When Can A Disqualified Company Director Continue In Office? Karnataka High Court Clarifies

The Karnataka High Court has clarified that a director disqualified because of a company's statutory defaults can continue to hold office in that defaulting company so that the director can undertake the statutory compliance required to rectify the defaults and authorities can pursue proceedings against the person responsible. It also held that such a director must vacate office in companies that are not in default. Justice Suraj Govindaraj passed the order while partly allowing a review...

Bombay HC Says Confidentiality Claims Need Evidence, Refuses Injunction Against Tata Retail Arm Trent

On 7 July, the Bombay High Court held that allegations of misuse of confidential information, proprietary business methods and protected employees cannot, at the interim stage, justify a blanket injunction against a party's business activities and require adjudication before the arbitral tribunal on the basis of evidence. Justice Amit Borkar partly allowed a Section 9 petition filed by The Packshot (India) Pvt Ltd and directed Trent Ltd, Tata's retail arm, to preserve records relating to...

Bombay High Court Quashes BOI's Fraud Tag Against Future Lifestyle, Promoters Kishore Biyani, Rakesh Biyani

The Bombay High Court has recently quashed Bank of India's order classifying Future Lifestyle Fashions Ltd.'s (FLFL) loan account as fraud. The order had also named the company's promoters, Kishore Biyani and Rakesh Biyani, and its Managing Director, Vishnuprasad Mokkapatty.The court found that the bank's decision did not explain why the account and the individuals had been brought within the fraud classification despite referring to the show cause notice, the replies received, and the forensic...

Kerala High Court Reiterates Interest Under Kerala Luxury Tax Act Cannot Be Demanded For Pre-2009 Period

The Kerala High Court has recently reiterated that interest under the Kerala Tax on Luxuries Act cannot be demanded for any period before the statutory provision enabling such recovery came into force on April 1, 2009. It dismissed the State's appeal, following its earlier ruling in Casino Hotel v. State of Kerala, which had already settled the issue. The Kerala Tax on Luxuries Act imposes a tax on charges collected for specified luxury accommodation and services. A Division Bench of Justice...

Bombay HC Holds Mumbai Was Arbitration Seat In Siemens' ₹7.38 Cr Loan Dispute, Appoints Arbitrator

The Bombay High Court on 2 July, appointed Justice Dhiraj Singh Thakur (Retd.), former Chief Justice of the Andhra Pradesh High Court, as the sole arbitrator to adjudicate disputes arising from a Rs. 7.38 crore loan facility extended by Siemens Financial Services Pvt Ltd to Saroj Diagnostic Laboratory LLP. Justice Gautam A. Ankhad held that where an arbitration agreement specifies a place of arbitration and also grants jurisdiction to courts at that place, such provisions can indicate that the...

Bombay High Court Orders Takedown Of Content Infringing Actor Preity Zinta's Personality Rights

The Bombay High Court on Wednesday directed Google/YouTube, X and Meta to remove or block access within 72 hours to the URLs identified in actor Preity Zinta's suit as infringing her personality rights, excluding one URL listed in the plaint. The direction came in a suit alleging unauthorised use of her identity through AI-generated deepfakes, chatbot personas, GIFs and merchandise. Justice Madhav J. Jamdar held that the material placed on record made out "a very strong prima facie case". ...

Housing Society Member Seeking Additional Area In Redevelopment Is Not RERA Allottee: Bombay High Court

The Bombay High Court has recently ruled that original members of a housing society who sought additional area in a redevelopment project on payment did not become "allottees" under the Real Estate (Regulation and Development) Act, 2016 (RERA) merely because they soufght excess area. It restored a civil suit filed by members of a Goregaon housing society after holding that the grievances raised in the plaint, including allegations of fraudulent allotment, suppression of sanctioned plans and...

Rajasthan High Court To Decide If Police Can Levy Fees On Banks For SARFAESI Possession Assistance

The Rajasthan High Court is set to examine whether the Police Department can levy charges on banks for providing police assistance to recover secured assets under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002. A Single Bench of Justice Sameer Jain on 6 July was hearing a petition filed by AU Small Finance Bank Ltd challenging the Rajasthan Police Department's levy of charges for providing police assistance in...

Delhi High Court Restrains Hind Enterprises From Using 'EASTHRON' Mark For Similarity With 'EASTMAN'

The Delhi High Court on 3 July restrained Hind Enterprises, a Haridwar based battery seller, from using the trademark “EASTHRON,” holding that the mark was prima facie deceptively similar to Eastman Auto and Power Limited's registered “EASTMAN” trademark and trade dress. Justice Anup Jairam Bhambhani observed that the plaintiff had “made-out a prima facie case in its favour and against the defendants” and that the balance of convenience also favoured the plaintiff, as “irreparable harm and...

RBI's Bank Amalgamation Scheme Doesn't Override Landlord's Rights Under Delhi Rent Control Act: Supreme Court

The Supreme Court on Thursday held that a banking amalgamation carried out under a Reserve Bank of India scheme does not take away a landlord's right to seek eviction under the Delhi Rent Control Act where tenancy rights vest in another entity without the landlord's written consent. A bench of Justices Sanjay Karol and Nongmeikapam Kotiswar Singh held that the amalgamation of Hindustan Commercial Bank with Punjab National Bank did not prevent eviction after the tenancy rights vested in Punjab...

Registered Mortgage Does Not Bar Arbitration In Simple Money Recovery Claims: Madras High Court

The Madras High Court on 1 July held that a simple money recovery claim is arbitrable even if the underlying loan transaction is secured by a registered mortgage deed, provided the lender does not seek enforcement, foreclosure or sale of the mortgaged property. Justice S. Sounthar dismissed an appeal filed by borrowers Marsalin and Mary Rani Subi, upheld an arbitral award directing them to pay Rs. 15,70,637 to Shriram City Union Finance Limited, and affirmed the Principal District Judge,...

Delhi High Court To Order Takedown Of Content Misusing Cricketer Abhishek Sharma's Personality Rights

The Delhi High Court on Thursday indicated that it will pass interim orders in the personality rights suit filed by cricketer Abhishek Sharma, directing takedown of infringing content found to be misusing his persona.Justice Jyoti Singh was hearing the matter today in which the cricketer had earlier filed an application seeking the removal of unauthorised posts and listings across social media and e-commerce platforms that use the cricketer's name, image, and persona for commercial purposes.At...