Pending Criminal Proceedings Even In Life Imprisonment Cases Don't Bar Arbitration: Bombay High Court

The Bombay High Court on Tuesday held that criminal proceedings or allegations of serious offences, even those punishable with life imprisonment, do not by themselves make a dispute unsuitable for arbitration. Before declining to hear such a dispute, an arbitral tribunal must explain how the allegations amount to "serious fraud" with wider public implication Justice Gauri Godse allowed Capalpha Trade Pvt Ltd's appeal and set aside an arbitral tribunal's August 3, 2023 order. The tribunal had...

Bombay High Court Upholds Award Rejecting LPG Distributor's ₹40 Crore Claim Against Reliance Petro

The Bombay High Court has recently upheld an arbitral award rejecting most of an LPG distributor's nearly ₹40 crore damages claim against Reliance Petro Marketing Ltd. It held that the arbitrator's interpretation of the distribution agreements and the evidence on record warranted no interference. Justice Kamal Khata held that the award dated March 25, 2021 was neither vitiated by patent illegality nor contrary to the fundamental policy of Indian law. "Accordingly, this Court is of the...

Bombay HC Protects Bombay Group's Continued Use Of 'Vadilal' Trademark Pending Family Settlement Arbitration

The Bombay High Court has recently granted interim protection to one branch of the Gandhi family behind the Vadilal brand. It restrained Vadilal Industries Ltd., Vadilal International Pvt. Ltd. and other Ahmedabad Group entities from interfering with the Bombay Group's continued use of the "Vadilal" trademark in Maharashtra, Goa, Karnataka, Kerala, Andhra Pradesh and Telangana until arbitration over a family settlement is decided. Justice Amit Borkar held that the Bombay Group had established a...

Malabar Gold Cannot Monopolise 'Malabar'; Kerala High Court Sets Aside Passing Off Finding Against Delhi Jeweller

The Kerala High Court has partly allowed an appeal filed by the proprietor of Delhi-based Malabar Fashion Jewellery, setting aside a trial court's finding that the business had passed off its goods as those of Malabar Gold. It, however, retained the injunction restraining the jeweller from using a deceptively similar trademark and clarified that no exclusive rights can be claimed over the geographical expression "Malabar" by itself. Justice Mohammed Nias C.P. held that Malabar Gold's trademark...

Unit Owners, Not Society, Must Challenge Individual Property Tax Demands: Bombay High Court

The Bombay High Court has held that after the Municipal Corporation of Greater Mumbai (MCGM) issued separate property tax demand notices to individual unit owners, any grievance regarding the assessment, penalty or sewerage tax became an individual dispute. The court held that the appropriate remedy thereafter is the statutory appeal under the Mumbai Municipal Corporation Act. It dismissed writ petitions filed by a commercial premises society and some of its members after finding that MCGM had...

Madras HC Holds Civil Dispute Over Wharfage Refund Cannot Be Tried As Criminal Offence, Quashes CBI Case

The Madras High Court on 8 June quashed a CBI charge sheet, holding that authorities cannot convert a civil dispute relating to refund of wharfage charges into criminal proceedings alleging cheating, forgery, or corruption. A Single-Judge Bench of Justice G.K. Ilanthiraiyan allowed the petition and quashed the criminal proceedings against all accused. He held: “...it was found that there was no excess wharfage charges amount and as such requested the importer to return the same, on the said...

Diluting RBI's NBFC Capital Requirements Could Have Impact On India's Financial System: Bombay High Court

The Bombay High Court recently observed that permitting dilution of the Reserve Bank of India's directions on the minimum Net Owned Fund (NOF) requirement in favour of a Non-Banking Financial Company with weak financial standing and low NOF could have repercussions on the country's financial system. It upheld the Reserve Bank of India's decision cancelling the company's Certificate of Registration after it failed to achieve the prescribed NOF by the stipulated deadline. A division bench of...

Burden Shifts To Complainant Once Accused Proves Discharge In Cheque Bounce Case: Kerala High Court

The Kerala High Court on 30 June held that in a prosecution under Section 138 of the Negotiable Instruments Act, once the accused proves discharge of the underlying debt, and the complainant asserts that such repayments relate to a different transaction, the burden shifts to the complainant to establish that assertion. Justice A. Badharudeen dismissed an appeal filed by the complainant and upheld the acquittal of the accused passed by the Trial Court. He held: “Once plea of discharge is proved...

Bona Fide Dispute Over Liability Bars Winding Up Proceedings: Madhya Pradesh High Court

The Madhya Pradesh High Court at Gwalior on 22 June held that a bona fide dispute over the rate of goods supplied to a company bars initiation of winding-up proceedings under Sections 433(e), 434(1)(a) and 439(1)(d) of the Companies Act, 1956. Justice Ashish Shroti dismissed a company petition filed by Mahavir Enterprises against Gwalior Sugar Company Ltd., finding that the claim involved disputed questions of fact regarding the applicable rates and outstanding liability. He observed: ...

Kerala High Court Sets Aside KFC Auction Sale, Says Purchaser Cannot Be Financed Against Same Property

The Kerala High Court on 29 June held that the Kerala Financial Corporation (KFC) cannot finance the purchase of an auctioned property by advancing a loan against the security of the very same property, as such a course violates its statutory duty to secure the best possible price for the mortgaged asset. A Division Bench of Justices A.K. Jayasankaran Nambiar and Preeta A.K. set aside the auction sale conducted by KFC after finding material irregularities in the sale process, and directed it to...

Supreme Court Orders Status Quo On HC Direction To OMCs To Consider Dedicated Ethanol Plant's Higher Allocation Plea

The Supreme Court on Monday ordered that status quo be maintained while issuing notice on Bharat Petroleum Corporation Limited's (BPCL) special leave petition challenging a Karnataka High Court judgment concerning ethanol allocation for the Ethanol Supply Year (ESY) 2025-26. The High Court had directed the Oil Marketing Companies (OMCs) to decide VINP Distilleries' representation seeking additional ethanol allocation before finalising the tender. The status quo order effectively keeps in...

Delhi High Court Sets Aside Refund Order For Non-Refundable Processing Fee In Undisbursed Loan Case

The Delhi High Court has held that a borrower who has accepted a facility letter expressly stipulating that the processing fee is non-refundable cannot subsequently seek its refund merely because the loan was never disbursed, particularly where the disbursal failed due to the borrower's inability to satisfy the conditions precedent.Justice Neena Bansal Krishna allowed an appeal filed by Standard Chartered Bank and set aside the trial court's decree directing the bank to refund the processing fee...