Auction Purchaser Rights Not Absolute Under SARFAESI; Must Yield Where Sale Is Illegal: Supreme Court

The Supreme Court on Wednesday (April 1) held that the rights of a bona fide auction purchaser are not absolute and must yield where the sale process is legally flawed, as it dismissed appeals filed by auction purchasers and the Central Bank of India and upheld a Madras High Court judgment setting aside a SARFAESI auction sale.A bench of Justices Dipankar Datta and Satish Chandra Sharma affirmed the High Court's April 12, 2023 ruling, which had annulled the auction after finding that the...

No Fresh Arbitration Maintainable On Same Cause Without Liberty To Refile: Supreme Court

The Supreme Court on Wednesday held that a litigant cannot initiate fresh arbitration proceedings on the same cause of action after abandoning earlier proceedings, emphasising that such conduct amounts to abuse of process and is barred by principles underlying Order 23 Rule 1 of the Code of Civil Procedure. A bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe was hearing an appeal against the Punjab and Haryana High Court order dated November 8, 2024, which had allowed a fresh...

Supreme Court To Hear Anil Ambani's Plea Against 'Fraud' Tag Over Loans Availed by RCom, ADAG Entities Next Week

The Supreme Court on Wednesday agreed to hear next week a special leave petition filed by Anil Ambani challenging his classification as “fraud” by banks in connection with alleged irregularities of Rs. 31,580 crores involving Reliance Communications and other ADAG entities.Ambani's petition challenges a Division Bench order of the Bombay High Court, which set aside an earlier interim relief granted to Ambani and permitted Bank of Baroda, IDBI Bank, and Indian Overseas Bank to continue...

Tax Exemptions Are 'Defeasible' Concessions, Not Enforceable Rights: Supreme Court

Holding that a tax exemption is only a “defeasible” concession, the Supreme Court has ruled that beneficiaries have no legally enforceable right to its continuation beyond the period of grant and that such benefits can be withdrawn by the State in public interest.A bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe was allowing appeals filed by the State of Maharashtra against a batch of industrial units and captive power producers, including Reliance Industries Ltd., challenging...

After Pan Products Company Agrees to Deposit ₹3.5 Crore Of GST Demand, Supreme Court Stays Coercive Action

The Supreme Court has directed Simla Gomti Pan Products Pvt. Ltd. to deposit Rs 3.5 crore in a GST dispute and ordered that no coercive action be taken against it for now. A bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan was hearing the company's challenge to a November 3, 2025, judgment of the Allahabad High Court, which had refused to entertain its writ petition. The company had earlier approached the High Court against assessment orders for 2021–22 and 2022–23, contending that...

Supreme Court Dismisses Fox Mandal's Appeal In ₹3.89 Crore Service Tax Case

The Supreme Court recently (March 25) dismissed an appeal filed by Fox Mandal and Company against the Commissioner of Central Goods and Service Tax, Noida, declining to interfere with the CESTAT order, which upheld service tax and CENVAT-related demands aggregating to about Rs. 3.89 crore.While refusing to interfere with the CESTAT judgment dated December 11, 2024, which had upheld substantial service tax demands and remanded certain issues for reconsideration, a bench of Justices Pamidighantam...

Re-Colouring Facts As Public Policy Ground Not Enough To Resist Enforcement Of Foreign Arbitral Award: Supreme Court

The Supreme Court of India on Wednesday held that enforcement of foreign arbitral awards cannot be resisted under Section 48 of the Arbitration and Conciliation Act, 1996, on a party's plea re-characterizing factual disputes as issues of public policy, particularly as courts cannot re-examine awards on merits at the enforcement stage. A Division Bench comprising Justice Sanjay Kumar and Justice Vinod Chandran dismissed Special Leave Petitions filed by Nagaraj V. Mylandla and Sharada Mylandla...

Supreme Court Sets Aside Excise Demand On RCF, Says Exemption On Naphtha Depends On Intended Use

The Supreme Court has set aside central excise duty demands raised against Rashtriya Chemicals and Fertilizers Ltd over alleged wrongful availment of exemption on Naphtha procured for use in the manufacture of fertilizer, holding that in the facts of the case the benefit of the exemption notification could not be denied merely because the fuel was used in a common steam generation plant supplying different units of the factory.The case arose from a series of show cause notices issued over...

Supreme Court Sets Aside HC Ruling Granting Electricity Duty Relief To Reliance, Other Captive Power Industries

The Supreme Court on Wednesday set aside the Bombay High Court's 2009 rulings that had granted electricity duty relief on captive power generation to industries, including Reliance Industries Ltd., for the period between 2000 and 2005.The appeals challenged the Bombay High Court judgments dated October 5, 2009, and November 7, 2009, which had quashed state notifications withdrawing exemption and allowed full electricity duty relief to industries for the intervening period. A bench of Justices...

State Cannot Appoint Arbitrator Under Maharashtra Municipal Councils Act Without Arbitration Agreement: Supreme Court

The Supreme Court on Tuesday dismissed a special leave petition filed by Bharat Udyog Ltd, holding that the State Government had no authority under Section 143-A(3) of the Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965, which deals with issuance of policy directions regarding the levy and collection of octroi, to appoint an arbitrator between a Municipal Council and its agent.The court held that the government's exercise of such power could not be equated...

Supreme Court Refuses To Interfere In Harpic-Spic Bottle Dispute Between Reckitt And Godrej

The Supreme Court on Monday refused to interfere in the Harpic toilet cleaner bottle disparagement and trademark dispute between Reckitt Benckiser (India) Pvt Ltd and Godrej Consumer Products Ltd, noting that the Calcutta High Court had clarified that its observations while setting aside an injunction were only prima facie and that the matter would be decided finally after completion of pleadings. A bench of Justices Sanjay Kumar and K. Vinod Chandran disposed of the special leave petitions...

Supreme Court Calls Govt. Contractual Clause Foreclosing Redressal Before Courts "Shocking"; Restores Award For ABS Marine

The Supreme Court on Monday expressed shock at the stand taken by the Andaman and Nicobar Administration that a contractual clause made its decision final and beyond challenge, holding that such a term offended the rule of law.The court made the observationwhile setting aside a July 11, 2018 judgment of the Calcutta High Court and restoring an arbitral award of Rs 2.87 crore in favour of ABS Marine Services. The ruling came in a dispute where the Andaman and Nicobar Administration relied on...