'Higher Credence Is Given To Award Passed After Detailed Pre-Arbitral Process': Bombay High Court

The Bombay High Court has held that arbitral awards passed after a detailed pre-arbitral process contractually agreed upon by the parties deserve a higher degree of credibility and judicial deference. The Court refused to grant an unconditional stay on the execution of an arbitral award in favour of the contractor, holding that mere disagreement with the arbitral tribunal's findings does...

CA-Certified Audited Statements Are Valid Proof Of Actual Expenditure: Delhi High Court Partly Upholds Arbitral Award Against NHAI

The Delhi High Court dismissed a petition under section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) filed by National Highways Authority of India (NHAI) against an arbitral award passed in favor of Hindustan Construction Company Ltd. (HCC). The court further held that the arbitrator's award of compensation for expenses incurred during extended time...

'Unrelated Party To Contract Cannot Be Regarded As Veritable Party To Arbitration Agreement': Bombay High Court

The Bombay High Court has held that an unrelated third party to a contract cannot be treated as a “veritable party” to the arbitration agreement and hence cannot be compelled to participate in the arbitral proceedings. The Court reiterated that the doctrine enabling non-signatories to be treated as parties to an arbitration agreement applies only where there exists a close relationship,...

Income Tax Act | Non-Production Of Form 3CL Isn't Material Suppression; Not Grounds To Reopen Assessment U/S 147: Kerala High Court

The Kerala High Court held that the non-production of Form 3CL is not material suppression and is not a valid ground to reopen the assessment under Section 147 of the Income Tax Act. Under Section 35(2AB) of the Income Tax Act, 1961, any expenditure on scientific research is allowable as a deduction. A sum equal to one and one-half times the expenditure is allowed as such a...

Cheque Dishonour Proceedings Can Be Sustained Against Directors & Signatories Of Company Even If It Is Declared Insolvent: Orissa High Court

The Orissa High Court, Bench comprising Justice Chittaranjan Dash, has ruled that the proceedings under section 138 of the NI Act will sustain against the directors or signatories of the company even if the entity has been declared insolvent under the IBC, 2016. The complainant extended a loan of Rs. 1 Cr. to Zenith Mining Pvt. Ltd., which remains unpaid. The check issued by...

"Insolvency Professionals Acting Like Scavengers Must Be Dealt With Severely": Delhi High Court Slams Practitioner's Misconduct

The Delhi High Court recently slammed the conduct of a senior insolvency professional, warning that such individuals must not become “predators” of companies already in financial distress. In a scathing judgment, the Court said professionals under the Insolvency and Bankruptcy Code (IBC) must uphold the highest ethical standards and 'even a single act of negligence' is sufficient for a disciplinary actionThe judgment, delivered by Justice Subramonium Prasad on September 9, contained strong...

Civil Courts Cannot Grant Ex-Parte Injunction In Shareholder Disputes Due To Bar U/S 430 Companies Act: Calcutta High Court

The Calcutta High Court bench presided over by Justice Aniruddha Roy, has observed that a civil court cannot grant an ex parte ad interim injunction in a shareholder dispute, in light of the bar under section 430 of the Companies Act, 2013. The plaintiff filed a civil suit before the Civil Judge, Senior Division, Alipore, alleging that his shares in the Power Tools and Appliances...

'Big Corporations Must Adopt Reasonable Litigation Policy Against Small Enterprises': Bombay High Court

The Bombay High Court dismissed an appeal under section 37 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) filed by Mahindra Defence Systems Ltd. challenging an arbitral award passed by the Micro, Small and Medium Enterprises Facilitation Council in favour of Rajana Industries holding that the award was reasoned, fair and free from...

Input Tax Credit Not Admissible On Electricity Supplied To Township Maintained By Bharat Aluminium: Chhattisgarh High Court

The Chhattisgarh High Court has stated that the ITC is not admissible on electricity supplied to a township maintained by Bharat Aluminium. The bench, consisting of Chief Justice Ramesh Sinha and Ravindra Kumar Agrawal stated that Input Tax Credit (ITC) is not admissible on the electricity supplied to the township maintained by Bharat Aluminium/appellant. This is because such...

Arbitral Proceedings Cannot Continue Once Moratorium Under IBC Is In Effect, Creditors' Recourse Lies Before Liquidator: Madras High Court

The Madras High Court bench of Justice N. Anand Venkatesh held that arbitration proceedings cannot continue after commencement of liquidation, any order passed thereafter is not legally sustainable. However, considering that continuation of arbitration proceedings would be futile and that the petitioner had not been informed of the commencement of the liquidation, the court...

Application U/S 29A Of A&C Act Is Not Maintainable After Termination Of Proceedings Following Arbitrator's Withdrawal: Madras High Court

The Madras High Court held that section 29A of the Arbitration and Conciliation Act, 1996 (Arbitration Act) can be invoked only when the proceedings are pending. It cannot be invoked when the arbitral tribunal has become functus officio. Justice N. Anand Venkatesh held that “in the case in hand, the proceedings were abandoned and consequently stood terminated as was explained...

Under SARFAESI & RDB Acts, Dues Of Secured Creditors Take Precedence Over Govt Dues: Allahabad High Court

The Allahabad High Court has held that under Section 26-E of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and Section 31B of the Recovery of Debts and Bankruptcy Act, 1993, the debts of the secured creditors will take precedence over all over debts including crown debts.The bench of Justice Shekhar B. Saraf and Justice Praveen Kumar...