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  • Delhi High Court Sets Aside Pre-CIRP Demand Notices: Application of Clean Slate Theory Post-IBC Resolution Plan Approval

    Delhi High Court Sets Aside Pre-CIRP Demand Notices: Application of Clean Slate Theory Post-IBC Resolution Plan Approval

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 05.09.2026

    Delhi High Court Sets Aside Pre-CIRP Demand Notices: Application of Clean Slate Theory Post-IBC Resolution Plan Approval

    This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .  

    A recent decision by the Delhi High Court in the case of GARG INOX LTD & ANR. vs. Union of India & Ors. has reaffirmed the legal principle that once a resolution plan under the Insolvency and Bankruptcy Code, 2016 (IBC) is approved, all prior claims not included in the plan are extinguished. This article provides a detailed analysis of the case, its background, the legal arguments, and the implications for stakeholders in insolvency proceedings.

    Background of the Case

    GARG INOX LTD (the petitioner company) underwent a Corporate Insolvency Resolution Process (CIRP) initiated by the National Company Law Tribunal (NCLT) on 25 July 2017. The successful resolution applicant’s plan was approved by the NCLT on 4 December 2018, as per Section 31 of the IBC.

    Despite the approval, various government authoritiesβ€”including the Income Tax Department, Regional Provident Fund Commissioner, Commissioner of Customs, DGGSTI Department, and Gram Panchayat Karegaonβ€”issued demand notices for dues that arose before the CIRP commencement date. The petitioners challenged these notices, arguing that such claims were settled or extinguished by the approved resolution plan.

    Key Legal Issues

    1. Whether statutory and other claims arising before the CIRP date can be enforced after approval of the resolution plan.
    2. Whether the successful resolution applicant can be held liable for such pre-CIRP claims not included in the resolution plan.

    Court’s Analysis and Findings

    Reliance on Supreme Court Precedents

    The petitioners relied on landmark Supreme Court judgments:

    • Ghanshyam Mishra & Sons Pvt. Ltd. vs. Edelweiss Asset Reconstruction Co. Ltd.: The Supreme Court held that once a resolution plan is approved, all claims not included in the plan are extinguished and cannot be enforced later.
    • Essar Steel India Ltd. Committee of Creditors vs. Satish Kumar Gupta: The Court emphasized that a successful resolution applicant must not face undecided claims after the resolution plan is approved, ensuring certainty and a “fresh slate” for the new management.

    Application of the “Clean Slate Theory”

    The Delhi High Court reiterated the “Clean Slate Theory,” stating that the resolution applicant should not be burdened with past liabilities not accounted for in the resolution plan. This approach ensures finality and encourages resolution applicants to revive distressed companies without fear of unforeseen liabilities.

    Extinguishment of Pre-CIRP Claims

    The Court found that all demand notices issued for periods prior to the CIRP initiation date (25 July 2017) were invalid, as those claims were not part of the approved resolution plan. The Court set aside these notices, reinforcing that such claims cannot be enforced post-approval.

    Implications of the Judgment

    1. Certainty for Resolution Applicants: Prospective applicants can confidently take over distressed companies, knowing that only liabilities included in the resolution plan will bind them.
    2. Finality in Insolvency Proceedings: The judgment discourages endless litigation and claims, promoting closure and efficient resolution.
    3. Binding Effect on All Stakeholders: The decision is binding on all creditors, including government authorities, ensuring uniformity in the treatment of claims.

    Conclusion

    The Delhi High Court’s judgment in GARG INOX LTD & ANR. vs. Union of India & Ors. is a significant reaffirmation of the principles underlying the IBC. It upholds the sanctity of the resolution plan and provides much-needed clarity and confidence to resolution applicants and stakeholders in the insolvency process. This decision is expected to further streamline insolvency proceedings and promote the revival of distressed assets in India.

    Connected Matter

    Delhi High Court- Customs Department Cannot Enforce Pre-Insolvency Claims Not Submitted During CIRP

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Source: Delhi High Court

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Delhi High Court Safeguards PHENSEDYL Mark from Infringement and Passing Off

    Delhi High Court Safeguards PHENSEDYL Mark from Infringement and Passing Off

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 05.09.2026

    Delhi High Court Safeguards PHENSEDYL Mark from Infringement and Passing Off

    This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .  

    A recent judgment by the Delhi High Court has set a significant precedent in the field of pharmaceutical trademark protection. The case, Opella Healthcare Group vs. Pureca Laboratories Pvt Ltd, revolved around the alleged infringement and passing off of the well-known trademark “PHENSEDYL” by the defendant’s use of the mark “PHENSERYL”. This article provides a detailed overview of the case, the court’s findings, and its broader implications for intellectual property rights in the pharmaceutical sector.

    Background of the Case

    • Plaintiff: Opella Healthcare Group, part of the global Sanofi Group, a major player in pharmaceuticals.
    • Defendant: Pureca Laboratories Pvt Ltd.
    • Dispute: The plaintiff alleged that the defendant’s use of the mark “PHENSERYL” and similar packaging was deceptively similar to their registered trademark “PHENSEDYL”, leading to trademark infringement and passing off.

