GST Show Cause Notice Cannot Proceed On Preconceived Conclusion Of Liability: Kerala High Court

The Kerala High Court recently set aside a Goods and Services Tax (GST) show cause notice issued to the Kerala State Self-Financing B.Pharm College Management Association after finding that the notice was worded in a manner suggesting a pre-conceived conclusion on the petitioner's liability. The court held that a show cause notice can contain only a proposal based on the material on record and that a final conclusion can be reached only after considering the assessee's objections and documents....

Appointment Of Arbitrator Under SEZ Act Lies With Central Government, Not High Court: Kerala High Court

The Kerala High Court on Friday held that the High Court cannot invoke its powers under Section 11 of the Arbitration and Conciliation Act, 1996, in disputes governed by the Special Economic Zones Act, 2005, where the statute vests the power to appoint an arbitrator with the Central Government and the requirements for the exercise of Section 11 jurisdiction are not satisfied.A coram of Justice S Manu rejected an arbitration request seeking the appointment of an arbitrator to resolve disputes...

Arbitration Act Allows Interim Relief Even After Arbitral Award Before Enforcement: Kerala High Court

The Kerala High Court recently held that courts possess wide powers under Section 9 of the Arbitration and Conciliation Act to grant interim measures, even after the arbitral award is passed but before its enforcement.A Division Bench comprising Chief Justice Soumen Sen and Justice Syam Kumar V.M. partly allowed an appeal filed by three foreign companies against Emil Traders Private Limited. The appellants, foreign companies, had obtained an arbitral award against Emil Traders Private Limited...

Condonation Of Delay In Filing Returns For Company Not Available To Directors: Kerala High Court

The Kerala High Court on Thursday held that condonation of delay in filing annual returns does not wipe out the statutory disqualification incurred by directors for failure to file returns for consecutive financial years. The court observed that the benefit of condonation available to the company cannot be extended to its directors. The court held that the office-bearers of the Aruvipuram Sree Narayana Dharma Paripalana Yogam, including V.K. Natesan, Dr. M.N. Soman, Thushar Vellappally and...

Kerala High Court Sets Aside Rent Control Appellate Authority Order For Proceeding During IBC Moratorium

The Kerala High Court on Tuesday set aside an order of the Rent Control Appellate Authority after finding that an appeal against a corporate debtor had been taken up despite a moratorium being in force under the Insolvency and Bankruptcy Code. A bench of Chief Justice Soumen Sen and Justice Syam Kumar V.M. observed, “Under Section 14(1), it is clearly stated that once a moratorium is declared, there cannot be an institution of suits or continuation of pending suits or proceedings against the...

Failure To Commence Arbitration Within 90 Days Does Not Vitiate Interim Proceedings: Kerala High Court

The Kerala High Court on 23 February, observed that interim relief granted under Section 9 of the Arbitration and Conciliation Act, 1996 (the Act) does not automatically get vitiated merely because arbitral proceedings were not commenced within 90 days as required under Section 9(2) of the Act. Justice T.R. Ravi clarified that proceedings to enforce the interim relief would also constitute proceedings under Section 9, and therefore the 90-day calculation is not limited to the original interim...

Kerala High Court Holds ATM Fraud Losses Not Covered Under New India Assurance Policy, Dismisses Federal Bank Suit

The Kerala High Court has recently held that losses caused by fraudulent use of ATMs were excluded under the Banker's Indemnity Policy issued by New India Assurance Co. Ltd. to Federal Bank, setting aside a trial court decree that had directed the insurer to indemnify the bank.A Division Bench of Justice Sathish Ninan and Justice P. Krishna Kumar allowed the appeal filed by the insurance company and dismissed the bank's suit seeking indemnification under the policy. Federal Bank had filed a...

Arbitral Award Declared Unenforceable During Execution Proceedings Is Akin To Being Set Aside: Kerala High Court

The Kerala High Court has recently held that when an arbitral award is declared unenforceable during execution proceedings, the legal effect is akin to the award being set aside, and fresh arbitral proceedings can be initiated only after issuing a fresh notice invoking arbitration under Section 21 of the Arbitration and Conciliation Act, 1996. Closing a batch of arbitration requests as premature, a single bench of Justice S. Manu said that once an award is declared a nullity by a competent...

Denial Of Input Tax Credit Limited To Depreciated Portion: Kerala High Court

The Kerala High Court on 18 February clarified that Section 16(3) of the CGST Act bars input tax credit only on the part of a capital good's tax component where depreciation is claimed, not on the whole tax component. Justice Ziyad Rahman A A quashed the show-cause notices issued to banking companies that had denied input tax credit on the entire tax component solely because depreciation was claimed on the unavailed portion. The Bench observed: “as far as prohibition contemplated under...

Single Judicial Member Of NCLT Can Pass Orders If Authorised By President: Kerala High Court

The Kerala High Court on 18 February, held that a Single Member of the National Company Law Tribunal (NCLT) can pass orders if the President of the Tribunal specifically authorises them under the proviso to Section 419(3) of the Companies Act, 2013. A Bench of Justice Viju Abraham dismissed a writ petition challenging orders passed by a Single Judicial Member of the NCLT, Kochi Bench, upholding the validity of the directions. The Court observed: “It is also to be noted that though Section 419...

Single Judge Cannot Disregard Rulings Of Division Bench Under Guise Of Reference: Kerala High Court

The Kerala High Court on Wednesday held that a Single Judge is bound by decisions of Division Benches and Full Benches and cannot question or disregard a binding Division Bench ruling under the guise of making a reference. A Division Bench of Chief Justice Soumen Sen and Justice Syam Kumar V.M was dealing with a reference arising from a writ petition filed by Grids Engineers and Contractors, challenging proceedings initiated by Union Bank of India under Section 14 of the SARFAESI Act. The Bench...

Tax Evasion Prosecution Not Liable To Be Terminated If IT Penalty Set Aside On Technical Grounds: Kerala High Court

The Kerala High Court has reiterated that criminal prosecutions for alleged tax evasion under the Income Tax Act do not automatically fail merely because penalty proceedings were set aside on technical grounds, and that such prosecutions can validly continue where allegations disclose wilful and deliberate concealment of income. The ruling was delivered by Justice G. Girish while dismissing a batch of criminal miscellaneous petitions filed by Dr. P.H. Abdul Majeed, who had sought the quashing...