NHAI Cannot Take Technical Ground Against Landowners, Having Knowledge Of Arbitration Proceedings: Madras High Court

The Madras High Court has restored arbitral awards enhancing compensation for land acquired for a national highway, holding that the National Highways Authority of India (NHAI) could not rely on a technical objection over notice despite having knowledge of the arbitration proceedings. The court questioned why NHAI had remained a “lame duck” despite knowing about the proceedings and held that a public authority could not take such a technical ground to deny landowners their rights under Article...

Madras High Court Sets Aside Customs Broker Suspensions, Says 'Immediate Action' Must Be Timely

The Madras High Court has set aside the suspension of licenses of 11 Customs Brokers, holding that the power to order “immediate suspension” cannot be exercised after an unexplained or substantial delay.Justice Hemant Chandangoudar held that while “immediate” does not mean that the suspension must be ordered instantaneously, the Customs authorities must act with reasonable promptness once the material necessary for taking action is available.The Court was hearing a batch of writ petitions filed...

Purchase Order Date Cannot Determine Import Date For Project Import Duty Benefit: Madras High Court

The Madras High Court has ruled that a purchase order placed with a foreign supplier before registration of a project contract does not, by itself, determine whether imported goods qualify for the Project Import benefit. The relevant date is when the goods are imported into India, subject to the other requirements under the Project Import Regulations, 1986.“The mere fact that a purchase order was placed before registration of the project contract cannot, by itself, determine the date of...

Madras High Court Allows “Acha Dholak” Pleading Amendment, Says Issues Framing Does Not Commence Trial

On 1 October, the Madurai Bench of the Madras High Court dismissed a civil revision petition challenging an order allowing amendment of pleadings in a trade mark suit concerning the “Acha Dholak” safety match brand. Justice R. Poornima held that mere framing of issues does not establish that a trial has substantially commenced for deciding an application to amend pleadings. The Bench observed: “Mere framing of issues does not, by itself, establish that the trial had substantially commenced....

Madras High Court Upholds Setting Aside Of ₹2.63 Crore Service Tax Demand On TNCSC Over Storage Godowns

The Madurai Bench of the Madras High Court has upheld an order setting aside a ₹2.63 crore service tax demand against the Tamil Nadu Civil Supplies Corporation (TNCSC). The demand was raised for the construction of scientific storage godowns used primarily to store paddy procured from farmers for distribution through the Public Distribution SystemA Division Bench of Justice M. Dhandapani and Justice N. Dileep Kumar held that TNCSC qualifies as a “governmental authority” under the Mega Exemption...

Madras High Court Refuses To Transfer 'RIO' Trade Mark Suit For Joint Trial With Rectification Plea

The Madras High Court on 30 September dismissed Rio Children's Hospital Pvt Ltd's plea to transfer its trade mark infringement and passing off suit against Rajesh Jayaraj from the Principal District Court, Madurai, to the High Court's Intellectual Property Division for joint trial with a rectification petition concerning the “RIO” mark. Justice A.D. Maria Clete held that Rule 14 of the Madras High Court Intellectual Property Division Rules, 2022 cannot be invoked “as a matter of course” merely...

Party Choosing Pre-Suit Mediation Must End It Before Invoking Arbitration: Madras High Court

The Madras High Court on 28 September held that a party cannot invoke the Arbitration and Conciliation Act, 1996 while pre-institution mediation proceedings it had voluntarily initiated under Section 12A of the Commercial Courts Act, 2015 remain pending. Justice K. Kumaresh Babu dismissed Grand Blue Projects Pvt Ltd's application under Section 9 of the Arbitration Act, seeking to restrain True Value Home India Pvt Ltd and TVH Estates Chennai Pvt Ltd from dealing with the disputed property. The...

Madras High Court Says Precision Instruments Used In Manufacturing Eligible For 3% Sales Tax Rate

The Madras High Court has held that precision instruments such as Vernier Calipers, Depth Gauges and Cylinder Gauges used by manufacturers in Tamil Nadu qualify for a 3% concessional tax rate when sold against Form XVII declarations, even though the instruments are not consumed in the manufacturing processA Division Bench of Justice Anita Sumanth and Justice E. Manoharan observed that the benefit under Section 3(3) of the Tamil Nadu General Sales Tax Act, 1959 extends to “any goods” used in...

Charitable Donations Not Taxable As 'Sponsorship' Without Reciprocal Obligation: Madras High Court

The Madurai Bench of the Madras High Court on 16 September held that charitable contributions cannot be treated as taxable sponsorship services where the recipient is not under an obligation to provide anything in return. A Division Bench of Justices G.R. Swaminathan and M.D. Sumathi set aside the entire service tax demand raised against Karur Vysya Bank Ltd. They held that the Revenue failed to prove most contributions were sponsorship services, while noting that even the two qualifying...

Madras HC Refuses Arbitrator Appointment Over Forged Clause, Says Arbitration Is 'Child Of Consent'

The Madras High Court on 25 September refused to appoint an arbitrator in an employment dispute between former Purchase Manager Chandramouli V. and the American International School Chennai, holding that a challenge to the genuineness of the document containing the arbitration clause goes to the root of whether an Arbitral Tribunal can be constituted. Chief Justice Sushrut Arvind Dharmadhikari observed that arbitration, being the “child of consent,” cannot proceed where the very document...

DIN On Tax Appellate Order Does Not Prove It Was Delivered To Taxpayer: Madras High Court

The Madras High Court has held that the presence of a Document Identification Number (DIN) on an appellate order does not, by itself, establish that the order was served on the assessee. The court ruled that the DIN cannot be used to establish the date of service for calculating the limitation period for an appeal.A Division Bench of Justice Anita Sumanth and Justice S. Raveekumar was dealing with a batch of nine appeals filed by Greaves Cotton Ltd. challenging CESTAT orders dismissing its...

Madras High Court Dismisses RPG Enterprises' Plea To Cancel RPG Marble Trademark, Citing 15-Year Acquiescence

The Madras High Court has dismissed a rectification petition filed by RPG Enterprises seeking removal of the trademark "RPG Marble Pvt. Ltd." from the Trade Marks Register.The court observed that the company sat on its rights for nearly fifteen years after learning of the mark and is therefore barred by the doctrine of acquiescence.Justice K. Kumaresh Babu delivered the judgment on September 28, dismissing the petition filed by RPG Enterprises Limited against the Registrar of Trademarks and RPG...