Kerala High Court Upholds Rejection Of Education Loans Over Parents' Or Co-Borrowers' Poor Credit Scores

The Kerala High Court has upheld the rejection of educational loan applications filed by a batch of students after finding that their parents or co-borrowers had unsatisfactory credit scores or adverse credit histories. "In view of the aforesaid discussion, I find that the stand of the Respondents/Banks that the Applicants are not eligible for Educational Loan on account of the lower Credit Score/unsatisfactory Credit Report of the co-borrower/parent is sustainable.", the court...

Stamp Duty Amendments On Amalgamation Cannot Apply Retrospectively: Kerala High Court

The Kerala High Court on 3 July held that amendments to the Kerala Stamp Act, 1959, introducing stamp duty on amalgamations and reconstructions, cannot be applied retrospectively to transactions completed before the amendments came into force. Justice Harisankar V Menon allowed a petition filed by Zuri Hotels and Resorts Private Limited and quashed the stamp duty demand of Rs. 2.01 crore raised by the registration authorities along with the consequential revenue recovery proceedings. He held: ...

Arbitral Award Overlooking Enabling Statute Contravenes Fundamental Policy of Indian Law: Kerala High Court

The Kerala High Court has held that overlooking the provisions of the enabling statute while passing an arbitral award is an act in contravention of the fundamental policy of Indian law. It said such a glaring contravention justifies interference under Section 34 of the Arbitration and Conciliation Act, while upholding the setting aside of an arbitral award that had enhanced compensation for land acquired for the NH-47 bypass. Justice S. Manu observed, "Above all, the arbitrator has not...

Arbitral Tribunal Can Decide Claim Between Co-Respondents Under Tripartite Agreement: Kerala High Court

The Kerala High Court has held that an arbitral tribunal can decide a claim raised by one respondent against another under a tripartite agreement where the parties have agreed to refer all disputes arising out of the contract to arbitration. The court ruled that although the claim had been labelled a "counterclaim", it was, in substance, an independent contractual claim between parties to the same agreement. It also noted that Section 19 of the Arbitration and Conciliation Act, 1996 makes it...

Karnataka High Court Remands Quikr's ₹1.77 Crore Stamp Duty Dispute Over NCLT-Approved Amalgamation

The Karnataka High Court has set aside an order directing Quikr India Private Limited, which operates the online classifieds platform Quikr, to pay an additional ₹1.77 crore as stamp duty on a National Company Law Tribunal (NCLT)-approved scheme of amalgamation. The matter has been remitted to the District Registrar for fresh consideration. Justice M.G.S. Kamal observed that, for the purpose of levying stamp duty under the Karnataka Stamp Act, 1957, the NCLT's order approving the amalgamation...

MSME Borrower Must Establish Status Before NPA To Avail RBI's Revival Framework: Kerala High Court

The Kerala High Court has reiterated that an MSME borrower seeking the benefit of the RBI's statutory framework for revival and rehabilitation must disclose its MSME status to the lending bank. It must also produce authenticated documents establishing its eligibility at the time of availing credit facilities or, at the latest, before the loan account is classified as a non-performing asset (NPA). A division bench of Chief Justice Soumen Sen and Justice Syam Kumar V.M., applying the Supreme...

Kerala High Court Reiterates Interest Under Kerala Luxury Tax Act Cannot Be Demanded For Pre-2009 Period

The Kerala High Court has recently reiterated that interest under the Kerala Tax on Luxuries Act cannot be demanded for any period before the statutory provision enabling such recovery came into force on April 1, 2009. It dismissed the State's appeal, following its earlier ruling in Casino Hotel v. State of Kerala, which had already settled the issue. The Kerala Tax on Luxuries Act imposes a tax on charges collected for specified luxury accommodation and services. A Division Bench of Justice...

Limitation U/S 138 NI Act Runs From Receipt Of Returned Notice Not Its Refusal: Kerala High Court

The Kerala High Court on 8 July held that in prosecutions under Section 138 of the Negotiable Instruments Act (dishonour of cheque for insufficiency of funds), the limitation period for filing a complaint begins from the date the complainant receives the returned postal cover or is informed that the statutory notice could not be served, and not from the date the addressee refused or left the notice unclaimed. Justice A Badharudeen allowed an appeal filed by Sree Gokulam Chit & Finance Co....

Civil Courts Can't Grant Interim Relief Against SARFAESI Proceedings Despite Suit Being Maintainable: Kerala High Court

The Kerala High Court has held that civil courts cannot grant interim injunctions to halt proceedings under the SARFAESI Act even where the underlying civil suit is maintainable. The ruling applies where the relief sought falls outside the jurisdiction of the Debt Recovery Tribunal. Justice S. Manu delivered the ruling while dismissing an appeal filed by Deepa George against an order of the III Additional Sub Court, Ernakulam refusing interim relief against Federal Bank. The court observed that...

'Duly Certified Copy' Under HC Arbitration Scheme Can Include Party Or Counsel Attestation: Kerala High Court

The Kerala High Court has recently held that, for the purpose of arbitration requests filed under the Kerala High Court Scheme for Appointment of Arbitrators, 1996, a "duly certified copy" of a private arbitration agreement does not have to be certified by a public authority. It held that the requirement is satisfied where the party files an affidavit certifying the copy as a true copy of the original, explains why the original has not been produced, and submits a copy attested to by the party...

Section 452 Companies Act Not Decriminalised, Criminal Courts Retain Jurisdiction: Kerala High Court

The Kerala High Court on 1 July held that offences under Section 452 of the Companies Act, 2013, relating to the wrongful withholding of company property by an officer or employee, remain triable by criminal courts and were not decriminalised by the Companies (Amendment) Act, 2020. Justice G. Girish allowed Tata Coffee Limited's revision petition, set aside the Chief Judicial Magistrate, Thrissur's order returning the company's complaint against its former employee, and directed the Magistrate...

RBI Not Bound To Hear Bank Board Before Supersession U/S 36AAA Banking Regulation Act: Kerala HC

The Kerala High Court on Friday, 3 July, held that the Reserve Bank of India (RBI) is not required to provide a prior hearing before superseding the board of directors of a co-operative bank under Section 36AAA of the Banking Regulation Act, 1949. However, it clarified that consultation with the State Government is mandatory before passing such an order. Justice M.A. Abdul Hakhim considered a plea filed by the former President of the Irinjalakuda Town Co-operative Bank, M.P. Jackson,...