Article 227 Is A Constitutional Provision Which Remains Untouched By Non-Obstante Clause Of S. 5 Of Arbitration Act: Allahabad HC

The Allahabad High Court Bench of Justice Piyush Agrawal held that Article 227 is a constitutional provision which remains untouched by the non-obstante clause of Section 5 of the Act. In these circumstances, what is important to note is that though petitions can be filed under Article 227 against judgments allowing or dismissing first appeals under Section 37 of the Act, yet the High Court would be extremely circumspect in interfering with the same, taking into account the statutory...

Arbitral Award Based On Law Prevailing At Time Of Proceedings Cannot Be Held To Be Illegal Due To Subsequent Apex Court Ruling: Allahabad HC

The Allahabad High Court Bench of Justice Piyush Agrawal, held that if parties were allowed to reopen concluded arbitrations based on new judicial rulings, it would lead to a flood of claims seeking to modify or overturn arbitral awards. Moreover, the retroactive application of judicial decisions to arbitral awards would create legal and procedural chaos. Arbitrators make decisions based on the legal framework and precedents available at the time of the arbitration. Expecting them to foresee and...

Petition Under Article 227 Not Maintainable Against Orders Of Tribunal When Remedies U/S 34 & 37 Of Arbitration Act Are Available: Allahabad HC

The Allahabad High Court Lucknow Bench of Justice Subahsh Vidyarthi observed that petition filed under Article 227 of the Constitution of India challenging the order passed by the Arbitral Tribunal directing the petitioners to provide a copy of the contract between the parties and the final bill to the claimant, cannot be entertained. In the present case, a petition under Article 227 of the Indian Constitution was filed against orders passed by an Arbitral Tribunal. Brief Facts ...

[S.74 GST Act] Adjudicating Authority Must Record Prima Facie Satisfaction Regarding Assessee Wrongfully Obtaining Input Tax Credit: Allahabad HC

The Allahabad High Court has held that for initiating proceedings under Section 74 of the Goods and Service Tax Act, 2017, it is necessary for the adjudicating authority to record prima facie satisfaction regarding the assessee having wrongfully availed input tax credit (ITC) by fraud, willful misstatement or suppression of facts. The Court held that once the proceedings under Section 73 have been closed regarding wrongful availment of ITC, proceedings for the same cannot be initiated...

Application U/S. 34 Of The Arbitration & Conciliation Act Not To Be Dismissed For Non-filing Of Certified Copy Of Arbitral Award If Explanation Provided: Allahabad High Court

The Allahabad High Court bench, comprising Chief Justice Arun Bhansali and Justice Vikas Budhwar has observed that if a certified/signed copy of the award cannot be obtained and filed with an application under Section 34 of the Arbitration and Conciliation Act, 1966, filing a copy of the award along with an explanation would be an appropriate exercise.Background FactsThe appellant filed an application under Section 34 of the Arbitration and Conciliation Act, 1996, aggrieved by an arbitral award...

Receipt Of Arbitral Award By Party A Sine Qua Non For Limitation U/S 34(3) To Begin, General Clauses Act Does Not Apply: Allahabad High Court

The Allahabad High Court has held that receipt of the award by the party is a sine qua non for limitation under Section 34(3) of the Arbitration and Conciliation Act, 1996 to begin and definition of “service by post” under Section 27 of the General Clauses does not apply.The Court observed that Section 27 of the General Clauses Act which defined service by post in a Central Legislation if the words 'serve' or either of the expressions 'give' or 'send' or any other expression is used to mean that...

Second Provisional Attachment Notice Lacking Fresh Reasons Is Arbitrary: Allahabad High Court

The Allahabad High Court stated that issuing a second provisional attachment notice without providing new or fresh reasons is considered arbitrary. The Division Bench of Justices Shekhar B. Saraf and Manjive Shukla observed that “the department cannot be allowed simpliciter to issue a second notice, and thereafter, third and fourth and continue with the provisional attachment for four to five years without giving any fresh reason for the said provisional attachment. If the same was...

Dispute Relating To Members And Management Of Public Trusts Not Arbitrable, Must File Suit U/S 92 CPC : Allahabad High Court

The Allahabad High Court has held that disputes relating to public trusts which are enlisted under Section 92 of the Civil Procedure Code are not arbitrable under the Arbitration and Conciliation Act, 1996.The bench comprising of Chief Justice Arun Bhansali and Justice Vikas Budhwar further held that Section 89 of CPC which provides for settlement of disputes outside Court does not override Section 92 as Section 92 is a specific provision dealing with disputes regarding Trusts. The Court held...

Impact Of Delayed Receivables From AE Already Factored In Working-Capital: Allahabad HC Directs TPO To Adjudicate Interest On Receivables

The Allahabad High Court recently reiterated that once working capital adjustment is granted to assessee, there is no need for further imputation of interest on outstanding receivables at the end of the year, as the same gets subsumed in working capital adjustment. The Division Bench comprising Justice Shekhar B. Saraf and Justice Manjive Shukla reiterated that “In respect of bills raised on or after Apr 01, 2010 to its AEs, what was the date of realization and whether the same has...

UPVAT| "Vitamins And Minerals Pre-Mix" Are Unclassified Goods, Do Not Fall Under "Ores And Minerals", "Drugs And Medicines" Or "Chemicals": Allahabad High Court

The Allahabad High Court has upheld the finding of the Commercial Tax Tribunal holding that "vitamins and minerals pre-mix" are unclassified goods, do not fall under "ores and minerals", "drugs and medicines" or "chemicals” under Schedule II of the U.P. Value Added Tax Act, 2008. Challenging the order of the Commercial Tax Tribunal, counsel for revisionist-assesee argued that the department had been treated "vitamins and minerals pre-mix" as “chemicals” and were consequently taxing it...

Interference With Functioning Of Petrol Pump Sufficient Ground To Bypass Pre-Institution Mediation Under Commercial Court Act: Allahabad HC

Recently, the Allahabad High Court has held that pre-institution mediation as provided in Section 12A(1) of Commercial Court Act, 2015 can be bypassed when there is interference with the functioning of a petrol pump.Section 12A(1) of the of Commercial Courts Act, 2015 provides that where in a suit no urgent relief is contemplated, such suit may not be instituted unless remedy of pre-institution mediation has been exhausted by the plaintiff. Defendant-appellant was owner of the property on which...

Tax Invoice, E-Way Bill, GR Or Payment Details Not Sufficient To Prove Physical Movement Of Goods: Allahabad High Court Upholds Penalty U/S 74 GST

Recently, the Allahabad High Court has held that production of tax invoice, e-way bill, GR or payment details is not sufficient to show the actual physical movement of the transaction for the purposes of availing Input Tax Credit under Section 16 of the Goods and Service Tax Act, 2017. Section 16 of the Goods and Service Tax Act, 2017 provides for the conditions and eligibility for claiming input tax credit. Section 16(2) provides that an assesee is not entitled any input tax credit...