Corporate
Referral Charges Received By Auto Dealers For Bank & Insurance Promotion Subject To Service Tax : Supreme Court
The Supreme Court on Wednesday (August 19) held that the referral charges received by automobile dealers from banks and insurance companies for facilitating vehicle loans and insurance policies are taxable as “Business Auxiliary Service” under the Finance Act, 1994. “The assessee is promoting the business of the banks and the insurance company for which they receive an amount as stipulated in the agreement.”, observed a bench of Justice J.B. Pardiwala and Justice K. Vinod Chandran. TVS Motor...
From Risk Management To Business Strategy: Evolution Of Corporate Legal In India
For a long time, corporate legal departments were viewed as cost centres that were valued more for preventing issues than for producing results. That view is changing quickly. As businesses invest more in internal competence than in outside counsel, general counsel now sit alongside CEOs and boards as strategic decision-makers, evaluated on business performance measures rather than lawsuit results.What is causing this? Rapid technological innovation, the professionalization of legal operations...
Supreme Court Flags Anomalies In Fixing Consumer Fora Jurisdiction Based On Consideration Paid, Seeks Centre's Response
The Supreme Court has flagged certain anomalies which can arise from the provisions of the Consumer Protection Act, 2019, if the pecuniary jurisdiction of the consumer fora is determined as per the value of consideration paid by the consumer for goods or services, and sought the response of the Union Government.Unlike the repealed 1986 Act, where the pecuniary jurisdiction of consumer...
Can Pre-Deposit Be Mandated To Invoke Arbitration? Supreme Court Refers To Larger Bench, Doubts 2009 Precedent
The Supreme Court on Monday (August 17) referred the question to a larger Bench as to whether pre-deposit conditions in arbitration clauses, requiring contractors to deposit a percentage of the claim amount before invoking arbitration, are valid. A bench of Justice Manoj Misra and Justice Manmohan expressed doubt about the binding nature of the three-judge Bench decision in S.K. Jain v....
Supreme Court Imposes Rs. 10 Lakh Cost On Reliance Industries Ltd For Obstructing 20-Year-Old NTPC Suit
The Supreme Court on Friday (August 14) imposed a cost of Rs. 10 lakhs on Reliance Industries Ltd. for prolonging a 20-year-old commercial suit filed by NTPC. The cost imposed was directed to be deposited with the Supreme Court Advocates on Record Association. A bench of Justice PS Narasimha and Justice Alok Aradhe strongly disapproved of RIL's litigation strategy, noting that the suit filed...
Interest Accumulated In Suspense Account After NPA Classification Remains Recoverable As Part Of "Debt" : Supreme Court
The Supreme Court on Wednesday (August 12) held that an interest accumulated in a separate suspense account, pursuant to the declaration of the debtor's account as a Non-Performing Asset, can be recovered by the banks as the same continues to form part of the “debt” due from the borrower and cannot be ignored while calculating outstanding dues. “PNB is entitled to claim the interest...
Arbitration | Post-Award Section 9 Application By Unsuccessful Party Maintainable In Exceptional Cases : Supreme Court
The Supreme Court on Tuesday (August 11) held that to prevent an award holder's enrichment of a bank guarantee while an award was under challenge, an interim relief under Section 9 of the Arbitration & Conciliation Act, 1996 can be extended on an award debtor's application to preserve the efficacy of the challenge in Section 34. A bench of Justice KV Viswanathan and Justice Alok...
Trademark Suit | Defendant Can Cross-Examine Plaintiff On Period Of Brand Use Though Written Statement Not On Record : Supreme Court
The Supreme Court has held that a defendant in a trademark infringement suit can question the plaintiff during cross-examination about the documents showing when the disputed brand name was first used, even if the defendant's written statement has not been taken on record.A Bench of Justice JB Pardiwala and K Vinod Chandran set aside the High Court's order which had treated the question as...
Insider Trading Presumed When Person Having Confidential Information Trades; Loss Or Profit Irrelevant : Supreme Court
The Supreme Court on Tuesday (August 11) held that a mere possession of Unpublished Price Sensitive Information (UPSI) coupled with trading in securities during the UPSI period is sufficient to attract presumption for insider trading under the SEBI (Prohibition of Insider Trading) Regulations, 2015. Setting aside the Securities Appellate Tribunal's (SAT) order, a bench of Justice Sanjay...
GST | Exporters Whose Applications Were Pending Before Omission Of Rule 96(10) Entitled To IGST Refund : Supreme Court
The Supreme Court has given a quietus to the controversy surrounding exporters' eligibility to claim Integrated Tax (IGST) refunds, with their applications pending when the rule restricting such claims was omitted in 2024 without any saving clause. Providing relief to exporters, a bench of Justice JB Pardiwala and Justice K Vinod Chandran held that exporters whose applications were pending...