Bombay High Court Weekly Round-Up: August 07, 2023 To August 13, 2023

Coventry Estates Pvt. Ltd. v. Joint Commissioner CGST and Central Excise 2023 LiveLaw (Bom) 363

Vinayak Ukharam Chavhan v. Divisional Joint Registrar and Ors. 2023 LiveLaw (Bom) 364

Marathwada Legal and General Education Society, Aurangabad v. Dr. Babasaheb Ambedkar Marathwada University, Aurangabad and Ors. 2023 LiveLaw (Bom) 365

Shiney Suraj Ahuja v. State of Maha & others 2023 LiveLaw (Bom) 366

Ruju R. Thakker v. State of Maharashtra 2023 LiveLaw (Bom) 367

Mahaveer Realities & Ors. v. Shirish J. Shah 2023 LiveLaw (Bom) 368

Cummins India Limited v. ACIT 2023 LiveLaw (Bom) 369

ABC v. XYZ 2023 LiveLaw (Bom) 370

Kalpataru Power Transmission Ltd. v. State of Maharashtra 2023 LiveLaw (Bom) 371

Reports/Judgments

Shifting Of Commissionerates, Re-Organisation Of Office, Not A Valid Justification For Inordinate Delay In SCN Adjudication: Bombay High Court

Case Title: Coventry Estates Pvt. Ltd. v. Joint Commissioner CGST and Central Excise

Citation: 2023 LiveLaw (Bom) 363

The Bombay High Court has held that the belated hearing of the show cause notice would amount to a violation of the principles of natural justice.

"Merely for the reason that there was shifting of the Commissionerates and reorganisation of its office, there would be no reason to abdicate and/or not comply with the obligations under the Act to promptly and/or expeditiously adjudicate the show cause notice, to be taken to its logical conclusion," the bench of Justice G.S. Kulkarni and Justice Jitendra Jain observed.

The petitioner/assessee was engaged in the construction of a residential complex. The petitioner is a construction contractor undertaking work in the SEZ. It received a refundable deposit.

Registrar Cannot Dissolve Cooperative Society's Management Committee Based On Unaccepted Resignations: Bombay High Court

Case Title: Vinayak Ukharam Chavhan v. Divisional Joint Registrar and Ors.

Citation: 2023 LiveLaw (Bom) 364

The Bombay High Court held that Registrar (Co-operative Societies) cannot dissolve the board of directors of a society on account of half of the members of the committee resigning before the society has accepted the resignations.

Justice Kishore C Sant of the Aurangabad bench in a writ petition quashed Registrar’s order dissolving the board of directors of a cooperative society whose six out of 12 members resigned at once, observing that the resignations hadn’t been accepted by the society.

No Reservation To Post Of College Principal: Bombay High Court Paves Way For Recruitment Of Principal At Law College In Aurangabad

Case Title: Marathwada Legal and General Education Society, Aurangabad v. Dr. Babasaheb Ambedkar Marathwada University, Aurangabad and Ors.

Citation: 2023 LiveLaw (Bom) 365

The Bombay High Court reiterated that no reservation mandated by the Maharashtra Educational Institutions (Reservation in Teachers’ Cadre) Act, 2021 (Act of 2021) is applicable to the post of principal in colleges.

A division bench of Justice Mangesh S Patil and Justice Shailesh P Brahme sitting at Aurangabad held that a Government Resolution dated September 23, 2016, excluding the post of principal from reservation prevails over the Maharashtra Public Universities Act, 2016, that provides for reservation for teachers.

Bombay High Court Directs Passport Authority To Consider Renewing Shiney Ahuja's Passport For 10 Yrs Pending Appeal Against Rape Conviction

Case Title: Shiney Suraj Ahuja v. State of Maha & others

Citation: 2023 LiveLaw (Bom) 366

The Bombay High Court directed the Passport Authority of India not to withhold the renewal of actor and rape convict Shiney Ahuja’s passport on grounds of his pending appeal in High Court.

Justice Amit Borkar observed, “Considering the fact that during pendency of present appeal passport was renewed on more than six occasions and there is no violation of bail conditions, the applicant has made out a case for direction to the passport authority to renew the applicant’s passport, provided he is otherwise liable for renewal of passport for ten years.”

"Are Five Years Not Enough To Remove Potholes?": Bombay High Court Summons Six Municipal Commissioners In Contempt Plea

Case Title: Ruju R. Thakker v. State of Maharashtra

Citation: 2023 LiveLaw (Bom) 367

The Bombay High Court summoned six Municipal Commissioners of the Mumbai Metropolitan Region to explain the poor condition of roads and open manholes.

