Kerala High Court
Cheque Not Legally Enforceable For Full Amount If Part Payment Not Endorsed: Kerala High Court
The Kerala High Court has held that a cheque presented for its full value despite prior part payments without endorsement does not represent a legally enforceable debt, while upholding an acquittal in a cheque dishonour case. Justice A. Badharudeen, while dismissing an appeal filed by complainant Danikutti Philip, held, "However, when part payment(s) is/are made and the indorsement mandated under Section 56 of the NI Act failed to be recorded, presenting the cheque for the whole sum, of which a...
Foreign Arbitral Award Unenforceable In India Without Valid Arbitration Agreement: Kerala High Court
The Kerala High Court on Tuesday held that a foreign arbitral award, even if confined to costs, cannot be enforced in India under the Arbitration and Conciliation Act, 1996, if it is rendered in the absence of a valid arbitration agreement, holding that such disputes are not capable of settlement by arbitration under Indian law. Justice S. Manu dismissed an execution petition filed by Concilium Marine Group AB and Concejo AB, two Swedish entities, against an Indian resident, observing, “A...
Earthen Roofing Tiles By Khadi Board-Recognised Unit Qualify For VAT Exemption: Kerala High Court
The Kerala High Court on 12 March held that earthen roofing tiles manufactured by a unit recognised and financed by the Kerala Khadi and Village Industries Board are eligible for tax exemption as “pottery” under the KVAT Act. A Division Bench comprising Justices Devan Ramachandran and Basant Balaji set aside tax demands raised against Annamanada Kalimon Vyavasaya Sahakarana Sangham Ltd., a cooperative society engaged in manufacturing clay products in Thrissur. The Bench observed: “We allow...
Litigant Cannot Claim Right To Privacy To Override Court Orders On Disclosure: Kerala High Court
The Kerala High Court on 25 March held that a bank must comply with court directions and cannot refuse disclosure of account details on privacy grounds, even if a litigant alleges violation of his right to privacy. A Division Bench of Justice Anil K Narendran and Justice Muralee Krishna S dismissed an appeal against the Single Judge's order declining to exercise writ jurisdiction under Article 226 of the Constitution. The Court observed: “In the absence of proper parties in the party array,...
Kerala High Court Upholds Relief To Kalyan Jewellers, Rules Unrealised Mark-To-Market Gains Not Taxable
The Kerala High Court on 11 March, held that unrealised gains arising from mark-to-market valuation of forward contracts are not taxable as income unless actually realised. The Division Bench comprising Justice Devan Ramachandran and Justice Basant Balaji dismissed the appeal filed by the Principal Commissioner of Income Tax against Kalyan Jewellers India Ltd. The judges held: “It is doubtless that, in a 'mark-to-market' forward commodities contract, the gains and losses fluctuate until the...
Kerala High Court Sets Aside Banking Ombudsman Order For Failing To Give Reasoned Decision
The Kerala High Court recently set aside an order passed by the Banking Ombudsman rejecting a borrower's complaint over increase in interest rate on a gold loan from 14.5% to 17%, holding that the authority failed to pass a reasoned order despite a specific direction from the Court. A single bench of Justice Harisankar V. Menon was considering a writ petition filed by the borrowers, challenging the Ombudsman's order. The petitioners contended that the rate of interest was increased by the bank...
Kerala High Court Upholds Award Granting Compensation For Entire House Rendered Unusable By NHAI Acquisition
The Kerala High Court dismissed an appeal challenging an arbitral award granting compensation for an entire residential building affected by land acquisition for National Highway-66 development in Kasaragod, Kerala.A division bench of Chief Justice Soumen Sen and Justice Syam Kumar V.M. dismissed the appeal filed by the Project Director, National Highways Authority of India, reiterating the limited scope of interference under Section 37 of the Arbitration and Conciliation Act, 1996.“The...
GST Show Cause Notice Cannot Proceed On Preconceived Conclusion Of Liability: Kerala High Court
The Kerala High Court recently set aside a Goods and Services Tax (GST) show cause notice issued to the Kerala State Self-Financing B.Pharm College Management Association after finding that the notice was worded in a manner suggesting a pre-conceived conclusion on the petitioner's liability. The court held that a show cause notice can contain only a proposal based on the material on record and that a final conclusion can be reached only after considering the assessee's objections and documents....
Appointment Of Arbitrator Under SEZ Act Lies With Central Government, Not High Court: Kerala High Court
The Kerala High Court on Friday held that the High Court cannot invoke its powers under Section 11 of the Arbitration and Conciliation Act, 1996, in disputes governed by the Special Economic Zones Act, 2005, where the statute vests the power to appoint an arbitrator with the Central Government and the requirements for the exercise of Section 11 jurisdiction are not satisfied.A coram of Justice S Manu rejected an arbitration request seeking the appointment of an arbitrator to resolve disputes...
Arbitration Act Allows Interim Relief Even After Arbitral Award Before Enforcement: Kerala High Court
The Kerala High Court recently held that courts possess wide powers under Section 9 of the Arbitration and Conciliation Act to grant interim measures, even after the arbitral award is passed but before its enforcement.A Division Bench comprising Chief Justice Soumen Sen and Justice Syam Kumar V.M. partly allowed an appeal filed by three foreign companies against Emil Traders Private Limited. The appellants, foreign companies, had obtained an arbitral award against Emil Traders Private Limited...
Condonation Of Delay In Filing Returns For Company Not Available To Directors: Kerala High Court
The Kerala High Court on Thursday held that condonation of delay in filing annual returns does not wipe out the statutory disqualification incurred by directors for failure to file returns for consecutive financial years. The court observed that the benefit of condonation available to the company cannot be extended to its directors. The court held that the office-bearers of the Aruvipuram Sree Narayana Dharma Paripalana Yogam, including V.K. Natesan, Dr. M.N. Soman, Thushar Vellappally and...
Kerala High Court Sets Aside Rent Control Appellate Authority Order For Proceeding During IBC Moratorium
The Kerala High Court on Tuesday set aside an order of the Rent Control Appellate Authority after finding that an appeal against a corporate debtor had been taken up despite a moratorium being in force under the Insolvency and Bankruptcy Code. A bench of Chief Justice Soumen Sen and Justice Syam Kumar V.M. observed, “Under Section 14(1), it is clearly stated that once a moratorium is declared, there cannot be an institution of suits or continuation of pending suits or proceedings against the...