Can NCLT Declare A Registered Sale Deed Void? Kerala High Court Explains

The Kerala High Court has recently held that the National Company Law Tribunal (NCLT) cannot declare a registered sale deed void and not binding on a company merely because a dispute involves allegations of oppression and mismanagement. “When the reliefs sought in the suits are considered alongside the scope of application under Sections 241 and 242 of the Companies Act 2013, it would be difficult to conclude that the National Company Law Tribunal has jurisdiction to declare a registered...

Kerala HC Sets Aside NCLT Order Refusing To Implead Alleged Share Transferees In Company Mismanagement Case

The Kerala High Court has set aside an order of the National Company Law Tribunal, Kochi Bench, refusing to implead two alleged share transferees in a company petition alleging mismanagement, holding that their presence was necessary for effective adjudication of the dispute over the original petitioners' shareholding.Justice Harisankar V Menon held that the alleged transferees were proper parties even though no specific relief had been sought against them, as their presence was necessary to...

Kerala High Court Dismisses Ex-CM Pinarayi Vijayan's Plea To Appeal Against FIR Direction In CMRL-Exalogic Case

The Kerala High Court on Thursday dismissed the leave petitions filed by former Chief Minister Pinarayi Vijayan, his daughter Veena Vijayan and former Minister Mohammed Riyas, seeking permission to appeal against a Single Bench order directing the registration of an FIR against them in the CMRL Exalogic case.On October 9, a Single Judge Bench of Justice A. Badharudeen directed the registration of an FIR against Pinarayi Vijayan, Veena Vijayan, and Mohammed Riyas over alleged offences under the...

Kerala High Court Rejects State Nirmithi Kendra's Plea To Prematurely Withdraw ₹3 Crore Bank Deposits

The Kerala High Court has rejected Kerala State Nirmithi Kendra's plea to withdraw ₹3 crore from fixed deposits with Bank of India before maturity. The Bench held that early withdrawal was allowed only in exceptional circumstances under the bank's non-callable deposit scheme.Justices Anil K. Narendran and Muralee Krishna S set aside a July 16, 2026 order directing the bank to release the deposits with normal fixed deposit interest.The bench also held that the contractual dispute involved...

Commercial Suits Filed Before Civil Courts Cannot Be Rejected As Barred By Law: Kerala High Court

The Kerala High Court has held that a plaint involving a commercial dispute, filed before an ordinary civil court instead of a designated Commercial Court, cannot be rejected under Order VII Rule 11(d) of the Code of Civil Procedure (CPC) merely on that ground, as the Commercial Courts Act, 2015 does not impose a statutory bar on filing such suits.Justice S. Manu made the observation while rejecting an appeal filed by two defendants against the Thrissur Sub Court's February 14, 2025 order...

Discount On Shares Issued Under ESOP Is Deductible Business Expenditure: Kerala High Court

The Kerala High Court has held that the discount arising from the allotment of shares to employees under an Employee Stock Option Plan (ESOP) constitutes revenue expenditure deductible under Section 37(1) of the Income Tax Act, 1961. A Division Bench of Justice Devan Ramachandran and Justice Basant Balaji dismissed the Revenue's appeal against Geojit Financial Services Ltd and affirmed the order of the Income Tax Appellate Tribunal, Cochin Bench. The Court held that the difference...

Cheque For Time-Barred Debt Can Still Invite Prosecution If Dishonoured: Kerala High Court

The Kerala High Court has recently held that issuing a cheque towards repayment of a time-barred debt is not legally prohibited and its dishonour can attract prosecution under Section 138 of the Negotiable Instruments Act, 1881.“When a cheque is issued towards a time-barred debt by reviving the period of limitation, merely for the reason that the cheque was issued towards a time-barred debt does not make a prosecution under Section 138 of the NI Act impermissible,” Justice A. Badharudeen...

Supplier Cannot Automatically Recover GST From Recipient Without Contractual Basis: Kerala High Court

The Kerala High Court has held that a supplier's statutory obligation to pay Goods and Services Tax (GST) does not automatically entitle the supplier to recover the tax separately from the recipient of the service.“The liability of a supplier to discharge the tax payable under the statute and the question as to whether the supplier is entitled to pass on the burden of such tax to the recipient are distinct and separate matters," the court ruled"However, the right to collect tax from the...

Kerala High Court Quashes GST Notice Issued Before Audit Findings Were Finalised

The Kerala High Court has held that a GST show cause notice issued on the basis of preliminary audit observations, before the audit findings attain finality, cannot be sustained. The court also held that tax authorities must consider a taxpayer's reply to discrepancies before finalising the audit findings.Justice Ziyad Rahman A.A. was hearing a petition filed by The Alleppey Company Ltd., challenging a GST show cause notice issued despite its requests for additional time to respond to audit...

Kerala High Court Orders FIR Against Pinarayi Vijayan, Daughter In CMRL-Exalogic Case

The Kerala High Court on Friday directed the registration of an FIR against Pinarayi Vijayan, his daughter Veena Vijayan, and former minister Mohammed Riyas in the CMRL-Exalogic case over alleged offences under the Prevention of Corruption Act. Justice A. Badharudeen passed the order on a petition filed by advocate K.M. Shajahan, who sought an FIR based on material forwarded by the Enforcement Directorate (ED). The petitioner also sought to transfer the investigation to the Vigilance and...

Kerala High Court Upholds Rejection Of South Indian Bank's ₹52 Cr. Additional Bad-Debt Claim To ITAT

The Kerala High Court on 28 September held that the Income Tax Appellate Tribunal (ITAT) cannot refuse to examine a bad-debt disallowance on merits merely because a separate additional claim was raised before the first appellate authority. A Division Bench comprising Justices Devan Ramachandran and Basant Balaji remanded South Indian Bank's Rs. 14.10 crore bad-debt disallowance to the ITAT for fresh consideration, while upholding the rejection of the Bank's separate Rs. 52 crore additional...

Kerala High Court Upholds GST Recovery Against Satwa Solutions For Failure To Raise Timely Objection

The Kerala High Court on 26 September refused to interfere with GST recovery proceedings against Satwa Solutions and upheld the dismissal of its writ petition challenging the proceedings arising from a statutory notice and subsequent final order. A Division Bench comprising Justices Devan Ramachandran and Basant Balaji held that the taxpayer had failed to raise its objection to the notice at the appropriate stage. It observed: “It is unmistakable from the attendant circumstances, that the...