Can HC Appoint Sole Arbitrator When Arbitration Clause Provides For Unilateral Appointment Of Arbitrator ? Supreme Court To Consider

The Supreme Court on Monday ( January 20) agreed to consider the issue of whether the High Court can appoint a sole arbitrator under the Arbitration and Conciliation Act 1996 if the arbitration agreement between parties provides for unilateral appointment in violation of the decision in CORE v. M/S ECI SPIC SMO MCML. The bench of CJI Sanjiv Khanna and Justice Sanjay Kumar was hearing the challenge to the order of the Patna High Court which refused to appoint an arbitrator under S. 11(6) of...

Supreme Court Sets Aside Excise Duty Demand On Oil Marketing Companies For Inter-Supply Of Petroleum Products

In a significant relief for Oil Marketing Companies (OMCs), the Supreme Court ruled (Jan. 20) that prices under the MoU for inter-supply of petroleum products, designed to ensure smooth nationwide distribution, do not constitute "transaction value" and are exempt from excise duty due to their non-commercial nature. The Court emphasised that the inter-supply arrangement was not solely price-driven but aimed at facilitating seamless distribution, rendering it ineligible for excise duty.Holding so,...

'Something Wrong In ED' : ASG SV Raju Disowns ED's Affidavit, Says It's Filed Without Verification; 'Serious Matter', Says Supreme Court

Additional Solicitor General SV Raju made a startling submission before the Supreme Court on Friday (January 17) that there was something "fishy" about a counter-affidavit filed by the Enforcement Directorate (ED).ASG told a bench comprising Justice Abhay S Oka and Justice Ujjal Bhuyan, which was considering the bail petition of an accused in a PMLA matter arising out of the alleged Chhattisgarh liquor scam, that the ED's counter-affidavit was "half-baked" and was filed without proper...

Supreme Court Grants Bail to JJM Scam Accused Padam Chand Jain In PMLA Case, Clarifies That Bail To Manish Sisodia Was Not Granted Under Article 142

While granting bail to Jal Jeevan Mission scam accused Padam Chand Jain in a money laundering case, the Supreme Court today clarified that the order granting bail to former Delhi Deputy CM Manish Sisodia was not passed in exercise of powers under Article 142 of the Constitution.The matter was before a bench of Justices BR Gavai, AG Masih and K Vinod Chandran, which noted that Jain has already been granted bail in the predicate offenses, that evidence in the case is primarily documentary in...

'Will Pull You Up' : Supreme Court Asks GST Department To Rectify Issues Over Fake Invoices, Asks How Genuine Purchasers Are Liable

The Supreme Court on Wednesday flagged a recurring problem in GST matters whereby genuine purchasers who paid Goods and Services Tax (GST) face issues because their suppliers raised fictitious bills to evade crediting the GST to the department.The Court orally wondered how could the purchaser be held liable for the incorrect GST registration of the suppliers when they have genuinely made purchases and paid the money, including the GST amount.A bench of Chief Justice of India Sanijv Khanna and...

Supreme Court Flags Stringent Limitation Provisions Curtailing Arbitration Appeal Remedies, Urges Parliament To Address Issue

The Supreme Court raised concerns about the interpretation of limitation statutes in arbitration cases and observed that the rigid application of the law could curtail the limited remedy available under Section 34 of the Arbitration and Conciliation Act, 1996 to challenge arbitral awards.“In our view, the above construction of limitation statutes is quite stringent and unduly curtails a remedy available to arbitrating parties to challenge the validity of an arbitral award. This must be addressed...

Can Unregistered MSMEs Avail Dispute Settlement Under S.18 MSMED Act? Supreme Court Refers To Larger Bench

The Supreme Court today (Jan. 10) observed that for invoking the payment dispute resolution mechanism under Section 18 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), it is not mandatory for the MSMEs to have prior registration under Section 8 of MSMED Act i.e., filing of an Entrepreneur's Memorandum.Rejecting the argument that only registered enterprises at the time of contract formation are eligible to invoke payment dispute resolution mechanism, the Court...

Supreme Court Sets Aside Awards Of Over Rs 46 Lakhs Passed Against UP Govt In Sham Arbitration Proceedings

The Supreme Court on Thursday (January 9) set aside two ex-parte arbitration awards on grounds of fraud played by the litigant who appointed sole arbitrators and conducted 'sham' arbitration proceedings in a service dispute against U.P. Government and Government Hospital where he was employed. The bench of CJI Sanjiv Khanna and Justice Sanjay Kumar was hearing an appeal by the State of Uttar Pradesh challenging the veracity of the ex parte awards and the arbitration agreement relied by the...

Reduction In Share Capital Amounts To Transfer Of Capital Asset Under Income Tax Act : Supreme Court

The Supreme Court (recently on January 02) reiterated that reduction in share capital is covered under Section 2(47) of the Income Tax Act, 1961, which talks about transfer of a capital asset. It explained that such reduction would be come under the expression “sale, exchange or relinquishment of the asset” used in the provision.For reference, the concerned portion of Section 2(47) reads as:“transfer' in relation to a capital asset, includes, (i) the sale, exchange or relinquishment of the...

SEBI v. Sahara| Supreme Court Asks SEBI To Examine Sahara Group's Proposed JV Agreement For Versova Land

The Supreme Court today (January 8) directed the Security Exchange Board of India (SEBI) to examine Sahara Group's Joint Venture Agreement proposed for developing latter's Versova land in Mumbai and file sealed cover response before the Court. The proposed developer for the project is also ordered to deposit Rs.1000 Crores with the Court in 15 days from today. The bench of CJI Sanjiv Khanna and Justices MM Sundresh and Bela Trivedi was hearing a batch of contempt petitions against Sahara...

Supreme Court Dismisses Builder's Plea To Confine Insolvency Process To Single Real Estate Project

The Supreme Court recently dismissed an appeal seeking to confine Corporate Insolvency Resolution Process (CIRP) of Spaze Towers Pvt. Ltd. (Corporate Debtor) to a single real estate project of the company located in Gurugram.A bench of Justice Abhay Oka and Justice Augustine George Masih dismissed an appeal against the decision of National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi rejecting an application to confine the CIRP of the corporate debtor to a single...

'IBC A Complete Code' : Supreme Court Disapproves Of High Court Exercising Writ Jurisdiction To Interdict CIRP

Disapproving a High Court's order interdicting a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), the Supreme Court recently observed that the IBC is a complete code in itself, having sufficient checks and balances, and thus, the exercise of supervisory and judicial review powers by High Courts demands rigorous scrutiny and judicious application.Allowing the appeal of a successful resolution applicant against Karnataka High Court's interdicting of...