SARFAESI Act | Fresh Notice To Legal Heirs Of Borrower Not Necessary To Take Possession Under S.14: J&K High Court

The Jammu & Kashmir High Court has held that a secured creditor is not required to issue a fresh notice to the legal heirs of a deceased borrower before invoking Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.A Division Bench of Justice Sanjeev Kumar and Justice Sanjay Parihar dismissed a writ petition challenging the proceedings initiated by the bank under Section 14, observing that once notice under Section...

GST Payable On Rent For Hotels Hired By Govt For Security Forces, Liability Of Home Dept To Reimburse: J&K High Court

The Jammu and Kashmir High Court has held that the Department of Home is liable to reimburse GST in addition to the fixed rent to hotel owners whose accommodations have been requisitioned for housing security forces.The petitioner had filed the petition seeking a direction that the tax amount be paid or reimbursed separately by the Home Department over and above the fixed rent. A bench of Justices Sanjay Parihar and Sanjeev Kumar observed that while the rental rates were fixed much earlier, the...

J&K High Court Upholds Arbitral Award Of ₹1.37 Crore To Entrepreneur Whose Gulmarg Hotel's Lease Was Illegally Terminated By Govt

The Jammu & Kashmir High Court has upheld Rs. 1.37 crore in compensation to a woman entrepreneur whose hotel lease was wrongfully cancelled, stating that illegal termination of lease resulted in losses to the extent of Rs.1,37,57,009/.A bench of Justice Sanjay Dhar held that the Arbitral tribunal was justified in awarding the amount towards the financial loss suffered by the claimant, stemming from the unlawful termination of the lease, which had rendered her unable to operationalise a...

J&K High Court Resolves Arbitrator Fee Stalemate, Directs Centre To Deposit Fee As Per 4th Schedule Arbitration Act

In an order addressing the long-pending stalemate in an arbitration matter, the Jammu and Kashmir High Court directed the Union of India to deposit the arbitrator's fee as per the Fourth Schedule of the Arbitration and Conciliation Act, 1996, enabling the pronouncement of the arbitral award.The issue before the court was whether a government-prescribed internal fee structure for empanelled arbitrators could override the statutory fee scale in the Fourth Schedule of the 1996 Act.The Court...

Court While Referring Parties To Arbitration Cannot Direct That Arbitral Award Should Be Filed Before It: Jammu & Kashmir High Court

The Jammu & Kashmir and Ladakh High Court bench of Justice Sanjay Dhar has held that the court, while referring parties to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996 (Arbitration Act), cannot direct that the award, passed after the conclusion of the arbitration proceedings, be filed before it. Brief Facts: The defendant had approached the plaintiff for the supply of fruit boxes for resale. It was agreed that the defendant would sell the fruit at...

Delay In Receiving Award Due To Default In Paying Arbitral Fees Cannot Be Held Against Party Seeking To Challenge Award While Calculating Limitation: J&K HC

The Jammu and Kashmir High Court held that since the delivery of a signed copy of the arbitral award was the mandatory requirement under the arbitration act therefore, the limitation for challenging the said award would arise only after the said signed copy is received by the party seeking to challenge the same.The petitioner had not received the certified copy of the award dated 01.03.2024 as the arbitrator had exercised its power under the section 39 of the arbitration act for withholding the...

Filing Written Statement Does Not Waive Right To Arbitration If Preliminary Objection Is Raised At Outset: Jammu & Kashmir High Court

The Jammu and Kashmir High Court bench of Justice Rajnesh Oswal held that mere filing of the written statement in a suit does not constitute a waiver of right to arbitration if the party has raised a preliminary objection in respect of the arbitration clause at the outset. Brief Facts: The matter pertained to a judgment issued by the Principal District Judge, Jammu. The trial court held that the suit filed by S. Charanjeet Singh (“Appellant”) was not maintainable. It granted the...

Moratorium Period Under IBC Does Not Bar Payment Of Compensation Under NI Act: J&K High Court Orders ₹4 Crore Interim Compensation

The Jammu and Kashmir High Court held that the declaration of a moratorium would not bar the complainant from filing a complaint under the NI Act. The court said that the debtor cannot take refuge under the Code to frustrate proceedings under the NI Act if he is found liable to pay compensation in the proceedings.Justice Puneet Gupta held that Section 14 of the IBC, which places a moratorium on the institution of suits or the continuation of pending suits, does not include criminal proceedings,...

Party Cannot Be Forced To Accept Arbitrator Who Has Conflict Of Interest, Violates Principles Of Natural Justice And Fair Trial: J&K High Court

The Jammu and Kashmir High Court held that a party could not be forced to accept an arbitrator who has a conflict of interest, as the same would violate the principles of a fair trial. The court held that the Perpetual Lease Deed, as well as the Byelaws, which provide for the Registrar, Cooperative Societies to be the sole arbitrator for adjudicating disputes between the petitioner and the department, would be against the law.Chief Justice Tashi Rabstan observed that the Registrar, who was...

Contract Which Is Renewable Based On 'Criteria Of Performance' Is Deemed Renewed Unilaterally After Criteria Is Met, Cannot Be Terminated: J&K HC

The Jammu and Kashmir High Court held that where renewal of contract is based on the criteria of performance, the contract is deemed to have to been extended, if the said criteria is met. It also held that courts cannot interfere with the interpretation given by an Arbitrator if the same is reasonable and not opposed to logic.In this case, the Arbitrator was to determine legality of breach of agreement by interpreting the agreement-clause which said that “the agreement between the parties was...

Irregularity & Curable Defect Cannot Be Grounds For Dismissal Of Application U/S 34 Of Arbitration Act: J&K High Court

The Jammu & Kashmir and Ladakh High Court Bench of Justice Sanjeev Kumar and Justice Puneet Gupta held that the failure of the Chief Engineer to sign the pleadings, which were signed by the Garrison Engineer would only be an irregularity and a curable defect and would not entail dismissal of the application filed under Section 34 of the Arbitration Act without providing opportunity to the appellants to correct the irregularity. Additionally, the court held that the defect was...

Existence Of "Proceeds Of Crime" Is Pre-Condition For Money-Laundering: J&K High Court Quashes PMLA Complaints In Alleged ₹250 Cr Scam

Underscoring the necessity of the existence of "proceeds of crime" for constituting an offence under the Prevention of Money-Laundering Act, 2002 (PMLA) the Jammu and Kashmir and Ladakh High Court has reiterated that in the absence of such proceeds, no money-laundering offence could arise.Quashing complaints filed under the PMLA in an alleged 250 crore scam Justice Javed Iqbal Wani observed,“Having regard to the aforesaid position obtaining in the matter, inasmuch as the admitted facts noticed...