicate disputes arising between Ace Consultants, a proprietorship firm, and...

J&K&L High Court Upholds Income Tax Addition After Taxpayer Gave Inflated Stock Statement To Bank

The Jammu & Kashmir and Ladakh High Court on Wednesday upheld an addition to taxable income made on the basis of a stock statement furnished by a taxpayer to a bank while availing a cash credit facility, holding that the tax authorities were justified in relying on the declaration where discrepancies with the books of account remained unexplained. A Division Bench of Chief Justice Arun Palli and Justice Rajnesh Oswal dismissed an appeal filed by Ajay Food Products challenging an...