Karnataka High Court Allows ED To Access Aadhar Database For Probing Case Under PMLA

The Karnataka High Court has allowed a petition filed by Enforcement Directorate (ED) and directed the Unique Identification Authority of India (UIDAI) to permit ED to examine the Aadhar database of 21 persons including the identity information or authentication records, while probing a case registered under the Prevention of Money Laundering Act. A single judge, Justice Hemant Chandangoudar while allowing the petition said “An investigation into an offence of money laundering being...

Urgent Need To Approve Amended Rules For Issuing Notice/ Summons By Email In Commercial Courts: Karnataka High Court To State

The Karnataka High Court has directed the state government to inform by February 25, on the status of the recommendation made by the High Court for amendment of rules allowing service of notices/summons through email in the Commercial courts at Bangalore.Justice R Devdas while hearing the petition filed by Advocate Anirudh Suresh said, “The State government should be informed that there is an urgent need to approve the rules for service of notice through email.” Suresh informed the court about...

Dispute Regarding Share Purchase Agreement Not Maintainable Before Commercial Court: Karnataka High Court

The Karnataka High Court has held that a dispute related to the recovery of money in regard to the share purchase agreement is not maintainable before the Commercial Court.A single judge, Justice H T Narendra Prasad allowed the petition filed by Bhashakar Naidu challenging the order of the Commercial Court which had rejected its application filed under Order VII Rule 10 of the Civil Procedure Code, for returning the money recovery suit filed by Arvind Yadav. The petitioner had argued that he...

Merely Paying Penalty For Wilful Delay In Filing Income Tax Returns Does Not Exonerate Assessee From Being Prosecuted: Karnataka High Court

The Karnataka High Court has refused to quash prosecution initiated by the Income Tax Department against an assessee who had willfully failed to submit his income tax returns in time for the Assessment Years 2012- 13 to 2015-16 and thereby committed the alleged offence.A single judge, Justice S Vishwajith Shetty dismissed the petitions filed by Rajkumar Agarwal. It said, “Delay in filing of the income tax returns would not only result in payment of penalty, but it also results in prosecution as...

Double Payment For Same Claim Violates Public Policy U/S 34 Of Arbitration Act: Karnataka High Court

The Karnataka High Court Bench of Chief Justice N. V. Anjaria and Justice K. V. Aravind held that the issue of double payment for the same claim would undoubtedly be in direct conflict with the Public Policy of India and would violate the Fundamental Policy of Indian Law, as well as the basic principles of morality and justice. Additionally, the court held that it is well established in law that double payment for the settlement of a single claim is impermissible. Brief Facts: ...

Plea For Recovering Dues Against Vessel Under Admiralty Act, Which Is A Special Statute, Maintainable Before High Court: Karnataka HC

The Karnataka High Court has said that a petition filed seeking a decree against a vessel (ship) would be maintainable before the High Court under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 and not before the Commercial Court.Justice Dr Chillakur Sumalatha held thus while dismissing the petition filed by Shipoil Limited, seeking to return the petition filed by M. T. Standorf. The respondent had filed the petition seeking the Court to pass a decree against the vessel...

Proceedings Initiated Against Income Tax Assessee After His Death Cannot Be Continued Against Legal Representative: Karnataka HC

The Karnataka High Court has said proceedings initiated against an Income Tax Assessee by issuing notice after his demise cannot be continued against his/her legal representative.A division bench of Justice Krishna S Dixit and Justice G Basavaraja said, “Had the proceedings been initiated against the Assessee during his lifetime, they could have continued against the legal representatives of the deceased Assessee.” The bench held thus while dismissing an appeal filed by the Income Tax officer...

When Investigation Is Substantially Completed By Improper Officer, SCN Issued U/S 74 Of CGST Act Is Liable To Be Set Aside: Karnataka HC

The Karnataka High Court held that when investigation is substantially completed by improper officer, show cause notice issued by proper officer u/s 74 of CGST Act is liable to be set aside. The Bench of Justice M.I. Arun observed that “…..substantial part of the investigation including search and seizure of the materials has been done by respondent no.2 who is not the proper Officer and under the circumstances, the said investigation, inspection, search and seizure in respect of the...

Reference Application U/S 8 Of Arbitration Act Should Be Filed Within 120 Days From Date Of Service Of Summons: Karnataka High Court

The Karnataka High Court Bench of Justice Hemant Chandangoudar has held that a reference application under Section 8 of the Arbitration and Conciliation Act, 1996, should have been filed within a period of 120 days from the date of service of summons to the defendant, which was long passed before 20.03.2019. Thus, where the reference application under Section 8 of the Act was made long after the expiry of the outer limit of 120 days from the date of service of summons, such a reference ...

'Reasoned Order' Passed By Arbitrator/District Court Cannot Be Interfered With U/S 37 Of A&C Act: Karnataka High Court

The Karnataka High Court bench of Justice H.P. Sandesh has reiterated that when a reasoned order has been passed by the Arbitrator, the same cannot be interfered with. In the case, the court found that the District Court had properly considered sections 73 and 74 of the Indian Contract Act, as well as relevant provisions of the Sale of Goods Act in modifying the arbitral award. The court, therefore, refused to interfere with the award under section 37(e) of the Arbitration and ...

Filing Application U/S 8 Of Arbitration Act Before Statement On Substance Of Dispute Doesn't Waive Right To Invoke Arbitration Clause: Karnataka HC

The Karnataka High Court bench of Justice H.P. Sandesh has held that if an application under Section 8 of the Arbitration and Conciliation Act, 1996 is filed before submitting the first statement on the substance of the dispute, the party cannot be deemed to have waived its right to invoke the arbitration clause. The court observed that the filing of the written statement and application for reference under Section 8 simultaneously cannot lead to an inference that the Appellant had...

Resolution Professional At S.94/95 Stage Cannot Decide On Maintainability Of Petition By Entering Into Merits: Karnataka High Court

The Karnataka High Court Bench of Justice N.V. Anjaria and K.V. Aravind, held that the role of the Registrar while registering the application under Section 95 of the Insolvency and Bankruptcy Code (IBC) is not adjudicatory in nature and this duty of the Registrar, NCLT was in no way adjudicatory trapping. Application of judicial mind towards merits has no place in discharge of a ministerial or clerical function. Brief Facts A petition under section 95 of the IBC was...