Punjab and Haryana High Court
Compromise In Commercial Disputes Warrants Closure Of 138 NI Act Proceedings: Punjab & Haryana High Court
The Punjab and Haryana High Court has compounded an offence under Section 138 of the Negotiable Instruments Act in a matter between Sunil Kumar and Mukesh Sharma after finding that the parties had voluntarily settled their dispute and the complainant had received the entire settlement amount in full and final satisfaction of his claim. A Bench of Justice Subhas Mehla held that continuation of proceedings in such commercial disputes serves no useful purpose once the settlement is acted upon and...
Punjab & Haryana HC Quashes Canara Bank's Fraud Classification For Failure To Furnish Full Forensic Audit Report
The Punjab and Haryana High Court has set aside Canara Bank's order declaring the borrowers' account as fraudulent. The Court found that the bank had not supplied the complete forensic audit report on which the fraud classification was based. It also found that the bank had not informed the borrowers that any portion of the report was being withheld due to third-party rights. A division bench of Justice Alka Sarin and Justice Ramesh Chander Dimri observed that where a bank seeks to withhold...
Arbitration Act 2015 Amendment To Section 12(5) Cannot Be Applied Retrospectively: Punjab & Haryana High Court
On 29 May, the Punjab and Haryana High Court held that executing courts cannot retrospectively apply the post-2015 neutrality regime under Section 12(5) of the Arbitration and Conciliation Act, 1996, to refuse enforcement of arbitral awards rendered under the law prevailing at the time of the arbitrator's appointment. A Bench of Justice Jasgurpreet Singh Puri allowed the revision petitions, set aside seven executing court orders, and directed continuation of execution proceedings. It observed: ...
Punjab & Haryana High Court Rules PLC Not Separately Taxable, Sets Aside DLF Advance Ruling Orders
The Punjab and Haryana High Court on 13 May held that Preferential Location Charges (PLC) collected by developers for offering a preferred location within a housing project form part of the composite construction service and cannot attract separate taxation. A Division Bench of Justices Deepak Sibal and Lapita Banerji allowed a writ petition filed by DLF Limited and quashed the Advance Ruling Authority order dated 28 August 2020 and the Appellate Authority for Advance Ruling order dated 28...
RERA Appeal Remedy Cannot Be Bypassed To Avoid Pre-Deposit Requirement: Punjab and Haryana High Court
The Punjab and Haryana High Court recently refused to entertain a real estate developer's challenge to a Haryana RERA refund order, holding that a promoter/developer cannot bypass the statutory appellate remedy merely to avoid the pre-deposit requirement. A Division Bench of Justice Suvir Sehgal and Justice Vikas Suri was hearing a petition filed by Advance India Projects Limited against a Haryana Real Estate Regulatory Authority order directing it to refund over ₹1.02 crore to two allottees in...
Punjab & Haryana HC Grants Landowners 2013 Act Interest Over Arbitrator Award In Land Acquisition For Highway
The Punjab and Haryana High Court has held that denying landowners whose compensation is enhanced in arbitration under the National Highways Act the same interest benefits available to similarly placed landowners would be discriminatory and violative of Article 14. Justice Harkesh Manuja held, “In the present case, the learned Arbitrator, by denying parity to identically placed landowners even though only with regard to the interest component of the compensation, has acted arbitrarily and in...
Party Cannot Invoke HC's Supervisory Jurisdiction After Withdrawing Arbitral Award Challenge: Punjab & Haryana HC
The Punjab and Haryana High Court on Friday held that a party that withdraws its challenge to an arbitral award cannot later use the High Court's supervisory jurisdiction to reopen the same dispute through a different route. “The supervisory jurisdiction under Article 227 being discretionary and equitable ought not to be exercised in favour of a litigant who has by withdrawing the objections abandoned the statutory remedy and now seeks to circumvent the consequences of that withdrawal." ...
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...