Kerala High Court
Writ Courts Cannot Force NBFCs To Regularise NPAs After SARFAESI Notice: Keral High Court
The Kerala High Court has held that courts cannot compel banks or Non-Banking Financial Companies to regularise loan accounts classified as Non-Performing Assets. Such directions cannot be issued once proceedings under the SARFAESI Act have been initiated especially diregarding the specific stand taken by NBFC. Setting aside an order granting instalment relief to a defaulting borrower, a Division Bench of Justices Anil K. Narendran and Muralee Krishna S. held: “When the...
Surviving Joint Holder Cannot Claim Ownership Of Bank Locker Contents After Co-Holder's Death: Kerala High Court
The Kerala High Court has recently clarified that the “either or survivor” clause in a joint bank locker agreement, which ordinarily allows the surviving holder to operate the locker after the other's death, does not confer ownership rights over its contents. “The concept of the entitlement of one of the joint holders to have a right over the money, which is deposited in the joint account or fixed deposit, is entirely different and cannot be applied to the case of a bank locker,” the Court...
Kerala High Court Mandates Police Verification Of Petitioner's Identity In Bank Account Defreezing Pleas
The Kerala High Court has recently directed strict procedural safeguards in cases where petitioners seek defreezing of their bank accounts, mandating police verification of identity before such pleas are entertained. A Division Bench comprising Chief Justice Soumen Sen and Justice Syam Kumar V.M. issued the directions while disposing of a suo motu Judicial Practice and Procedure (JPP) proceeding initiated by the Court. The bench ordered that the Registry of the High Court shall not accept any...
Bank Can Exercise Lien On Guarantor's Salary, Section 60 CPC Not Applicable: Kerala High Court
The Kerala High Court on 9 February held that a bank is entitled to exercise its right of lien over a guarantor's salary account. It clarified that protection under Section 60(1)(i) CPC does not restrict the bank's substantive right. A Division Bench of Justice Anil K. Narendran and Justice Muralee Krishna S, while deciding cross appeals filed by Canara Bank and the guarantor, Agi Kumar, allowed the bank's appeal and set aside the single judge's direction limiting the lien. The judges...
Managing Director Liable For Dishonoured Company Cheques Where He Ran Its Day-to-Day Affairs: Kerala High Court
A Managing Director who was in charge of a company's day-to-day affairs and who signed its cheques can be held vicariously liable for cheque dishonour, the Kerala High Court has held, dismissing a revision plea by a company's former head. Justice M.B. Snehalatha upheld the conviction of V.J. Joseph, the former Managing Director of J and A Foundations Pvt. Ltd., in a cheque dishonour case under Section 138 of the Negotiable Instruments Act. It involved three cheques issued by the company. The...
Kerala High Court Sets Aside Arbitral Award For Relying On Findings Of Set-Aside Award
The Kerala High Court has recently set aside an arbitral award after holding that the arbitrator committed a jurisdictional error by treating findings from an earlier arbitral award, which had already been set aside, as 'alive and final.'A bench comprising Chief Justice Soumen Sen and Justice Syam Kumar V. M. observed the arbitrator was required to consider the dispute afresh but failed to do so. Instead, the arbitrator proceeded on the assumption that conclusions recorded in the earlier...
Kerala High Court Quashes Panchayat Prosecution Over Tax Dues, Reiterates Recovery Must Fail First
The Kerala High Court has quashed criminal proceedings initiated by a grama panchayat against the General Manager of GTL Infrastructure Ltd. over alleged non-payment of panchayat tax in respect of mobile towers, holding that prosecution under the Kerala Panchayat Raj Act can be launched only after statutory recovery proceedings are first exhausted. A Single Bench of Justice C. S. Dias allowed a criminal miscellaneous case filed by the General Manager, who was the first accused in a complaint...
Real Estate Appellate Tribunal Can Remand Cases Despite No Express Power Under RERA: Kerala High Court
The Kerala High Court has recently held that the Real Estate Appellate Tribunal has the power to remand matters to the Real Estate Regulatory Authority for fresh consideration, even though the Real Estate (Regulation and Development) Act, 2016, does not expressly provide for such a power. The court dismissed appeals challenging a remand order passed by the tribunal and upheld the direction for reconsideration. Justice M.A. Abdul Hakhim said the tribunal's appellate powers are wide enough to...
Exemption Claims Under Kerala Building Tax Act Must Be Referred To Government: Kerala High Court
The Kerala High Court on 14 January held that when a claim for exemption under the Kerala Building Tax Act is raised, statutory authorities are obliged to refer the matter to the State Government and cannot independently reject the claim while completing assessment proceedings. The ruling was delivered by Justice Ziyad Rahman A.A. while allowing a writ petition filed by M/s VPK Motors Pvt. Ltd., which runs a Toyota dealership at Kannur, challenging the levy of building tax on its premises...
Two-Year GST Refund Limitation Starts From Date Of Correct Payment: Kerala High Court
Earlier this month, the Kerala High Court held that the two-year limitation period under the GST law to claim refunds begins from the date on which tax is paid under the correct head, and not from the date of an earlier mistaken payment. The ruling was delivered by Justice Ziyad Rahman A.A. while allowing a writ petition filed by Pushpagiri Medical Society, a registered non-profit organisation running a hospital and medical education institutions in Kerala. The Bench observed: “The right to...
New Constructions Cannot Be Taxed In Appeals Against Earlier Property Assessments: Kerala High Court
The Kerala High Court on 22 January held that new constructions cannot be brought to tax while deciding statutory appeals filed against earlier property tax assessments. It clarified that the scope of such appeals is confined to examining the validity of the existing demand and cannot be expanded to assess buildings constructed subsequently. A Bench of Justice Harisankar V. Menon observed: “The assessment as regards new constructions, if any, requires to be carried out with reference to the...
Tax Authorities Must Return Title Deed Given As Security Or Certify Its Loss: Kerala High Court
The Kerala High Court has clarified that where an assessee furnishes an original title deed to the tax Department as security, the authorities are duty-bound either to trace and return the document or to formally certify that it has been irretrievably lost. Justice Ziyad Rahman A.A., by a judgment delivered on 16 January, was deciding a writ petition filed by M/s Bash-P-International, a partnership firm earlier registered under the Kerala Value Added Tax Act, 2003 (KVAT Act). The Court...