Kerala High Court
Court-Recorded Compromise In Arbitration Dispute Can Be Executed: Kerala High Court
The Kerala High court has held that a compromise recorded while disposing of proceedings under Section 9 of the Arbitration and Conciliation Act, 1996 is executable. It observed that a party which voluntarily enters into a settlement, secures its benefits and invites the court to pass an order in terms of the compromise cannot later contend that the order is unenforceable.Justice T.R. Ravi said, "After having arrived at a settlement and having invited the court to pass an order in terms of the...
Kerala High Court Allows Handwriting Test Of Disputed Cheques In PTB Chits Cheque Dishonour Cases
The Kerala High Court on 29 June held that an accused facing prosecution for cheque dishonour under Section 138 of the Negotiable Instruments Act, 1881 cannot be denied an opportunity to seek expert handwriting examination of a disputed cheque when the complainant specifically claims that the accused personally filled the cheque entries.Justice G. Girish considered petitions filed by PTB Chits Private Limited and its directors challenging orders of the Judicial First Class Magistrate Court,...
Right To Cross-Examination Cannot Be Denied Over Unretracted GST Statements: Kerala High Court
The Kerala High Court on 8 July held that GST authorities cannot reject a taxpayer's request to cross-examine witnesses merely because the witnesses have not retracted their earlier statements, observing that cross-examination is necessary to test the truthfulness of evidence relied upon during adjudication. Justice A.A. Ziyad Rahman passed the order while allowing the writ petition filed by Emas Gold and Diamonds LLP against a GST adjudication order passed following an investigation by the...
Kerala High Court Orders Registrar To Decide Trademark Applications Pending For Over A Decade In Three Months
The Kerala High Court has directed the Registrar of Trademarks to consider and pass orders on two trademark registration applications that have remained pending since 2012 and 2014, directing that a decision be taken within three months. Justice Bechu Kurian Thomas observed that the applications filed by Nisar Ali Pari, proprietor of Bella Bathware, had remained undisposed of despite the passage of more than a decade. "Despite the lapse of more than a decade, the applications have not been...
Kerala High Court Directs SBI To Pay Interest On FD Subject To Auto-Renewal Under Its Own Circular
The Kerala High Court has recently directed the State Bank of India to pay interest on a firm's fixed deposit for the period between its maturity and May 12, 2013. The court held that SBI's own circular required the deposit to be automatically renewed in the absence of any contrary instructions.Justice M.A. Abdul Hakhim therefore, observed, "Ext.P18 Circular of the Respondent No.1 itself provides that on maturity, the Term Deposit is to be automatically renewed for the same period at the rate of...
Loan To Relative Despite Earlier Default Cannot Discredit Cheque Case Under NI Act: Kerala High Court
The Kerala High Court on 16 July held that a complainant's case under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) cannot be disbelieved merely because she advanced a further loan to a relative despite an earlier loan remaining unpaid, or because the accused issued a typewritten cheque. Justice A Badharudeen set aside the Magistrate's acquittal order and convicted Sreekala, the accused, for cheque dishonour under Section 138 of the NI Act, holding that Shiny Nair, the...
Kerala High Court Revises Its Guidelines On Freezing Bank Accounts Suspected Of Money Mule Activity
The Kerala High Court on 14 July held that banks can freeze accounts suspected to be “money mule” accounts based on their own assessment of suspicious activity, even without a requisition from a law enforcement agency, as they are best placed to identify such accounts. Therefore, courts must give due weight to their assessment. Justice M.A. Abdul Hakhim revised the guidelines governing the freezing of suspected money mule accounts while disposing of a petition filed by Ajith P.R. seeking a...
Minor Admitted To Partnership Firm's Benefits Not Liable For Firm's Loan Default: Kerala High Court
The Kerala High Court on 7 July held that a person admitted only to the benefits of a partnership firm as a minor cannot be treated as a defaulter for the firm's loan merely because the firm failed to repay its dues. Justice M.A. Abdul Hakhim allowed a petition filed by Dhruv Hitesh Dattani challenging adverse remarks in his CIBIL report, observing that since the partnership firm had already dissolved before he attained majority, there was no occasion for him to exercise the option under...
Kerala High Court Warns Against Misuse Of Writ Petitions By “Money Mule” Account Holders
The Kerala High Court on 10 July cautioned against the misuse of writ petitions seeking the unfreezing of bank accounts allegedly used as “money mule” accounts in cyber fraud cases, observing that account holders were increasingly filing such petitions to obtain orders allowing them to continue operating accounts used to facilitate fraudulent transactions. Justice M.A. Abdul Hakhim dismissed a writ petition seeking the unfreezing of a bank account and directed the Station House Officer, Tanur...
Article 227 Cannot Be Used To Bypass NCLAT Remedy Against NCLT Orders: Kerala High Court
The Kerala High Court on 14 July held that parties cannot invoke the High Court's supervisory jurisdiction under Article 227 of the Constitution to challenge orders passed by the National Company Law Tribunal (NCLT) when the Insolvency and Bankruptcy Code, 2016 provides an effective statutory appellate remedy before the National Company Law Appellate Tribunal (NCLAT). Justice T.R. Ravi dismissed a petition filed by Erattupetta Municipality, observing: “When a person chooses not to take any...
MODVAT Credit On Furnace Oil Cannot Be Denied For Exempt Intermediate Goods: Madras High Court
The Madras High Court has held that MODVAT credit availed on furnace oil used to manufacture exempt intermediate goods need not be reversed where such goods are captively consumed or transferred within the same company for manufacturing dutiable final products. A Division Bench of Justices Dr. G. Jayachandran and R. Sakthivel upheld Tata Refractories Ltd.'s claim for MODVAT credit on furnace oil used in manufacturing Dead Burnt Magnesite (DBM), holding that the credit could not be denied merely...