Rajasthan High Court
60% Tax Rate Under Section 115BBE Cannot Apply To Pre-1 April 2017 Income: Rajasthan High Court
The Rajasthan High Court on 27 May held that the enhanced tax rate of 60% introduced under Section 115BBE of the Income-tax Act through the Taxation Laws (Second Amendment) Act, 2016, cannot be applied retrospectively to income pertaining to Financial Year 2016–17, as the amendment was expressly made effective from 1 April 2017. The Division Bench of Justices Arun Monga and Sunil Beniwal held that the higher rate could operate only prospectively and could not govern income earned prior to its...
Arbitrator's Plausible Reading Of Ambiguous Contract Clause Not Ground To Set Aside Award: Rajasthan HC
The Rajasthan High Court has held that where a contract contains an ambiguous term and the arbitrator adopts a plausible interpretation of that term, such interpretation does not amount to misconduct under Section 30 of the Arbitration Act, 1940. Justice Sandeep Shah upheld an arbitral award passed nearly two decades ago against the Union of India (UOI) in a dispute arising from fencing work along the Indo-Pak border and affirmed the arbitral award as well as the order of the District Judge,...
BOT Concessionaire Liable To Pay GST On Toll Rights Received As Consideration: Rajasthan High Court
The Rajasthan High Court on 22 May held that toll collection rights granted under a Build-Operate-Transfer (BOT) concession agreement constitute consideration for taxable works contract services and are not exempt from GST merely because toll collection itself enjoys exemption. A Division Bench of Justices Arun Monga and Sandeep Shah dismissed a writ petition filed by CG Tollway Ltd challenging orders of the GST authorities that had demanded Rs. 16.36 GST, interest and penalty on services...
Arbitrator Appointment By Agreed Arbitral Institution Cannot Be Treated As Unilateral: Rajasthan High Court
The Rajasthan High Court has recently affirmed that the appointment of an arbitrator by an arbitral institution agreed upon by the parties cannot, by itself, be treated as a unilateral appointment, while setting aside orders that had refused to execute an arbitral award obtained by Sundaram Finance Ltd.A single bench of Justice Bipin Gupta relied on recent judgments of the Madras High Court and the Kerala High Court. The court unequivocally held that MCCI was mutually agreed upon by the parties,...
Rajasthan HC Slams “Lethargic” Arbitration In ₹528 HCL–DISCOMs Dispute, Orders Fast-Track Completion
The Rajasthan High Court on 27 May held that arbitral proceedings must remain aligned with the statutory objective of expedition, efficiency, and cost-effectiveness under the Arbitration and Conciliation Act, 1996, and that procedural delay cannot justify repeated extensions of an arbitral tribunal's mandate under Section 29A. Justice Sameer Jain, invoking former Chief Justice of India Justice P.N. Bhagwati's observation that “Procedure is but a means to an end, not an end in itself”, partly...
Tenancy Disputes Under 2001 Act Non-Arbitrable, Rent Tribunal Has Exclusive Jurisdiction: Rajasthan HC
The Rajasthan High Court on 22 May held that landlord–tenant disputes governed by the Rajasthan Rent Control Act, 2001 are non-arbitrable and fall within the exclusive jurisdiction of the Rent Tribunal, even where the lease agreement contains an arbitration clause. A Division Bench of Justices Arun Monga and Sandeep Shah, however, set aside the Commercial Court's order and restored the arbitral award in favour of the legal representatives of late Ramesh Chandra Patel against City Pulse...
Denial Of Compensation Under A Particular Head Under NH Act Can Be Arbitrated: Rajasthan High Court
The Rajasthan High Court has held that the expression “amount determined” under the National Highways Act includes even cases where compensation is completely denied under a particular head, allowing landowners to challenge such decisions before an arbitrator. Justice Sanjeet Purohit ruled, “The expression 'amount determined' cannot be confined to the narrower meaning of 'amount quantified.' Determination is a process whereby a claim is examined in light of the material available on record and...
After Supreme Court Coal Block Ruling, Rajasthan High Court Restores Awards In Favour Of Parsa Kente Collieries
The Rajasthan High Court has effectively restored arbitral awards in favour of Parsa Kente Collieries Ltd. in its dispute with Rajasthan Rajya Vidyut Utpadan Nigam Ltd. The dispute concerned reimbursement of additional costs incurred after the Supreme Court's cancellation of coal block allocations and the subsequent continuation of the mining arrangement.In 2014, the Supreme Court had quashing coal block allocations across India, holding them arbitrary and illegal.A Division Bench of Acting...
Rajasthan HC Sets Aside 10-Year-Old Decree Restricting Use Of 'METRO ENGINE' Mark, Orders Fresh Trial
The Rajasthan High Court on 19 May set aside a 2016 Trial Court judgment that had restrained Dhanvarsha Oil Mills from using the mark “METRO ENGINE” for its mustard oil products. Justice Sameer Jain held that registration of a trademark under Section 31 of the Trade Marks Act only raises a rebuttable presumption of validity and cannot, by itself, sustain a decree for infringement without a full trial on contested issues and remanded the suit for fresh adjudication on a de novo basis. He...
Rajasthan High Court Denies Bail In Rs 2.67 Crore Franchise Fraud, Cites Pattern Of Misconduct
The Rajasthan High Court denied bail to the director of Taskar Global Pvt Ltd, accused of inducing people to invest large sums in a franchise business by falsely promising high returns and a profitable business model. Justice Praveer Bhatnagar was hearing bail applications filed by the accused in connection with two FIRs registered over allegations that he, along with others, persuaded complainants to invest money by promising franchise rights in a healthcare business. The prosecution argued...
Rajasthan High Court Stays Parallel GST Proceedings, Says Only One Officer Can Initiate Action on Same Matter
The Rajasthan High Court has stayed parallel GST proceedings and recovery action against a Jaipur-based exporter after finding prima facie that tax authorities may have initiated duplicate proceedings for the same financial year. A division bench of Acting Chief Justice Sanjeev Prakash Sharma and Justice Bipin Gupta issued notice to the department and observed that under the GST law, only one proper officer can initiate proceedings on the same subject matter. “Considering the provisions of...
Rajasthan VAT Act Permits Search Of Residential Premises In Tax Evasion Cases: Rajasthan High Court
The Rajasthan High Court has recently held that the Rajasthan Value Added Tax Act does not prohibit searches at residential premises, provided the statutory requirements for search and seizure are strictly fulfilled. A Division Bench of Justice Arun Monga and Justice Sunil Beniwal referring to Section 75 of the Rajasthan Value Added Tax Act, 2003 observed, “Thus, the statute does not prohibit search of residential premises as such; however, the exercise of such power is conditioned upon strict...