Supreme Court
Courts Cannot Decide Arbitrability While Appointing Arbitrators: Supreme Court Dismisses Motilal Oswal's Appeal
The Supreme Court of India recently held that courts cannot decide questions of arbitrability while appointing arbitrators, even when a party relies on a special statute to oppose arbitration. At the Section 11 stage, the court said judges are required to “confine to the examination of the existence of an arbitration agreement” and nothing beyond that. On that basis, the court dismissed an appeal filed by Motilal Oswal Financial Services Limited challenging the appointment of an...
Promise To Arrange Funds In Case of Default Does Not Make Promoter A Guarantor: Supreme Court
The Supreme Court of India has held that a promoter's promise to arrange funds to help a borrower meet financial covenants does not amount to a contract of guarantee under the Indian Contract Act and cannot be used to fasten insolvency liability on the promoter. A bench of Justice Sanjay Kumar and Justice Alok Aradhe said that for an obligation to qualify as a guarantee under Section 126 of the Act, there must be a clear and unambiguous promise by the surety to repay the borrower's debt if the...
Special Court Cannot Hear Private Complaints In Companies Act Fraud Cases; Only SFIO Can File: Supreme Court
The Supreme Court on Friday held that a special court cannot entertain a private complaint in cases involving fraud under the Companies Act. It ruled that where an offence attracts punishment under the fraud provision, cognisance can be taken only on a complaint filed by the Serious Fraud Investigation Office or an authorised officer of the Central government. A Division Bench of Justice J K Maheshwari and Justice K Vinod Chandran held that offences under Section 448 of the Companies Act, which...
Income Tax | Shares Received On Amalgamation Can Be Taxed as Business Income If Held As Stock-in-Trade: Supreme Court
The Supreme Court has held that when shares held as stock-in-trade are replaced with shares of another company under an amalgamation scheme, the allotment can result in taxable business income, provided the new shares can be realised in money and have a definite value. The bench, consisting of Justices J B Pardiwala and R Mahadevan, opined that "where the shares of an amalgamating company, held as stock-in-trade, are substituted by shares of the amalgamated company pursuant to a scheme of...
Arbitral Proceedings Commence On Respondent Receiving Notice Invoking Arbitration Clause, Not On Arbitrator's Appointment : Supreme Court
The Supreme Court reaffirmed that the arbitral proceedings are set to commence on the date of receipt of notice invoking the arbitration clause by the respondent. “...the date on which the respondent receives a notice or request invoking arbitration is the moment at which the arbitral proceedings commence under Section 21 of the Act. It further clarified that a valid invocation requires the notice to articulate the dispute sought to be referred but once such notice is received, commencement is...
![[Arbitration and Conciliation Act, 1996] Arbitral Award Cannot Be Set Aside Merely On The Ground Of Erroneous Application Of Law Or By Misappreciation Of Evidence : Supreme Court](https://assets.livelawbiz.com/h-upload/2022/02/23/500x300_410405-arbitration-and-conciliation-act.jpg "[Arbitration and Conciliation Act, 1996] Arbitral Award Cannot Be Set Aside Merely On The Ground Of Erroneous Application Of Law Or By Misappreciation Of Evidence : Supreme Court")
Mere Participation In Arbitration Won't Bar Challenge To Arbitrator's Eligibility, Waiver Must Be "Express & In Writing" : Supreme Court
The Supreme Court has ruled that a party's involvement in arbitral proceedings does not, in itself, constitute a waiver of its right to object to an arbitrator's eligibility. The Court clarified that the right to object can only be waived by an express written agreement, rejecting any notion of a "deemed waiver" arising from conduct alone under Section 12(5) of the Arbitration & Conciliation Act, 1996.“The words “an express agreement in writing” in the proviso to Section 12(5) means that the...
Insolvency & Bankruptcy Code: Important Judgments By Supreme Court In 2025
In this article, LiveLaw brings to you a summary of important judgments rendered by the Supreme Court in 2025 in connection with the Insolvency and Bankruptcy Code, 2016. The same are as follows:1. 'IBC A Complete Code' : Supreme Court Disapproves Of High Court Exercising Writ Jurisdiction To Interdict CIRPCase: Mohammed Enterprises (Tanzania) Ltd. v. Farooq Ali Khan & Ors. [Citation: 2025 LiveLaw (SC) 19]In this case, a bench of Justices PS Narasimha and Manoj Misra disapproved of a High...
Arbitration Act: Important Judgments By Supreme Court In 2025
In this article, LiveLaw brings to you a summary of important judgments rendered by the Supreme Court in 2025 in connection with the Arbitration and Conciliation Act, 1996. The same are as follows:1. High Court's Interference Under Article 226/227 Permissible Only If Arbitral Tribunal's Order Is Patently Perverse : Supreme CourtCase: Serosoft Solutions Pvt. Ltd. v. Dexter Capital Advisors Pvt. Ltd. [Citation: 2025 LiveLaw (SC) 14]In this case, a bench of Justices PS Narasimha and Manoj Misra...
Supreme Court Direct & Indirect Tax: Annual Digest 2025
Judgments With CitationsDirect TaxMotor Accident Claims - Tax Returns Can Be Accepted To Determine Income Only If They Are Appropriately Produced : Supreme CourtCase name: New India Assurance Co. Ltd. V. Sonigra Juhi Uttamchand.Case no.: SLP (C) No. 30491 of 2018Citation : 2025 LiveLaw (SC) 18The Supreme Court, recently (on January 02), while deciding a motor accident compensation claim case, observed that monthly income could be fixed after taking into account the tax returns. However, the...