SARFAESI Sale Certificates Not Liable To Stamp Duty Upon Issuance: Kerala High Court [Full Bench]

The Kerala High Court has recently held that a sale certificate issued pursuant to an auction sale under the SARFAESI Act is not liable to stamp duty merely upon its issuance. The Court also held that a Registering Officer cannot refuse to file a copy of such certificate on the ground that it is unstamped. A Full Bench comprising Justices Sathish Ninan, T.R. Ravi and M.A. Abdul Hakhim answered a reference arising from conflicting Division Bench decisions on the issue. “It has been held that...

Magistrate Cannot Refer Parties To Mediation In SARFAESI Proceedings Under Section 14: Kerala High Court

The Kerala High Court has set aside an order referring a SARFAESI proceeding to mediation, holding that the role performed by a Magistrate in such proceedings is purely ministerial and does not involve any adjudicatory process. Justice P.V. Balakrishnan observed that a Chief Judicial Magistrate or Additional Chief Judicial Magistrate exercising powers under the SARFAESI Act does not perform any quasi-judicial function and has no discretion in the matter. “It cannot be disputed that the power...

Unauthenticated Alteration In Cheque Date Renders It Void: Kerala High Court

The Kerala High Court has recently held that an alteration in the date of a cheque that is not authenticated by the drawer's full signature amounts to a material alteration and renders the cheque void, while upholding an acquittal in a cheque dishonour case. Justice A. Badharudeen held: “When there is alteration of the date in the cheque which is not authenticated by putting the full signature of the drawer on the place of alteration, the same operates as a material alteration and the same...

Mandatory RERA Pre-Deposit Cannot Be Diluted By Replacing Statutory Interest Rate With MCLR: Kerala HC

The Kerala High Court has recently held that a builder could not be permitted to calculate the mandatory pre-deposit for pursuing a RERA appeal on the basis of the Marginal Cost of Funds-based Lending Rate (MCLR) instead of the State Bank of India's Benchmark Prime Lending Rate plus 2% prescribed under Rule 18 of the Kerala Real Estate (Regulation and Development) Rules, 2018. The Court observed that such a course would "render Rule 18 a dead letter." A Division Bench of Justice Raja...

Kerala High Court Dismisses CMRL Appeal Against ED Probe In Money Laundering Case Involving Ex-CM's Daughter

The Kerala High Court on Friday dismissed an appeal filed by Cochin Minerals and Rutile Limited (CMRL) challenging an Enforcement Directorate summons issued in a money laundering probe linked to payments allegedly made to Exalogic Solutions Pvt Ltd, a company owned by Veena Vijayan, daughter of former Kerala Chief Minister Pinarayi Vijayan. A division bench of Justices Raja Vijayaraghavan V and K.V. Jayakumar upheld the ED's action and declined to quash the Enforcement Case Information Report...

Pre-Deposit Under SARFAESI Can Be Based On Creditor's Claim If DRT Has Not Determined Debt: Kerala HC

On 2 June, the Kerala High Court held that where the Debts Recovery Tribunal (DRT) has not determined the debt due from a borrower, the pre-deposit required for maintaining an appeal under Section 18 of the SARFAESI Act can be computed on the basis of the amount claimed by the secured creditor. A Division Bench comprising Chief Justice Soumen Sen and Justice Syam Kumar V.M. allowed Canara Bank's appeal in part against a Single Judge's order on the computation of pre-deposit for a SARFAESI...

Cheque Dishonour Notice Must Specify Amount Demanded, Else No Valid Notice In Eye Of Law: Kerala High Court

The Kerala High Court has held that a statutory demand notice issued in a cheque dishonour case must specifically mention the amount demanded, failing which there would be no legal notice in the eye of law. “Only when the notice is specific about the amount, it is possible for the recipient of the notice to pay the amount which was specifically asked for to avoid penal consequences,” the Court observed. Justice A Badharudeen made the observation while dismissing an appeal filed against the...

Technical Glitch Could Have Misled Bidder; Kerala High Court Directs Central Bank To Refund Auction Deposit

The Kerala High Court has upheld a direction requiring the Central Bank of India to refund money deposited by an auction participant after finding that an admitted technical glitch could have led her to believe that her bid had not been accepted. A Division Bench of Chief Justice Soumen Sen and Justice Syam Kumar V.M. passed the order while partly allowing an appeal filed by the Bank against a Single Judge's decision directing a refund of the amount deposited by the auction participant and...

Disputes On Corporate Restructuring Must Be Decided by NCLT, Not Arbitrator: Kerala High Court

On 1 June 2026, the Kerala High Court held that disputes involving corporate restructuring and division of company assets fall within the exclusive jurisdiction of the National Company Law Tribunal (NCLT) and are non-arbitrable. A Single Judge Bench of Justice Easwaran S allowed the petition challenging an arbitral ruling that had rejected a jurisdictional objection under Section 16 of the Arbitration and Conciliation Act, 1996. He observed: “Albeit, this Courts finds that the dispute before...

Partner Cannot Claim Deduction On Interest Paid For Capital Invested In Firm: Kerala High Court

The Kerala High Court on 20 May held that a partner cannot claim deduction under Section 36(1)(iii) of the Income Tax Act for interest paid on funds borrowed and contributed as capital to a partnership firm, since the borrowed capital was not used for the partner's own business. A Division Bench of Justices Devan Ramachandran and Basant Balaji dismissed the appeal filed by Alice Arun Thomas and upheld the order of the Income Tax Appellate Tribunal (ITAT), Cochin Bench. It held: "The provisions...

Kerala High Court Holds Section 16(5) Overrides Section 16(4), Bars ITC Denial For Delayed Returns

The Kerala High Court on 19 May held that authorities cannot deny Input Tax Credit (ITC) to a registered taxpayer merely on the ground of delayed filing of returns under Section 16(4) of the CGST Act, where the taxpayer satisfies the conditions prescribed under Section 16(5), a subsequent relaxation provision. Justice Ziyad Rahman A.A. allowed a writ petition filed by We Match and quashed the assessment order passed under Section 73 of the CGST Act, which had disallowed ITC claims for the...

Kerala High Court Reserves Verdict On CMRL's Appeal Challenging ED Probe, Orders Status Quo Till June 5

The Kerala High Court on Monday reserved judgment on an appeal filed by Cochin Minerals and Rutile Limited (CMRL) challenging Enforcement Directorate summons issued in a money laundering probe linked to payments allegedly made to Exalogic Solutions Pvt Ltd, a company owned by Veena Vijayan, daughter of former Kerala Chief Minister Pinarayi Vijayan.The Court directed the ED to maintain the status quo and not precipitate any proceedings against the appellants until June 5, when it is scheduled to...