DRT Registrar Can't Suo Motu Question Limitation, Maintainability Of SARFAESI Plea: Kerala High Court

The Kerala High Court has held that a Debts Recovery Tribunal (DRT) Registrar cannot suo motu refer a securitisation application filed under Section 17 of the SARFAESI Act to the DRT by examining questions of maintainability, limitation or locus standi. Justice P.V. Balakrishnan set aside the order of the Debt Recovery Tribunal-I, Ernakulam, rejecting an unnumbered securitisation application filed by Ramachandran P, and remitted the matter to the Registrar for consideration in accordance with...

SARFAESI Sale Notice Can't Reopen Issue Already Considered In Earlier Writ: Kerala High Court

The Kerala High Court has held that a SARFAESI sale notice cannot be used to reopen an issue already considered in earlier writ proceedings when the relief sought later is a continuation of the original cause of action.“We have also considered the implication of Order II Rule 2 of the CPC in proceedings under Article 226 of the Constitution of India and have categorically stated that, in the absence of any challenge to the proposed action of the Bank, the sale notice would not furnish another...

Trade Mark Agent Authorisation Must Be Stamped Like Power Of Attorney: Kerala High Court

The Kerala High Court has recently ruled that an authorisation allowing a trade mark agent to represent an applicant before the Trade Marks Registry must be stamped under the applicable Stamp Act, holding that the document has “all the trappings of a power of attorney”.Justice Bechu Kurian Thomas held that the authorisation creates a right for the agent to represent another person."The authorisation prescribed under section 145 of the Act read with rule 19 of the Rules, is certainly an...

SARFAESI | Civil Court Must Lift Property Attachment If Mortgage Predates It: Kerala High Court

The Kerala High Court has ruled that a civil court cannot refuse to consider a secured creditor's request to lift an attachment over a mortgaged property merely because the attachment would otherwise be effaced after publication of a SARFAESI sale notice. The court held that where the mortgage predates the attachment, the attachment must be lifted. “Once the secured creditor approaches the Civil Court with an application for lifting the attachment in accordance with the principles laid down...

Commercial Suit Filed Before Ordinary Civil Court Must Be Returned, Not Rejected: Kerala High Court

The Kerala High Court on 30 September held that a plaint filed before an ordinary civil court in a suit involving a commercial dispute must be returned for presentation before the competent Commercial Court, rather than rejected under Order VII Rule 11(d) of the Civil Procedure Code (CPC). Justice S Manu dismissed an appeal filed by the defendants against the First Additional Sub Court, Thrissur's order directing return of the plaint in a suit for dissolution of partnership. The Bench observed...

CMRL-Exalogic Case: Kerala HC Reserves Order On Legality Of Preliminary Enquiry Without FIR Into Pinarayi Vijayan, Daughter

The Kerala High Court on Tuesday reserved its order on whether the State Government can conduct a preliminary enquiry before registering a First Information Report on the basis of material forwarded by the Enforcement Directorate (ED) alleging offences under the Prevention of Corruption Act in the CMRL-Exalogic case.Justice A. Badharudeen was hearing a plea filed by Advocate K.M. Shajahan, seeking directions for registration of an FIR against former Chief Minister of Kerala, Pinarayi Vijayan,...

Centre Can Use Power Under Patents Act To Make Exorbitantly Priced Drugs Affordable: Kerala High Court

The Kerala High Court on Monday held that Section 100 of the Patents Act permits the Central Government to use a patent to manufacture a medicine and sell it to a needy patient on a non-commercial basis. It further held that the provision is required to be invoked where a patented medicine is being sold at an exorbitant price.“The provisions of Section 100 impose no restriction on who the purchaser could be,” Justice Harisankar V. Menon held. “When that be so, the provisions under Section 100...

Kerala High Court Issues Notice To SEBI On Plea Alleging Financial Irregularities Against Kitex Group

The Kerala High Court on Saturday issued notice to the Securities and Exchange Board of India (SEBI) on a petition by a Kitex Garments Limited shareholder seeking consideration of his complaint alleging irregularities in the company's financial and related-party transactions.The court also issued notice to Kitex Garments Limited (KGL) and Kitex Childrenswear Limited (KCL), which have been named as respondents in the petition.Justice Bechu Kurian Thomas issued the notice. SEBI's counsel sought...

Kerala High Court Keeps Coercive Proceedings Against KHFL RP In Company-Related Criminal Cases In Abeyance

The Kerala High Court on Tuesday directed authorities to keep coercive proceedings against the Resolution Professional of Kerala Housing Finance Limited (KHFL) in abeyance in cases concerning the company. It, however, clarified that proceedings against the other accused can continue.Justice G. Girish passed the interim order on a petition filed by P.D. Vincent, the Resolution Professional of KHFL, which was admitted into the Corporate Insolvency Resolution Process (CIRP) by the NCLT Kochi in...

Lessee Can't Re-Litigate SARFAESI Grievance After Adverse DRT Order: Kerala High Court

The Kerala High Court on 15 September held that a lessee who has already invoked the statutory remedy before the Debt Recovery Tribunal and suffered an adverse order cannot subsequently maintain a civil suit raising the same grievance against proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Justice Easwaran allowed a petition filed by IFCI Limited and set aside the Sub Court, Nedumangad's order refusing to reject a suit...

Karnataka High Court Quashes Revision Proceedings Over ESOP Tax Treatment After ₹27.13 Cr. Refund

On 18 September, the Karnataka High Court set aside revision proceedings initiated against taxpayer Mukesh Bansal after his revised income tax return for the assessment year 2019-20 resulted in a refund of Rs. 27.13 crore. Justice S. Sunil Dutt Yadav held that an intimation issued under Section 143(1) of the Income Tax Act, without any adjustment, cannot be treated as an “order” for exercising revisionary powers under Section 263 of the Act. The Bench observed: “...The corollary would be that,...

Kerala High Court Quashes Order Dismissing Actor Jayasurya's Income Tax Appeal Over Non-Appearance

The Kerala High Court has quashed an order dismissing Malayalam actor Jayasurya's (Jayan Vathakkattu Moni) income tax appeal solely because he failed to appear for the hearing despite notices being issued on four occasions.Justice Ziyad Rahman A.A. held that an appellant's non-appearance cannot, by itself, be a ground to dismiss an appeal without considering the grounds raised in it.The court was hearing a plea challenging an order passed by the Commissioner of Income Tax (Appeals). The appeal...