Kerala High Court Limits Section 11 Arbitration Act Inquiry To Agreement, Refers NCLT Issues To Tribunal

The Kerala High Court on 14 August held that questions concerning pending proceedings before the National Company Law Tribunal (NCLT) and limitation must be considered by the Arbitral Tribunal at the stage of arbitration, observing that a Court's enquiry under Section 11 of the Arbitration and Conciliation Act, 1996 is primarily confined to the existence of an arbitration agreement. Justice S. Manu allowed an arbitration request arising from a dispute over 117 equity shares in Tharakan Web...

Kerala High Court Rejects Injunction Plea Against DDRC Agilus Over 'Since 1983' Tagline

The Kerala High Court has dismissed an appeal seeking to restrain Agilus Diagnostics and DDRC Agilus Pathlabs from representing that DDRC's business has been operating since 1983. Justice S. Manu held that the appellant had not established a prima facie case for an interim injunction.The court also noted that the respondents' slogan, “your lab partner since 1983”, was materially different from the slogan used by the appellant.The appellant's case was that Doctors Diagnostic Centre (DDC) and...

Additional Written Statement Cannot Be Filed After 120-Day Limit In Commercial Suits: Kerala High Court

The Kerala high court has ruled that a defendant in a commercial suit cannot invoke the provision allowing additional written statements after the 120-day deadline for filing the written statement has expired. However, the commercial court can still exercise its inherent powers in appropriate circumstances to require an additional written statement.Justice Easwaran S. made the ruling while considering a petition filed by Subin Backer challenging the Kozhikode Commercial Court's refusal to accept...

RERA Cannot Decide Complaint On Merits Before Numbering, Hearing: Kerala High Court

The Kerala High Court has recently ruled that the Kerala Real Estate Regulatory Authority cannot examine the merits of a complaint while considering it for numbering and reject it as not maintainable without giving the complainant an opportunity of hearing.Justice Ziyad Rahman A.A. quashed two Kerala RERA orders rejecting complaints filed by Renney Geo Varghese and Sindhu M. Poduval. The court found that the authority had discussed the merits of the complaints even though they had not been...

Kerala High Court Expunges NCLT's Adverse Remarks Against Union Bank, Sets Aside ₹1 Lakh Cost

The Kerala High Court has expunged adverse observations made by the National Company Law Tribunal, Kochi Bench, against Union Bank of India over errors in an application seeking withdrawal of insolvency proceedings. The court also held that the bank would not be required to deposit the ₹1 lakh cost imposed by the tribunal.Justice Harisankar V. Menon observed that the bank had made mistakes in the application. These included invoking the wrong provision and not placing the settlement proposal...

MSME Must Seek Rehabilitation Under 2015 Framework Despite Bank's Duty To Identify Stress: Kerala High Court

The Kerala High Court has held that an MSME must itself initiate proceedings under the 2015 Framework for Revival and Rehabilitation when it apprehends failure of its business or an inability to repay its debts.A division bench of Chief Justice Soumen Sen and Justice Syam Kumar V.M. made the observation while dismissing Sree Matha Cosmetic Industries' writ appeal against SARFAESI proceedings initiated by UCO Bank.“While the Framework casts an obligation for the Bank to identify the incipient...

Kerala High Court Grants Wild Planet ITC Benefit, Says Delay Cannot Defeat Statutory Right

The Kerala High Court on 28 July held that a taxpayer cannot be denied the statutory benefit of input tax credit (ITC) under Section 16(5) of the Central Goods and Services Tax (CGST) Act merely because it failed to file a rectification application within the deadline prescribed by the Central Board of Indirect Taxes and Customs (CBIC). Justice Ziyad Rahman A.A. allowed the petition filed by Wild Planet Pvt. Ltd. and set aside the order denying the company ITC, holding that Section 16(5)...

Different Inks On Cheque Do Not Make It Invalid, Cast Doubt On Execution: Kerala High Court

The Kerala High Court has held that a cheque cannot be treated as invalid merely because its signature and other particulars were written in different inks. Justice A. Badharudeen observed that there is no legal requirement for the date, amount, and signature on a cheque to be written in the same ink.“Merely because the signature was put by using one ink and entries were made by using another ink by itself would not make the negotiable instrument as an invalid document or a document to doubt its...

Does A Dispute Arising After A Joint Venture Exit Remain A Commercial Dispute? Kerala High Court Answers

The Kerala High Court has recently held that a dispute arising from an agreement executed to facilitate a partner's exit from a joint venture continues to qualify as a "commercial dispute" under the Commercial Courts Act, 2015, even if the claim is based on the dishonour of a cheque issued pursuant to the exit arrangement.Justice Easwaran S. delivered the judgment while dismissing a plea challenging an order of the Commercial Court, Devikulam, rejecting an objection to the maintainability of a...

Kerala High Court Refuses To Quash Cheque Dishonour Complaint Over Defect In Cause Title

The Kerala High Court has held that a cheque dishonour complaint cannot be quashed merely because the authorised representative's name appears before the complainant society's name in the cause title. Holding that such an objection was only technical, the court observed, "As held by the Hon'ble Supreme Court in Bhupesh Rathod's case (supra), such a defect, if at all, is merely technical and cannot defeat an otherwise maintainable prosecution." Justice C.S. Dias delivered the ruling while...

CJM Can Entertain Fresh SARFAESI Plea For Possession If Borrower Re-Enters Secured Asset: Kerala High Court

The Kerala High Court has ruled that a Chief Judicial Magistrate (CJM) exercising powers under Section 14 of the SARFAESI Act does not become functus officio after handing over possession of a secured asset to a secured creditor. The court held that the Magistrate can entertain a fresh request for assistance if the secured creditor is later unlawfully dispossessed of the secured asset.For context, Section 14 empowers a Chief Judicial Magistrate to assist a secured creditor in taking possession...

Can An Arbitrator Appoint An Advocate Commissioner To Collect Evidence? Kerala High Court Says No

The Kerala High Court has ruled that an arbitral tribunal cannot appoint an Advocate Commissioner to collect evidence by invoking its power to grant interim measures under Section 17 of the Arbitration and Conciliation Act, 1996.Justice Easwaran S observed that Section 17 cannot be used to circumvent the limits imposed by Sections 26 and 27 of the Act. "Merely because Section 17 provides power to the arbitrator to grant interim relief, he cannot bypass the prohibition under Section 26 and grant...