    Key Facts

    1. History of the PHENSEDYL Mark:
      • Adopted in 1954 for pharmaceutical products treating symptoms like running nose, sneezing, and throat irritation.
      • Registered in India since 21 July 1954 in Class 05 (pharmaceutical preparations for human and veterinary use).
      • Widely marketed in India since 1995, with distinctive blue and pink packaging.
    2. Defendant’s Actions:
      • Registered the mark “PHENSERYL” in Class 05, claiming use since December 2016.
      • Adopted similar trade dress and packaging, leading to confusion among consumers.
    3. Legal Proceedings:
      • Plaintiff filed for a permanent injunction and rectification of the defendant’s trademark and copyright registrations.
      • The court had previously cancelled the defendant’s registrations, finding them deceptively similar to the plaintiff’s mark.

    Court’s Analysis and Findings

    • Ex Parte Proceedings: The defendant failed to appear in court, and the matter proceeded ex parte.
    • Prior Use and Goodwill: The court recognized Opella Healthcare Group as the prior adopter and continuous user of the “PHENSEDYL” mark, with substantial goodwill and reputation in India.
    • Deceptive Similarity:
      • The marks “PHENSEDYL” and “PHENSERYL” were found to be visually and phonetically similar.
      • The packaging and trade dress used by the defendant closely resembled that of the plaintiff, increasing the likelihood of consumer confusion.
    • Public Interest in Pharmaceuticals:
      • The court emphasized that confusion in pharmaceutical products can be life-threatening, not just inconvenient, citing Supreme Court precedent.
      • A higher threshold for proving confusing similarity applies in the pharmaceutical sector.
    • Summary Judgment:
      • The court granted summary judgment in favor of the plaintiff, noting that the defendant had no real prospect of defending the claims.
      • The suit was decreed in favor of Opella Healthcare Group, granting a permanent injunction against the defendant.

    Implications of the Judgment

    1. Strengthening Trademark Protection:
      • The judgment reinforces the importance of protecting established pharmaceutical trademarks against deceptively similar marks.
    2. Consumer Safety:
      • By preventing confusion between medicinal products, the court prioritized public health and safety.
    3. Judicial Efficiency:
      • The use of summary judgment procedures in commercial disputes ensures timely resolution, especially when the defendant lacks a credible defense.

    Conclusion

    The Delhi High Court’s decision in Opella Healthcare Group vs. Pureca Laboratories Pvt Ltd is a landmark in pharmaceutical trademark law. It underscores the judiciary’s commitment to protecting intellectual property, ensuring consumer safety, and promoting fair competition in the pharmaceutical industry.

    Connected Matter

    Delhi High Court Invalidates Trademark Assignment, Affirms Corporate Ownership of ‘Su-Kam’ Brand

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Source: Delhi High Court

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • CESTAT Mumbai confirming that SAD exemption claims are valid when statutory taxes are paid on domestic sales

    CESTAT Mumbai confirming that SAD exemption claims are valid when statutory taxes are paid on domestic sales

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 04.09.2026

    CESTAT Mumbai confirming that SAD exemption claims are valid when statutory taxes are paid on domestic sales

    This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .  

    A recent decision by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, has significant implications for manufacturers importing goods through Free Trade Warehousing Zones (FTWZ) and claiming Special Additional Duty (SAD) exemptions. The case involved M/s Emerson Process Management (India) Pvt. Ltd. and its Managing Director, Amit Paithankar, challenging customs duty demands and penalties imposed by the Principal Commissioner of Customs, JNCH, Nhava Sheva.

    Background of the Case

    Emerson Process Management (India) Pvt. Ltd. manufactures process management equipment and imports raw materials via FTWZs. These goods are processed at their Navi Mumbai factory and sold domestically, with applicable VAT/sales tax paid on final products. The company availed SAD exemption under Notification No. 45/2005-Customs, based on the undertaking that VAT/CST would be paid on domestic sales.

    However, the Directorate General of Central Excise Intelligence (DGCEI) alleged that Emerson wrongly availed SAD exemption on goods used in manufacturing, leading to a Show Cause Notice demanding over Rs. 1.79 crore in SAD, interest, and penalties. The Principal Commissioner confirmed these demands, prompting appeals from both the company and the Revenue (the latter seeking higher penalties).

    Key Legal Issues

    The central question was whether SAD exemption under Notification No. 45/2005-Customs applies to goods cleared from FTWZ to Domestic Tariff Area (DTA) units on a stock transfer basis, especially when VAT/sales tax is eventually paid on the final product.

    Arguments Presented

    For the Appellants

    1. Precedent and Industry Practice: The issue was already settled in favor of appellants in several tribunal and Supreme Court decisions, confirming eligibility for SAD exemption when VAT is paid on final sales.
    2. Full Disclosure: Emerson argued there was no suppression of facts, as all clearances followed prescribed procedures and were supervised by customs officers.
    3. No Malafide Intent: The company relied on approvals from the Development Commissioner of SEZ/FTWZ and industry-wide interpretations, negating any intent to evade duty.
    4. Limitation Period: The demand was time-barred, as the Show Cause Notice covered a period beyond the normal limitation period.

    For the Revenue

    1. Circular Interpretation: The Revenue cited a Ministry of Finance circular clarifying that SAD exemption is not available for stock transfers from SEZ/FTWZ to DTA for self-consumption.
    2. Mandatory Penalty: The Revenue sought imposition of a penalty equal to the duty amount under Section 114A of the Customs Act.

