Tag: #IndirectTaxLitigations

  • Delhi HC: Trademark Registry Cannot Reject Marks Based on Imaginary or Conjectural Descriptiveness

    Delhi HC: Trademark Registry Cannot Reject Marks Based on Imaginary or Conjectural Descriptiveness

    Date: 03.11.2026

    The Delhi High Court has set aside the Trade Marks Registry’s refusal to register β€œDOUBLE-CHOICE” for rice, flour and cereal preparations, holding that the mark must be assessed as a whole and that a proposed-to-be-used application cannot be rejected for lacking acquired distinctiveness through use.

    Background of the dispute

    Kapil Goyal applied on 20 June 2023 to register β€œDOUBLE-CHOICE” in Class 30 for rice, flour and preparations made from cereals. The application was filed on a proposed-to-be-used basis, meaning the mark had not yet been used in the marketplace.

    The Trade Marks Registry objected under Sections 9(1)(a) and 9(1)(b) of the Trade Marks Act, 1999. It concluded that the mark lacked distinctiveness, was composed of non-distinctive words, and was descriptive of the kind and intended purpose of the relevant goods. The Registry also found that the mark had not acquired secondary meaning because it had not been used in the market.

    Following a hearing, the application was refused on 24 January 2025. Kapil Goyal appealed to the Delhi High Court under Section 91 of the Act.

    Key issues before the Court

    The dispute centred on three connected questions:

    • Whether β€œDOUBLE-CHOICE” was inherently incapable of distinguishing one trader’s goods from those of another.
    • Whether the expression directly described rice, flour or cereal preparations.
    • Whether the absence of prior market use could justify refusal of an application filed on a proposed-to-be-used basis.

    The Court’s findings

    A composite trademark cannot be broken into isolated words

    The Court held that a trademark must be evaluated in its entirety. Although β€œDOUBLE” and β€œCHOICE” are individually common English words, their combination had to be assessed as the composite expression β€œDOUBLE-CHOICE”.

    On that basis, the Court found that the expression was not so common or devoid of distinction that it could not identify the commercial source of the applicant’s goods. The Registry had not identified any identical or similar marks, nor had it explained why use of β€œDOUBLE-CHOICE” would make it impossible for consumers to distinguish the applicant’s goods from those of other traders.

    The mark was not shown to be descriptive

    The Registry had reasoned that β€œDOUBLE-CHOICE” referred to a situation involving two options and therefore described a variety or consumer choice connected with the products. The Court rejected that reasoning as unsupported by evidence.

    It noted that the refusal order did not clarify which products consumers would supposedly be choosing between. There was no factual material showing that the mark denoted product variety, two alternatives, or any feature of the rice and cereal goods. The Court characterized this conclusion as conjectural rather than evidence-based.

    A mark is not descriptive merely because its words have dictionary meanings. To attract the statutory bar, the expression must directly indicate a characteristic, quality, kind, purpose or other attribute of the specific goods. The Court found no such direct connection between β€œDOUBLE-CHOICE” and rice, flour or cereal preparations.

    Non-use is irrelevant for a proposed-to-be-used application

    The Court also held that the Registry’s reliance on non-use and lack of secondary meaning was legally misplaced. Where an application is expressly filed on a proposed-to-be-used basis, the applicant cannot be expected to show that the mark has acquired distinctiveness through actual market use.

    Requiring proof of prior use in such cases would undermine the statutory recognition of proposed-to-be-used trademark applications. The relevant inquiry was whether the mark was registrable on its own merits, not whether it had already acquired a reputation through use.

    Outcome

    The Court allowed the appeal, set aside the refusal order dated 24 January 2025, and directed the Trade Marks Registry to advertise β€œDOUBLE-CHOICE” in Class 30. After advertisement, the application is to proceed in accordance with the Trade Marks Act, 1999 and the Trade Marks Rules, 2017.

    Why the ruling matters

    This decision reinforces important principles for trademark applicants and examiners:

    • Assess the mark as a whole: Common individual words do not automatically make their combination non-distinctive.
    • Require a direct descriptive link: A refusal for descriptiveness must be tied to a real and immediate characteristic of the claimed goods, not a speculative association.
    • Give reasoned decisions: A refusal should explain why the mark cannot distinguish the applicant’s goods and should be grounded in relevant material.
    • Respect proposed-to-be-used filings: Absence of market use cannot be treated as a defect where the application is validly filed on that basis.

    The ruling offers a clear reminder that trademark examination must rest on the actual commercial impression created by a mark and on evidence-based reasoning, rather than on the separate meanings of its component words.

    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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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • CESTAT Delhi- Related-Party Imports Alone Cannot Justify Rejection of Declared Value

    CESTAT Delhi- Related-Party Imports Alone Cannot Justify Rejection of Declared Value

    Date: 03.11.2026

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, has allowed the appeals of Diyas Mantra Lighting Pvt. Ltd. and its directors, ruling that Customs had not established that the company’s relationship with its UK supplier influenced the declared import prices.

