Bombay High Court
After Execution Of Sale Deed, Arbitration Clause Mentioned In Agreement For Sale Becomes Ineffective: Bombay High Court
The Bombay High Court Bench of Justice R. I. Chagla has held that the Agreement for sale has come to an end by the execution of the Deed of Conveyance / Sale Deed. It is well settled that once a Conveyance is executed, the object, purpose, effectiveness and validity of the Agreement for sale comes to an end. Therefore, the arbitration clause in the Agreement comes to an end as the Agreement stands fully discharged and does not have any legal effect upon the execution of the Conveyance. ...
S.9 Application Not Appropriate For Relief Against Non-Signatory When There Is No Dispute Between Parties To Be Referred To Arbitration: Bombay HC
The Bombay High Court bench of Justice Arif S. Doctor has held that Section 9 of the A&C Act is not the correct mechanism to obtain relief against an entity when the privity of contract is absent between Factual Overview: The dispute arose regarding a Redevelopment Agreement (RDA) and a Supplementary Agreement (SA) dated 20 July 2022. The agreement was entered between the Developer (Petitioner) and the Co-operative Housing Society Limited (Respondent No. 1), comprising eleven...
Court Cannot Go Into Merits While Enforcing Foreign Award U/S 48 Of Arbitration Act: Bombay High Court
The Bombay High Court bench of Justice Arif S Doctor has held that jurisdiction of enforcement court under section 48 of the Arbitration is very limited and while enforcing the award the court cannot go into the merits of the case. Brief Facts This petition has been filed seeking enforcement of an award under part II of the Arbitration Act. This award was passed by an International Court Arbitration, London by which the petitioner was awarded a sum of Euro 2.45 million and costs. ...
Department Can't Deny Grant For Waiver Of Interest U/S 234C Of IT Act Without Disposing Of Issues Flagged By Taxpayer: Bombay High Court
The Bombay High Court recently clarified that the Chief Commissioner of Income Tax ought to have addressed the issues/justification as flagged by the taxpayer in supporting its case for grant of waiver of interest u/s 234C.Such approach of Chief Commissioner of Income Tax would show non-application of mind to the material contentions raised by the petitioner/ assessee, added the Court. Section 234C of the Income tax Act provides for levy of interest on account of default in payment of...
Adjudicating Authority's Inaction To Dispose Of Proceedings Can't Be Attributed To Taxpayer In Absence Of Any Malice On His Part: Bombay HC
The Bombay High Court ruled that when the Revenue Dept. did not allege any malice on the part of Assessee in the context of disposal of the proceedings, then inaction on the part of Adjudicating Authority to dispose of the proceedings cannot be attributed to Assessees.Finding that the Authority had passed the final order after a lapse of more than 16 years from the date of CESTAT's order, the Division Bench of Justice Ashwin D. Bhobe and Justice M.S Sonak observed that such inordinate delay in...
Appeal Can't Be Dismissed Due To Non-Payment Of Pre-Deposit If Department's Portal Acknowledges Compliance: Bombay High Court
Observing that provisional acknowledgement automatically generated on Department portal shows that the requisite pre-deposit has been made, the Bombay High Court held that the Assessee had duly complied with the necessary pre-deposit required u/s 107(6) of the CGST Act.The Division Bench of Justice M.S Sonak and Justice Jitendra Jain observed that in a similar matter in Bytedance (India) Technology Pvt Ltd vs. UOI [W.P (L) No.23724 of 2024], it was held by this court that “On the amount of...
Asset Deposited By Corporate Debtor As Security Before CIRP Commencement Continues To Be Asset Of Corporate Debtor: Bombay High Court
The Bombay High Court bench of Justices B.P. Colabawalla and Somasekhar Sundaresan has held that monies or any other asset deposited by a corporate debtor in court prior to commencement of CIRP by way of security would continue to be the asset of the corporate debtor.Brief Facts:The Appellant (Corporate Debtor) was directed to pay Rs. 12 lakh as damages along with interest at the rate of 24% p.a to the Respondent in a judgment dated 13.06.2016. In an appeal challenging the said judgment, an...
Taxpayers Can't Seek Writ Remedy By Bypassing Statutory Requirements Of Pre-Deposit: Bombay High Court
The Bombay High Court held that circumstances in which the appeals require some percentage of the demanded tax to be pre-deposited, do not render the appellate remedies any less efficacious.The High Court held so while considering an issue as to whether the demands are covered under the exemption notification or the notification providing for nil rate of taxes. The Division Bench of Justice M S Sonak and Justice Jitendra Jain observed that the practice of instituting petitions bypassing the...
Customs Act | Interest U/S 28AA Is Automatic When There Is A Default Or Delay In Payment Of Duty: Bombay High Court
The Bombay High Court ruled that the demand for interest u/s 28AA of the Customs Act raised for non-payment of demand, within three months of raising the demand, is properly tenable on the part of the Customs Authority.Interest u/s 28AA is automatic, when there is a default or delay in payment of duty, added the Court. Section 28AA of the Customs Act provides that any judgment, decree, order or direction of any Court or Appellate Tribunal or in any other provision of the said Act or the rules...
Writ Courts Shall Not Act As Court Of Appeal Against Decision Of Lower Court Or Tribunals To Correct Errors Of Fact: Bombay High Court
The Bombay High Court recently clarified that writ courts shall not trench upon an alternate remedy provided by statute (Income tax Act) for granting any relief, by assuming jurisdiction under Article 226 of the Constitution.Similarly, writ courts shall not act as a court of appeal against the decision of the lower court or Tribunals, to correct errors of fact, observed the Division Bench of Justice M. S. Sonak and Justice Jitendra Jain. Facts of the case: A show cause notice (SCN) was issued...