    Tribunal’s Findings

    1. Precedent Supports Exemption: The Tribunal cited multiple decisions, including CRI Ltd. v. Commissioner of Customs and Serum Institute of India, confirming that SAD exemption applies when VAT is paid on final sales, regardless of whether the initial transfer is a sale or stock transfer.
    2. No Suppression or Malafide: The Tribunal found no evidence of suppression or malafide intent, as the company acted in line with industry practice and customs approvals.
    3. Limitation Period Applies: Since the demand was raised beyond the normal limitation period and there was no suppression, the extended period could not be invoked.
    4. Revenue’s Appeal Dismissed: The Tribunal rejected the Revenue’s demand for a higher penalty, as the underlying duty demand itself was unsustainable.

    Outcome

    • The Tribunal set aside the duty demand, confiscation order, and penalties against Emerson and its Managing Director.
    • The Revenue’s appeal for a higher penalty was dismissed.
    • The decision reinforces the principle that SAD exemption is available when VAT/sales tax is paid on final sales, even if goods are initially transferred on a stock basis from FTWZ/SEZ to DTA units.

    Implications for Industry

    This ruling provides clarity and relief for manufacturers using FTWZ/SEZ facilities, confirming that SAD exemption claims are valid when statutory taxes are paid on domestic sales. It also underscores the importance of following prescribed procedures and maintaining transparent documentation to defend against future disputes.

    Listen to this on our #YouTube Channel

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Source: CESTAT Mumbai

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Interim Release of Seized Vehicles Under NDPS Act

    Interim Release of Seized Vehicles Under NDPS Act

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 03.09.2026

    Interim Release of Seized Vehicles Under NDPS Act

    This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .  

    The Supreme Court of India recently delivered a significant judgment in the case of Bishwajit Dey v. State of Assam, addressing the interim release of vehicles seized under the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act). This article provides a detailed overview of the case, the legal arguments, and the Court’s reasoning, offering clarity on a complex area of criminal law.

    Background of the Case

    • Incident: On April 10, 2023, a truck owned by Bishwajit Dey was stopped at a police checkpoint in Assam. Police discovered 24.8 grams of heroin concealed in the vehicle. The main accused, Md. Dimpul, was arrested at the scene.
    • Appellant’s Position: Bishwajit Dey, the truck owner, claimed neither he nor his driver was aware of the contraband. The driver and helper were cited as witnesses, not accused.
    • Legal Proceedings: The vehicle was seized and left exposed at the police station, leading Dey to seek its interim release under Sections 451 and 457 of the Code of Criminal Procedure (CrPC).

    Legal Arguments

    For the Appellant

    1. No Knowledge or Involvement: The owner and driver were not implicated in the crime.
    2. Vehicle Deterioration: The truck, being the owner’s sole source of income, was deteriorating in police custody.
    3. Precedents: Cited Supreme Court and High Court judgments supporting interim release of vehicles to bona fide owners, subject to conditions.

    For the State

    1. NDPS Act as a Special Law: The State argued that the NDPS Act is a complete code, and does not contemplate interim release of seized vehicles during trial.
    2. Risk of Reuse: Releasing the vehicle could enable further illegal activities.
    3. Material Evidence: The vehicle is crucial evidence for the prosecution.

    Key Legal Provisions Discussed

    • NDPS Act Sections 36C, 51, 52A, 60, 63: Address the procedure for seizure, storage, and confiscation of vehicles used in drug trafficking.
    • CrPC Sections 451, 457: Allow courts to order interim custody or disposal of property pending trial.

    Supreme Court’s Reasoning

    No Absolute Bar on Interim Release

    • The Court found no specific prohibition in the NDPS Act against interim release of seized vehicles.
    • Section 51 of the NDPS Act allows application of CrPC provisions unless inconsistent with the Act.

    Case-by-Case Discretion

    • The Court outlined four scenarios for vehicle seizure:
      1. Owner is the accused.
      2. Owner’s agent (e.g., driver) is the accused.
      3. Vehicle is stolen and used without owner’s knowledge.
      4. Contraband is found with a third-party occupant, with no allegation against the owner.
    • In the first two scenarios, interim release is generally not favored. In the latter two, especially where the owner is not accused, interim release should normally be granted, subject to safeguards.

    Practical Considerations

    • Keeping vehicles in police custody leads to deterioration and loss of value.
    • Interim release benefits the owner (restoring livelihood), the financier (loan repayment), and society (vehicle utility).

    Safeguards for Interim Release

    • Detailed video and photographic documentation of the vehicle.
    • Undertaking by the owner not to sell or transfer the vehicle during trial.
    • Bond to ensure the vehicle’s production or payment of its value if confiscation is ordered.

    Final Directions

    The Supreme Court allowed the appeal, directing the trial court to release the vehicle to the owner on strict conditions, including:

    • Preparation of video and photographic inventory.
    • Authentication by the investigating officer, owner, and accused.
    • Prohibition on sale or transfer until trial concludes.
    • Undertaking to produce the vehicle or pay its value if required.

    Implications of the Judgment

    • Clarity for Lower Courts: The judgment provides a clear framework for handling interim release applications in NDPS cases.
    • Protection for Innocent Owners: Owners not implicated in the crime are protected from undue hardship.
    • Balance of Interests: The decision balances the need to preserve evidence with the rights of property owners.

    This landmark ruling ensures that justice is served without causing unnecessary harm to innocent vehicle owners, while maintaining the integrity of criminal investigations under the NDPS Act.

    Connected Matter

    High Court of Gujarat on Conditional Release of Seized Vehicle Under NDPS Act

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Source: Supreme Court

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Delhi High Court Mandates Due Process and Notice Before Removal of Registered Trademark for Non-Renewal

    Delhi High Court Mandates Due Process and Notice Before Removal of Registered Trademark for Non-Renewal

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 03.09.2026

    Delhi High Court Mandates Due Process and Notice Before Removal of Registered Trademark for Non-Renewal

    This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .  

