Arbitration Clause Can't Be Ousted By Specific Performance Clause In Contract: Punjab & Haryana High Court

The Punjab and Haryana High Court has held that a clause allowing a civil suit for specific performance does not override a clear arbitration clause between parties, appointing an arbitrator to resolve a land dispute after rejecting objections of coercion and invalidity. Justice Jasgurpreet Singh Puri said, “When in an agreement, there exists a specific clause pertaining to arbitration, which remains undisputed then the mere fact that there is some other clause providing entitlement to file a...

Faridkot Courts, Not Bathinda, Have Jurisdiction In NH-15 Arbitration Dispute: Punjab & Haryana High Court

The Punjab and Haryana High Court has held that courts at Faridkot would have jurisdiction to entertain challenges to arbitral awards arising out of the NH-15 Amritsar–Bathinda project, and not courts at Bathinda, as the arbitral proceedings were conducted and the awards were passed at Faridkot.A coram of Justice Jasgurpreet Singh Puri observed that "Although the present cases pertain to statutory arbitration but it is an admitted fact that the arbitration has been conducted at Faridkot with the...

'May Refer To Arbitration' Clause Valid Where Agreement Shows Clear Intent: Punjab and Haryana HC

The Punjab and Haryana High Court has held that a clause in a Leave and License Agreement between Realsta Infratech Pvt Ltd and Pace Stock Broking Services Pvt Ltd constituted a valid arbitration clause, despite using the expression “may refer to arbitration," as the provision, read as a whole, reflected a clear intention to arbitrate upon failure of amicable settlement. Justice Jasgurpreet Singh Puri appointed former Delhi High Court judge Justice Talwant Singh as the sole arbitrator to decide...

Labelling Clause As 'Arbitration' Doesn't Create Arbitration Agreement Without Mechanism For It: Punjab & Haryana HC

The Punjab and Haryana High Court has held that merely labelling a clause as “Arbitration and Applicable Laws” does not make it an arbitration agreement, refusing to appoint an arbitrator where the clause itself did not provide for the reference of disputes to arbitration. A bench of Justice Jasgurpreet Singh Puri held that Clause 8 of the Memorandum of Understanding dated January 13, 2020, executed between Rayat Educational and Research Trust and the Punjab Skill Development Mission, does not...

Valid GST Notice Must Disclose Details And Basis of Liability: Punjab & Haryana High Court

The Punjab & Haryana High Court on 2 April held that a GST show cause notice lacking specific allegations, supporting material, and proper reasoning is legally unsustainable and violates principles of natural justice. A Division Bench comprising Justice Deepak Sibal and Justice Alka Sarin set aside a show cause notice issued to Abbott Healthcare Pvt. Ltd., observing: “Before raising a demand, the purpose of putting an assessee to notice, is to make the assessee aware of the department's...

Arbitration Clause In Purchase Orders Enough to Appoint Arbitrator: Punjab & Haryana High Court

The Punjab and Haryana High Court on 19 March, held that an arbitration clause in purchase orders is sufficient under Section 11 of the Arbitration and Conciliation Act, 1996, to allow appointment of an arbitrator. A Single Judge Bench of Justice Jasgurpreet Singh Puri allowed a petition by Aditya Birla Real Estate Limited and appointed Justice Ajay Tewari (Retd.) as the Sole Arbitrator in disputes arising out of 20 purchase orders issued by Orient Craft Limited for the supply of fabric. He...

Cheque Issued For Another's Debt Still Attracts Liability If Dishonoured: Punjab And Haryana High Court

The Punjab & Haryana High Court has recently held that a person who issues a cheque to discharge another person's debt, including that of a spouse, cannot escape liability if the cheque is dishonored, even if the debt was not personally incurred by him, while upholding the conviction of two accused in a cheque dishonour case. A single-judge bench of Justice Subhas Mehla reduced the sentence of imprisonment to one year rigorous imprisonment while maintaining the enhanced compensation of Rs....

State's Failure To Promptly Execute Section 14 SARFAESI Order Defeats Purpose Of Law: Punjab & Haryana High Court

The Punjab and Haryana High Court has recently observed that failure of state authorities to implement orders passed under Section 14 of the SARFAESI Act, which empowers the District Magistrate to assist secured creditors in taking physical possession of secured assets, defeats the statutory mandate of expeditious enforcement of security interests and undermines binding judicial precedents, observing that such inaction paralyses the statutory mechanism. Allowing a writ petition filed by IIFL...

Digitally Executed Agreements Valid If Parties Acted Upon Them: Punjab & Haryana High Court

The Punjab and Haryana High Court on 9 March, held that digitally executed agreements are valid even in the absence of physical signatures where the parties have acted upon them and do not dispute their existence. A Single Bench of Justice Jasgurpreet Singh Puri appointed Justice B.S. Walia, former Judge of the Punjab and Haryana High Court, as the sole arbitrator to adjudicate disputes between Delhivery Limited and Smartpaddle Technology Private Limited. The Bench observed: “It is not...

No GST On Tariff, Licence Fees Collected By Haryana Electricity Commission: Punjab Haryana High Court

The Punjab and Haryana High Court on 26 February set aside a show cause notice seeking GST on tariff petition and licence fees collected by the Haryana State Electricity Regulatory Commission, holding that these fees arise from statutory regulatory functions and are not in the course of business. A Division Bench of Justice Lisa Gill and Justice Ramesh Chander Dimri allowed the writ petition and quashed the notice, observing:“Learned counsel for respondents points out that review has been...

Punjab & Haryana HC Dismisses Plea Seeking Appointment Of Arbitrator While Also Seeking Termination of Existing Arbitrator

The Punjab and Haryana High Court recently dismissed an arbitration petition seeking appointment of an arbitrator while also seeking termination of the mandate of a sole arbitrator already conducting the proceedings. A Single Bench of Justice Jasgurpreet Singh Puri imposed costs of Rs 25,000 on the petitioner and observed, “It is very surprising as to how an application under Section 11 of the Act would be maintainable before this Court and a specific query in this regard was put to the...

No Cancellation Of Educational Trust Registration For Generating Surplus: Punjab & Haryana High Court

The Punjab and Haryana High Court on 27 February held that mere generation of surplus by an educational institution cannot be a ground for cancelling registration of a charitable trust, so long as the activities are genuine and carried out in accordance with the objects of the trust. A Division Bench comprising Justice Lisa Gill and Justice Parmod Goyal dismissed an appeal filed by the Income Tax Department and upheld the order of the Income Tax Appellate Tribunal (ITAT) restoring the...