Cheque Dishonour Proceedings Can Be Sustained Against Directors & Signatories Of Company Even If It Is Declared Insolvent: Orissa High Court

The Orissa High Court, Bench comprising Justice Chittaranjan Dash, has ruled that the proceedings under section 138 of the NI Act will sustain against the directors or signatories of the company even if the entity has been declared insolvent under the IBC, 2016. The complainant extended a loan of Rs. 1 Cr. to Zenith Mining Pvt. Ltd., which remains unpaid. The check issued by the respondent was dishonored twice with the remark 'refer to drawer.' These events led the complainant to...

Objections U/S 47 CPC Can't Be Entertained In Enforcement Of Arbitral Awards U/S 36 Of A&C Act: Orissa High Court

The Orissa High Court has recently held that objections under Section 47 of the Code of Civil Procedure ('CPC') cannot be allowed to be raised in the enforcement proceeding of an arbitral award, as enunciated under the provision of Section 36 of the Arbitration and Conciliation Act, 1996 ('A & C Act').While bringing clarity as to applicability of Section 47 of CPC to arbitral proceedings, a Bench of Dr. Justice Sanjeeb Kumar Panigrahi held –“Allowing objections under Section 47 of the CPC,...

Clause 18 Of Vivad Se Vishwas-II Scheme Is Mandatory If Claim Satisfies Twin Test: Orissa High Court

The Orissa High Court, while hearing an appeal u/s 37 of the A&C Act, a Writ Petition filed by the Respondent for directions to the Appellant to consider the offer made under appeal, observed Vivad se Vishwas II (contractual disputes) scheme (“the scheme”), observed that Clause 18 of the scheme is mandatory in nature. The bench of Justice Sanjeeb K. Panigrahi observed that once a contractor chooses to settle under such terms, the procuring entity cannot deny the claim without...

Reconstituted GSTAT Selection Committee Has Power To Restart Process Afresh: Orissa High Court

The Orissa High Court held that the reconstituted GSTAT (Central Goods and Services Tax Appellate Tribunal) selection committee has the authority to restart the entire appointment process. “…….Mere offering the candidature in a public employment does not create indefeasible or inchoate right into the appointment. Even a person, whose name is included in the select list, cannot claim a vested right on appointment. It is within the prerogative of the Committee or the Appointing...

MSME Council's Order Declaring Jurisdiction To Decide Dispute Between Parties Can Be Challenged Only U/S 34 Of A&C Act: Orissa High Court

The Orissa High Court bench of Justice K.R. Mohapatra has held that once the MSME Council initiates arbitration following the termination of conciliation proceedings, any order passed by the Council regarding its jurisdiction to adjudicate the dispute can only be challenged under Section 34 of the Arbitration and Conciliation Act. The aggrieved party cannot invoke Article 227 of the Constitution to seek setting aside of an award passed under the MSMED Act. Brief Facts: M/s Odisha...

Lawyers Running Individual Practice Exempt From Levy Of GST, Service Tax: Orissa High Court

The Orissa High Court has reminded the GST and Service tax authorities not to harass practicing lawyers by issuing them notices for levy of GST or service tax.A Chief Justice Harish Tandon and Justice BP Routray thus quashed the notices issued to a Bhubaneswar based lawyer demanding service tax of Rs.2,14,600/- and penalty of Rs.2,34,600/- plus interest.It observed, “in view of the admitted fact that the Petitioner is a practicing lawyer…the Department the Petitioner is exempted from levy of...

Court Cannot Appoint Arbitrator In Absence Of Arbitration Agreement Between Disputing Parties: Orissa High Court

The Orissa High Court has held that Court cannot appoint an arbitrator to resolve dispute between the parties in absence of any arbitration agreement. The Single Bench of Acting Chief Justice Arindam Sinha (as the Judge then was) referred to Section 11(6-A) (appointment of arbitrators) of the Arbitration and Conciliation Act to hold that –“Reference to arbitration can only be compelled when there is existence of an arbitration agreement…On application to Court for appointment of arbitrator,...

Appeal In Commercial Dispute Arising From Arbitration Act Must Be Filed Before Commercial Appellate Court, Not HC: Orissa High Court

The Orissa High Court bench of Justice S.K. Panigrahi has held that a plain reading of Sections 6 and 10(3) of the Commercial Courts Act, 2015, leads to the conclusion that the appropriate 'court' to consider a commercial dispute, even if it arises under the Arbitration and Conciliation Act, would be the commercial court and an appeal would, therefore, lie only before the Commercial Appellate Court being the District Court. Brief Facts: The appellant is the owner of 4 acres 875...

Violation Of Provisions Of Arbitration Act Or MSMED Act Can Be Adjudicated By Court U/S 34 Of Arbitration Act: Orissa High Court

An Orissa High Court bench of Justice K.R. Mohapatra has dismissed a writ petition upon holding that the petitioner, without availing the efficacious statutory remedy u/s 34 of the Arbitration Act had approached the Court under Articles 226 and 227 of the Constitution for which the Court was not inclined to exercise its discretionary power to entertain it.Additionally, the court held that violation of any provisions of the Arbitration Act and/or the MSMED Act can be effectively adjudicated...

Compounding Of Offences Allowed Under IT Act, HC's Inherent Jurisdiction U/S 482 CrPC Cannot Be Invoked For Quashing: Orissa HC

The Orissa High Court has refused to entertain a petition filed for quashing the offence under Sections 276(B) of the Income Tax Act, 1961, stating that the Petitioner-accused should have sought compounding of the offence. Justice Sibo Sankar Mishra observed, “In the present regime, where the compounding of the offence is permissible, the jurisdiction of this Court under Section 482 Cr.P.C. may not be necessarily invoked by the petitioner. In that view of the matter, the petitioner...

Dispute Related To Infringement Of Copyright Is Arbitrable, Arbitrator Can Be Appointed U/S 11 Of Arbitration Act: Orissa High Court

The Orissa High Court bench of Chief Justice Chakradhari Sharan Singh has held that dispute related to infringement of copyright is arbitrable for which arbitrator can be appointed by the court under section 11 of the Arbitration Act. Brief Facts The present application has been filed under section 11(6) of the Arbitration Act, seeking appointment of an Arbitrator to resolve the dispute between the parties. The application was opposed by the other party on the ground that the...

Orissa High Court Quashes Order After Assessee Fails To Prosecute Appeal Due To Ongoing Medical Treatment

The Orissa High Court, considered that the assessee was unwell and undergoing medical treatment at the time the notices regarding his appeal were served and accordingly quashed the order demanding liability for unpaid tax. The Bench consisting of Justices Arindam Sinha and M.S. Sahoo was considering a case in which the assessee/petitioner failed to reply to the notice regarding his appeal due to health issues. In this case, the assessee/petitioner failed to attend scheduled...