Karnataka High Court Sets Aside ₹13.08 Crore Award To L&T In Bengaluru Metro Contract Dispute

The Karnataka High Court has recently set aside parts (around ₹13.08 Crore) of an arbitral award arising from a ₹303.29 crore Bengaluru Metro construction contract between Larsen & Toubro Limited (L&T) and Bangalore Metro Rail Corporation Limited (BMRCL).The court found shortcomings in the tribunal's treatment of claims relating to reduced parapet quantities, revised rates for 18 delayed pier locations and unpaid reinforcement quantities. It also set aside the tribunal's finding on...

Karnataka High Court Sets Aside ₹91 Lakh GST Demand Against King Enterprise Over Ex Parte Proceedings

The Karnataka High Court on 11 September set aside a GST tax and penalty demand of Rs. 91,00,384 against King Enterprise, finding that the proceedings had been completed ex parte without affording the business an effective opportunity to present its case. Justice T.M. Nadaf set aside the tax and summary orders against the company and remanded the matter to the tax authority for fresh consideration. The Bench observed: “The petitioner should have been more circumspect and cautious while...

Legal Metrology Act | Karnataka HC Quashes Case Against Ex-Employee Not Shown To Be In Charge Of Company Affairs

The Karnataka High Court has quashed criminal proceedings against a former in-house counsel of a publishing company. It held that an employee cannot be proceeded against merely on the basis of his designation when the complaint does not specifically state that he was in charge of the company's affairs.Justice H.P. Sandesh observed that the complaint did not contain any such averment against Prashant Kumar Joshi, who was shown as General Manager (Legal) of Pearsons Educations, Dorling Kindersley...

Partition Suit Challenging Mortgage, SARFAESI Enforcement Barred: Karnataka High Court

The Karnataka High Court has ruled that a partition suit can be barred under Section 34 of the SARFAESI Act when the reliefs sought, taken together, amount to a challenge to a mortgage and an attempt to stop a secured creditor from enforcing its security interest.Justice Sachin Shankar Magadum observed,“Therefore, a declaration by the Civil Court that the mortgage itself is illegal and null and void, coupled with a permanent injunction against the Bank, would directly undermine and nullify the...

One Party's Arbitrator Cannot Act As Sole Arbitrator If Other Fails To Nominate: Karnataka High Court

The Karnataka High Court on 31 August held that where an arbitration agreement gives both parties the right to nominate an arbitrator, one party's nominee cannot proceed as the sole arbitrator merely because the other party failed to make its nomination. The party that has exercised its right to nominate must instead approach the Court under Section 11(6) of the Arbitration and Conciliation Act, 1996. A Division Bench of Justices S. Sunil Dutt Yadav and K.G. Shanthi allowed Lotus Landmarks'...

State Cannot Bypass Statutory Limitation By Challenging MSME Award Through Writ: Karnataka High Court

The Karnataka High Court on 3 September held that the State cannot circumvent the statutory limitation for challenging an arbitral award passed by the Micro and Small Enterprises Facilitation Council by invoking the High Court's writ jurisdiction for a merits review. A Division Bench of Chief Justice Vibhu Bakhru and Justice K.S. Hemalekha allowed the writ appeal filed by the Commissioner, Bhoomi Monitoring Cell, only to the extent of holding that the State's writ petition challenging a Rs....

Karnataka High Court Upholds Cross-Subsidy Surcharge On Bagasse-Based Power Plants

The Karnataka High Court has upheld cross-subsidy surcharge demands against bagasse-based cogeneration units, holding that exempting solar power projects from the levy while imposing it on bagasse-based cogeneration plants was not discriminatory.Bagasse is the fibrous residue left after sugarcane is crushed to extract its juice Justice M. Nagaprasanna dismissed a batch of petitions filed by Ugar Sugar Works Limited,Hiranyakeshi Sahakari Sakkare Karkhane Niyamit and Godavari Biorefineries...

Karnataka High Court Sets Aside ₹482.69 Crore Penalty Against Adani Group's ACC Over Kalaburagi Mining

The Karnataka High Court has set aside a ₹482.69 crore penalty demand against Adani Group cement company ACC Limited over limestone mining at its Wadi operations in Kalaburagi district. The Court held that ACC's mining lease in Kalaburagi stood deemed to have been extended until 31 March 2030 under Section 8A(5) of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).A coram of Chief Justice Vibhu Bakhru and Justice K.S Hemalekha also dismissed the State Government's...

Karnataka High Court Holds GST Payments Made During Investigation Were Not Voluntary, Orders Refund

The Karnataka High Court has directed the GST authorities to refund ₹53.97 lakh collected from a taxpayer during an investigation, holding that the payments could not be treated as voluntary payments under the GST law.Justice C.M. Poonacha observed that there was no material to show that the taxpayer had voluntarily ascertained his tax liability before making the payments. The Court also noted that no prior demand or assessment had been made before the payments and that the authorities had not...

Karnataka High Court Quashes Orders Enforcing 2% Cess On Cinema Tickets, Allows Multiplexes' Plea

The Karnataka High Court has allowed a plea filed by the Multiplex Association of India and PVR INOX Limited against the enforcement of the 2% cess imposed on cinema tickets under the Karnataka Cine and Cultural Activists (Welfare) Act, 2024. Justice H.T. Narendra Prasad held that the measures seeking to operationalise and enforce the cess could not be sustained as the 2024 Act had not been brought into force through a valid commencement notification under Section 1(2). The matter was first...

Karnataka High Court Seeks State's Response To PVR INOX Plea Against 2% Cinema Ticket Cess

The Karnataka High Court has sought the State government's response to a plea challenging the 2% cess imposed on cinema tickets under the Karnataka Cine and Cultural Activists (Welfare) Act, 2024.A bench of Justice H.T. Narendra Prasad directed the State to take notice and observed that the issue concerning the applicability of the relevant provisions would be considered after examining whether the 2024 Act has formally come into force.The matter is listed for further hearing tomorrow. The...

TPO Cannot Reject Comparables Merely To Adopt Department's Preferred Set: Karnataka High Court

The Karnataka High Court on 28 August held that a Transfer Pricing Officer (TPO) cannot reject comparable companies selected by a taxpayer merely to replace them with a standard set of comparables preferred by the Income Tax Department, holding that the selection or exclusion of comparables must satisfy the requirements under the Income Tax Act and Rule 10B of the Income Tax Rules. A Division Bench of Justices S.G. Pandit and K.V. Aravind allowed the batch of transfer pricing appeals, including...