Lawyer's Assumption That Judgment Was Postponed Cannot Justify IRCT's Delayed Appeal: Karnataka High Court

The Karnataka High Court has recently ruled that a lawyer's assumption that judgment would be postponed cannot justify a delayed appeal. The failure to check whether the judgment was subsequently delivered remained unexplained.Dismissing a commercial appeal filed by the Indian Railway Catering and Tourism Corporation (IRCTC) against Amulya Enterprises, the court refused to condone a 92-day delay in challenging a Commercial Court decree dated June 11, 2024.A Division Bench of Justice Anu...

Karnataka High Court Appoints Arbitrator In ₹2.53 Cr. Dispute Concerning Military Engineer Services

The Karnataka High Court on 8 October appointed retired District Judge Prabhavathi Hiremath as the sole arbitrator to resolve contractual disputes between Varsha Constructions and the Military Engineer Services over the construction of an Academic Block at the Air Force Technical College in Jalahalli, Bengaluru.A Single Judge Bench of Justice H.T. Narendra Prasad observed: “Having regard to the existence of the arbitration clause contained in the Construction Agreement, which provides for...

Karnataka High Court Upholds Unishire Property Attachment, Says Final K-RERA Order Can't Be Reopened

The Karnataka High Court on 6 October held that a developer cannot challenge a consequential property attachment after its appeal against the underlying Karnataka Real Estate Regulatory Authority (K-RERA) order has been dismissed and the order has attained finality. Justice E.S. Indiresh dismissed Unishire Promoters Private Limited's writ petition and upheld the attachment of its property in Bengaluru to recover unpaid dues owed to a homebuyer. The Bench observed: “In that view of the matter,...

Arbitrator Can't Make Independent Lease Termination Right Conditional On Default: Karnataka High Court

The Karnataka High Court on 16 September held that an arbitrator cannot interpret a contract in a manner that nullifies an independent right of termination expressly provided under its terms. A Division Bench comprising Justices D.K. Singh and H. Shanthi Bhushan dismissed an appeal filed by Padma, the landlord's legal representative, and upheld the Bengaluru Commercial Court's decision to partly set aside an arbitral award against Capgemini Technology Services India Limited. It observed: ...

Karnataka High Court Upholds Cancellation Of Occupancy Certificates For 33 Raffles Park Villas

The Karnataka High Court has recently upheld the cancellation of occupancy certificates issued for 33 villas in Raffles Residency Private Limited's Raffles Park project in Bengaluru, finding that the project was incomplete and unfit for occupation when the certificates were issued.Justice Suraj Govindaraj recalled an earlier order that had restored the certificates, finding that the developer had suppressed material documentary evidence bearing on the project's completion.The court observed that...

Karnataka High Court Refuses Relief in ₹22 Lakh Foreign Investment Case and Wealth Tax Return Default

The Karnataka High Court on 9 October dismissed two criminal petitions by Pradeep, a taxpayer, which sought to quash prosecution for allegedly failing to file wealth tax returns and to challenge the rejection of his discharge application in a separate case involving alleged false statements about investments worth approximately Rs. 22 lakh in two foreign companies. Justice H.P. Sandesh held that prosecution for failure to furnish wealth tax returns can proceed without a completed assessment...

Arbitration Clause Requiring Fresh Mutual Consent Is Not Binding: Karnataka High Court

The Karnataka High Court has refused to appoint an arbitrator in a dispute between Riemen Solution Private Limited and Swiggy Limited, holding that a contractual clause making arbitration conditional on fresh mutual consent does not constitute a binding arbitration agreement.“The Court can neither delete these words from the Agreement, nor rewrite the bargain between the parties by converting a conditional reference to arbitration into an unconditional one,” Justice H T Narendra Prasad held...

Karnataka High Court Closes Morgan Securities' Contempt Plea Against BPL Over Alleged Property Encumbrance

The Karnataka High Court has closed a contempt petition filed by Morgan Securities and Credits Private Limited against BPL Limited and its directors over the alleged violation of a 2020 order restraining the company from alienating or encumbering its properties.A Division Bench of Justice Jayant Banerji and Justice Tara Vitasta Ganju found that Morgan Securities had failed to produce documentary evidence of a breach. The court observed that the petitioner had not established that any of BPL's...

Director Can't Challenge Income-Tax Search Against Company In Individual Capacity: Karnataka High Court

On 6 October, the Karnataka High Court held that a company director cannot challenge an income-tax search and seizure conducted against the company in his individual capacity when the search is not directed against him personally. Justice B M Shyam Prasad found force in the Revenue's contention that Obedulla A, a director of Attica Gold Private Limited, could not challenge the search against the company in his individual capacity. The Bench observed: “If any person could have a grievance with...

Cheque Number Discrepancy Must Be Examined At Trial, Not Quashing Stage: Karnataka High Court

The Karnataka High Court on 28 September held that a discrepancy in the cheque number mentioned in a Section 138 Negotiable Instruments Act complaint and the complainant's subsequent police statement is a factual issue that cannot be decided at the stage of quashing the prosecution. Justice Suraj Govindaraj dismissed Umesh K.G.'s petition seeking to quash the proceedings initiated by Bharathi H.N. over an alleged failure to honour a cheque for Rs. 40 lakh. The Bench observed: “The discrepancy...

Karnataka High Court Upholds Injunction Against ACC Steel's Use Of 'ACC' Trademark

The Karnataka High Court has dismissed ACC Steel Pvt. Ltd.'s appeal against a commercial court decree restraining it from using “ACC” as a trademark or as part of its company name in the cement company's plea. A Division Bench of Justice D.K. Singh and Justice H. Shanthi Bhushan held that ACC Steel could not reduce the dispute to the fact that its steel products fall under the trademark classification for metals and metal goods, while ACC Limited's cement products are classified separately,...

Infosys, Infosys BPO Not Comparable To Goldman Sachs: Karnataka HC Upholds ITAT Order

The Karnataka High Court has upheld the exclusion of Infosys Ltd and Infosys BPO Ltd as comparable companies for Goldman Sachs Services Pvt Ltd in a transfer pricing dispute, finding no reason to interfere with the tribunal's factual assessment of the companies.A Division Bench of Justice S.G. Pandit and Justice Chillakur Sumalatha dismissed the Income Tax Department's appeal against the tribunal's order concerning Goldman Sachs for assessment year 2014-15.The department had challenged, among...