The Municipal Commissioners include BMC, Kalyan Dombivali Municipal Corporation, Mira Bhayander Municipal Corporation, Vasai Virar Municipal Corporation, Navi Mumbai Municipal Corporation and Thane Municipal Corporation. The secretary of MMRDA has also been asked to remain present.

A division bench comprising Chief Justice Devendra Kumar Upadhyay and Justice Arif Doctor was livid after learning about frequent accidents even five years after High Court's speaking order on the issue.

The court was hearing a contempt petition filed by Advocate Ruju Thakkar on the dismal condition of roads.

Time Limit For Passing Award Under S. 29A Of Arbitration Act A Non-Derogable Provision, S.4 Of The Act Has No Application: Bombay High Court

Case Title: Mahaveer Realities & Ors. v. Shirish J. Shah

Citation: 2023 LiveLaw (Bom) 368

The Bombay High Court ruled that even though the parties had participated in the arbitral proceedings continued by the Arbitrator after his mandate had expired, the same cannot amount to a waiver under Section 4 of the Arbitration and Conciliation Act, 1996 (A&C Act). The court remarked that Section 29A of the A&C Act that provides the time limit for passing the award, is a non-derogable provision and thus, Section 4 of the Act has no application.

The bench of Justice R.I. Chagla made the observation in a petition for extension of time limit for passing of the award filed by the petitioner-claimant, Mahaveer Realities. The court, while appointing a substitute arbitrator, said that the arbitral proceedings would continue from the expiry of the mandate of the erstwhile Arbitrator. It added that proceedings carried on by the erstwhile Arbitrator after the expiry of its mandate, shall be disregarded by the substitute Arbitrator.

The bench dismissed the claim that since the parties knowingly proceeded before the Arbitrator after the expiry of its mandate, they were deemed to have waived their right to object to the continuation of proceedings after expiry of the mandate.

Royalty Payment For Use Of Technology Is Inextricably Linked With Manufacturing Activity: Bombay High Court

Case Title: Cummins India Limited v. ACIT

Citation: 2023 LiveLaw (Bom) 369

The Bombay High Court held that the transaction of payment of royalty for the use of technology is inextricably linked with manufacturing activity and should be aggregated with other international transactions in the manufacturing segment for the purposes of benchmarking it.

The bench of Justice K.R. Shriram and Justice Firdosh P. Pooniwalla has observed that the Tribunal was totally incorrect in saying that accepting the aggregation of royalty payments with other international transactions under the manufacturing segment for the Assessment Year 2006-2007 was in the context of an earlier agreement under which the royalty was paid.

Can Proceedings Under Domestic Violence Act Be Transferred To Family Court? Bombay HC Directs Registry To Place Matter Before Appropriate Bench

Case Title: ABC v. XYZ

Citation: 2023 LiveLaw (Bom) 370

The Bombay High Court directed its Registry to place before an appropriate bench a clutch of petitions to decide a common legal issue – whether family courts are competent to hear domestic violence cases.

“A common question involved is whether the Family Court established under the Family Courts Act, 1984 is competent to conduct the proceedings and give the relief under the Protection of Women from Domestic Violence Act, 2005 and whether the proceedings under the DV Act can be transferred to the Family Court,” the court observed.

Justice Sarang Kotwal said this question has arisen in a number of pleas pending before his bench and there are conflicting decisions of various single judges on the issue.

Bombay High Court Quashes Review Order Which Disallowed Deductions, Being Contra To Natural Justice

Case Title: Kalpataru Power Transmission Ltd. v. State of Maharashtra

Citation: 2023 LiveLaw (Bom) 371

The Bombay High Court quashed the review order against Kalpataru Power Transmission, disallowing works-contract deductions beyond Show Cause Notice (SCN).

The bench of Justice G. S. Kulkarni and Justice Jitendra Jain has observed that the review order is in patent breach of the principles of natural justice and that, without jurisdiction, the petition deserved to be entertained.

Other Developments

Nitin Desai Suicide Case: Edelweiss Group Chairman Moves Bombay High Court Against Abetment FIR

The group Chairman of Edelweiss Financial Services and the CEO of Edelweiss Asset Reconstruction Company Limited have approached the Bombay High Court to quash the FIR against them for allegedly abetting art director Nitin Desai’s suicide.

Rashesh Shah is the Chairman of Edelweiss Financial Services and Raj Kumar Bansal is the Managing Director and CEO of Edelweiss Asset Reconstruction Company Limited.

