Karnataka High Court Upholds Order Asking GoBoult To Add 'Formerly BOULT' Disclaimer In Rebranded Products

The Karnataka High Court has upheld an order directing a consumer electronics brand to prominently display the disclaimer “formerly BOULT” on all products sold under its new name “GoBoult,” saying the step was necessary to prevent confusion with rival brand “GoBold.”A division bench of Chief Justice Vibhu Bakhru and Justice C M Poonacha delivered the order on November 24, 2025, dismissing the appeal filed by Exotic Mile, which owns and operates the GoBoult brand, against the Commercial Court's...

Arbitration Is Only Between Parties To Agreement; Non-Parties Can Be Added Only In Exceptional Circumstances: Karnataka High Court

The Karnataka High Court has held that arbitration could be only between parties to the Arbitration Agreement; non-parties cannot be made parties to arbitration unless exceptional circumstances exist.Justice Suraj Govindaraj held thus while allowing a petition filed by Lubna Shah. Shah and Varun Infra Projects (respondent No 3) had entered into a Joint Development Agreement on 27.06.2016, which is governed by an arbitration Clause in terms of Clause 22.Shah, by a letter dated 27.01.2025, called...

Income Tax Act | Documents Seized From Actor Yash's Residence Make Him 'Searched Person': Karnataka High Court Quashes Order U/S 153C

The Karnataka High Court has held that the search conducted at Actor Yash's residence makes him a 'searched person' under the Income Tax Act, as documents were seized from him, during the search and a panchanama was drawn. Hence, the order under Section 153C of the Act, which applies to persons other than the one originally searched, is without jurisdiction. Section 153C of the Income Tax Act, 1961 allows the Income Tax Department to assess or reassess the income of a person other than...

Statutory Remedy Under Cooperative Societies Act Inapplicable When Arbitration Clause Exists: Karnataka High Court

The Karnataka High Court has reiterated that if an arbitration clause were to exist in an agreement between the parties and the dispute were required to be adjudicated by way of arbitration, then the statutory requirement under the Cooperative Societies Act would not apply.Justice Suraj Govindaraj said this while allowing the petition filed by Ramakrishna House Building, which had approached the court for the appointment of a sole arbitrator. An agreement having been entered into between the...

RERA Orders Not Decrees, Cannot Be Executed Through Civil Courts: Karnataka High Court

The Karnataka High Court has recently ruled that an order passed by a Real Estate Regulatory Authority (RERA) does not amount to a civil court decree and cannot be executed through civil execution proceedings, holding that RERA orders must be enforced only through the statutory recovery mechanism provided under the Act. A single bench of Justice M Nagaprasanna said the statutory scheme shows that RERA is a 'self-contained code' whose decisions do not conform to any of the requirements of a...

Karnataka High Court Restores Classic Legends' Rights To The 'Yezdi' Marks For Motorcycles

The Karnataka High Court has recently allowed a series of appeals filed by Classic Legends Pvt. Ltd. and its founder, restoring their right to use the 'Yezdi' name and logos for motorcycles. The judgment overturns a 2022 decision that had declared the marks to be the property of Ideal Jawa, the defunct manufacturer of the original Yezdi bikes.A Division Bench of Justice D K Singh and Justice Venkatesh Naik T held that the single judge had erred in concluding that Ideal Jawa continued to own the...

Karnataka High Court Orders Refund Of ₹10 Crore, Says Payment During GST Search Was 'Not Voluntary' U/S 74(5) CGST Act

The Karnataka High Court held that the assessee's payment of Rs. 10 crores could not be treated as a voluntary payment under Section 74(5) of the CGST Act (Central Goods and Services Tax Act), as the DRC-03 shows 'NIL' entries for both interest and penalty. The bench observed that the 'NIL' entries clearly indicated that the payment was made by the assessee under coercion and under the threat of arrest. Justice S.R. Krishna Kumar stated that prior to the search and inspection...

Centre Cannot Retain Wrongly Paid IGST Once Correct Tax Is Paid To State GST Authorities: Karnataka High Court

The Karnataka High Court has held that the Centre cannot retain wrongly paid IGST (Integrated Goods and Services Tax) once the correct tax is paid to the State authorities. Justice S.R. Krishna Kumar observed that since the assessee had wrongly paid IGST and later paid the correct tax to the State GST, the Central government must refund IGST to the assessee. The assessee/appellant is a Science and Technology Company operating across healthcare, life science and electronics and has...

DRC-03 Payments Made During GST Search Not Voluntary; Refund Cannot Be Rejected Through Deficiency Memos: Karnataka High Court

The Karnataka High Court holds that payments made by assessee through Form GST DRC-03 at the time of search or pursuant to an investigation cannot be treated as 'voluntary payments' when amount was not determined through any formal assessment or adjudication. A Bench comprising of Justice M. Nagaprasanna, quashed deficiency memos issued by the Deputy Commissioner of Central Tax (Revenue) on two different dates rejecting refund sought by assessee. On this score, it was observed that...

Income Tax Act | Interest On Loan Advanced To Company Not Deductible Against Salary Income: Karnataka High Court

The Karnataka High Court has held that a loan raised by mortgaging property and advancing to a company does not constitute business expenditure, and the interest is not deductible against salary income. The bench opined that unless expenditure is incurred in the course of the business or professional service, the assessee is not entitled to a deduction, merely due to it being incurred on the amount borrowed and advanced to the company. Justices D K Singh and Rajesh Rai K stated that...

[LLP Act] Partners Bound To Refer Disputes To Arbitration Even Without Such Clause In Agreement Under Entry 14 Of First Schedule: Karnataka HC

The Karnataka High Court has said that Entry 14 of the First Schedule of the Limited Liability Partnership Act 2008 is in effect a statutory and compulsory arbitration, which is required to be adhered to by the partners in a limited liability partnership.For Context: Entry 14 of the First Schedule of LLP Act, 2008 reads thus: All disputes between the partners arising out of the limited liability partnership agreement which cannot be resolved in terms of such agreement shall be referred for...

Appeal Against Order U/S 39(2) Arbitration Act Is Not Maintainable U/S 13 Commercial Courts Act: Karnataka High Court

The Karnataka High Court dismissed an appeal under section 37 of the Arbitration and Conciliation Act, 1996 (Arbitration Act), holding that no appeal under section 13 of the Commercial Courts Act lies against an order passed under section 39(2) of the Act. The court further held that the appeal under section 13 of the Commercial Courts Act is maintainable against those orders enumerated under Order 43 of the CPC or under section 37 of the Act and that section 39(2) does not fall within...