Karnataka High Court Remands Trademark Suit, Sets Aside Return Of Plaint For Non-Examination Of Specified Value

The Karnataka High Court has recently set aside an order returning a trademark infringement suit to a civil court. It held that the Commercial Court had failed to examine the value of the plaintiff's claimed trademark rights before concluding that it lacked pecuniary jurisdiction. Justice Tara Vitasta Ganju observed that the Commercial Court had not independently assessed the value of the rights asserted by Sarathi International Inc. The court noted that Sarathi International had taken...

'Criminal Prosecution Cannot Be A Frolicsome Act': Karnataka HC Quashes Fraud Case Against Ex-Vihaan Director

The Karnataka High Court has recently quashed criminal proceedings against chartered accountant M.N. Gunasheela, a former director of Vihaan Direct Selling (India) Pvt Ltd, in connection with a complaint concerning the affairs of the company. The Court also quashed a Look Out Circular issued against him. Justice M. Nagaprasanna held that the complaint did not disclose any specific role attributable to Gunasheela. The Court also noted that the company's business operations commenced after he...

Karnataka High Court Partly Sets Aside ₹79.58 Arbitral Award In Automotive Axles Housing Society Dispute

The Karnataka High Court on 1 June, partly set aside an arbitral award of Rs.79.58 lakh in favour of contractor K.S. Sridhar, holding that several claims allowed by the arbitrator lacked evidentiary support and were patently illegal. A Division Bench comprising Chief Justice Vibhu Bakhru and Justice C.M. Poonacha partly allowed the appeal filed by Automotive Axles Employees Housing Co-operative Society Ltd., modifying the arbitral award while sustaining certain monetary components in favour of...

Banks Must Take Proactive Steps Against SIM Swap Fraud: Karnataka HC Upholds BSNL's Liability In Fraud Case

The Karnataka High Court has recently observed that banks must proactively strengthen safeguards against SIM swap fraud. It noted that measures such as multiple OTP delivery channels, delayed processing of high-value transactions following SIM swaps, alternate transaction alerts and customer awareness initiatives can help prevent such frauds. Justice Suraj Govindaraj made the observations while holding BSNL liable for a fraud that enabled unauthorised withdrawals of ₹87.70 lakh from the account...

Karnataka High Court Refuses Interim Relief To Unacademy Parent In Dispute With Former Educator

The Karnataka High Court has recently refused to grant interim protection to Unacademy parent Sorting Hat Technologies Private Limited against a former educator accused of making disparaging online statements. The Court held that it could not examine the same injunction request after the Commercial Court had already heard the matter and reserved orders. A division bench of Justices Sachin Shankar Magadum and Rajesh Rai K was hearing an appeal filed by the company against an order of the...

Karnataka High Court Refers To Larger Bench Whether Residential JDAs Fall Under Commercial Courts Act

The Karnataka High Court has referred to a larger bench the question of whether Joint Development Agreements (JDAs) for residential projects can be treated as "construction and infrastructure contracts" under the Commercial Courts Act. The referral came after the court held that a dispute arising from a Bengaluru residential apartment project was not a commercial dispute and could not be entertained by a Commercial Court. Justice Tara Vitasta Ganju held that the dispute arising from a Joint...

Karnataka High Court Sets Aside ED Attachment Order, Says Copy-Paste Of Statutory Language Not Enough

The Karnataka High Court has recently set aside an Enforcement Directorate (ED) provisional attachment order, holding that a copy-paste of statutory language, without demonstrating from the material on record why immediate attachment was necessary, does not satisfy the requirements of law. Justice S. Sunil Dutt Yadav observed: “In the guise of adherence to law mere copy-paste of statutory language to indicate compliance would not be sufficient. There must be application of mind to the...

Stock Broker Prima Facie Committed Criminal Breach Of Trust By Withholding Share Sale Proceeds Karnataka High Court

The Karnataka High Court on Tuesday dismissed a writ appeal filed by stock broker SIC Stocks and Services Pvt Ltd. The Court upheld a direction requiring the firm to pay over Rs 2.46 crore to a client whose shares were allegedly sold without its consent. The court observed that the sale proceeds belonged to the client and were held by the broker in trust. It added that the conduct prima facie, amounted to criminal breach of trust. A Division Bench of Chief Justice Vibhu Bakhru and Justice K S...

Look-Out Circular Cannot Bar Bankrupt Guarantor's Travel For Official Duties: Karnataka High Court

The Karnataka High Court on 30 April held that a Look-Out Circular (LOC) cannot operate as an absolute bar on a bankrupt guarantor's overseas travel where such travel is required to discharge professional obligations, and that authorities must balance such restrictions against constitutional protections and employment needs. Justice Sachin Shankar Magadum passed the order while disposing of a writ petition filed by Aditya Arora challenging an LOC issued at the instance of Bank of Baroda. He...

Non-Borrower Tenants Need Not Make Pre-Deposit Before Filing Appeal Before DRAT: Karnataka High Court

The Karnataka High Court has held that a tenant or other non-borrower cannot be compelled to make a pre-deposit to maintain an appeal against a Debt Recovery Tribunal order under the SARFAESI Act. It held that the requirement applies only to borrowers. A Division Bench of Justice Suraj Govindaraj and Justice K Manmadha Rao said the statute draws a clear distinction between borrowers and non-borrowers in prescribing conditions for appeal. “Once the appellant is admittedly not a borrower within...

Karnataka High Court Dismisses State Commercial Appeal Over 444-Day Delay, Calls Explanation 'Misleading'

The Karnataka High Court on recently (April 28) refused to condone a 444-day delay by Karnataka Public Works Department authorities in filing a commercial appeal and dismissed the case. A Division Bench of Chief Justice Vibhu Bakhru and Justice C.M. Poonacha held that the explanation offered by the State authorities for the delay was “inaccurate and misleading.” “In view of the above, the averment that the notices had not been served on the appellants, is erroneous. Not only was the...

Karnataka HC Directs Takedown Of AI-Morphed Content Depicting Dharmasthala Dharmadhikari Veerendra Heggade, Family

The Karnataka High Court has directed the State of Karnataka and the Bengaluru CEN Police Station to take immediate steps to ensure removal of AI-generated, morphed, manipulated, and fabricated images and video content depicting Dr. D. Veerendra Heggade, the Dharmadhikari of Sri Kshetra Dharmasthala, and his family members. The content is to be removed from all social media platforms, URLs, and press and media platforms within one week from receipt of a copy of the order. Justice S.R. Krishna...