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S. 37(1)(a) Arbitration Act | Clause Restricting Interest On Delayed Payments By Itself Won't Bar Pendente Lite Interest : Supreme Court
The Supreme Court on Tuesday (Sep.2) observed that an Arbitral Tribunal can grant pendente lite interest unless expressly or impliedly barred in the contract. It added that a contractual clause barring interest on delayed payments does not prevent an arbitral tribunal from awarding pendente lite interest, i.e., the interest for the period during which the arbitration is pending. “…arbitral tribunal can be denuded of its power to award pendente lite interest only if the agreement/ contract...
Arbitration | Delivery Of Award To Govt Official Not Connected With Case Doesn't Amount To Valid Service On State : Supreme Court
The Supreme Court has clarified that when the government or one of its departments is a party to arbitration, delivery of an arbitral award to an official who is not connected with or aware of the proceedings cannot be treated as valid service for commencing the limitation period to challenge the award. Citing its ruling of Union of India vs. Tecco Trichy Engineers & Contractors (2005), the Court said that the delivery of the copy of the arbitral award should be made to the “party to the...
Customs Act | Electronic Evidence Admissible Without S.138C(4) Certificate If Assessee's S.108 Statement Admits Contents : Supreme Court
The Supreme Court recently held that electronic evidence seized by the Directorate of Revenue Intelligence (“DRI”) can be admissible even without a certificate under Section 138C(4) of the Customs Act, if the assessees has acknowledged these the documents in the devices in their statements under Section 108 of the Customs Act.Section 138C (4) of the Customs Act requires the production of a certificate, similar to the mandate under Section 65B (4) of the Evidence Act for proving electronic...
Vehicles Plying Only Within Enclosed Premises Of Factory/Plant Not Liable To Pay Motor Vehicle Tax : Supreme Court
The Supreme Court on Friday (Aug. 29) ruled that the vehicles operating exclusively within the enclosed premises of a factory or plant are not liable to pay motor vehicle tax, as such areas do not constitute a "public place." “Motor vehicle tax is compensatory in nature. It has a direct nexus with the end use. The rationale for levy of motor vehicle tax is that a person who is using public infrastructure, such as, roads, highways etc. has to pay for such usage. Legislature has consciously used...
Supreme Court Pulls Up Income Tax Dept For Launching Prosecution For Tax Evasion Without ITAT Confirmation, Imposes Rs 2 Lakh Cost
The Supreme Court on Thursday (Aug. 28) imposed Rs. 2 Lakhs cost on Income Tax Department for 'grossly abusing its position' to continue a prosecution against an assessee alleging willful tax evasion.The bench comprising Justices JK Maheshwari and Vijay Bishnoi set aside the Madras High Court's decision, which refused to quash the prosecution case initiated by the department. The Court criticized the department's action of launching the prosecution against the assessee in contrast to its own...
Supreme Court Directs DGFT & CBIC To Update Tech Systems To Ensure Genuine Exporters Don't Lose Benefits Over Clerical Errors
The Supreme Court observed that an exporter cannot be denied legitimate entitlements under the government's incentive schemes merely because of an inadvertent clerical error that was later corrected through statutory processes. Holding thus, a bench of Justices Aravind Kumar and NV Anjaria ruled in favour of an exporter who was denied a claim for benefits under the Merchandise Exports from India Scheme (MEIS) just because the column declaring “intent to claim MEIS” in the shipping bills was...
Mere Non-Signing Won't Invalidate Arbitration Agreement If Parties Otherwise Consented To Arbitration : Supreme Court
The Supreme Court observed that merely because an arbitration agreement was not signed, there is no bar to refer the dispute to arbitration, if the parties have otherwise consented to arbitration.The bench comprising Justices Sanjay Kumar and Satish Chandra Sharma set aside the Delhi High Court's decision which declined reference to arbitration merely because Respondent No.1 didn't sign the arbitration agreement. Since the Respondent No.1 consented to the contractual terms via email, the...
Is Merchant Navy Officer's Salary Credited In Indian Bank Account Exempt From Income Tax? Supreme Court To Decide
The Supreme Court on Monday (Aug. 18) agreed to decide whether the income credited in an Indian bank account while working with a Foreign Entity would be exempted from the payment of Income Tax under the Income Tax Act, 1961.. The issue arose before the bench of Justices Pankaj Mithal and Prasanna B. Varale while hearing the appeal filed against the Punjab & Haryana High Court's decision upholding the Motor Accident Claims Tribunal (“MACT”) decision to deduct 30% towards tax liability while...
Non-Signatories Have No Right To Attend Arbitration Proceedings, Their Presence Breaches Confidentiality : Supreme Court
The Supreme Court on Wednesday (Aug. 13) observed that a party non-signatory to an arbitration agreement cannot participate in the arbitration proceedings, as the signatories to an arbitration agreement are only entitled to remain present in the arbitration proceedings. The bench comprising Justices PS Narasimha and AS Chandurkar set aside the Delhi High Court's decision, which allowed the non-signatories to an arbitration agreement to attend the arbitration proceedings in the presence of their...
Place Of Exclusive Jurisdiction Deemed As 'Seat' Of Arbitration : Supreme Court
The Supreme Court observed that in the absence of a seat or venue of arbitration in the arbitration agreement, the place where the exclusive jurisdiction has been vested as per the agreement would be regarded as the 'seat' of the arbitration.The bench of Justices P.S. Narasimha and A.S. Chandurkar set aside the Punjab & Haryana High Court's order allowing an application for the appointment of an arbitrator in a dispute where the arbitration agreement conferred exclusive jurisdiction for...
Supreme Court Refuses To Entertain Ex-Chhattisgarh CM Bhupesh Baghel's Challenge To S.44 PMLA On ED's Further Investigation Powers
While refusing to entertain former Chhattisgarh Chief Minister Bhupesh Baghel's challenge to the constitutional validity of Section 44 of PMLA, the Supreme Court today allowed persons aggrieved by violations of 'further investigation' powers of Enforcement Directorate to approach jurisdictional High Courts.Briefly put, Baghel's petition assailed the Explanation to Section 44 PMLA as per which “the complaint shall be deemed to include any subsequent complaint in respect of further investigation...