Cash Loan Given In Breach Of Income Tax Act Can Still Be Recovered: Madras High Court

The Madras High Court at Madurai has held that a cash loan advanced in breach of the Income Tax Act does not become illegal merely for that reason, and the lender can still seek recovery of the money. A bench of Justice G.R. Swaminathan and Justice R. Poornima was dealing with a case in which P. Palanikumar claimed to have lent ₹25 lakh in cash instead of through an instrument as contemplated under Section 269SS of the Income Tax Act. The bench held that while the Income Tax Department was...

Madras High Court Upholds Release Of Vikram-Starrer Dhruva Natchathiram, Dismisses Financiers' Appeals

The Madras High Court has recently upheld an order permitting the release of filmmaker Gautham Vasudev Menon's long-delayed Tamil spy thriller 'Dhruva Natchathiram'. The court held that a judicially supervised mechanism governing the film's revenues strikes a workable balance between enabling its release and protecting competing claims over its proceeds. A Division Bench of Justices P. Velmurugan and K. Govindarajan Thilakavadi dismissed appeals filed by film financiers K. Prem Kumar and K....

Madras High Court Dismisses Flipkart Founders' Review Plea Against FEMA Proceedings

The Madras High Court has dismissed review petitions filed by Flipkart co-founders Sachin Bansal and Binny Bansal and three investors seeking reconsideration of an earlier order that declined to interfere with Enforcement Directorate proceedings under the Foreign Exchange Management Act (FEMA). Justice S Sounthar held that the petitioners have an effective statutory remedy under FEMA and that the issues raised by them must first be agitated before the adjudicating authority. “In view of the...

Madras High Court Temporarily Restrains Telugu Dub Release Of Drishyam 3 On OTT Platforms

The Madras High Court has restrained the makers of malayalam movie “Drishyam 3” from releasing the Telugu dubbed version of the movie in OTT platforms. Justice K Kumaresh Babu made the interim order on a plea moved by film production company Rajkumar Theatre Pvt Ltd. The company had approached the Madras High Court seeking to restrain the producers and director and their agents, employees, assignees, licensees, and everyone claiming through them from infringing the company's exclusive copyright...

High Court Cannot Review Section 11 Arbitrator Appointment After Becoming Functus Officio: Madras HC

The Madras High Court on 8 June held that once it appoints an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, it becomes functus officio and cannot later review or invalidate that appointment because the Act does not confer such power. Justice Abdul Quddhose dismissed review applications filed by Maavadi Soft Tech Ventures (India) Pvt. Ltd., True Value Homes India Private Limited and N. Ravichandran against Anir Tech Park Private Limited, refusing to revisit the...

Madras High Court Temporarily Restrains CADD Centre Software Systems From Using 'CADD Centre' Name and Logo

The Madras High Court has granted an interim injunction restraining CADD Centre Software Systems Private Limited from using the trademark/logo "CADD CENTRE" and the word "CADD Centre". The court held that the use of the same name by businesses engaged in software-related activities would create confusion in the minds of the public. Justice K Kumaresh Babu passed the order on June 1 while considering applications moved by CADD Centre Training Services Private Limited. The company has been...

Arbitration Plea Must Be Filed Before Leave-to-Defend Application In Summary Suit: Madras High Court

The Madras High Court has recently held that a defendant in a summary suit cannot seek reference of the dispute to arbitration after first filing an application for leave to defend, ruling that such an application constitutes the first statement on the substance of the dispute.A Division Bench of Justices P. Velmurugan and K. Govindarajan Thilakavadi rendered the ruling while dismissing an appeal filed by ETA General Private Limited against an order refusing to refer a USD 19 million recovery...

Madras High Court Affirms Fresh Arbitration In ₹2.5 Cr. Isha Foundation-BSNL Call Billing Dispute

The Madras High Court on 9 June dismissed Isha Foundation's appeal, upheld a Single Judge's order setting aside the arbitral award, and directed a fresh adjudication of its dispute with Bharat Sanchar Nigam Limited (BSNL). A Division Bench of Justices P. Velmurugan and Govindarajan Thilakavadi held that an Arbitral Tribunal cannot reject Call Detail Records (CDRs) and decide a dispute involving abnormal call traffic without obtaining expert opinion where technical issues require...

Madras High Court Revives Trademark Dispute Over “Idhayam” Mark, Orders Joint Trial In Connected Cases

The Madras High Court on 5 June revived a series of trademark infringement suits filed by the manufacturer of “Idhayam” sesame oil, holding that the unauthorised affixture of a registered trademark in India on goods intended for export constitutes a valid cause of action under the Trade Marks Act, 1999. A Division Bench of Justices P. Velmurugan and K. Govindarajan Thilakavadi allowed the appeals, set aside the orders of the Single Judges that had rejected the plaints, and restored the suits...

Minority Opinion Awarding Lesser Amounts Does Not Invalidate Majority Arbitral Award: Madras High Court

The Madras High Court has held that a majority arbitral award does not become invalid merely because a dissenting arbitrator awarded lesser amounts. The court dismissed a challenge by the Chennai Metropolitan Water Supply and Sewerage Board to an award in favour of SPML Infra Limited arising out of a Chennai sewerage pipeline project. A division bench of Justices P. Velmurugan and K. Govindarajan Thilakavadi observed: "The Tribunal consisted of three Arbitrators and the impugned Award is a...

Madras High Court Issues Statewide Directions For Timely Disposal Of SARFAESI Pleas Seeking Aid In Taking Possession

The Madras High Court on Friday issued a comprehensive set of statewide directions governing applications under Section 14 of the SARFAESI Act. The Court observed that delays by designated authorities defeat the legislation's objective of enabling expeditious recovery of secured assets and reducing non-performing assets (NPAs). Section 14 of the SARFAESI Act enables banks and other secured creditors to seek the assistance of a Chief Metropolitan Magistrate, Chief Judicial Magistrate or...

No Relief For Reimbursement Claims Made To Foreign Parent Without Expense Break-Up: Madras High Court

The Madras High Court has recently dismissed appeals filed by Cairn India Limited, now Vedanta Limited, and upheld tax demands over its failure to deduct tax at source (TDS) on payments remitted to its Australian parent company. While dismissing Cairn's plea, the court made it clear that a taxpayer cannot obtain relief merely by describing a lump-sum payment as a reimbursement. If the claim is that the payment represents reimbursement of expenses, the taxpayer must disclose what those expenses...