Approval By Additional Commissioner Valid As “Joint Commissioner” Under Income Tax Act: Kerala High Court

The Kerala High Court, on 8 April, held that approval granted by an Additional Commissioner of Income Tax satisfies the statutory requirement under Section 274(2) of the Income Tax Act for imposing penalties. It clarified that the term “Joint Commissioner” includes an Additional Commissioner under Section 2(28C) of the Act. Justice Ziyad Rahman A.A. dismissed a batch of writ petitions filed by Service Cooperative Bank Limited, holding that the challenge failed on the limited question of the...

Conditional Land Tax Acceptance Unsustainable Without Civil Court Adjudication: Kerala High Court

The Kerala High Court on 5 March held that the State cannot impose conditions while accepting land tax that create a cloud over title, as such disputes require adjudication by a competent civil court and cannot be decided through administrative endorsements. A Division Bench comprising Justices Anil K. Narendran and Muralee Krishna S set aside the condition in Order G.O.(Ms.)No.172/2019/Rev. dated 6 June 2019 and declined to direct unconditional acceptance of land tax, while permitting the...

Kerala High Court Allows Arbitration In Insurance Dispute, Says Discharge Voucher Not A Bar

The Kerala High Court has recently allowed an arbitration request filed by Coco-Latex Exports Private Limited against National Insurance Company Limited, holding that execution of a discharge voucher towards full and final settlement does not bar invocation of arbitration. “Therefore, I find that objection raised by the respondent on the basis of the discharge voucher issued by the respondent is not sustainable,” the Court said. Justice S. Manu was dealing with a plea arising out of an...

Arbitration Clause In Sevens Football Association Bylaws Does Not Bar Suit For Members Disputes: Kerala HC

The Kerala High Court has held that the arbitration clause in the bylaws of the Sevens Football Association does not bar a civil suit in disputes among its members or office bearers, as the clause is limited to disputes between the association's units. A coram of Justice S. Manu made the observation while dismissing an appeal challenging an interim injunction granted by the Additional District Court, Thrissur in a dispute over the use of the name “Sevens Football Association”, its...

Kerala High Court Dismisses Contempt Plea In Byju'S US Assets Sale Dispute, Imposes Costs

The Kerala High Court on April 6 dismissed a contempt petition arising out of the sale of US-based subsidiaries of BYJU'S, holding that contempt proceedings cannot be sustained once the underlying order has been set aside by the Supreme Court of India, and imposed costs of Rs. 50,000 on the petitioners.A Bench of Justice Easwaran S dismissed a contempt petition filed by Voizzit Technology Private Limited and its connected entity, and imposed costs of Rs. 50,000 on them, payable to the Kerala...

Hypothecation Agreements Attract Stamp Duty As General Agreements, Not Pledge Or Mortgage: Kerala High Court

The Kerala High Court has held that a hypothecation agreement executed to secure a loan attracts stamp duty as a general agreement under Article 5(g) of the Kerala Stamp Act and not as a pledge or mortgage, which attracts higher duty. Clarifying the position, the court said Article 6 of the Act applies only to pledges. “Article 6 of the Act will get attracted only if the instrument in question is a 'pledge'. On a conspectus reading of the agreement of hypothecation, it is evident that the...

Ex-Promoter Of Learnfluence, Which Runs Lakshya Coaching Platform, Moves Kerala High Court Against IPO

Adheesh Damodaran, erstwhile promoter of Learnfluence Education Limited and co-founder of Lakshya CA Campus, has approached the Kerala High Court challenging the proposed initial public offering (IPO) of the company, which runs the Lakshya platform offering commerce education, alleging large-scale fraud, forgery, and manipulation of company records. In his writ petition, Damodaran has questioned the decision to allow Learnfluence to proceed with the IPO despite what he describes as “pervasive...

RERA Orders Not Civil Decrees, Recoverable As Arrears Of Land Revenue: Kerala High Court

The Kerala High Court has held that amounts awarded by the Real Estate Regulatory Authority (RERA) can be recovered as arrears of land revenue under the Real Estate (Regulation and Development) Act, 2016, and that such orders do not amount to “decrees” requiring execution through civil courts. By dismissing an appeal moved by Sanroyal Builders and Contractors Pvt. Ltd. and its managing director against homebuyer Divya Balu, the Court has effectively allowed the recovery process under the RERA...

Kerala High Court Upholds Injunction Against 'HAZZA', Finds Prima Facie Infringement Of 'LAZZA' Trademark

The Kerala High Court has upheld an interim injunction restraining the use of the mark “HAZZA” in a trademark dispute, holding that the rival mark is prima facie deceptively similar to “LAZZA” and likely to cause confusion among consumers. A single-judge bench of Justice S. Manu was hearing an appeal filed by Taste Box challenging an order of the Additional District Court, Ernakulam, which had granted interim injunction in favour of JSF Holdings Pvt Ltd. "in my view, the appellant, by adopting...

Withdrawal Slip Can Qualify As 'Cheque' If It Operates As Payment Mandate: Kerala High Court

The Kerala High Court recently held that a withdrawal slip drawn on a co-operative society qualifies as a “cheque” under the Negotiable Instruments Act, 1881, if it functions as a mandate for payment. Justice C.S. Dias, sitting in a Single-Judge Bench, considered a petition filed by Clara Dominic, the accused in a summary trial before the Judicial First Class Magistrate Court, Pala, seeking to quash proceedings under Section 138 of the Act. The Court observed: “The substance of the...

Writ Appeal Not Entertainable When Arbitration Offers Adequate Remedy: Kerala High Court

The Kerala High Court on 6 April, declined to entertain a writ appeal arising from termination of a contractual agreement, holding that when efficacious alternative remedies exist under arbitration, the writ court ordinarily refrains from exercising its discretionary jurisdiction. A Division Bench of Chief Justice Soumen Sen and Justice Syam Kumar V.M observed: “…having regard to the fact that there are efficacious alternative remedies available where such issues can be more conveniently dealt...

Kerala High Court Quashes 25 kg Gold Confiscation, Holds Denial Of Cross-Examination Vitiates Proceedings

The Kerala High Court on 3 March quashed a customs confiscation order involving 25 kilograms of gold, holding that denying the petitioners an effective opportunity to adduce evidence and cross-examine witnesses caused prejudice and violated principles of natural justice. Justice Ziyad Rahman A A, sitting as a Single-Judge Bench, allowed writ petitions challenging the Order-in-Original passed by the Customs authority, which had confiscated the gold and imposed penalties. He observed: “The...