    This article explores a significant decision by the Delhi High Court in the matter of Gopal Ji Gupta vs. Union of India, which clarifies the legal procedures and rights concerning the renewal and removal of registered trademarks in India. The judgment not only impacts trademark proprietors but also sets a precedent for the protection of intellectual property rights.

    Background of the Case

    Gopal Ji Gupta, trading as M/s Kiran Textiles, applied for the registration of the trademark “BINACA” under Class 25 on June 15, 1987. The registration process was protracted, with the mark being published in 1995 and finally registered in 1998. The initial validity of the trademark was seven years, making it due for renewal in 1994. However, since the registration was only granted in 1998, the petitioner filed for renewal in 2001, following the then-applicable rules.

    In 2015, upon checking the status of his trademark online, the petitioner discovered that the renewal was overdue. He promptly filed a renewal application, which was rejected by the Registrar of Trademarks as time-barred. The petitioner argued that he had not received the mandatory notice (Form O-3) regarding the expiry and removal of his trademark, as required by law.

    Legal Issues and Arguments

    Petitioner’s Stand

    1. Lack of Mandatory Notice: The petitioner contended that under Section 25(3) of the Trademarks Act, 1999 and Rule 64(1) of the Trademark Rules, 2002, the Registrar must issue a notice (Form O-3) before removing a trademark from the register due to non-renewal.
    2. Right to Renewal: Since no such notice was received, the rejection of his renewal application was argued to be unlawful.
    3. Precedent Cited: The petitioner relied on the Malhotra Book Depot vs. Union of India case, where the court held that removal of a trademark without issuing the prescribed notice is illegal.

    Respondent’s Stand

    1. Delay and Laches: The respondents argued that the renewal application was filed late and that the petition itself was delayed.
    2. No Requirement for Notice: They claimed that since the renewal was not filed within the prescribed period, no notice was necessary.
    3. Alternative Remedy: The respondents also challenged the maintainability of the petition, suggesting that the petitioner should have appealed to the Appellate Board.

    Court’s Analysis and Findings

    The Court addressed two main issues:

    1. Maintainability of the Petition: The Court accepted the petitioner’s argument that the Appellate Board was not fully constituted at the time, making the writ petition maintainable.
    2. Requirement of Notice Before Removal:
      • The Court emphasized that removal of a trademark from the register has significant civil consequences and cannot be done without following the mandatory procedure of issuing a notice in Form O-3.
      • Citing the Malhotra Book Depot case, the Court reiterated that mere expiration of registration does not automatically authorize removal; due process must be followed.
      • The Court also highlighted that intellectual property rights, like tangible property, cannot be taken away without due process of law.

    Judgment and Directions

    The Delhi High Court ruled in favor of the petitioner, holding that:

    • The Registrar of Trademarks cannot remove a trademark from the register without issuing the mandatory notice as per Section 25(3) and the relevant rules.
    • The petitioner’s application for renewal must be considered, subject to payment of late fees and fulfillment of other requirements.
    • Since no third party had applied for the same mark, the petitioner’s rights were further protected.

    Key Takeaways for Trademark Owners

    1. Mandatory Notice: Trademark proprietors must be given a formal notice before their mark is removed for non-renewal.
    2. Due Process: Removal of a trademark without following statutory procedures is illegal and can be challenged in court.
    3. Protection of Rights: Intellectual property rights are protected under the law, and due process must be observed before depriving a proprietor of such rights.
    4. Timely Action: While the law provides safeguards, proprietors should monitor their trademark status and act promptly to avoid complications.

    Conclusion

    The judgment in Gopal Ji Gupta vs. Union of India reinforces the importance of procedural fairness in trademark law. It ensures that trademark owners are not deprived of their rights without due notice and legal process, thereby strengthening the framework for intellectual property protection in India.

    Connected Matter

    Delhi High Court Orders Restoration of ‘BLUE CHIP’ Trademark to Mehta Cosmetics After Procedural Lapse by Registrar

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

    Our services include comprehensive paralegal support, drafting and documentation, legal research, case management, litigation handling, and representation support across various judicial and quasi-judicial forums. We also assist in direct and indirect tax matters, customs, GST, corporate regulatory compliance, and legal advisory.

    Source: Delhi High Court

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Delhi High Court- Customs Department Cannot Enforce Pre-Insolvency Claims Not Submitted During CIRP

    Delhi High Court- Customs Department Cannot Enforce Pre-Insolvency Claims Not Submitted During CIRP

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 03.09.2026

    Delhi High Court- Customs Department Cannot Enforce Pre-Insolvency Claims Not Submitted During CIRP

    This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .  

    The Delhi High Court recently delivered a significant judgment in the case of Jaiprakash Associates Limited vs. The Office of the Commissioner of Customs Air Cargo Complex Import & Anr., addressing the interplay between customs liabilities and the Insolvency and Bankruptcy Code, 2016 (IBC). This article provides a detailed analysis of the case, its background, legal arguments, and the broader implications for insolvency proceedings and statutory dues in India.

