Homebuyers Cannot Be Made To Bear Penal Charges For Project Delays As CIRP Costs: Supreme Court

The Supreme Court has ruled in a case that time extension charges imposed for delays caused by a defaulting developer are penal in nature. They cannot be passed on to homebuyers as costs of the Corporate Insolvency Resolution Process (CIRP), observing that the default was that of the developer and homebuyers could not be made to bear that liability."The time extension charges in any event are penal in nature and the developer who has caused the default having ended up in a CIRP, the inclusion as...

Banks Can Use SARFAESI To Recover Dues Under Loans Acquired From Non-Notified Institutions: Supreme Court

The Supreme Court has ruled that a bank can use the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, commonly known as the SARFAESI Act, to recover a secured loan it acquired from an entity not covered by the law. This applies even if the original lender was not covered by the Act when the loan was granted.Justices Sanjay Kumar and Sanjeev Sachdeva ruled,“When the institution is one to which the SARFAESI Act is already applicable, acquisition...

NSE Clearing's Settlement Committee Cannot Order Restitution Of Liquidated Client Securities: Supreme Court

The Supreme Court on Wednesday ruled that the Member and Core Settlement Guarantee Fund Committee constituted by NSE Clearing Corporation had no statutory or bye-law power to direct Professional Clearing Members to restore securities liquidated after Trading Members defaulted.A Bench of Justice J.B. Pardiwala and Justice K. Vinod Chandran held:“This is in stark violation of the power conferred by the statute and the byelaws also do not speak of any such power being conferred of disgorgement or...

GST Authority Not Bound To Seek Additional Documents: Supreme Court Refuses To Interfere With Delhi HC Order

The Supreme Court on Thursday dismissed an appeal against the Delhi High Court's order holding that a GST adjudicating authority is not bound to seek additional documents or clarifications from a taxpayer before passing an order merely because it finds the material already furnished insufficient. The case arose from a plea by Sodexo India Services Private Limited challenging the GST adjudication order.The High Court dismissed its challenge to a GST demand of around ₹8.75 crore under Section 74...

Supreme Court Allows Adani To Enforce Coal Mining Contract Awards Against UPRVUNL If UCM Assets Fall Short

The Supreme Court has refused to interfere with a ruling permitting Adani Enterprises Ltd to pursue execution proceedings against Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd and other constituent entities of UCM Coal Company Ltd. It clarified, however, that Adani's claim must first be satisfied through UCM Coal Company's assets. Execution against the other entities can proceed only if any amount remains unpaid.A bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and...

Supreme Court Says Delay In Tax Deposit Not 'Failure To Pay', Quashes Penalty On Saudi Airlines

On 1 September, the Supreme Court held that the penalty under Section 38(3) of the Finance Act, 1979 for “failure to pay” Foreign Travel Tax cannot be imposed merely because the tax was deposited after the prescribed deadline. A Bench of Justices J.B. Pardiwala and Ujjal Bhuyan allowed an appeal filed by Saudi Arabian Airlines against a Bombay High Court judgment which upheld a penalty imposed on the airline for delayed deposit of Foreign Travel Tax (FTT). The judges held: “Failure to pay...

Supreme Court Directs Nimmagadda Prasad To Furnish Additional ₹200 Cr. Security In RAKIA Decree Case

On Tuesday, 1 September, the Supreme Court directed Nimmagadda Prasad (associated with the respondent entities) and other respondents to furnish an additional Rs. 200 crore as security in proceedings for enforcement of a foreign decree obtained by the Ras Al Khaimah Investment Authority (RAKIA). A Three-Judge Bench comprising Chief Justice Surya Kant with Justices Joymalya Bagchi and V. Mohana upheld the Telangana High Court's finding that a statement made by IQuest Enterprises before the...

Supreme Court Refuses To Interfere With Bombay HC Order Allowing HDFC Bank & Ex-Trustee Intervention In Lilavati Case

The Supreme Court on 31 August refused to interfere with the Bombay High Court's order permitting HDFC Bank Ltd. and former Lilavati trustee Rajesh Mehta to intervene in proceedings concerning allegations of extortion, fabrication and corruption linked to recovery proceedings before the Debt Recovery Tribunal, Mumbai. A Bench of Justices M.M. Sundresh and Prasanna B. Varale dismissed the plea filed by Prashant Mehta and other trustees, noting that the writ and interim applications were listed...

Supreme Court Stays Tripura HC Ruling Allowing ITC To Buyer Despite Supplier's Failure To Deposit GST

Today, the Supreme Court issued notice in the Union of India's challenge to a Tripura High Court judgment which allowed a purchaser to claim Input Tax Credit (ITC) despite the supplier having failed to deposit the GST collected from the purchaser with the Government. A Division Bench of Justices J.B. Pardiwala and K. Vinod Chandran also stayed the operation of the High Court's 6 January 2026 judgment. The case concerns the interpretation of Section 16(2)(c) of the Central Goods and Services...

Supreme Court Issues Notice On Delta Corp's Plea Against Bombay HC Ruling Denying Gaming Licence

On Tuesday, 1 September, the Supreme Court issued notice on Delta Corp Ltd.'s challenge to a Bombay High Court judgment which held that the 1992 amendment to the Goa Public Gambling Act was never brought into force in Daman and Diu. Therefore, Delta Corp had no enforceable right to seek a gaming licence for operating slot machines. A Division Bench comprising Justices P.S. Narasimha and Alok Aradhe stated that the matter would be heard on merits. The Bombay High Court had held that since no...

Supreme Court Stays Allahabad HC Order Quashing ₹940 Crore NHAI Contract Termination Against Tata Projects

The Supreme Court on Monday stayed the operation of the Allahabad High Court judgment which had quashed the termination of Tata Projects Ltd.'s ₹940.68-crore contract for widening, upgrading and maintaining a 50.254 km stretch of NH-709A between Garhmukteshwar and Meerut, Uttar Pradesh. A Bench of Justices J.B. Pardiwala and K. Vinod Chandran while staying the High Court judgment, indicated that considering the public interest involved in the highway project, the parties could once again...

Supreme Court Sets Aside GST Notice Against Tata Steel, Says 'Suppression' Must Have Factual Basis

The Supreme Court has set aside a GST show cause notice issued to Tata Steel Limited and the consequential Order-in-Original dated 26 December 2025, holding that the Department could not invoke the extended limitation period under Section 74 of the Central Goods and Services Tax Act, 2017 (CGST Act), merely by using the words “suppression of facts” without setting out the foundational facts supporting the allegation. A Bench of Justices J.B. Pardiwala and K. Vinod Chandran held that where the...