No Patent Illegality In Award Granting Security Forfeiture And Differential Cost Recovery: Telangana HC

The Telangana High Court on 4 May held that where a contract expressly provides for forfeiture of security and recovery of differential costs, the aggrieved party may invoke both remedies upon breach. A Division Bench of Justices Moushumi Bhattacharya and Gadi Praveen Kumar dismissed the appeal filed by Ashok Rakesh Kumar and upheld an arbitral award in favour of the A.P. Nutrition Council (APNC), finding no patent illegality in the Tribunal granting both forms of relief. The judges...

Telangana HC Quashes EPF Default Case Against Company's MD, Says Designation Alone Insufficient

The Telangana High Court has quashed criminal proceedings against the Chairman and Managing Director of Sankhya Infotech Limited in a case alleging non-remittance of Employees' Provident Fund (EPF) contributions. The Court held that the material on record did not disclose a prima facie sustainable case against him. Justice N. Tukaramji passed the order while allowing a petition challenging proceedings pending before the XX Metropolitan Magistrate, Cyberabad at Malkajgiri. The Court found that...

Telangana High Court Dismisses MSME's Plea Against Arbitration Reference After Consent To Tribunal

The Telangana High Court has held that a company cannot challenge an MSME arbitration reference after consenting to the constitution of the arbitral tribunal and participating in the proceedings. “After giving consent to the constitution of the Arbitral Tribunal and thereafter having participated in the proceedings before it, the writ petitioner cannot subsequently challenge the reference of the dispute to arbitration on the ground of the dispute not amenable to arbitration,” the Court...

Telangana HC Upholds Sale of Mortgaged Property, Says 30-Day SARFAESI Notice Period Runs From First Valid Service

The Telangana High Court has upheld the auction sale of a mortgaged property by Bank of India, holding that the 30-day statutory period for an auction sale must be counted from the first valid service of the sale notice, not from a later supplementary communication. Explaining its reasoning, the Division Bench of Justices Moushumi Bhattacharya and Gadi Praveen Kumar observed: “Acceptance of the borrower's contention would result in uncertainty and enable manipulation of timelines, thereby...

Telangana High Court Temporarily Bars PPL From Coercing Hyderabad Bar To Obtain Music Licence

The Telangana High Court on May 4, 2026 granted interim protection to a Hyderabad restaurant and bar, restraining Phonographic Performance Limited (PPL) from coercing it to obtain a music licence until the next hearing on June 19. Justice Renuka Yara was hearing a writ petition filed by Dark Horse Hospitality and Events LLP, which runs Babylon Bar and Kitchen in Jubilee Hills. The establishment has challenged what it describes as an unlawful attempt by PPL to compel businesses to obtain...

Telangana High Court Holds IBC Moratorium Cannot Defeat Arbitral Proceedings, Allows Kaizen Power Appeal

The Telangana High Court on 15 April set aside a Commercial Court order that had vacated interim protection granted to Kaizen Power Limited in relation to its lease dispute with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC). A Division Bench of Justices Moushumi Bhattacharya and Gadi Praveen Kumar held that the Commercial Court proceeded on an erroneous understanding of the effect of the IBC moratorium and allowed the appeal, directing that arbitration proceedings be resumed...

Telangana High Court Upholds Rejection of Excise Settlement Plea for Lack of Full and True Duty Disclosure

The Telangana High Court has dismissed a writ petition filed by Airan Comtrax Towers Pvt. Ltd., upholding the rejection of its settlement application on the ground that it failed to make a full and true disclosure of its duty liability. A Division Bench of Justice P. Sam Koshy and Justice Narsing Rao Nandikonda was dealing with a challenge to the order dated February 28, 2008 passed by the Settlement Commission. The case arose from a show cause notice dated April 4, 2005 alleging clandestine...

Telangana High Court Quashes IT Reassessment On Issue Already Examined, Calls It Change of Opinion

The Telangana High Court has set aside income tax reassessment proceedings against Piramal Swasthya Management and Research Institute, holding that the tax department cannot reopen an issue it had already examined and accepted during the original assessment. “once the assessment proceedings are completed and assessment order is passed, the 1st respondent cannot reopen the assessment proceedings by issuing the impugned show-cause notice, dt.27.02.2023, alleging that Form 10 had not been...

Telangana High Court Upholds 1% Royalty Cap On Export Sales, Dismisses Gulf Oil Appeals

The Telangana High Court on 26 March, upheld the restriction of royalty on export sales to 1% for Gulf Oil Corporation Ltd., holding that regulatory approvals permitting higher royalty rates do not determine arm's length price under transfer pricing provisions, which operate as a self-contained code under Sections 92 to 92F of the Income Tax Act. The Division Bench comprising Justices P. Sam Koshy and Suddala Chalapathi Rao held that no substantial question of law arose in the matter and...

IBC Auction Purchaser Not Liable For Past Electricity Dues: Telangana HC Sets Aside ₹2.64 Lakh Demand

The Telangana High Court has recently set aside a demand raised against an auction purchaser under the Insolvency and Bankruptcy Code, holding that such a purchaser cannot be made liable for electricity dues of the previous owner where the claim was not part of the insolvency process, and further that a demand raised after nearly 16 years is barred by limitation. Justice Renuka Yara, allowing the writ petition, emphasised that once the resolution process concludes, undisclosed statutory dues...

Income Tax | Reference To District Valuation Officer Cannot Be Used To Initiate Assessment Proceedings: Telangana HC

The Telangana High Court has dismissed the revenue's appeal against Legend Estates Pvt. Ltd. and held that a reference to the District Valuation Officer under Section 142A of the Income Tax Act is untenable where the taxpayer's books of accounts are neither rejected nor found defective. It also held that a reference under Section 142A can be made only during the course of assessment or reassessment proceedings and not for the purpose of initiating such proceedings. A Division Bench of Justice...

Interest Earned By Co-operative Credit Society On Bank Deposits Eligible For Tax Deduction: Telangana HC

The Telangana High Court has held that interest earned by the Hyderabad-based co-operative credit society on bank deposits made from its business funds is eligible for deduction under the provision applicable to co-operative societies providing credit facilities to their members."It is clear that eligibility for deduction under Section 80P(2)(a) requires that the claim must relate to the profits and gains of business attributable to one or more of the activities specified therein. In the present...