    Background of the Case

    • Import Transaction: On 15 September 2023, Jaiprakash Associates Limited (JAL) imported Digital and Network Video Recorders, availing a concessional customs duty rate.
    • Customs Dispute: The Customs Department later alleged that the goods were not eligible for the concessional rate, raising a demand for differential duty, interest, and penalty.
    • Insolvency Proceedings: Meanwhile, insolvency proceedings against JAL commenced on 3 June 2024, with a public announcement inviting creditor claims. The Customs Department did not submit any claim during the Corporate Insolvency Resolution Process (CIRP).
    • Resolution Plan: The Committee of Creditors approved a Resolution Plan by Adani Enterprises Limited, which was subsequently approved by the National Company Law Tribunal (NCLT) on 17 March 2026. The plan explicitly extinguished all pre-CIRP claims not submitted during the process.
    • Customs Order: Despite being informed of the approved Resolution Plan, the Customs Authority passed an order on 2 June 2026, confirming the demand against JAL.

    Key Legal Issues

    1. Whether customs liabilities arising from pre-CIRP transactions can be enforced after approval of a Resolution Plan if the claim was not submitted during CIRP.
    2. Whether the Customs Department’s failure to submit a claim during CIRP extinguishes its right to recover dues post-approval of the Resolution Plan.

    Arguments Presented

    Petitioner (Jaiprakash Associates Limited)

    • The customs liability pertained to a period before the insolvency commencement date.
    • The Customs Department, as an operational creditor, failed to submit its claim during CIRP.
    • Section 31(1) of the IBC and the Supreme Court’s decision in Ghanashyam Mishra & Sons (P) Ltd. v. Edelweiss Asset Reconstruction Co. Ltd. establish that unfiled pre-CIRP claims are extinguished upon approval of the Resolution Plan.
    • The Resolution Plan, binding on all stakeholders including government authorities, specifically extinguished such claims.

    Respondents (Customs Department)

    • The Customs Act allows determination of customs duty, interest, and penalty, regardless of CIRP.
    • The customs liability was not shown to have been considered in the Resolution Plan.
    • The pendency of CIRP was only brought to their notice at the final hearing stage.
    • An appeal remedy exists under the Customs Act.

    Court’s Analysis and Findings

    • Wide Definition of “Claim”: The IBC defines “claim” broadly, covering all rights to payment, whether adjudicated or not. The customs liability, though not quantified before CIRP, was a claim under the IBC.
    • Public Announcement Mechanism: The IBC requires a public announcement for creditors to submit claims. The Customs Department’s failure to respond to this announcement meant its claim was not considered in the Resolution Plan.
    • Binding Nature of Resolution Plan: Section 31(1) of the IBC, especially after the 2019 amendment, makes the approved Resolution Plan binding on all creditors, including government authorities. The Supreme Court has clarified that unfiled claims are extinguished upon approval.
    • IBC Prevails Over Other Laws: Section 238 of the IBC gives it overriding effect in case of inconsistency with other laws, including the Customs Act.
    • No Exception for Statutory Dues: The Court rejected the argument that statutory dues enjoy a special status outside the IBC framework, citing recent Supreme Court jurisprudence.
    • No Recovery Post-Approval: The Customs Department could not enforce a pre-CIRP claim after the Resolution Plan’s approval, as it had not participated in the CIRP.

    Judgment and Impact

    • The High Court quashed the Customs Department’s order confirming the demand against JAL.
    • The judgment reinforces that all creditors, including government authorities, must submit their claims during CIRP or risk extinguishment upon approval of the Resolution Plan.
    • The decision upholds the IBC’s objective of providing a “clean slate” to successful resolution applicants and ensures finality in insolvency proceedings.

    Key Takeaways for Stakeholders

    1. Government Authorities as Creditors: Statutory authorities must actively participate in CIRP and submit claims within prescribed timelines.
    2. Resolution Applicants: Can rely on the finality of the Resolution Plan and are protected from undisclosed or unfiled pre-CIRP claims.
    3. Corporate Debtors: Are not liable for pre-CIRP claims not included in the Resolution Plan post-approval.
    4. Legal Certainty: The judgment provides clarity and certainty for all stakeholders in insolvency proceedings.

    Conclusion

    The Delhi High Court’s decision in the Jaiprakash Associates Limited case is a landmark in harmonizing the IBC with other statutory regimes. It underscores the importance of timely claim submission by all creditors and affirms the supremacy of the IBC in insolvency matters, ensuring that successful resolution applicants are not burdened with legacy liabilities outside the Resolution Plan.

    Connected Matter

    Delhi High Court Sets Aside Pre-CIRP Demand Notices: Application of Clean Slate Theory Post-IBC Resolution Plan Approval

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    Source: Delhi High Court

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  • High Court of Gujarat on Conditional Release of Seized Vehicle Under NDPS Act

    High Court of Gujarat on Conditional Release of Seized Vehicle Under NDPS Act

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 02.09.2026

    High Court of Gujarat on Conditional Release of Seized Vehicle Under NDPS Act

    This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .  

    A recent order from the High Court of Gujarat at Ahmedabad addresses the release of a vehicle seized in connection with a narcotics case. This article provides a detailed overview of the case, the legal reasoning behind the court’s decision, and the implications for similar cases involving seized property under the Narcotic Drugs and Psychotropic Substances Act (NDPS Act).

    Background of the Case

    • Case Title: Anwarhusain @ Zandu Allanur Lakhara vs. State of Gujarat
    • Court: High Court of Gujarat, Ahmedabad
    • Vehicle Involved: Maruti Omni (Registration No. GJ-20-A-9287)
    • Context: The vehicle was seized by police in connection with an FIR registered under the NDPS Act, alleging its use in transporting contraband.

