Pendency Of Conciliation Proceedings Under MSME Act Does Not Bar Interim Relief U/S 9 Of A&C Act To Preserve Subject Matter: Calcutta HC

The Calcutta High Court has held that pendency of conciliation proceedings does not bar the grant of limited interim relief under section 9 of the Arbitration and Conciliation Act, 1996 ("Arbitration Act"), where such relief is essential to preserve the subject matter of the dispute. Justice Gaurang Kanth held while allowing a Section 9 application filed by Rishi Chemical Works...

Bar U/S 42 Of Arbitration Act Not Attracted Where Seat Is Chosen Before First Application Is Filed: Calcutta High Court

The Calcutta High Court has held that where parties have already chosen a seat of arbitration before the first application is filed, the courts exercising jurisdiction over the seat alone will have jurisdiction over all subsequent applications, including those under sections 34 and 36 of the Arbitration and Conciliation Act, 1996 ("Arbitration Act") notwithstanding that earlier...

Escrow Agreement Executed In Furtherance Of Share Transfer Agreement With Arbitration Clause Renders Disputes Arbitrable: Calcutta HC

The Calcutta High Court has held that where an escrow agreement is intrinsically linked to or executed in furtherance of a share transfer agreement containing an arbitration clause, disputes arising out of such escrow arrangement are also arbitrable, even if the escrow agreement does not independently contain any arbitration clause. A Division Bench comprising Justice Debangsu Basak...

GST | Calcutta High Court Quashes Excess ITC Demand Pertaining To Initial Years Of GST Rollout

The Calcutta High Court has quashed the order passed by Appellate Authority dismissing appeal against Section 73 demand, preliminary, “without appreciating the worth of the documents”. Justice Om Narayan Rai observed that there was 'total non-consideration of material on record' upon tracing through the paper book as well as relevant documents annexed to the writ petition which...

Buyer Cannot Seek Separate Arbitral Reference For Counter-Claims Once Arbitration Under MSMED Act Has Commenced: Calcutta High Court

The Calcutta High Court has held that once arbitral proceedings are commenced before the Micro and Small Enterprises Facilitation Council (“Council”) under Section 18(3) of the MSMED Act, 2006, a buyer cannot seek appointment of a separate arbitrator under section 11 of the Arbitration and Conciliation Act, 1996 ("Arbitration Act") and therefore all claims including claims for damages...

GST | Stereo System In E-Rickshaw An Input, Calcutta High Court Grants Refund To Manufacturer

The Calcutta High Court, in a matter concerning admissibility of Input Tax Credit (ITC) for purchase of 'stereo system' to be used in E-rickshaw, has granted Refund claim of Unutilized Input Tax Credit under inverted duty structure amounting to approximately ₹8 lakhs. The Calcutta High Court was called-upon to decide whether "Stereo System" was an input/ raw material in...

Limitation Not “Extinguishing Engine' For Substantive Rights: Calcutta High Court Condones 2262 Day Delay In Filing Appeal

The Calcutta High Court held that the law of limitation is not meant to extinguish substantive rights and must be applied with a liberal approach where delay is caused by bona fide conduct. The bench condoned the delay of 2262 days in filing the CESTAT appeal, holding that the assessee's bona fide pursuit of settlement under the Sabka Vishwas (Legacy Dispute Resolution) Scheme,...

Disputes Over Oppressive Extraordinary General Meetings Lie Outside Civil Courts: Calcutta High Court

The Calcutta High Court has held that disputes alleging oppression of a member through an Extraordinary General Meeting are company law disputes that fall squarely within the jurisdiction of the National Company Law Tribunal. The court reiterated that these disputes cannot be examined by a civil court. Bhaskar Gupta, a long-standing member of Calcutta Club Ltd for over four decades and a...

Arbitration Petition Seeking Stay Of Eviction Over Immovable Property Is “Suit For Land”; Outside Jurisdiction Of Original Side: Calcutta HC

The Calcutta High Court has held that a petition filed under Section 9 of the Arbitration Act, seeking a stay on eviction notice in respect of immovable property would amount to a suit for land and is not maintainable if the property is situated outside the territorial jurisdiction of the court's original side. The court said proceedings which directly impact possession of land cannot...

Award Liable To Be Set Aside If Arbitral Tribunal Rewrites Contract Or Ignores Determinative Clauses: Calcutta High Court

The Calcutta High Court has recently held that an arbitral tribunal does not have the authority to rewrite the terms of a contract, ignore its determinative clauses on notions of equity, fairness or public law principles. It said if the tribunal travels beyond the contract itself, it amounts to a jurisdictional transgression, rendering the award illegal. “An Arbitral Tribunal does...

Arbitration Clause In Expired Lease Cannot Be Invoked In Dispute Over Alleged Fresh Contract: Calcutta High Court Dismisses HDFC's Plea

The Calcutta High Court has held that once a lease stands expired, disputes arising out of an alleged fresh or independent contract cannot be referred to arbitration by relying on an arbitration clause contained in the expired lease deed.Justice Aniruddha Roy, while dismissing an application filed by HDFC Bank Limited under Section 8 of the Arbitration and Conciliation Act, 1996, held that...

'Strong Prima Facie Case': Calcutta High Court Flags Unfair Exclusion Of IndiaMART By ChatGPT, Defers Interim Relief Pending OpenAI Hearing

The Calcutta High Court has held that IndiaMART has made out a strong prima facie case of selective discrimination after being allegedly excluded from ChatGPT-generated search results, but declined to grant ad-interim relief on the ground that such an order would virtually amount to granting final relief without hearing OpenAI and the other respondents.Justice Ravi Krishan Kapur, sitting in...