The pleas were mentioned before the bench of Justices Nitin Sambre and RN Laddha by Senior Advocate Amit Desai seeking an urgent hearing on Tuesday. Desai informed the court the duo merely followed the official procedure for recovery.

Justice RB Deo Of Bombay High Court Resigns, Announces Resignation In Open Court

Justice Rohit Deo, the second seniormost judge at the Nagpur bench of the Bombay High Court has resigned.

Heading the division bench alongside Justice MW Chandwani, Justice Deo announced his resignation in open court at 12 pm.

PIL Filed In Bombay High Court Seeking Guidelines Against Derogatory Remarks About Deceased Public Figures

A public interest litigation (PIL) has been filed in the Bombay High Court seeking guidelines to prevent the utterance and unrestricted circulation of derogatory remarks about deceased individuals who are held in high esteem.

A division bench of Chief Justice Devendra Kumar Upadhyaya and Justice Arif S Doctor posted the matter for hearing on August 7. The PIL was filed in response to remarks made by Hindutva activist Sambhaji Bhide about Mahatma Gandhi.

The petition also prays for directions to the Maharashtra government to identify deceased individuals held in high esteem by various groups in the state and declare an official list. Following this, the petition proposes issuing directions to prohibit the publication of derogatory remarks about any such revered persons on any platform, including social media.

Bombay High Court Calls For Action Against Developers In Default Of Transit Rent To Residents

The Bombay High Court called for the government to take drastic steps to ensure that developers do not default in payment of transit rent to residents/tenants whose buildings are undergoing redevelopment.

A division bench of Justice GS Patel and Justice Neela Gokhale, in a writ petition involving a property that has been under redevelopment since 2012 without any progress, remarked :-

“We will not sit by and allow residents of this city to be treated as a necessary evil, an irritant or a nuisance in developers’ pursuit of profits or their worship of Mammon…Indeed, the situation across the city is now so dire that we believe it is necessary for the government to step in with drastic steps to curb errant builders in default of their obligations.”

The court also warned developers that it will cancel the no objection certificates for their projects in case of default in their obligations.

Centre Notifies Appointment Of Advocate Manjusha Deshpande As Additional Judge Of Bombay High Court

The Central Government has notified the appointment of Advocate Manjusha Ajay Deshpande as an Additional Judge of the Bombay High Court for a period of two years.

Law Minister Arjun Ram Meghwal announced her appointment on 'X', (formerly Twitter).

Nitin Desai Suicide Case: Bombay High Court Issues Notice On Edelweiss Representatives' Quashing Plea, To Consider Interim Reliefs On August 18

The Bombay High Court issued notice to the State on the quashing plea moved by group Chairman of Edelweiss Financial Services and the CEO of Edelweiss Asset Reconstruction Company Limited, who are booked for allegedly abetting art director Nitin Desai’s suicide.

Bench of Justice Nitin Sambre and Justice RN Laddha however refrained from passing immediate orders for interim protection and said the prayer for interim reliefs of “no coercive steps” and a stay of investigation will be considered on August 18, the next date of hearing.

Rashesh Shah is the Chairman of Edelweiss Financial Services and Raj Kumar Bansal is the Managing Director and CEO of Edelweiss Asset Reconstruction Company Limited. The duo claimed they merely followed the official procedure for recovery.

Pothole Accidents Are Man-Made Disasters, State Has Constitutional Duty To Protect Rights Under Article 21: Bombay High Court

The Bombay High Court on Friday was livid at the Maharashtra Government for failing to comply with its directions and called deaths owing to poorly maintained roads as "man-made disasters".

A division bench of Chief Justice Devendra Kumar Upadhyay and Justice Arif Doctor were referring to the State's indecision in setting up a Centralised Grievance Redressal Mechanism for addressing road-related complaints as well as handing over of all remaining roads in Mumbai to BMC.

Met Nitin Desai Only Once Post Loan Disbursal, Taking Legal Action Against Defaulter Not Abetment Of Suicide: Edelweiss Chairman To Bombay HC

Group Chairman of Edelweiss Financial Services and the CEO of Edelweiss Asset Reconstruction Company Limited (EARC), who are booked for allegedly abetting art director Nitin Desai’s suicide, have claimed that they only met Desai once after his loan was approved. They have further submitted before the Bombay High Court that they had limited dealings with Desai’s loan account.

Rashesh Shah is the Chairman of Edelweiss Financial Services and Raj Kumar Bansal is the Managing Director and CEO of EARC. The duo have argued that they merely followed the lawful procedure for loan recovery, and mere allegation of initiating legal proceedings to recover dues from a debtor does not make out offence of abetment of suicide.