    Legal Arguments Presented

    1. Petitioner’s Argument:
      • Sought release of the seized vehicle by invoking the court’s extraordinary jurisdiction under Articles 226 and 227 of the Constitution and Section 497 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS).
      • Emphasized the court’s wide powers to grant such relief.
    2. State’s Opposition:
      • Argued that the vehicle was used in the commission of an NDPS Act offence and should be confiscated, not released.
      • Cited the Supreme Court’s decision in Bishwajit Dey vs. State of Assam (2025 INSC 32) to support the bar on release under Section 60 of the NDPS Act.

    Court’s Analysis and Reasoning

    • The court clarified that mere use of a vehicle in an NDPS offence does not automatically bar its release.
    • Jurisdiction under Section 451 of the Criminal Procedure Code (Cr.P.C.) and Section 60 of the NDPS Act remains intact for considering release applications.
    • The court noted the absence of direct evidence that contraband was seized from the vehicle itself, relying only on statements from co-accused.
    • The court referenced the Supreme Court’s guidance in Sunderbhai Ambalal Desai vs. State of Gujarat (2002) 10 SCC 283, emphasizing the need to avoid deterioration of seized vehicles during prolonged trials.

    Order and Conditions for Release

    The High Court allowed the petition and directed the trial court to release the vehicle, subject to strict conditions:

    1. Solvent Surety: The petitioner must provide a surety equivalent to the vehicle’s value as stated in the FIR or panchnama.
    2. Undertaking: The petitioner must undertake not to transfer, change the identity, or alter the color of the vehicle until the trial concludes.
    3. Production on Demand: The vehicle must be produced before the trial court whenever required.
    4. Future Offences: If the vehicle is involved in any subsequent offence, it will be confiscated.
    5. Authority’s Rights: The order does not prevent the trial court from initiating confiscation or auction proceedings if necessary.
    6. Documentation: Police must photograph the vehicle from all sides and prepare a panchanama before release, with these documents forming part of the charge sheet.
    7. RTO Notification: The order must be sent to the relevant RTO to record the restriction on transfer until the trial’s conclusion.

    Implications and Takeaways

    • Legal Precedent: The order reinforces that courts retain discretion to release seized vehicles under the NDPS Act, especially when direct evidence of contraband recovery from the vehicle is lacking.
    • Protection of Property: The decision balances the need to preserve evidence with the rights of property owners, preventing unnecessary deterioration of vehicles during lengthy legal proceedings.
    • Stringent Safeguards: The imposed conditions ensure that the vehicle remains available for trial and is not misused or disposed of improperly.

    Conclusion

    This High Court order provides important guidance for handling seized vehicles in narcotics cases. It underscores the judiciary’s role in protecting property rights while upholding the law, and sets out clear procedures and safeguards for the conditional release of such property during ongoing trials.

    Connected Matter

    Interim Release of Seized Vehicles Under NDPS Act

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    Source: Gujarat High Court

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  • Delhi High Court Orders Restoration of ‘BLUE CHIP’ Trademark to Mehta Cosmetics After Procedural Lapse by Registrar

    Delhi High Court Orders Restoration of ‘BLUE CHIP’ Trademark to Mehta Cosmetics After Procedural Lapse by Registrar

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 02.09.2026

    Delhi High Court Orders Restoration of ‘BLUE CHIP’ Trademark to Mehta Cosmetics After Procedural Lapse by Registrar

    This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .  

    The Delhi High Court delivered a significant judgment in the case of Amrit Singh Mehta Trading as Mehta Cosmetics vs. Controller General of Patents, Designs and Trade Marks. The case revolved around the removal of the ‘BLUE CHIP’ trademark from the register due to alleged non-renewal, raising important questions about procedural fairness and statutory obligations under the Trade Marks Act, 1999.

    Background of the Case

    • Trademark Application and Registration:
      • The petitioner, Amrit Singh Mehta, filed an application for the ‘BLUE CHIP’ trademark (Class 03) on July 21, 1992.
      • The mark was registered on August 3, 2005, after a long delay of 13 years.
      • However, the petitioner never received the registration certificate.
    • Issue of Renewal and Removal:
      • The renewal date, based on the application, was July 21, 2002, but registration was granted only in 2005.
      • Due to non-filing of the renewal application (as the petitioner was unaware of the registration), the trademark was removed from the register and marked as expired in June 2010.
    • Petitioner’s Efforts:
      • The petitioner made several attempts to obtain information through RTI applications.
      • The Trade Marks Registry confirmed registration but could not provide evidence of dispatching the certificate or renewal notices.

    Legal Arguments

    • Petitioner’s Stand:
      • The petitioner argued that under Rule 64(3) of the Trade Marks Rules, 2002, when registration occurs after the renewal date, the proprietor is entitled to a six-month window from the actual date of registration to apply for renewal.
      • Since the registration certificate was never received, the petitioner was deprived of the opportunity to renew.
      • The Registrar failed to send the mandatory notice (Form-O2) before removing the mark, violating Section 25(3) of the Trade Marks Act.
    • Respondent’s Stand:
      • The respondent (Trade Marks Registry) claimed that records were not traceable due to the passage of time and could not confirm dispatch of the certificate or notices.

