Limitation U/S 34(3) Of Arbitration Act Begins From Date Of Receipt Of Award When Delivery Is Undisputed: Rajasthan High Court

The Rajasthan High Court bench of Justices Avneesh Jhingan and Bhuwan Goyal has held that when the delivery of the arbitral award at the registered address is not disputed, the limitation period under Section 34(3) of the Arbitration Act cannot be suspended on the ground that the appellant became aware of the award at a later date. The limitation period must be computed from the date of receipt of the award, not from the date of knowledge. Brief Facts: The present appeal...

Arbitral Award Can't Be Set Aside Over Insufficient Stamping Without Opportunity To Cure Defect: Rajasthan High Court

The Rajasthan High Court bench of Justices Avneesh Jhingan and Bhuwan Goyal has held that when a court, in proceedings under Section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) finds that the agreement to sell, on which the arbitration was initiated, is insufficiently stamped, it must provide the party an opportunity to cure the defect by impounding the instrument. The court cannot set aside the arbitral award on the ground that the agreement was invalid due to...

Refund Of Liquidated Damages Imposed By Party Responsible For Delay In Work Can't Be Interfered With U/S 37 Of Arbitration Act: Rajasthan High Court

The Rajasthan High Court bench of Justices Avneesh Jhingan and Bhuwan Goyal has held that the imposition of liquidated damages by a party primarily responsible for the delay in completion of the work is unjustified. Therefore, the arbitrator's direction to refund such damages cannot be interfered with, given the limited scope of appellate intervention under Section 37 of the Arbitration and Conciliation Act, 1996 (Arbitration Act). Brief Facts: Rajasthan Urban Infrastructures...

Income Tax Act | Rajasthan HC Dismisses Challenge Against Proceedings Initiated U/S 153C Based On WhatsApp Chats, Says Chats Had Been Corroborated

Rajasthan High Court denied interference with initiation of proceedings under Section 153C of the Income Tax Act, 1961 (“the Act”) that were alleged to be initiated merely based on certain WhatsApp Chats, observing that the information in the chats were completely corroborated by specific transactions and hence, the said chat could be considered to be falling under the definition of “other documents” under Section 153C.The division bench of Justice Pushpendra Singh Bhati and Justice Chandra...

Rajasthan HC Quashes Prosecution Sanction Against E-Commerce Company For Delay In Depositing TDS Due To Late Submission Of Bills By Amazon, E-Bay

Rajasthan High Court set aside prosecution under Income Tax Act, 1961 (“the Act”), against the petitioner-company whose business activity related to e-commerce transactions, and owing to delay on part of the companies like Amazon, Naaptol, Ebay, etc. in submitting the bills, the petitioner got delayed by almost 10 months in submitting the deducted TDS.The division bench of Justice Maneesh Sharma and Justice Avneesh Jhingan held that since the TDS was deposited voluntarily by the petitioner, that...

Executing Court Erred In Seeking Transfer Certificate To Execute Award When It Had Jurisidiction To Entertain Application: Rajasthan HC Sets Aside Order

The Rajasthan High Court bench of Justice Narendra Singh Dhaddha has held that the Executing Court had committed an error in directing to furnish the transfer certificate for executing an award when it already had jurisdiction to hear the application.Court said that when the property was situated in Jaipur, the executing court had jurisdiction to entertain the execution application. So, the orders dated 12.10.2018 and 13.03.2019 passed by the Executing Court deserve to be set aside,...

Jurisdictional Assessing Officer Lacks Jurisdiction To Issue Reassessment Notices U/S 148 Of Income Tax Act: Rajasthan High Court

The Rajasthan High Court stated that the Jurisdictional Assessing Officer (JAO) lacks jurisdiction to issue income tax reassessment notices under section 148 of the Income Tax Act, 1961. The Bench of Justice Pushpendra Singh Bhati and Munnuri Laxman observed that “the JAO shall not have the jurisdiction to issue notices under Section 148 of the Act of 1961, as it would not only render Section 151A weak, but may also lead to its diminishing activation.” Section 147 of the Income Tax...

State Ignored Its Own Obligations, Unilaterally Penalised Contractor Overlooking Difficulties Faced In Completing Canal Construction: Rajasthan HC

The Rajasthan High Court set aside a commercial court's order passed against a company whose contract for constructing a canal was terminated by the State for allegedly not completing the work. In doing so the high court noted that the commercial court's order was erroneous and based on assumptions as it did not consider the non-performance of the Employer's obligation which went to the "root of the matter". The court also observed that the contractor had demonstrated before the commercial...

Commercial Court Committed Jurisdictional Error By Imposing Pre-Condition To Deposit 50% Of Amount For Stay Against Arbitral Award: Rajasthan HC

The Rajasthan High Court Bench of Justice Sudesh Bansal has held that the Commercial Court has committed jurisdictional error in exercising its discretion arbitrarily, mechanically and injudiciously, while putting the condition to deposit 50% of the awarded amount, for operating stay against arbitral award without assigned justified and sound reasonings. Additionally, the court modified the order in the manner that the stay order will become operative only after furnishing security in...

Court In Exercise Of Supervisory Jurisdiction Shall Not Interfere With Arbitral Award, Limited Scope Of Interference: Rajasthan High Court

The Rajasthan High Court Bench of Justice Shree Chandrashekhar and Dr. Justice Nupur Bhati held that it is a well settled law that the interpretation of the clause of Agreement by the Arbitrator shall not be open to judicial interference unless it is demonstrated before the Court that the interpretation put by the Arbitral Tribunal was perverse. Additionally, the court held that if the view taken by the Arbitrator is logical and acceptable merely because two views are possible the Court...

Whether Arbitration Agreement Has All Essential Elements Can Better Be Decided By Tribunal U/S 16 Of A&C Act: Rajasthan High Court

The Rajasthan High Court bench of Justice Sudesh Bansal has held that the issue of validity of arbitration agreement more particularly in respect of having essential elements of the arbitration agreement, can better be considered and decided on merits by the arbitration tribunal under section 16 of the Arbitration Act. Brief Facts The present application has been filed under section 11 of the Arbitration Act seeking appointment of an Arbitrator for a dispute arising from a Rate...

Referral Court U/S 11 Of Arbitration Act Cannot Enter Into Merits Of Subject Matter Of Disputes: Rajasthan High Court

The Rajasthan High Court bench of Justice Sudesh Bansal has held that the court under section 11 of the Arbitration Act cannot enter into merits of subject matter of the disputes. It has to see only the prima facie existence of an arbitration agreement. Brief Facts These two Arbitration Applications have been filed under section 11 of the Arbitration Act seeking the appointment of an Arbitrator. The applicant is a registered real estate firm which entered into agreements with the...