Supreme Court & High Courts
Himachal Pradesh HC Directs Mahindra To Restore DMS Access Of Ex- Authorised Service Centre Pending Arbitration
The Himachal Pradesh High Court has granted interim relief to Naveen Auto Store Sole Proprietary, a Mahindra-authorised service centre operator, and directed Mahindra & Mahindra Ltd. to restore the dealer management system (DMS) access of its workshop. The Court held that the petitioner had made out a prima facie case for interim protection pending arbitration proceedings. Justice Romesh Verma observed, “The petitioner has been able to demonstrate on record that huge investment including...
Supreme Court Seeks Attorney General's Intervention Over Long-Vacant Administrative Posts In ITAT
The Supreme Court on May 26 expressed concern over longstanding vacancies in the administrative establishment of the Income Tax Appellate Tribunal (ITAT) and sought the intervention of the Attorney General for India to ensure that the posts are filled expeditiously.The petition filed by Parveen Kumar Bansal, sought directions for immediate initiation and completion of the recruitment process for vacant posts including Deputy Registrar and Assistant Registrar, besides convening long-pending...
Remedy Against Refusal To Recall Arbitral Termination Lies Under Section 14(2), Not Section 34: Delhi HC
The Delhi High Court has held that a party cannot invoke Section 34 of the Arbitration and Conciliation Act, 1996 to challenge an order refusing to recall termination of arbitral proceedings passed under Section 25, and that the only remedy lies under Section 14(2) of the Act. A Bench of Justices C. Hari Shankar and Om Prakash dismissed the appeal filed by U.P. Infraestate Pvt. Ltd. against Rivaj Infratech Pvt. Ltd., holding that the Section 34 petition itself was not maintainable. The judges...
Section 9 Of Arbitration Act Limited To Interim Protection, Not Merits: Kerala High Court
The Kerala High Court on 26 May held that courts exercising jurisdiction under Section 9 of the Arbitration and Conciliation Act, 1996 cannot adjudicate the merits of the underlying dispute while granting interim protection pending arbitration, as their power is confined to preserving the subject matter and granting protective relief. Justice S. Manu allowed the appeal and set aside the order passed by the Vacation Court, holding that it had exceeded the limits of Section 9 jurisdiction by...
“Every Day's Delay” Rule Not Pedantic, Bureaucratic Delay May Be Condoned: Himachal Pradesh High Court
The Himachal Pradesh High Court on 22 May held that Courts must adopt a common-sense approach while considering delay condonation applications filed by government authorities under Section 34 of the Arbitration and Conciliation Act, 1996, and that bureaucratic decision-making processes may constitute sufficient cause where the explanation is bona fide. A Division Bench comprising Chief Justice Gurmeet Singh Sandhawalia and Justice Bipin Chander Negi allowed the appeal filed by the State of...
Delhi HC Temporarily Restrains Use Of 'Schezwan Dipping Chutney' Mark In Ching's Secret Trademark Suit
The Delhi High Court has temporarily restrained Kishan Rameshbhai Kaswala, trading as K3 Masala, from dealing in products under the marks 'Schezwan Chutney' and 'Schezwan Dipping Chutney' in a trademark infringement suit filed by Capital Foods Private Limited, the maker of Ching's Secret products. Justice Tushar Rao Gedela passed the ex-parte ad-interim injunction order on May 22 after observing that the defendant's products were deceptively similar to the plaintiff's registered trademark and...
Successful Resolution Applicant Cannot Renegotiate After CoC Approves Resolution Plan: Supreme Court
The Supreme Court on Wednesday held that a Successful Resolution Applicant cannot seek to renegotiate or stall implementation of a resolution plan after it has been approved by the Committee of Creditors (CoC). A Bench of Justices K. V. Viswanathan and Vipul M. Pancholi passed the ruling while dismissing appeals filed by Sanjay Dave, former promoter-director and Successful Resolution Applicant (SRA) of Oracle Home Textiles Ltd. The Court held that once the CoC approves a resolution plan...
Supreme Court Refers To Larger Bench Whether IBC Moratorium Applies To Entire Cheque Bounce Proceedings Or Only Compensatory Aspect
The Supreme Court on Wednesday referred to a larger bench the question of whether insolvency moratorium protections under the Insolvency and Bankruptcy Code apply to cheque dishonor prosecutions, while expressing the view that the criminal component of such proceedings should not be halted during personal insolvency and bankruptcy proceedings. A bench of Justices J.B. Pardiwala and K.V. Viswanathan observed that the issue requires an “authoritative pronouncement” by a three-judge bench after...
Delhi High Court Refers 'Intertwined' Builder JV, Settlement And Mortgage Deed Disputes To Arbitration Without Fresh Notice
The Delhi High Court has referred to arbitration a fresh round of disputes between Jiangxi Construction Engineering Group Co. Ltd. and Varaha Infra Ltd., holding that claims arising from their joint venture agreements, settlement arrangement, consent arbitral award and mortgage deeds were too closely connected to be separated. Justice Mini Pushkarna appointed former Delhi High Court judge Justice (Retd.) Jayant Nath as sole arbitrator to adjudicate the disputes between the parties. The court...
Courts Must Call For Arbitral Records Before Deciding Challenge To Arbitral Award: Sikkim High Court
The Sikkim High Court has reiterated that a court hearing a challenge to an arbitral award cannot decide the matter without first calling for the records of the arbitral tribunal. A Division Bench of Chief Justice A. Muhamed Mustaque and Justice Bhaskar Raj Pradhan observed: “The Court entertaining the application under Section 34 is required, imperatively, to look into the records of the Arbitral Tribunal to satisfy whether any grounds under Section 34 have been made out or not. Without...
Supreme Court Sets Aside HC Order Allowing Winzo Affiliate To Use Frozen Funds For Salaries
The Supreme Court has recently set aside a Karnataka High Court order permitting Winzo affiliate Zo Private Limited to withdraw money from frozen bank accounts for payment of employee salaries. The court held that once the company had been relegated to its statutory remedy before the Adjudicating Authority, the High Court ought not to have exercised discretion permitting withdrawal of funds. A bench of Justices M.M. Sundresh and Nongmeikapam Kotiswar Singh observed the High Court could not...
