Karnataka High Court Closes Morgan Securities' Contempt Plea Against BPL Over Alleged Property Encumbrance

The Karnataka High Court has closed a contempt petition filed by Morgan Securities and Credits Private Limited against BPL Limited and its directors over the alleged violation of a 2020 order restraining the company from alienating or encumbering its properties.A Division Bench of Justice Jayant Banerji and Justice Tara Vitasta Ganju found that Morgan Securities had failed to produce documentary evidence of a breach. The court observed that the petitioner had not established that any of BPL's...

Director Can't Challenge Income-Tax Search Against Company In Individual Capacity: Karnataka High Court

On 6 October, the Karnataka High Court held that a company director cannot challenge an income-tax search and seizure conducted against the company in his individual capacity when the search is not directed against him personally. Justice B M Shyam Prasad found force in the Revenue's contention that Obedulla A, a director of Attica Gold Private Limited, could not challenge the search against the company in his individual capacity. The Bench observed: “If any person could have a grievance with...

Cheque Number Discrepancy Must Be Examined At Trial, Not Quashing Stage: Karnataka High Court

The Karnataka High Court on 28 September held that a discrepancy in the cheque number mentioned in a Section 138 Negotiable Instruments Act complaint and the complainant's subsequent police statement is a factual issue that cannot be decided at the stage of quashing the prosecution. Justice Suraj Govindaraj dismissed Umesh K.G.'s petition seeking to quash the proceedings initiated by Bharathi H.N. over an alleged failure to honour a cheque for Rs. 40 lakh. The Bench observed: “The discrepancy...

Karnataka High Court Upholds Injunction Against ACC Steel's Use Of 'ACC' Trademark

The Karnataka High Court has dismissed ACC Steel Pvt. Ltd.'s appeal against a commercial court decree restraining it from using “ACC” as a trademark or as part of its company name in the cement company's plea. A Division Bench of Justice D.K. Singh and Justice H. Shanthi Bhushan held that ACC Steel could not reduce the dispute to the fact that its steel products fall under the trademark classification for metals and metal goods, while ACC Limited's cement products are classified separately,...

Infosys, Infosys BPO Not Comparable To Goldman Sachs: Karnataka HC Upholds ITAT Order

The Karnataka High Court has upheld the exclusion of Infosys Ltd and Infosys BPO Ltd as comparable companies for Goldman Sachs Services Pvt Ltd in a transfer pricing dispute, finding no reason to interfere with the tribunal's factual assessment of the companies.A Division Bench of Justice S.G. Pandit and Justice Chillakur Sumalatha dismissed the Income Tax Department's appeal against the tribunal's order concerning Goldman Sachs for assessment year 2014-15.The department had challenged, among...

Karnataka High Court Upholds Forfeiture Of Developer's Advance After 7-Year JDA Delay

The Karnataka High Court on 22 September upheld the forfeiture of a developer's advance under an arbitral award after the developer failed to implement a Joint Development Agreement (JDA) for seven years. A Division Bench of Justices D.K. Singh and H. Shanthi Bhushan dismissed the developers' appeal and allowed the landowner's appeal concerning a Bengaluru-based multistoried housing project, restoring the forfeiture portion of the arbitral award which the Commercial Court had set aside. The...

Tummoc App Can Be Used For E-Ticketing In Goa, No Contempt Made Out: Karnataka High Court In IP Dispute

The Karnataka High court has held that using the Tummoc app for e-ticketing in Goa did not amount to contempt. The court noted that the injunction in the underlying suit was confined to BMTC/DTC and had been stayed by the High court. “We are therefore, of the view that as only interim injunction passed by the trial Court was stayed by this Court vide order dated 19.02.2024 passed in MFA No.483/2024 (IPR/SJ), no contempt is made out for using the app Tummoc by the respondent/contemnor/s in Goa.”...

Karnataka High Court Dismisses JSW Steel's Plea Over PMLA Attachment Linked To Alleged Illegal Iron Ore Transactions

The Karnataka High Court has dismissed JSW Steel's challenge to a PMLA Appellate Tribunal order concerning the attachment of its bank accounts totalling ₹24.37 crore over alleged proceeds from illegally mined iron ore supplied to the company.The Court held that JSW had been permitted to raise all factual and legal submissions before the Tribunal and therefore its grievance that the matter should have been remanded was untenable.A division bench of Justices D.K. Singh and T.M. Nadaf said...

Property Acquisition By State Not A Supply Of Goods Or Services: Karnataka High Court

The Karnataka High Court has held that compulsory acquisition of immovable property by the State in exercise of eminent domain does not amount to a supply of goods or services liable to Goods and Services Tax (GST). Justice R. Nataraj quashed the deduction of Rs. 12,28,906 towards GST from the compensation payable to four landowners whose house property was acquired for widening the Mysuru-Madikeri Highway. The Bench observed: “...An immovable property cannot at any stretch of imagination is...

Karnataka High Court Dismisses Revenue Appeal Against Microsoft India In CENVAT Refund Case

The Karnataka High Court has dismissed the Revenue's appeal against a tribunal order holding that Microsoft India (R&D) Pvt. Ltd. was entitled to a cash refund of accumulated CENVAT credit on services provided to its overseas entities. A Division Bench of Justice R. Devdas and Justice K. Manmadha Rao was hearing the appeal against the Customs, Excise and Service Tax Appellate Tribunal's (CESTAT) December 9, 2024 order. The tribunal had held that the services provided by Microsoft India to...

Only 2 Days Left Of 90-Day Restraint, Karnataka HC Dismisses Appeals Against Interim Order In Arbitration Case

The Karnataka High Court has dismissed three appeals challenging an interim restraint on dealings with a property in Bengaluru Rural District, holding that there was no point examining the challenges when only two days remained before the 90-day protection was due to expire.A Division Bench of Justice D.K. Singh and Justice H. Shanthi Bhushan, in an order dated September 11, noted that the restraint imposed by the Commercial Court on June 15 would expire on September 13.The bench, therefore,...

Karnataka High Court Refuses To Quash NI Case Over Cheque After Vijaya Bank Merger With Bank of Baroda

The Karnataka High Court on 17 September refused to quash proceedings against Bhadramma under Section 138 of the Negotiable Instruments Act, holding that the merger of Vijaya Bank with Bank of Baroda did not invalidate the cheque in question. Justice Suraj Govindaraj held that a cheque drawn on a bank that has merged with another bank cannot be treated as invalid merely because of the merger. The Bench observed: “….. a cheque which had been issued on a bank which has merged with another bank...