Arbitration Act 2015 Amendment To Section 12(5) Cannot Be Applied Retrospectively: Punjab & Haryana High Court

On 29 May, the Punjab and Haryana High Court held that executing courts cannot retrospectively apply the post-2015 neutrality regime under Section 12(5) of the Arbitration and Conciliation Act, 1996, to refuse enforcement of arbitral awards rendered under the law prevailing at the time of the arbitrator's appointment. A Bench of Justice Jasgurpreet Singh Puri allowed the revision petitions, set aside seven executing court orders, and directed continuation of execution proceedings. It observed: ...

Punjab & Haryana High Court Rules PLC Not Separately Taxable, Sets Aside DLF Advance Ruling Orders

The Punjab and Haryana High Court on 13 May held that Preferential Location Charges (PLC) collected by developers for offering a preferred location within a housing project form part of the composite construction service and cannot attract separate taxation. A Division Bench of Justices Deepak Sibal and Lapita Banerji allowed a writ petition filed by DLF Limited and quashed the Advance Ruling Authority order dated 28 August 2020 and the Appellate Authority for Advance Ruling order dated 28...

RERA Appeal Remedy Cannot Be Bypassed To Avoid Pre-Deposit Requirement: Punjab and Haryana High Court

The Punjab and Haryana High Court recently refused to entertain a real estate developer's challenge to a Haryana RERA refund order, holding that a promoter/developer cannot bypass the statutory appellate remedy merely to avoid the pre-deposit requirement. A Division Bench of Justice Suvir Sehgal and Justice Vikas Suri was hearing a petition filed by Advance India Projects Limited against a Haryana Real Estate Regulatory Authority order directing it to refund over ₹1.02 crore to two allottees in...

Punjab & Haryana HC Grants Landowners 2013 Act Interest Over Arbitrator Award In Land Acquisition For Highway

The Punjab and Haryana High Court has held that denying landowners whose compensation is enhanced in arbitration under the National Highways Act the same interest benefits available to similarly placed landowners would be discriminatory and violative of Article 14. Justice Harkesh Manuja held, “In the present case, the learned Arbitrator, by denying parity to identically placed landowners even though only with regard to the interest component of the compensation, has acted arbitrarily and in...

Party Cannot Invoke HC's Supervisory Jurisdiction After Withdrawing Arbitral Award Challenge: Punjab & Haryana HC

The Punjab and Haryana High Court on Friday held that a party that withdraws its challenge to an arbitral award cannot later use the High Court's supervisory jurisdiction to reopen the same dispute through a different route. “The supervisory jurisdiction under Article 227 being discretionary and equitable ought not to be exercised in favour of a litigant who has by withdrawing the objections abandoned the statutory remedy and now seeks to circumvent the consequences of that withdrawal." ...

Arbitration Clause Can't Be Ousted By Specific Performance Clause In Contract: Punjab & Haryana High Court

The Punjab and Haryana High Court has held that a clause allowing a civil suit for specific performance does not override a clear arbitration clause between parties, appointing an arbitrator to resolve a land dispute after rejecting objections of coercion and invalidity. Justice Jasgurpreet Singh Puri said, “When in an agreement, there exists a specific clause pertaining to arbitration, which remains undisputed then the mere fact that there is some other clause providing entitlement to file a...

Faridkot Courts, Not Bathinda, Have Jurisdiction In NH-15 Arbitration Dispute: Punjab & Haryana High Court

The Punjab and Haryana High Court has held that courts at Faridkot would have jurisdiction to entertain challenges to arbitral awards arising out of the NH-15 Amritsar–Bathinda project, and not courts at Bathinda, as the arbitral proceedings were conducted and the awards were passed at Faridkot.A coram of Justice Jasgurpreet Singh Puri observed that "Although the present cases pertain to statutory arbitration but it is an admitted fact that the arbitration has been conducted at Faridkot with the...

'May Refer To Arbitration' Clause Valid Where Agreement Shows Clear Intent: Punjab and Haryana HC

The Punjab and Haryana High Court has held that a clause in a Leave and License Agreement between Realsta Infratech Pvt Ltd and Pace Stock Broking Services Pvt Ltd constituted a valid arbitration clause, despite using the expression “may refer to arbitration," as the provision, read as a whole, reflected a clear intention to arbitrate upon failure of amicable settlement. Justice Jasgurpreet Singh Puri appointed former Delhi High Court judge Justice Talwant Singh as the sole arbitrator to decide...

Labelling Clause As 'Arbitration' Doesn't Create Arbitration Agreement Without Mechanism For It: Punjab & Haryana HC

The Punjab and Haryana High Court has held that merely labelling a clause as “Arbitration and Applicable Laws” does not make it an arbitration agreement, refusing to appoint an arbitrator where the clause itself did not provide for the reference of disputes to arbitration. A bench of Justice Jasgurpreet Singh Puri held that Clause 8 of the Memorandum of Understanding dated January 13, 2020, executed between Rayat Educational and Research Trust and the Punjab Skill Development Mission, does not...

Valid GST Notice Must Disclose Details And Basis of Liability: Punjab & Haryana High Court

The Punjab & Haryana High Court on 2 April held that a GST show cause notice lacking specific allegations, supporting material, and proper reasoning is legally unsustainable and violates principles of natural justice. A Division Bench comprising Justice Deepak Sibal and Justice Alka Sarin set aside a show cause notice issued to Abbott Healthcare Pvt. Ltd., observing: “Before raising a demand, the purpose of putting an assessee to notice, is to make the assessee aware of the department's...

Arbitration Clause In Purchase Orders Enough to Appoint Arbitrator: Punjab & Haryana High Court

The Punjab and Haryana High Court on 19 March, held that an arbitration clause in purchase orders is sufficient under Section 11 of the Arbitration and Conciliation Act, 1996, to allow appointment of an arbitrator. A Single Judge Bench of Justice Jasgurpreet Singh Puri allowed a petition by Aditya Birla Real Estate Limited and appointed Justice Ajay Tewari (Retd.) as the Sole Arbitrator in disputes arising out of 20 purchase orders issued by Orient Craft Limited for the supply of fabric. He...

Cheque Issued For Another's Debt Still Attracts Liability If Dishonoured: Punjab And Haryana High Court

The Punjab & Haryana High Court has recently held that a person who issues a cheque to discharge another person's debt, including that of a spouse, cannot escape liability if the cheque is dishonored, even if the debt was not personally incurred by him, while upholding the conviction of two accused in a cheque dishonour case. A single-judge bench of Justice Subhas Mehla reduced the sentence of imprisonment to one year rigorous imprisonment while maintaining the enhanced compensation of Rs....