1% Construction Cess Only On Actual Construction Cost, Not Entire Contract Value: Kerala High Court

The Kerala High Court on 19 August held that 1% cess under the Building and Other Construction Workers Welfare Cess Act, 1996 can be levied only on the portion of a composite works contract attributable to the actual “cost of construction” and not on the entire contract value. A Division Bench comprising Chief Justice Soumen Sen and Justice Syam Kumar V.M. passed the ruling while disposing of a batch of 18 writ appeals filed by Class A registered work contractors of the Kerala Water Authority...

Kerala High Court Denies AVT McCormick's ₹49.54 Lakh Refund Claim Over Transitional ITC

The Kerala High Court on 20 August held that a claim for refund of transitional input tax credit can be allowed only if the taxpayer establishes that the disputed credit stood in its Electronic Credit Ledger as on 1 July 2017. Justice Johnson John dismissed AVT McCormick Ingredients Pvt. Ltd.'s writ petition challenging the assessment order passed by the Assistant Commissioner of Central Tax and Central Excise, which had rejected its claim for refund of Rs. 49.54 lakh. He observed: "...As per...

Once Commercial Courts Designated, Civil Courts Can't Decide Specified-Value Disputes: Kerala High Court

The Kerala High Court on 10 August held that a civil court cannot adjudicate a commercial dispute of specified value that falls within the jurisdiction of a designated Commercial Court. Justice Easwaran S allowed an appeal filed by BRD Finance Limited, a kuri company, against the dismissal of its recovery suit by the Munsiff Court, Chavakkad. He held: “Without transferring the same, the act of the Munsiff Court in proceeding to consider the suit on merits is clearly unsustainable and without...

DRT Registrar Cannot Suo Motu Refer Applications To Presiding Officer: Kerala High Court

The Kerala High Court has held that the Registrar of a Debts Recovery Tribunal (DRT) cannot suo motu place an unnumbered securitisation application (SA) before the Presiding Officer to decide questions of maintainability or locus standi. The Registrar's role is limited to scrutinising applications for defects, giving applicants an opportunity to cure them and, where defects remain, declining registration through a reasoned order.“The Rule does not give any power to the Registrar to place the...

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...