Deposit Of Awarded Amount In Court Registry Sufficient To Extinguish Liability Arising Under Award: Himachal Pradesh High Court

The Himachal Pradesh High Court bench of Mr. Justice Bipin Chander Negi has held that the deposit of awarded amount in pursuance of an order of the court into the court registry would be equivalent to payment under section 31 of the Arbitration Act. This will extinguish the liability arising under the award for which execution petition would then not be maintainable. Brief Facts The present petition has been filed laying challenge to the impugned judgment dated 23.08.2019, whereby...

Punjab Roadways Cannot Deprive Himachal Pradesh Govt Of Passenger Tax, Interest On Delayed Payment When Its Buses Are Plying On Territory: HC

The Himachal Pradesh High Court recently directed the Punjab Roadways to clear the interest due upon it for delayed payment of passenger tax and surcharge to the HP government. A division bench of Acting Chief Justice Tarlok Singh Chauhan and Justice Satyen Vaidya observed that the body first failed to deposit any tax with the authorities of Himachal Pradesh despite the fact that it had been running its buses within its territory, and then disputed liability of interest. “Thus, in...

Award Cannot Be Set Aside On Grounds Of Mere Illegality Unless Patent Illegality Is Established U/S 34 Of Arbitration Act: Himachal Pradesh HC

The Himachal Pradesh High Court bench of Ms. Justice Jyotsna Rewal Dua, affirmed that 'patent illegality' in the award calls for interference under section 34 of the Arbitration Act but a mere illegality is not patent illegality. It ought to be apparent on the face of the award and not the one which is culled out by way of a long drawn analysis of pleadings and evidence. Brief Facts The National Highway Authority of India (for short 'NHAI') feeling aggrieved against the dismissal of...

Himachal Pradesh HC Upholds Levy Of GST On Mining Royalty Payable Under Mining Concession Granted By State

The Himachal Pradesh High Court has dismissed a writ petition challenging notifications issued by the Central government for levy of GST on Royalty paid by a Mineral Concession Holder for mining concession granted by the State. The Petitioner, a firm engaged in stone crushing, was issued notices and summons under Section 70 of Central Goods and Services Tax Act, demanding GST on royalty. Petitioner's challenge in the year 2023 was based on a seven-Judge Bench decision of the Supreme...

Objection To Tribunal's Jurisdiction U/S 16 Of Arbitration Act Must Be Raised Before Or At Time Of Statement Of Defence: Himachal Pradesh HC

The Himachal Pradesh High Court bench of Justice Jyotsna Rewal Dua affirmed that a party is bound by virtue of Section 16(2) of the Arbitration Act to raise any objection it may have to the jurisdiction of the Tribunal before or at the time of submission of its statement of defence, and at any time thereafter it is expressly prohibited. Brief Facts Objections preferred by the appellants under Section 34 of the Arbitration and Conciliation Act, 1996 (in short 'the Act') against the...

S. 29A Of Arbitration Act Not Applicable To Arbitration Proceedings Which Commenced Before 2015 Amendment: Himachal Pradesh HC

The Himachal Pradesh High Court bench of Justice Jyotsna Rewal Dua affirmed that provisions of Section 29A of the Act will not be applicable to the arbitration proceedings that had started before the Arbitration & Conciliation (Amendment) Act, 2015 came into force.Brief Facts The National Highway Authority of India (for short 'NHAI') feeling aggrieved against the dismissal of its applications on 04.12.2021 under Section 34 of the Arbitration & Conciliation Act, 1996 (for short 'the...

Applicability Of Section 5 Of Limitation Act To Petition U/S 34 Of Arbitration Act Is Excluded: Himachal Pradesh HC

The Himachal Pradesh High Court Bench of Ms. Justice Jyotsna Rewal Dua held that the prescribed period under Section 34(3) of the Arbitration Act is three months and further that given the language used in proviso to Sub-Section 3 of Section 34 of the Act, applicability of Section 5 of Limitation Act to the petition under Section 34 of the Act has been excluded.Brief FactsAward was passed by the learned Arbitrator on 20.02.2023.Signed copy of the award was received by the applicants/objectors on...

Himachal Pradesh High Court Affirms Clean Slate Theory, Declares Tax Authorities' Charge Over Properties After Acquisition Plan Void And Illegal

In an important judgment delivered by the Himachal Pradesh High Court, the claims and red entries of the state tax department over the properties of Su-Kam Power Systems Ltd.(Corporate Debtor) were quashed. The corporate debtor was sold as a going concern under the provisions of the Insolvency and Bankruptcy Code (IBC). The court held that once the company was acquired and resolution plan was approved, all prior claims including claims of the tax authorities are extinguished. Brief...

Recovery Officer Can't Attach Taxpayer's Overdraft Account With Banks By Exercising Power U/s 226(3): Himachal Pradesh HC Quashes Attachment Order

Observing Cash Credit account or overdraft is capable of being attached u/s 226(3) of Income tax Act, the Himachal Pradesh High Court turned down the decision of Tax recovery officer in passing the order of attachment of Cash Credit Account. Explaining the relationship between debtor & creditor, the High Court clarified that bank does not become a debtor to its customers and cannot hold money for account of its customers merely because it has provided a facility of overdraft to...

Negotiable Instruments Proceeding Under Section 138 Does Not Abate On Initiation Of Insolvency Proceeding: Himachal Pradesh High Court

In a significant judgement delivered by the Himachal Pradesh High Court, the personal liability of the accused under the Negotiable Instruments Act was upheld in spite of the insolvency proceedings initiated under the Insolvency and Bankruptcy Code (IBC). Brief Facts Tushar Sharma (accused) and his wife Smt. Shaveta Sharma applied for a house loan to the tune of Rs. 2 crores which was approved and granted on January 24, 2015. The loan amount was secured by mortgaging a property with...