Executing Court Erred In Seeking Transfer Certificate To Execute Award When It Had Jurisidiction To Entertain Application: Rajasthan HC Sets Aside Order

The Rajasthan High Court bench of Justice Narendra Singh Dhaddha has held that the Executing Court had committed an error in directing to furnish the transfer certificate for executing an award when it already had jurisdiction to hear the application.Court said that when the property was situated in Jaipur, the executing court had jurisdiction to entertain the execution application. So, the orders dated 12.10.2018 and 13.03.2019 passed by the Executing Court deserve to be set aside,...

Jurisdictional Assessing Officer Lacks Jurisdiction To Issue Reassessment Notices U/S 148 Of Income Tax Act: Rajasthan High Court

The Rajasthan High Court stated that the Jurisdictional Assessing Officer (JAO) lacks jurisdiction to issue income tax reassessment notices under section 148 of the Income Tax Act, 1961. The Bench of Justice Pushpendra Singh Bhati and Munnuri Laxman observed that “the JAO shall not have the jurisdiction to issue notices under Section 148 of the Act of 1961, as it would not only render Section 151A weak, but may also lead to its diminishing activation.” Section 147 of the Income Tax...

State Ignored Its Own Obligations, Unilaterally Penalised Contractor Overlooking Difficulties Faced In Completing Canal Construction: Rajasthan HC

The Rajasthan High Court set aside a commercial court's order passed against a company whose contract for constructing a canal was terminated by the State for allegedly not completing the work. In doing so the high court noted that the commercial court's order was erroneous and based on assumptions as it did not consider the non-performance of the Employer's obligation which went to the "root of the matter". The court also observed that the contractor had demonstrated before the commercial...

Commercial Court Committed Jurisdictional Error By Imposing Pre-Condition To Deposit 50% Of Amount For Stay Against Arbitral Award: Rajasthan HC

The Rajasthan High Court Bench of Justice Sudesh Bansal has held that the Commercial Court has committed jurisdictional error in exercising its discretion arbitrarily, mechanically and injudiciously, while putting the condition to deposit 50% of the awarded amount, for operating stay against arbitral award without assigned justified and sound reasonings. Additionally, the court modified the order in the manner that the stay order will become operative only after furnishing security in...

Court In Exercise Of Supervisory Jurisdiction Shall Not Interfere With Arbitral Award, Limited Scope Of Interference: Rajasthan High Court

The Rajasthan High Court Bench of Justice Shree Chandrashekhar and Dr. Justice Nupur Bhati held that it is a well settled law that the interpretation of the clause of Agreement by the Arbitrator shall not be open to judicial interference unless it is demonstrated before the Court that the interpretation put by the Arbitral Tribunal was perverse. Additionally, the court held that if the view taken by the Arbitrator is logical and acceptable merely because two views are possible the Court...

Whether Arbitration Agreement Has All Essential Elements Can Better Be Decided By Tribunal U/S 16 Of A&C Act: Rajasthan High Court

The Rajasthan High Court bench of Justice Sudesh Bansal has held that the issue of validity of arbitration agreement more particularly in respect of having essential elements of the arbitration agreement, can better be considered and decided on merits by the arbitration tribunal under section 16 of the Arbitration Act. Brief Facts The present application has been filed under section 11 of the Arbitration Act seeking appointment of an Arbitrator for a dispute arising from a Rate...

Referral Court U/S 11 Of Arbitration Act Cannot Enter Into Merits Of Subject Matter Of Disputes: Rajasthan High Court

The Rajasthan High Court bench of Justice Sudesh Bansal has held that the court under section 11 of the Arbitration Act cannot enter into merits of subject matter of the disputes. It has to see only the prima facie existence of an arbitration agreement. Brief Facts These two Arbitration Applications have been filed under section 11 of the Arbitration Act seeking the appointment of an Arbitrator. The applicant is a registered real estate firm which entered into agreements with the...

CGST Rules Prescribing Time-Bound Submission Of Declaration Under TRAN-1 To Claim Transitional Credit Not Directory But Mandatory: Rajasthan HC

The Rajasthan High Court has held that Rules prescribing the 'time and manner' for claiming transitional credit, in addition to the statutory procedure provided under Section 140 of the Central Goods and Services Tax Act 2017, are mandatory in nature. A division bench of Chief Justice Manindra Mohan Shrivastava and Justice Munnuri Laxman thus held that prescriptions under Section 117 of CGST Rules are mandatory in nature, and non-compliance thereof would lead to rejection of a...

Interpretation Of Contractual Stipulations Must Be Done To Give Full Effect To Arbitration Agreement: Rajasthan High Court

The Rajasthan High Court Bench of Justice Sudesh Bansal has held that it is a well-established principle of law if there is any contractual stipulation between the parties which under-mines the scope of the arbitration clause. Then, the same will be given an interpretation in the manner which gives full effect to the arbitration agreement between the parties. Brief Facts: The dispute arises with respect to a purchase order for supply of certain drugs to the respondent for the sum...

Department Failed To Prove Non-Existence Of Firms: Rajasthan High Court Grants Bail To Assessee Charged For Issuing Fake Invoices

The Rajasthan High Court granted bail to the assessee charged for issuing fake invoices to the firms on the ground that the department failed to prove that these firms are not in existence and their GST registration have been cancelled. The Bench of Justice Ganesh Ram Meena observed that “……there is nothing on record that who claimed how much input tax credit on the basis of alleged fake invoices said to have been issued by the accused”. In this case, the assessee/accused...

Provisional Attachment Ceases After One Year: Rajasthan High Court Allows Assessee To Operate Bank Account

The Rajasthan High Court stated that the provisional attachment under Section 83 of the CGST Act ceases after one year and cannot be attached again without giving fresh reasons. The Division Bench, consisting of Chief Justice Manindra Mohan Shrivastava and Justice Ashutosh Kumar, was dealing with a case in which the assessee challenged the department's attachment of their bank account on the grounds that, according to Section 83(2) of the CGST Act, the provisional attachment of a bank...

Unless Appointment Of Arbitrator Under Arbitration Clause Is Ex-Facie Valid, Jurisdiction Of Court U/S 11(6) Cannot Be Barred: Rajasthan HC

The Rajasthan High Court bench of Justice Sudesh Bansal affirmed that unless the appointment of the arbitrator is ex facie valid and such appointment satisfies the Court exercising jurisdiction under Section 11(6) of the Arbitration Act, acceptance of such appointment as a fait accompli to debar the jurisdiction under Section 11(6) cannot be countenanced in law. Brief Facts Instant Arbitration Application has been filed under Section 11(5) and (6) of the Arbitration and Conciliation...