'Stranger' Facing No Direct Prejudice Can't Seek Cancellation Of Bail: P&H High Court Declines Plea Against IREO MD's Bail In PMLA Case

The Punjab and Haryana High Court has refused to cancel the bail granted to the Managing Director of IREO Group, observing that a stranger to the case, who has not suffered any direct prejudice, has no legal standing to seek cancellation of bail.A plea for cancellation was filed by a person stating to be a practising Advocate and a "prospective home buyer", alleging that the MD has transferred his property despite a restriction, and the inaction on the part of the Enforcement Directorate (ED)...

'Remained Uncooperative': Punjab & Haryana High Court Rejects Ex-MLA Dharam Singh Chokker's Plea Challenging ED Arrest In PMLA Case

The Punjab and Haryana High Court has dismissed the petition filed by former Haryana MLA Dharam Singh Chokker, who had challenged his arrest by the Enforcement Directorate (ED) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.It is alleged that the Company owned by Chokker and his family, Mahira Infratech Pvt Ltd had collected Rs 363 crore from homebuyers for the construction of 1,500 flats to be delivered in 2021-2022. The company accounts, funds were allegedly...

Failure To Notify GST Commissioner About Partner's Retirement Makes Ex-Partner Liable For Firm's GST: Punjab & Haryana High Court

The Punjab and Haryana High Court stated that failure to notify commissioner of partner's retirement makes former partner liable for firm's GST. Section 90 of the CGST Act, 2017 extends the liability in case of partnership firm to its partners as well. Justices Lisa Gill and Sudeepti Sharma stated that “intimation of retirement of partner has to be given to the Commissioner by notice in writing and that in case, no such intimation is given within one month from the date of...

PMLA | Not Mandatory For Court To Conclude That Accused Is Innocent Before Granting Bail: Punjab & Haryana High Court

The Punjab & Haryana High Court has said that for the purpose of granting bail to an accused under the Prevention of Money Laundering Act (PMLA), it is not a mandatory requirement that the Court must arrive at a finding that the petitioner had not committed any offence under the PMLA.Justice N.S. Shekhawat said, "Therefore, this Court has no hesitation to hold that the restrictions, while considering the matter of bail, are required to be construed reasonably. If the Court comes to the...

[PMLA] 'No Possibility Of Trial Being Concluded In Reasonable Time': Punjab & Haryana HC Grants Bail To Builder Accused Of Cheating Home Buyers

The Punjab & Haryana High Court has granted bail to a director of a company accused under the Prevention of Money Laundering Act (PMLA) for fabricating bank guarantees as well as cheating 1500 prospective home buyers.It was alleged that SIkander Singh failed to complete the projects as per time schedule and did not deliver the flats as per agreed terms & conditions, thus, he misappropriated the funds and cheated the home buyers to the tune of about Rs.363 Crore.Justice Mahabir Singh...

Appeal U/S 37 Of Arbitration Act Not Maintainable Against Order Under O.VII R.10 CPC: Punjab And Haryana High Court

The Punjab and Haryana High Court bench comprising of Justice Arun Palli and Justice Vikram Aggarwal has held that an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 Act read with Section 13(1) of the Commercial Courts Act, 2015 is not maintainable against an order passed under Order VII Rule 10 of the CPC directing the return of a petition filed under Section 34 of the 1996 Act for presentation to the appropriate court. Brief Facts: The appellant, M/s...

Pendency Of Civil Or Criminal Litigation Between Partners Cannot Estop Either Partner From Invoking Arbitration Clause: Punjab and Haryana HC

The Punjab and Haryana High Court bench of Justice Suvir Sehgal has held that pendency of a civil and criminal litigation inter se partners, cannot estop one of the partners from invoking the arbitration clause or bar the reference of dispute for adjudication to an arbitrator for determination. Brief Facts: This petition has been filed under Section 11 (6) of the Arbitration Act to adjudicate the disputes and differences between the parties. The petitioner submitted that the...

Specific Exclusion Clause In Agreement Renders Dispute Non-Arbitrable: Punjab & Haryana High Court

The Punjab and Haryana High Court bench of Justice Jagmohan Bansal has held that when there is a specific exclusion clause in the agreement, the matter shall not be referred to Arbitration. Brief Facts The applicant filed this application under section 11 of the Arbitration Act, seeking appointment of the Arbitrator. The present application was filed on the basis of an arbitration clause contained in the Custom Milling Policy, 2018. There is a clause in the agreement which stipulates...

Reining in Excess: Punjab & Haryana High Court's Judgments Curtailing ED's Arbitrary Powers

The arrest and detention under the Prevention of Money Laundering Act often turn out to be a punishment due to the wide powers given to the Enforcement Directorate (ED) and its stringent bail provisions. The Supreme Court, in August, pointed out that after the amendment, over the past ten years, around 5,000 cases have been registered under the PMLA, but conviction has been obtained in only 40 cases.In the evolving jurisprudence of the Prevention of Money Laundering Act (PMLA), the Punjab and...

Appeal Cannot Be Dismissed As Not Maintainable On Account Of Non-Payment Of Requisite Fee: Punjab and Haryana High Court

The Punjab and Haryana High Court stated that appeal cannot be dismissed as not maintainable on account of non-payment of requisite fee. The Division Bench consisting of Justices Sanjeev Prakash Sharma and Sanjay Vashisth was considering a case where the Appellate Authority dismissed the appeal as not maintainable on the ground that the assessee/petitioner had failed to pay Rs. 10,000/- as fee for hearing the appeal while the assessee was required to deposit a total sum of Rs. 20,000/-...

S.12(5) Of Arbitration Act Would Be Applicable To Arbitral Proceedings Which Commenced Before 2015 Amendment Act: P&H High Court

The Punjab and Haryana High Court bench of Justice Suvir Sehgal has held that the provision of Section 12(5) of the Arbitration Act would applicable to arbitral proceedings which were initiated prior to 2015 Amendment came into force and continued thereafter.Brief FactsThis petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 (for short 'the Arbitration Act') for constitution of an independent and impartial Arbitral Tribunal.A bid submitted by the petitioner for...

Punjab & Haryana High Court Reiterates Limited Scope For Interference U/S 34 & 37 Of Arbitration Act, Upholds Award In Land Development Dispute

The Punjab and Haryana High Court bench of Justices Arun Palli and Vikram Aggarwal has reiterated that the scope of interference with an arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996, is narrow, and the appellate jurisdiction under Section 37 is even more circumscribed. The court reiterated that jurisdiction under Section 34 and Section 37 of the Act is not akin to normal appellate jurisdiction. It held that interference with an arbitral award is permissible only...