Karnataka High Court Upholds Order Restraining MI Marbo Italia From Using 'MI Marbo Italia' Trade Name

The Karnataka High Court on 11 June dismissed an appeal filed by MI Marbo Italia and upheld a 2015 order of a Sessions Judge restraining it from using the trade name “MI Marbo Italia”, finding it deceptively similar to the registered trademark “M Marble Italia.” A Bench of Justice Hanchate Sanjeevkumar observed that “there is no perversity and there is no need to cause interference with the findings given by the trial Court in allowing the application.”M Marble Italia (Tile Italia Mosaics...

Sec.138 NI Act Not Maintainable On Cheque Issued After Company's Dissolution: Karnataka High Court

The Karnataka High Court on 1 July held that proceedings under Section 138 of the Negotiable Instruments Act, 1881 are not maintainable where a cheque is issued in the name of a company that had already been struck off and dissolved. A Bench of Justice M Nagaprasanna allowed the petition and quashed the complaint proceedings initiated against Giga Networks Private Limited and its former director. He observed: “On a blend of the judgments rendered by the Apex Court and that of the High Court of...

Karnataka High Court Dismisses Eternal, Formerly Zomato, Appeal Against Order Restraining Use Of 'Eternal' Mark

The Karnataka High Court recently dismissed an appeal filed by Eternal Limited, formerly known as Zomato Limited, against a trial court's ad-interim ex-parte injunction restraining it from using the trademark "Eternal" in relation to services similar to those offered by Bengaluru-based Eternl Resilienttech Private Limited. Justice Hanchate Sanjeevkumar held that the trial court had recorded reasons while granting the ex parte injunction. The court ruled that Eternal's remedy lay before the...

SARFAESI Security Interest Cannot Override Statutory First Charge Under AP Tax Laws: Karnataka High Court

The court also urged the legislature to clearly specify whether legislative amendments are prospective, retrospective, or retroactive to reduce interpretational disputes while dealing with amendments to the SARFAESI Act.

Contractor Must Prove Loss Of Profit On Unexecuted Work; No Automatic Damages: Karnataka High Court

The Karnataka High Court has held that a contractor claiming damages for loss of profit on unexecuted works is not barred from raising such a claim merely because the work remained unexecuted. However, the contractor must prove that it actually suffered the loss. "If a contractor is prevented from executing the contract on account of reasons attributable to the employer, the contractor is not precluded from raising a claim for loss of profits for the unexecuted works," the court observed. It...

EPF Dues Get Priority Over Establishment Assets, Not Partner's Personal Property: Karnataka High Court

The Karnataka High Court has recently held that while the statutory first charge under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 takes priority over competing claims against the assets of an establishment, it does not automatically extend to the separate property of a partner of a partnership firm. Justice Anant Ramanath Hegde said Section 11(2) of the EPF Act expressly creates a first charge only over the assets of the establishment and not over the separate assets...

Karnataka High Court Grants Bail To Former MUDA Commissioner In Money Laundering Case

The Karnataka High Court on Wednesday granted bail to former Mysuru Urban Development Authority (MUDA) Commissioner G.T. Dinesh Kumar in a money laundering case linked to the alleged MUDA site allotment scam. The court held that while delay in trial by itself is not a ground for granting bail, the petitioner had shown several changed circumstances that justified the relief. Justice M. Nagaprasanna passed the order in proceedings initiated by the Enforcement Directorate (ED) under the...

Karnataka High Court Upholds Constitutional Validity Of Premium FAR Scheme, Rejects Challenge Over TDR Value

The Karnataka High Court recently upheld the state's Premium Floor Area Ratio (Premium FAR) scheme, rejecting challenges that it unfairly allowed developers to buy additional building rights from the government at the cost of landowners holding Transferable Development Rights (TDRs). A Division Bench of Chief Justice Vibhu Bakhru and Justice C.M. Poonacha dismissed a writ appeal filed by a landowner who had opted for Transferable Development Rights (TDRs) in lieu of monetary compensation for...

ED Can Share Information With Concerned Agencies On Violations Of Other Laws Under PMLA: Karnataka High Court

The Karnataka High Court on Wednesday held that information uncovered by the Enforcement Directorate (ED) during an investigation under the Prevention of Money Laundering Act (PMLA) can be shared with other agencies if it discloses violations of another law. It ruled that such information is not confined to proceedings under the PMLA alone. Justice M. Nagaprasanna made the observations while refusing to quash an FIR registered against Micah Mark and five others over allegations that they were...

Limitation Began On Refusal To Perform: Karnataka HC Upholds Arbitral Award In Housing Society's Favour

The Karnataka High Court has upheld an arbitral award directing a landowner to execute sale deeds for the remaining sites under a development agreement. It held that the society's claim was not barred by limitation because the agreement did not prescribe a fixed date for execution of the remaining sale deeds, and limitation began only when performance was refused. A division bench of Chief Justice Vibhu Bakhru and Justice K.S. Hemalekha dismissed an appeal by landowner A.R. Abdul Razak...

One Lender's Absence Doesn't Invalidate Resolution Under RBI's Stressed Asset Framework: Karnataka High Court

The Karnataka High Court has recently held that the absence of one lender from meetings convened to consider a borrower's resolution plan under the Reserve Bank of India's Prudential Framework for Resolution of Stressed Assets, 2019 does not invalidate the resolution process. It also does not affect a decision approved by the requisite majority of lenders. Justice Lalitha Kanneganti dismissed a writ petition filed by Ganjam Nagappa and Son Private Limited, a Bengaluru-based luxury jewellery...

Karnataka High Court Upholds Regulations Allowing Cross-Subsidy Surcharge On Open Access Electricity Consumers

The Karnataka High Court has recently upheld the validity of a Karnataka Electricity Regulatory Commission regulation that requires consumers procuring electricity through Open Access to pay Cross-Subsidy Surcharge (CSS). The court rejected a challenge to the surcharge mechanism, holding that it is consistent with the Electricity Act, the Electricity Rules and the National Tariff Policy. Justice Sachin Shankar Magadum held that the Karnataka Electricity Regulatory Commission (Terms and...