    Court’s Analysis and Findings

    • The court found that:
      1. The petitioner did not receive the registration certificate, a fact unrefuted by the respondent.
      2. The Registrar failed to send the mandatory renewal notice (Form-O2) before removal.
      3. Rule 64(3) entitled the petitioner to a six-month renewal window from the date of registration, which was missed due to lack of communication.
      4. Removal of the trademark without following statutory procedure was unjustified.
    • The court cited several precedents, emphasizing that removal of a trademark must be preceded by strict compliance with procedural requirements, including notice to the proprietor.

    Judgment and Directions

    • The Delhi High Court ruled in favor of the petitioner:
      1. Directed the restoration and reinstatement of the ‘BLUE CHIP’ trademark registration.
      2. Allowed the petitioner to file a renewal application within six weeks.
      3. Ordered the respondent to process the renewal if all formalities are completed.

    Significance of the Judgment

    This judgment reinforces the importance of procedural safeguards for trademark proprietors. It clarifies that:

    • Statutory notices and communication are mandatory before removal of a trademark.
    • Proprietors must not be penalized for administrative lapses beyond their control.
    • The Registrar’s obligations under the Trade Marks Act and Rules are to be strictly enforced.

    Conclusion

    The decision in Mehta Cosmetics sets a strong precedent for trademark law in India, ensuring that rights of proprietors are protected against procedural lapses by authorities. It highlights the judiciary’s commitment to upholding statutory rights and due process in intellectual property matters.

    Connected Matter

    Delhi High Court Mandates Due Process and Notice Before Removal of Registered Trademark for Non-Renewal

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    Source: Delhi High Court

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  • Bombay High Court Quashes Seizure and Security Deposit on Imported Food Consignments Cleared by FSSAI

    Bombay High Court Quashes Seizure and Security Deposit on Imported Food Consignments Cleared by FSSAI

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 02.09.2026

    Bombay High Court Quashes Seizure and Security Deposit on Imported Food Consignments Cleared by FSSAI

    This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .  

    The Bombay High Court recently delivered a significant judgment in the case of Shivshakti Enterprises vs. The Commissioner of Customs & Ors. (Writ Petition No. 6043 of 2026), addressing the legality of a seizure and the imposition of a hefty security deposit on imported food consignments. This article provides a comprehensive overview of the case, the legal arguments, the court’s reasoning, and its broader implications for importers and regulatory authorities.

    Background of the Case

    Shivshakti Enterprises, a sole proprietorship led by Rohit Kumar Somabhai Patel, imported two consignments of Roasted Arecanuts (Beetle Nuts) in March 2026. The goods were examined by customs, and samples were sent to the Food Safety and Standards Authority of India (FSSAI) for testing. On April 10, 2026, FSSAI issued a No Objection Certificate (NOC), confirming the goods met the standards under the Food Safety and Standards Act, 2006 (FSS Act).

    Despite the NOC, customs authorities did not release the goods. Instead, further testing was conducted by the Central Revenue Control Laboratory (CRCL), which found the moisture content to be 6.8% and 6.9%. Subsequently, the goods were seized, and the petitioner was asked to provide a bank guarantee of Rs. 40,00,000 for provisional release. Shivshakti Enterprises challenged both the seizure and the security deposit requirement in the Bombay High Court.

    Key Legal Issues

    1. Authority of FSSAI vs. Customs: Whether a NOC from FSSAI is conclusive for the release of imported food items, or if customs can impose additional requirements.
    2. Requirement of Security Deposit: Whether demanding a bank guarantee for provisional release is justified when FSSAI has already cleared the goods.

    Arguments Presented

    • Petitioner’s Stand:
      • Once FSSAI issues a NOC, further examination by customs or CRCL is unwarranted.
      • The requirement for a bank guarantee is excessive and not supported by law, especially in light of previous judgments.
      • Cited precedents: NBG International Pvt. Ltd. v. Union of India and similar cases from Calcutta, Punjab & Haryana, and Madras High Courts, all supporting the primacy of FSSAI’s clearance.
    • Respondents’ Stand:
      • Customs retains the right to verify the nature, description, and tariff classification of goods, regardless of FSSAI’s NOC.
      • The NOC pertains only to food safety, not customs classification or duty assessment.
      • The seizure and security deposit were justified due to ongoing disputes about classification and compliance.

    Court’s Analysis and Reasoning

    The High Court found that the issue was squarely covered by its earlier decision in NBG International Pvt. Ltd. The court emphasized:

    • Finality of FSSAI’s NOC: Once FSSAI certifies that goods conform to food safety standards, customs authorities should not withhold release on the same grounds.
    • Laboratory Analysis Procedure: The FSSAI’s process for laboratory analysis is robust, transparent, and time-bound, ensuring high standards for food imports.
    • No Scope for Reclassification: After FSSAI’s clearance, customs cannot arbitrarily reclassify or detain goods on similar grounds.

    The Judgment

    The Bombay High Court ordered:

    1. Quashing of Seizure and Security Deposit: The seizure memo dated May 19, 2026, and the order requiring a Rs. 40,00,000 bank guarantee were set aside.
    2. Immediate Release of Goods: Customs was directed to release the goods without insisting on a bank guarantee.
    3. Renewed FSSAI Certification: The petitioner must obtain a fresh Certificate of Fitness from FSSAI before selling the goods, as they had been stored for several months.
    4. No Order as to Costs: Each party was to bear its own costs.

    Implications of the Judgment

    • For Importers: The judgment reinforces the authority of FSSAI in food safety matters and protects importers from arbitrary or duplicative actions by customs.
    • For Customs Authorities: Customs must respect FSSAI’s findings and cannot impose additional requirements unless there is a clear legal basis.
    • For Regulatory Clarity: The decision harmonizes the roles of different regulatory bodies, reducing delays and uncertainty in the import process.

