Bank Can Assign Debt Even If NPA Classification Is Later Declared Invalid: Rajasthan High Court

The Rajasthan High Court dismissed a writ petition filed against SBI's assignment of debt in favor of Alchemist Asset Reconstruction Company Ltd. (AARC) holding that even if NPA classification is later declared invalid, it does not affect the validity of assignment of debt. Justice Rekha Borana held that “the assignment cannot be invalidated merely because the NPA classification was later declared invalid. The writ petition being totally misconceived does not deserve any interference...

[Arbitration Act] Limitation For Filing S.11 Application To Be Calculated From Date Of S.21 Notice, Not From Date Of Dispute: Rajasthan HC

The Rajasthan High Court, Jaipur Bench, has held that the limitation for filing a Section 11 application under the A&C Act would be calculated from the date of serving the Section 21 notice to the other side and not from the date when the cause of action had arisen. The bench of Justice Anoop Kumar Dhand was hearing a Section 11 application praying for the appointment of an arbitrator to adjudicate the dispute between the parties arising out of the agreement dated 29.02.2016. ...

[Arbitration Act] S.11 Application Is Maintainable Even Without Notice U/S 21 If Other Party Is Aware Of Dispute: Rajasthan High Court

The Rajasthan High Court Jaipur Bench has held that a Section 11 petition under the A&C Act without issuing the notice invoking arbitration (“NIA”) u/s 21 of the A&C Act would be maintainable if the Respondents were aware of the dispute being referred to arbitration. The bench noted that the Respondents were well-versed in the dispute raised by the Petitioner. They could not have been surprised after the Petitioner's plaint was returned by the trial court under Order VII Rule 10...

Income Tax | Rajasthan High Court Quashes Repeated Orders To Transfer Case, Calls Revenue's Approach 'Rigid' & 'Adamant'

The Rajasthan High Court has come down heavily on the Revenue Department for being “rigid and adamant” to transfer the case of the petitioner from Udaipur to Delhi under Section 127 of the Income Tax Act, 1961, despite the coordinate bench's earlier decision that quashed the same order.Section 127 of the Act empowers the income tax authorities to transfer a case from one Assessing officer to another to ensure better coordination, effective investigation or administrative convenience. The...

Rajasthan HC Grants One Month Extension For Filing Tax Audit Report After Complaints Of Glitches On E-Filing Portal

The Rajasthan High Court has extended the deadline for filing the Tax Audit Report by one month. A division bench of Justice (Dr.) Pushpendra Singh Bhati and Justice Bipin Gupta at the Rajasthan High Court extended the deadline under Section 44AB of the Income Tax Act, 1961, by 1 (one) month beyond September 30, 2025. It was submitted that in the previous years, CBDT had consistently granted such extensions in similar circumstances, and refusal to grant the same in the present...

Rajasthan High Court Partly Quashes CBIC Circular Restricting ITC Refund For Inverted Duty Structure Up To 18.07.2022

The Rajasthan High Court has quashed Point No. 2 of the Circular No. 181/13/2022-GST dated 10.11.2022, restricting ITC claims on the inverted duty structure prior to 18.07.2022. The bench, consisting of Justices Dinesh Mehta and Sangeeta Sharma, stated that if the impugned clarification is tested on the anvil of reasonableness, it falls foul to Article 14 of the Constitution of India, inasmuch as the right to claim refund of Input Tax Credit of the input tax on inverted duty structure ...

Rajasthan GST Act | HC Calls For 'Purposive' Interpretation Of S.107, Asks Why Assessment Orders Cannot Be Sent On Assessee's Email

The Rajasthan High Court has questioned why the tax department can send attachment orders via email, but not assessment orders, to ward off any communication gap or confusion about the date of communication.The Court was hearing a petition filed against the order of the Appellate Authority, State Tax, that had rejected an appeal preferred by the petitioner under Section 107(1) of the Rajasthan GST Act, 2017.The division bench of Justice Dinesh Mehta and Justice Sangeeta...

IGST Act | Party Providing Services Under Bipartite Agreement Cannot Be Labelled As “Intermediary”: Rajasthan High Court

While hearing a petition against the decision of Department of Revenue by a company providing services to a foreign entity, Rajasthan High Court held that for someone to be called an “intermediary”, there had be existence of 3 parties in the contract, in the absence of which, the services rendered under a bipartite agreement could not be called “intermediary”.The division bench of Justice Mr. K.R. Shriram and Justice Maneesh Sharma was hearing the petition filed by a subsidiary of IDP Australia,...

Filing Application U/S 10 Of Commercial Courts Act With S.34 Petition Fulfills Requirements U/S 34 Of A&C Act: Rajasthan High Court

The Rajasthan High Court Bench of Justices Sanjeev Prakash Sharma and Chandra Prakash Shrimali has held that merely if an application filed under Section 10, Commercial Courts Act (“CCA”) does not mention Section 34, Arbitration and Conciliation Act (“ACA”) in the heading, it does not mean that the application cannot be treated as an application under Section 34, ACA. Filing the application under Section 10, CCA and annexing the Section 34 petition fulfils the requirement of Section 34...

Rajasthan High Court Quashes Challenge Against State Amendment Imposing New Motor Vehicle Tax On “Sleeper Bus”

The Rajasthan High Court rejected the challenge made to an amendment brought in by the Transport Department by which a new category of “sleeper bus” was added for levying motor vehicle tax, taking it out from the previous category without qualifying it for the exemptions available under other categories.The division bench of Justice Vinit Kumar Mathur and Justice Anuroop Singhi held that the “bus” fell in the definitions under Sections 2(7) and 2(29) of the Rajasthan Motor Vehicles Act,...

Arbitration Act | Notice U/S 21 Not Always Necessary If Other Party Was Aware Of Dispute: Rajasthan High Court

Rajasthan High Court ruled that since the respondent was already aware of and was not taken by surprise regarding petitioner's invocation of arbitration clause, their plea that the application for appointment of arbitrator was not maintainable since no notice was served under Section 21 of the A&C Act 1996, lacked merit.The bench of Justice Anoop Kumar Dhand also reiterated the principle laid down in the case of M.D. Frozen Foods Exports Private Limited & others v. Hero Fincorp Limited...

Arbitrator Can't Grant Relief Contrary To Terms Of Contract: Rajasthan High Court Sets Aside Award Of Compensation For Delay

The Rajasthan High Court bench comprising Justice Avneesh Jhingan and Justice Bhuwan Goyal have held that an arbitral award which grants reliefs beyond the express terms of the contract, including compensation for losses and interest where no such entitlement exists under the agreement, is patently illegal and liable to be set aside under Section 37 of the Arbitration and Conciliation Act, 1996. Brief Facts On 08.08.2003, the State of Rajasthan issued a tender for the construction...