'Not Unknown to Law': Telangana High Court Upholds Reserve Price Reduction After Repeated Failed SARFAESI Auctions

The Telangana High Court has recently upheld the phased reduction of the reserve price fixed for the auction sale of a mortgaged immovable property under the SARFAESI Act and dismissed writ petitions filed by the borrower. A Division Bench of Justice Moushumi Bhattacharya and Justice Gadi Praveen Kumar affirmed the order of the Debts Recovery Appellate Tribunal and observed that “the process of marking down of the Reserve Price is not unknown to law.” The Bench examined Rule 8(5) of the...

Telangana High Court Restrains Ex Karix Mobile Employees From Sharing Trade Secrets With Competitor

Holding that the sudden loss of a major client gave rise to an “unshakable inference” of breach of confidence, the Telangana High Court has set aside a trial court order and granted interim protection to Karix Mobile Private Limited against its former senior employees who joined competitor OneXtel Limited. A Division Bench of Justice Moushumi Bhattacharya and Justice Gadi Praveen Kumar allowed the appeal and overturned the October 6, 2025 order of the trial court, which had rejected Karix's...

Telangana High Court Strikes Down GST Rule Mandating Monthly ITC Distribution By Input Service Distributor

The Telangana High Court has struck down a GST rule that required an Input Service Distributor, typically the head office of a company with multiple branches, to pass on the input tax credit of a month to its branch units in the same month. A division bench of Chief Justice Aparesh Kumar Singh and Justice G. M. Mohiuddin ruled that Rule 39(1)(a) of the Central Goods and Services Tax Rules, 2017, was ultra vires Section 20 of the Central Goods and Services Tax Act, 2017. The bench said, “Rule...

Use of Tissue Culture Technology Does Not Bar Tax Exemption On Agricultural Income: Telangana High Court

The Telangana High Court has held that income earned from the sale of tissue-cultured plants qualifies as agricultural income and is therefore exempt from income tax, though advanced scientific techniques are used in their cultivation. The Bench of Justices P Sam Koshy and Narsing Rao Nandikonda heard a case where the assessee (appellant), who was engaged in the business of micropropagation of plants through tissue culture technology, claimed that the income from the same was exempt from tax as...

Allowing Filing Of Additional Documents Without Reasonable Cause In Trial Defeats Speedy Disposal Of Commercial Suits: Telangana High Court

The Telangana High Court has reiterated that permitting a party to bring on record additional documents at the trial stage without a reasonable cause would defeat purpose of Commercial Courts Act 2015 which aims at speedy disposal of commercial suits. It further said that a court cannot permit documents to belatedly brought on the court's record on the sole ground that the documents have already been referred to in the written statement. A division bench of Justice Moushumi...

Power To Extend Arbitrator's Mandate Lies With Civil Court Of Original Jurisdiction, Not Appointing Court: Telangana High Court

The Telangana High Court dismissed a Civil Revision Petition filed by Employees State Insurance (ESI) Corporation. ESI had challenged an order passed by the Civil Court allowing the application seeking extension of the arbitrator's mandate. Justice P. Sam Koshy held that the mandate of the arbitrator under section 29A(4) of the Arbitration and Conciliation Act, 1996 (Arbitration Act) can be extended by the court as defined under section 2(1)(e) which expressly included the city civil ...

Forced Shift Of Arbitration Venue Without Consent Of Party Amounts To Perversity: Telangana High Court

The Telangana High Court has held that the forced shift of the Arbitration Venue without the consent of a party amounts to perversity and patent lack of inherent jurisdiction.The order was passed in a writ petition, challenging a procedural order, by way of which the venue of the 'Closing hearing' was moved from New Delhi to IDRC in London without considering the objections of the respondent“The forced shift from New Delhi to London would hence not only amount to perversity in terms of the...

Commercial Courts Act Envisages 'Marked Difference' Between Specified Value & Pecuniary Value: Telangana High Court

The Telangana High Court Division Bench comprising of Justice Moushumi Bhattacharya and Justice Gadi Praveen Kumar while hearing a Civil Revision Petition (“CRP”) observed that specified value forms the foundation of a commercial dispute for admission into the Commercial Courts Act, 2015 (“CC Act”). The pecuniary value, on the other hand, highlights the competence of the Court for trying such a commercial suit. Factual Matrix: The Respondent (Plaintiff in the Suit) filed a suit for...

Non-Signatory Must Have Live & Proximate Connection To Arbitration Agreement For Being Pulled Into Proceedings U/S 9 Of A&C Act: Telangana HC

The Telangana High Court Division Bench comprising of Justice Moushumi Bhattacharya and Justice B.R. Madhusudhan Rao has observed that for being pulled into the proceedings u/s 9 of the Arbitration & Conciliation Act, a non-signatory must have a live and proximate connection to arbitration agreement. The bench observed that the law has pushed the boundaries to pull in non-signatories to the arbitration agreement where the conduct of such parties reflects their intention to be...

Commercial Courts Act Is Entity-Neutral In Terms Of Limitation; Govt Suffers Same Pitfalls As Private Entity: Telangana High Court

The Telangana High Court Division Bench, comprising Justices Moushumi Bhattacharya and B.R. Madhusudhan Rao, observed that the Commercial Courts Act 2015 is an entity-neutral statute in terms of the limitation period. The Commercial Courts Act 2015 is in place to ensure the speedy resolution of high-stakes commercial disputes. Factual Matrix: The Telangana State Industrial Development Corporation Limited (“TSIDCL”) had filed a Commercial Original Petition (“COM") u/s 31(1)(a) and...

Sole Arbitrator's Appointment By One Party Due To Other Party's Inaction After Notice Is Not Unilateral: Telangana High Court

The Telangana High Court bench of Justice Moushumi Bhattacharya has held that an arbitrator appointed by one party in accordance with the agreed terms, after giving due notice, cannot be challenged as a unilateral appointment if the other party was given a full and fair opportunity to nominate its arbitrator but chose not to act. In such a situation, enforcement of a foreign award cannot be refused under Section 48 of the Arbitration and Conciliation Act, 1996. Brief Facts: The...

When Party Questions Validity Of Draft Agreement Containing Arbitration Clause, Reference Can't Be Sought Based On It: Telangana High Court

The Telangana High Court bench of Sri Justice P. Sam Koshy and Sri Justice N. Tukaramji has held that when a party, in its reply to a Section 8 petition under the Arbitration Act, has expressly denied the existence or validity of the agreements containing the arbitration clause by terming them null and void, such agreements cannot subsequently be relied upon by the same party as the basis to seek reference of the disputes to arbitration. Brief Facts: The instant appeal has been filed...