When Two Or More Courts Have Jurisdiction, Parties' Choice Of Court Prevails Even If Cause Of Action Arises Elsewhere: Karnataka High Court

The Karnataka High Court held that when parties to a contract have agreed to exclusive jurisdiction of a particular court, suit instituted in other courts is not maintainable even if the cause of action has arisen in other jurisdiction. Setting aside the interim injunction granted by the commercial court at Bengaluru, the Division Bench comprising Chief Justice Vibhu Bakhru and Justice C.M. Poonacha held that the Debenture Trust Deed (DTD) clearly conferred exclusive jurisdiction on a...

Lease Renewal Disputes With PSU's Are Arbitrable If Not Related To Eviction Under Public Premises Act: Karnataka High Court

The Karnataka High Court held that renewal of lease agreements with public sector undertakings are arbitrable and such disputes are not prohibited under Public Premises (Eviction of Unauthorised Occupants) Act, 1971 (PP Act) when lessee continues in possession lawfully and the rent is being accepted by the lessor. Accordingly, the present application under section 11 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) seeking appointment of a sole arbitrator was allowed. ...

Mens Rea Not Prerequisite For Imposing Penalty U/S 117 Of Customs Act: Karnataka High Court

The Karnataka High Court held that mens rea is not a prerequisite for imposing a penalty under Section 117 of the Customs Act. Section 117 of the Customs Act, 1962, addresses penalties for contraventions not specifically mentioned elsewhere in the Act. Justices S.G. Pandit and K.V. Aravind stated that a plain reading of Section 117 of the Act makes it clear that whenever any person contravenes any provision of the Act or fails to comply therewith, a penalty is attracted. Reading a...

Tax Demands Raised Post Approval Of IBC Resolution Plan Are Not Enforceable: Karnataka High Court

The Karnataka High Court recently reiterated that tax demands raised by revenue authorities after the approval of a resolution plan under the Insolvency and Bankruptcy Code (IBC) are unenforceable if the claims were not submitted during the Corporate Insolvency Resolution Process (CIRP).A single bench of Justice M Nagaprasanna observed,“There is no jurisdiction to parallelly initiate proceedings and raise a demand. In the light of CIRP becoming moratorium kicking in resolution plan...

SARFAESI Charge Created Before GST Charge Takes Precedence Over It: Karnataka High Court

'If a claim is made under the IBC Act and there is no claim under the SARFAESI Act, RDB Act, or GST Act, the claim under the IBC Act can be implemented without issue. Similarly, if a claim is made under the GST Act and there are no claims under the SARFAESI Act, RDB Act, or IBC Act, the claim under the GST Act can be executed without difficulty'

Mere Change In Arbitral Rules Does Not Frustrate Arbitration Agreement: Karnataka High Court

The Karnataka High Court Division Bench of Chief Justice Vibhu Bakru and Justice C.M. Joshi has set aside interim injunctions granted by Commercial Court by which it restrained L & T Infra Investment Partners Advisory Pvt. Ltd. (“L&T Infra”) from proceeding with arbitration under the London Court of International Arbitration (LCIA) Rules against Bhoruka Power Corporation Limited (“BPCL”) and its promoter shareholders. The Court held that when the parties have expressly chosen...

Karnataka High Court Directs CBDT To Extend Tax Audit Due Date To 31st October

The Karnataka High Court today directed the Central Board of Direct Taxes to extend the due date for filing Tax Audit Reports under Section 44AB of the Income Tax Act, 1961, by one month to 31st October, 2025.For reference: “Section 44AB of the Income Tax Act, 1961 mandates compulsory audit of accounts for businesses and professionals above a specified turnover or gross receipts threshold.”The Court took into consideration the difficulties faced and directed the CBDT to extend the due...

Karnataka High Court Seeks ED's Response On Plea For Interim Release Of Congress MLA Arrested In Alleged Illegal Betting Case

The Karnataka High Court on Wednesday (September 24) asked the Enforcement Directorate to get instructions on a plea filed by wife of Congress MLA K.C Veerendra arrested in alleged illegal betting case, seeking interim release from custody for 2-3 days on account on Dusshera festival. Justice MI Arun was hearing petitioner R D Chaitra's plea seeking to declare his arrest as illegal, arbitrary and violative of his fundamental rights under Article 19 & 21 and to release him. After hearing...

Failure To Mention Correct Value In GSTR-5A Filing Is Not Suppression U/S 74 CGST Act: Karnataka High Court

The Karnataka High Court has stated that a failure to mention the correct value in returns or apply the correct GST rate is not suppression under section 74 of the Central Goods and Services Tax (CGST). Justice S.R. Krishna Kumar stated that "...though the revenue alleged in the impugned SCN that the assessee failed to mention the value of services correctly in the GSTR-5A returns and apply the correct GST rate on the consideration received, the mere omission to mention the value...

S. 67 CGST Act | Officer Below Rank Of Joint Commissioner Cannot Inspect Assessee's Premises Without Authorisation: Karnataka High Court

The Karnataka High Court has held that an officer below the rank of Joint Commissioner cannot, by himself, inspect the premises of the assessee without authorisation under Section 67 of the Central Goods and Services Tax. The bench further stated that there is no requirement to provide a copy of the authorisation and details of the order passed by the Joint Commissioner, but the delegate who inspects or confiscates any document or goods would be required to provide the details of...

[GST Rate-Cuts] Karnataka High Court Refuses Ex-Parte Stay On Guideline Mandating Revised MRP Stickers On Existing Stock

The Karnataka High Court on Monday refused to pass an ex-parte order staying the guideline dated September 9 issued by the Union of India mandating the declaration of revised retail sale price (MRP), on unsold stock manufactured/packed/imported, which would be effective from September 22, in addition to the existing retail sale price (MRP).Justice B M Shyam Prasad refused the ex parte interim order on the petition filed by Kitchen and Home Products Company, TTK Prestige Limited. The company has...

Export Incentives Can't Be Denied For Inadvertent Error In Shipping Bill: Karnataka High Court

The Karnataka High Court held that export incentives can't be denied for inadvertent error in shipping bill. The bench opined that …..there are situations where the assessee by inadvertence or even otherwise has uploaded certificate/forms or returns which contains some errors which would require correction. The said correction or amendment cannot be denied on the basis of the technological system which has been introduced by the Department to contend that the software does not allow...