Shareholder Has No Proprietary Rights Over Company's Digital Assets: Karnataka High Court

The Karnataka High Court recently refused to quash an FIR registered against the Director of a Bengaluru-based algorithmic trading company for allegedly stealing, copying, and deleting the company's proprietary source code and trading algorithms, holding that a shareholder's stake does not confer any proprietary right over the company's digital assets. The single-judge bench of Justice M. Nagaprasanna held that the issue was not purely civil in nature; the court observed that the allegations...

Illegality Of Search Does Not Make Evidence Gathered Inadmissible In GST Fraud Cases: Karnataka High Court

The High Court of Karnataka at Bengaluru has ruled that the legality of search and seizure proceedings does not, by itself, make the material collected during such proceedings inadmissible for initiating action under Section 74 of the Central Goods and Services Tax Act, 2017, so long as such material is relevant to the issues involved.Section 74 of the CGST Act covers cases of tax not paid, short-paid, erroneously refunded, or Input Tax Credit (ITC) wrongly availed due to fraud, wilful...

Karnataka High Court Upholds Injunction Against 'TULSI' Agarbatti Mark, Finds Prima Facie Infringement Of 'TULASI'

The Karnataka High Court has upheld an injunction restraining the use of the “TULSI” mark for agarbattis, holding that it is prima facie deceptively similar to the long-standing “TULASI” mark and not merely descriptive of fragrance.In a judgment delivered on March 25, 2026, Justice Ravi V. Hosmani held that Jallan Enterprises' use of the word “TULSI” was displayed in a trademark-like manner that prima facie infringed the long-standing registered mark “TULASI” of Sarathi International Inc.The...

DRT Cannot Condone Delay Beyond 45 Days In Pleas Challenging SARFAESI Recovery Measures: Karnataka High Court

Recently, the Karnataka High Court held that the Debt Recovery Tribunal (DRT) cannot condone delays beyond the 45-day limit for filing applications under Section 17 of the SARFAESI Act, which allows borrowers to challenge a bank's recovery actions before the tribunal. The court clarified that Section 5 of the Limitation Act, 1963, which permits courts to excuse in case of sufficient cause, does not apply to such proceedings. The single-judge bench of Justice Lalitha Kanneganti observed...

Dispute Over Lease Of Land For Petrol Pump Is Commercial Dispute Even If Pump Not Operational: Karnataka High Court

The Karnataka High Court has recently held that a dispute arising from a lease of land for a petrol pump qualifies as a “commercial dispute” under the Commercial Courts Act, even if the business has not commenced and the project is still under construction.A Division Bench of Chief Justice Vibhu Bakhru and Justice C.M Poonacha was considering an appeal challenging an order of the Commercial Court returning the plaint on the ground that the dispute did not fall within the definition of a...

DRT Has No Inherent Power To Refund Court Fee In Section 17 SARFAESI Proceedings: Karnataka High Court

The Karnataka High Court has recently held that the Debts Recovery Tribunal (DRT) has no inherent power to refund court fees paid in proceedings under Section 17 of the SARFAESI Act in the absence of an express statutory provision, even if the proceedings become infructuous due to settlement between the parties, ruling that courts cannot order the refund of a statutory levy unless authorized by law.Emphasising that court fees are governed strictly by statute, the Division Bench of Chief Justice...

Karnataka High Court Holds Pre‑Winding-Up Lease By Mysore Kirloskar Ltd To KIAMS Fraudulent

The Karnataka High Court on 17 February held that a lease executed by the erstwhile management of Mysore Kirloskar Ltd in favour of Kirloskar Institute of Advanced Management Studies (KIAMS) was a fraudulent and sham transaction intended to defeat creditors and was therefore void from inception. A Division Bench of Justices D.K. Singh and Venkatesh Naik T heard an appeal by the official liquidator, challenging the Company Court's 21 July 2015 order that had rejected a request to cancel the...

Karnataka High Court Frames Guidelines On Calling For Production Of Spouse's Income-Tax Returns In Maintenance Cases

The Karnataka High Court has framed detailed "gender-neutral" guidelines regulating the procedure to be followed by matrimonial courts when applications are made seeking production of income tax returns and other financial records in maintenance and alimony proceedings, in order to ensure uniform practice while safeguarding the confidentiality of personal financial information. A single bench of Justice Suraj Govindaraj held that the Right to Information Act is not the proper mechanism for...

RTI Cannot Be Used To Obtain Spouse's Income Tax Returns In Maintenance Dispute Without Larger Public Interest: Karnataka High Court

The Karnataka High Court, in a recent noteworthy ruling, has held that income tax returns and financial details of a spouse constitute “personal information” under the Right to Information Act, 2005, and cannot be disclosed in the absence of a demonstrable larger public interest, even in maintenance disputes. Observing that private matrimonial disputes do not by themselves satisfy the statutory requirement for disclosure, a single bench, Justice Suraj Govindaraj, held, "While the need for a...

Karnataka High Court Sets Aside Ex-Parte GST Order Passed Without Allowing Reply To Show Cause Notice

The Karnataka High Court has set aside an ex-parte GST order passed against Medizen Labs Pvt. Ltd. after noting that the adjudicating authority issued the order without considering any reply from the taxpayer. The court observed that, in the facts of the case, it would be appropriate to give the assessee an opportunity to respond to the show cause notice before the matter is decided on merits. A single-judge bench of Justice S. Sunil Dutt Yadav was hearing a writ petition filed by the...

Arbitration Act | Karnataka High Court Upholds Refusal Of Interim Measures In Coorg Cineplex Lease Dispute With Landlord

The Karnataka High Court has recently upheld a Commercial Court order rejecting a plea for interim measures filed by Coorg Cineplex and its partners, holding that after the expiry of the lease, the landlord cannot be restrained from raising objections before the licensing authority regarding the renewal of a theatre licence. A Division Bench comprising Chief Justice Vibhu Bakhru and Justice C.M. Poonacha dismissed the appeal filed by the Cineplex, which had sought directions to the licensing...

Delay In Commercial Appeals Cannot Be Condoned Routinely Without Sufficient Cause: Karnataka High Court

The Karnataka High Court recently observed that delay in filing appeals in commercial matters cannot be condoned as a matter of routine and must be treated as an exception only when the party demonstrates sufficient cause and bona fide conduct.The observation came from a division bench of Justices Anu Sivaraman and Vijaykumar A. Patil while dismissing a commercial appeal filed by the Union of India, represented by the Chief Engineer, Southern Railway. The appeal had challenged a July 4, 2024...