    Conclusion

    The Shivshakti Enterprises judgment is a landmark in balancing regulatory oversight with trade facilitation. It underscores the importance of respecting specialized authorities’ findings and provides much-needed clarity for importers navigating India’s complex regulatory landscape.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

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    Source: Bombay High Court

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  • Analysis of Country of Origin Misdeclaration, Procedural Safeguards, and Extended Limitation under Customs Law

    Analysis of Country of Origin Misdeclaration, Procedural Safeguards, and Extended Limitation under Customs Law

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    Date: 01.09.2026

    Analysis of Country of Origin Misdeclaration, Procedural Safeguards, and Extended Limitation under Customs Law

    This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .  

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) at Ahmedabad recently delivered a significant order in the case of Imperial Fibres Pvt. Ltd., addressing allegations of misdeclaration of the country of origin for imported polyester knitted fabrics. This case highlights the complexities of customs law, the importance of procedural compliance, and the evidentiary standards required to establish fraud in international trade.

    Background of the Case

    Imperial Fibres Pvt. Ltd., based in New Delhi, is engaged in the import and trading of polyester knitted fabrics. The company imported goods under preferential tariff benefits available for imports from ASEAN countries, specifically Malaysia, under Notification No. 46/2011-Cus. However, the Directorate of Revenue Intelligence (DRI) alleged that the company misdeclared the country of origin as Malaysia, while the goods were actually from China, to wrongfully avail duty concessions.

    Key Allegations and Investigations

    • Misdeclaration of Origin: DRI claimed that Imperial Fibres used fabricated Certificates of Origin (COO) to show Malaysia as the origin, while the goods were Chinese.
    • Verification Process: Out of 29 COO certificates, only 15 were verified by Malaysian authorities, who reported them as not authentic and belonging to another company.
    • Procedural Delays: The verification process was delayed beyond the prescribed period, and test results on samples drawn from consignments were not provided.
    • Statements and Evidence: The director, Mr. Varun Goyal, maintained that he relied on documents provided by suppliers and had no reason to doubt their authenticity. The department, however, cited a later statement as an admission of awareness about the fabricated certificates.

    Legal Arguments

    Appellant’s Grounds

    1. Partial Verification: Only 15 out of 29 COO certificates were verified. The appellant argued that demands could only be confirmed for those verified, not all.
    2. Limitation Period: The show cause notice was issued well beyond the normal period. The appellant contended that the extended period for raising demands requires proof of fraud or collusion, which was not established.
    3. Procedural Lapses: The department failed to follow mandatory procedures under the Rules of Origin, including timely verification and detailed clarification from the issuing authority.
    4. Lack of Evidence: No test reports or expert analysis were provided to conclusively prove the goods were of Chinese origin or that the importer was complicit in any fraud.

    Department’s Position

    • The department argued that the pattern of invoices, signature mismatches, and the director’s statements established a modus operandi of fraud.
    • They maintained that the extended period for demand and penalties was justified due to willful misstatement and suppression of facts.
    • The department relied on Rule 23 of the Origin Rules, which deals with fraudulent acts, to justify bypassing certain procedural requirements.

    Tribunal’s Analysis and Findings

    Procedural Compliance

    The Tribunal emphasized that procedural safeguards under Rules 7(c) and 7(d) of the Origin Rules are mandatory, even in cases of suspected fraud. The department’s reliance on Rule 23 to override these procedures was rejected.

    Evidence and Burden of Proof

    • The Tribunal found that the evidence provided by the department was insufficient to conclusively establish fraud or conscious involvement by the importer.
    • The lack of timely verification, absence of test reports, and failure to authenticate documents as per legal standards weakened the department’s case.
    • The Tribunal cited several precedents, highlighting that extended limitation periods and penalties require clear proof of willful misstatement or collusion by the importer.

    Limitation and Demand

    • The show cause notice was issued beyond the normal limitation period without adequate evidence of fraud.
    • Demands could only be confirmed for the certificates that were actually verified and found to be non-authentic.
    • The Tribunal held that the extended period under Section 28(4) of the Customs Act could not be invoked in the absence of proven malafide intent.

    Key Takeaways for Importers and Trade Professionals

    1. Strict Adherence to Procedures: Customs authorities must follow all procedural requirements for verification and denial of preferential tariff treatment.
    2. Burden of Proof: The onus is on the department to prove fraud or willful misstatement; mere suspicion or incomplete verification is insufficient.
    3. Timely Action: Delays in verification or issuing show cause notices can render demands unsustainable.
    4. Document Authentication: Evidence from foreign authorities must be properly authenticated and corroborated.
    5. Rights of Importers: Importers are entitled to detailed clarifications and the opportunity to respond to allegations before adverse actions are taken.

    Conclusion

    The Imperial Fibres Pvt. Ltd. case underscores the importance of due process and evidentiary rigor in customs investigations. While combating fraud is essential, authorities must ensure that procedural safeguards are respected and that demands are based on solid, timely, and authenticated evidence. This decision serves as a valuable reference for both importers and customs officials navigating the complexities of international trade compliance.

    Aadrikaa Legal Services is a trusted legal and regulatory support partner providing end-to-end legal solutions to law firms, corporate organizations, and businesses across India. We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

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    Source: CESTAT Ahmedabad

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