Parties To Lis Should Not Be Appointed As Receiver Without Consent Of Other Parties: Telangana High Court

The Telangana High Court Bench of Chief Justice Alok Aradhe And Justice J.Sreenivas Rao held that impartiality is an essential attribute of a Receiver. Therefore, normally one of the parties to a lis should not be appointed as Receiver without consent of the other parties unless a very special case is made out. Brief Facts This appeal under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the 1996 Act') has been filed against the order ...

S.10(23G) IT Act | Capital Invested To Purchase Shares Of 'Infrastructure Facility' Before June 1998 Can't Be Included In Total Income: Telangana HC

The Telangana High Court has held that the capital expenditure made prior to June 1998, for purchasing shares in any 'infrastructure facility', cannot be included in an assessee's total income. A division bench of Justices Sujoy Paul and Namavarapu Rajeshwar Rao reasoned, “The capital expenditure for purchasing shares falls under the category of infrastructure facilities and shall not be included in total income. This is because merely purchasing shares does not contribute to the...

Arbitral Tribunal Is The Fulcrum And The Facilitator For Taking Evidence Under Section 27 Of Arbitration And Conciliation Act: Telangana High Court

The Telangana High Court division bench of Justice Moushumi Bhattacharya and Justice M.G. Priyadarshini, while dismissing a Civil Revision Petition (CRP), has held that the Arbitral Tribunal is the fulcrum and the facilitator under Section 27 of the Arbitration Act. The Bench further held that only Arbitral Tribunal can make a representation before a Court under Section 27(5). Section 27 of the Arbitration Act pertains to the assistance of the Court in taking evidence. The Arbitral...

Section 11 Can't Be Entertained Without A Notice Under Section 21 of Arbitration Act: Telangana High Court

The Telangana High Court Bench comprising Chief Justice Alok Aradhe has held that a valid notice under Section 21 of the Arbitration and Conciliation Act, 1996, is a mandatory requirement for invoking arbitration, and its absence renders an arbitration application under Section 11 of the Act non-maintainable. Brief Facts: The parties entered into a Franchise Agreement on 26.06.2019, which contained an arbitration clause. Disputes arose, and the applicant sought a refund of...

Telangana High Court Quashes Tax Authority's Show Cause Notices To Assessee As Demand Was Settled Under State's One Time Settlement Scheme

The Telangana High Court recently quashed two show cause notices issued by the tax authority to a company, demanding tax which was already settled under the state government's One Time Settlement (OTS) scheme, while noting that there was "no allegation of fraud" committed by the company in the notices. A division bench of Justice Sujoy Paul and Justice Namavarapu Rajeshwar Rao in its August 28 order said, that in the "peculiar facts and circumstances of this case", after the petitioner...

Commercial Courts Empowered To Hear Commercial Original Petition Arising From Section 37 Of Arbitration Act: Telangana High Court

The Telangana High Court division bench of Justice Moushumi Bhattacharya and Justice M.G. Priyadarsini has held that commercial courts are competent courts to hear the Commercial Original Petition arising from Section 37 of the Arbitration and Conciliation Act, 1996 in terms of specified value, territorial jurisdiction and the nature of the dispute i.e., commercial dispute. Brief Facts: The matter pertained to a Civil Revision Petition which arose from an order passed by Special...

NRIs Not Exempted From Mandatory Faceless Procedure: Telangana High Court

The Telangana High Court has held that the NRIs are not exempted from following mandatory faceless procedure.The bench of Justice Sujoy Paul and Justice Namavarapu Rajeshwar Rao has observed that the taxpayer is nowhere distinguished between NRIs and Indian citizens. The reassessment notice issued under Section 148 must comply with the requirement of the scheme whether or not the taxpayer is an NRI or Indian citizen.The petitioner/assessee has challenged the reassessment notices under Sections...

GST Not Payable On Consideration against 'Works Contract ' Executed In Maldives: Telangana High Court

The Telangana High Court has held that GST is not payable on consideration received towards 'works contract service of construction' executed in the Maldives.The bench of Justice Sujoy Paul and Justice Namavarapu Rajeshwar Rao has observed that the location of immovable property is located in the Maldives or outside India. Hence, the place of supply shall determine the 'location of the recipient'. The place of supply of services is Addu, Maldives. The 'location of recipient' is already...

Legal Heirs Of Deceased Party To Arbitration Agreement Comes Under "Legal Representatives" Under Section 2(1)(g) Of Arbitration Act: Telangana High Court

The Telangana High Court bench of Justice P.Sam Koshy and Justice Sambasivarao Naidu has held the legal heirs of a deceased person who was a party to an arbitration agreement fall under the definition of "legal representative" as specified in Section 2(1)(g) of the Arbitration and Conciliation Act, 1996. The bench held that it encompasses persons who manage or claim to inherit the deceased's estate. The issue before the High Court was whether an objection under Section 8 of the ...

Non-Filing Of GST Return Due To Technical Glitch, Bank Can't Be Penalised: Telangana High Court

The Telangana High Court has held that the petitioner bank could not file its return in the GST portal because of a technical glitch and cannot be saddled with demand, penalty, and interest.The bench of Justice Sujoy Paul and Justice Namavarapu Rajeshwar Rao has observed that it was the duty of the department to keep their portal functional. If the portal was not functional or had a technical glitch, and because of that, the petitioner was compelled to file a return in the portal of Telangana....

Telangana HC Explains Section 31(7)(A) And (B) Of The A&C Act,1996 In Terms Of Timeframes, Embargo & Discretion

The Telangana High Court division bench of Justice Moushumi Bhattacharya and Justice M. G. Priyadarsini has held the arbitral tribunal has full authority to award interest from the date of the award until the date of payment, regardless of any contrary decision by the parties. If the award is silent on the rate of interest, the award holder is entitled to an interest rate 2% higher than the market rate.Further, the bench held that the discretion of the arbitral tribunal to award pre-reference...

Commercial Disputes Take Effect Beyond Private Sphere Of Contracting Parties, Create Ripple Effect On Commercial Movement: Telangana HC

The Telangana High Court has elaborated on the interpretation of "commercial disputes" under the Commercial Courts Act, 2015. The Court clarified that any dispute arising out of a commercial agreement cannot be termed a 'Commercial Dispute' as long as only the contracting parties will be affected. “In essence, a commercial dispute would be one where the nature of the agreement or the consequence arising therefrom would take the effect of the agreement beyond the private sphere of...