Arbitral Tribunal's Refusal To Implead Proposed Parties Is Appealable: Bombay High Court

The Bombay High Court has held that where an arbitral tribunal finds it lacks jurisdiction over persons sought to be added to arbitration proceedings, such a decision can be challenged, though it declined to interfere with such a refusal in a dispute between two partners in a property development firm. Justice Somashekar Sundaresan held that such intervention may be necessary because, “if the arbitration proceedings are conducted entirely without the involvement of someone who is later...

Supreme Court Says Alleged 'Hallucinated' Citations By NCLT-NCLAT In Essel Infraprojects Case Under Examination

The Supreme Court on Tuesday said allegations that the NCLT and NCLAT relied on allegedly fake citations in insolvency proceedings against Essel Infraprojects Ltd were already under administrative examination and had been referred to a committee. The court also reserved judgment in the appeal filed by the company's suspended director. A Bench of Justices P.S. Narasimha and Alok Aradhe made the observation while hearing the appeal filed by suspended director Pooja Ramesh Singh against orders...

Madras High Court Says No Cheque Bounce Prosecution If Underlying Arbitral Award Was Challenged

The Madras High Court has recently quashed cheque bounce proceedings against a builder after finding that he had challenged the arbitral award cited as the basis of the alleged liability before the cheque was allegedly issued. Justice G.K. Ilanthiraiyan said, “Even before the date of issuance of the cheque i.e. 15.07.2019, the accused challenged the very arbitration award before this Court as early as on 11.02.2019 in Arb.OP.Nos.381 and 382 of 2019. Therefore, the accused would not have issued...

West Asia Crisis: Supreme Court Lets SpiceJet Move Delhi HC Over ₹144 Crore Deposit Order In Dispute With Kalanithi Maran

The Supreme Court on Tuesday allowed SpiceJet Limited and its chairman Ajay Singh to approach the Delhi High Court to seek modification of a direction requiring a cash deposit of ₹144.51 crore in the long-running arbitration dispute with Kalanithi Maran and Kal Airways Private Limited. The airline cited the ongoing West Asia crisis and said it expected additional funding under the Centre-backed emergency credit guarantee scheme for airlines.A Bench of Justices P.S. Narasimha and Alok Aradhe,...

Delhi High Court Says Regoshin Healthcare's Online Presence Sufficient To Let Trademark Suit Proceed In Delhi

The Delhi High Court has recently refused to return a trademark infringement and passing off suit filed by Amritsar-based businessman Ravinder Singh against Regoshin Healthcare Pvt. Ltd. and others. Singh has alleged infringement of his registered 'ROYAL' and 'ROYU' trademarks through the use of allegedly deceptively similar marks for pharmaceutical and allied products. Justice Jyoti Singh held that, at the threshold stage, the court was required to proceed on the basis that the averments in...

Private Arbitration Cannot Override Statutory Labour Adjudication: Madras High Court

The Madras High Court has recently held that statutory labour adjudication cannot be displaced by private contractual arbitration where statutory worker rights are involved.A Division Bench of Justice P Velmurugan and Justice K Govindarajan Thilakavadi observed, “While the Arbitration and Conciliation Act, 1996 governs voluntary arbitration, the Industrial Disputes Act, 1947 is a specialized social legislation designed to protect workers, and its mandatory procedures cannot be over ridden by...

Calcutta High Court Dismisses Challenge To IOCL's Revocation Of LPG Distributorship Reconstitution Approval

The Calcutta High Court has dismissed a challenge to Indian Oil Corporation Limited's decision revoking in-principle approval for reconstitution of an LPG distributorship from proprietorship to partnership, holding that the reconstitution process had not attained finality as the revised distributorship agreement remained unexecuted. Justice Smita Das De observed that while judicial review remained available against arbitrary State action, the court's role in the present dispute was limited. ...

Gujarat High Court Says GST Arrest Valid Though Verbatim Signed 'Reasons To Believe' Copy Was Not Supplied

The Gujarat High Court has upheld the arrest of a person accused in a fake Input Tax Credit (ITC) racket, holding that while an arrestee must be furnished the “reasons to believe” forming the basis of arrest to enable a legal challenge, failure to provide a verbatim signed copy of the Commissioner's internal note does not vitiate the arrest. "Therefore, this Court, is of the opinion that the 'reasons to believe' recorded by the Commissioner has been furnished to the petitioner, facilitating him...

Andhra Pradesh HC Sets Aside Order Refusing Interim Arrest Protection As Debtor Was Yet To Be Adjudicated Insolvent

The Andhra Pradesh High Court has recently held said courts must exercise “extreme caution” in matters involving personal liberty even in civil proceedings, while granting relief to a man facing arrest in execution proceedings during the pendency of his insolvency case. Justice Ravi Cheemalapati observed, "It is relevant here to note that the Constitutional Courts have consistently emphasized that courts must exercise extreme caution when dealing with matters involving personal liberty,...

Punjab & Haryana HC Grants Landowners 2013 Act Interest Over Arbitrator Award In Land Acquisition For Highway

The Punjab and Haryana High Court has held that denying landowners whose compensation is enhanced in arbitration under the National Highways Act the same interest benefits available to similarly placed landowners would be discriminatory and violative of Article 14. Justice Harkesh Manuja held, “In the present case, the learned Arbitrator, by denying parity to identically placed landowners even though only with regard to the interest component of the compensation, has acted arbitrarily and in...

Mortgage Suit Transferred From Civil Court To DRT Does Not Become Money Recovery Proceeding: Calcutta High Court

The Calcutta High Court has recently held that a mortgage suit does not become a simple money recovery proceeding merely because it is transferred from a civil court to the Debt Recovery Tribunal, holding that the lender's security interest and the borrower's equity of redemption continue to subsist. Justice Ajoy Kumar Mukherjee made the observation while allowing UCO Bank's challenge to orders of the Debt Recovery Tribunal and Debt Recovery Appellate Tribunal that had held the bank's SARFAESI...

MSME Pre-Deposit Non-Compliance Not Automatic Bar To Restoring Section 34 Petition: Calcutta High Court

The Calcutta High Court on 13 May held that non-compliance with the mandatory pre-deposit requirement under Section 19 of the Micro, Small and Medium Enterprises Development Act, 2006 does not, by itself, bar restoration of a petition under Section 34 of the Arbitration and Conciliation Act, 1996. A Bench comprising Justice Gaurang Kanth allowed a restoration application filed by the Public Health Engineering Department, Gorkhaland Territorial Administration and restored its Section 34 petition...