    Background of the dispute

    The case arose from imports of electric decorative lighting fixtures under the brands β€œDiyas” and β€œmAntra.” Diyas Mantra Lighting Pvt. Ltd. filed a bill of entry at ICD Tughlakabad on 21 January 2015 for clearance of a consignment valued at Rs. 19.01 lakh.

    Customs alleged that the importer had not declared the brands on its import documents and had undervalued the goods to reduce customs duty. The department also examined earlier imports and contended that the company’s UK supplier, Inspired Lighting Ltd., was a related party.

    The department relied on several circumstances to support its case, including common directorship and shareholding involving Anil Kumar Anand, financial dealings between the entities, and catalogue references identifying Diyas Mantra as the India office of the UK supplier’s brand.

    Earlier proceedings and Supreme Court remand

    In the original adjudication, Customs rejected the declared value of the live consignment and 20 earlier bills of entry. It re-determined the assessable value using a deductive method based on domestic sale prices, imposed differential duty, ordered confiscation, levied redemption fines, and imposed penalties on the importer and its directors.

    CESTAT initially upheld that decision in 2017. However, the Supreme Court set aside both the original Customs order and CESTAT’s earlier ruling in April 2019. It held that the Customs Valuation Rules require a sequential approach:

    • First, authorities must assess whether transaction value can be accepted under Rule 3.
    • If it cannot, they must examine identical goods under Rule 4 and similar goods under Rule 5.
    • Only after those methods are unavailable may they proceed to later valuation methods, including deductive valuation under Rules 7 to 9.

    The Supreme Court observed that data from non-related suppliers in China and Spain could be relevant to the valuation exercise, subject to appropriate adjustments.

    Customs’ de novo order

    After remand, Customs again held that the UK supplier and Diyas Mantra were related parties and that the relationship had influenced prices. It rejected the declared values for the live consignment and 13 past UK bills of entry.

    The de novo order:

    • Re-determined the live consignment’s value from Rs. 19.01 lakh to Rs. 52.22 lakh.
    • Re-determined the value of 13 earlier UK imports from Rs. 2.16 crore to Rs. 4.46 crore.
    • Confirmed differential duty of Rs. 9.53 lakh for the live shipment and Rs. 74.85 lakh for the past UK imports.
    • Imposed redemption fines of Rs. 10 lakh and Rs. 89 lakh in relation to the goods.
    • Imposed equivalent penalties on the company under Section 114A of the Customs Act.
    • Imposed penalties of Rs. 10 lakh each on directors Rahul Mehta and Anil Kumar Anand under Section 112(b).

    At the same time, Customs dropped a differential-duty demand of Rs. 48.41 lakh concerning seven imports from Spain and China, finding no evidence that those suppliers were related to the importer.

    CESTAT’s reasoning

    CESTAT found that, even if the importer and the UK supplier were related, that fact alone did not justify rejection of the transaction value. Under Rule 3(3)(a) of the Customs Valuation Rules, Customs needed to establish that the relationship actually affected the price.

    The Tribunal noted a central inconsistency in the department’s case: Customs accepted the transaction values for comparable goods imported from unrelated suppliers in Spain and China, but did not demonstrate how the UK prices were distorted by the related-party relationship.

    The Tribunal emphasized that the declared transaction value is normally the basis for customs assessment. To reject it, the department must provide cogent evidence that the declared price is not genuine or that the relationship affected pricing. Mere suspicion, related-party status, or assertions of possible financial flow-back are insufficient without a demonstrated impact on the import price.

    CESTAT also relied on the Supreme Court’s earlier direction that the valuation rules must be applied sequentially. It held that Customs could not move to a deductive valuation method under Rules 7 and 9 without adequately establishing why Rules 3 to 5 could not support the assessment.

    Final outcome

    CESTAT set aside the entire adverse order against Diyas Mantra Lighting Pvt. Ltd. and its directors. Specifically, it:

    • Accepted the declared value for the live consignment covered by Bill of Entry No. 8059523 dated 21 January 2015.
    • Set aside the re-determination of value for the UK imports.
    • Set aside the differential-duty demand and related interest.
    • Set aside confiscation of the live shipment and goods seized from the importer’s godown.
    • Set aside redemption fines.
    • Set aside penalties imposed on the importer under Section 114A.
    • Set aside personal penalties imposed on the two directors under Section 112(b).

    The appeals were allowed by Final Order Nos. 51642-51644/2026, pronounced on 29 October 2026.

    Key legal takeaway for importers

    The ruling reinforces that a related-party relationship does not automatically invalidate an import transaction value. Customs must establish, with evidence, that the relationship influenced the price. Where comparable imports from unrelated suppliers are available and accepted, authorities must meaningfully address that evidence before rejecting the declared value or resorting to alternative valuation methods.

    For customs valuation disputes, the decision underlines two important safeguards: transaction value remains the primary method of valuation, and the Customs Valuation Rules must be applied in their prescribed sequence.

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Karnataka HC Grants Regular Bail After Treating Ganja Seizure as Intermediate Quantity

    Karnataka HC Grants Regular Bail After Treating Ganja Seizure as Intermediate Quantity

    Date: 03.11.2026

    The Karnataka High Court granted regular bail to Kiran Kumar, finding that the alleged seizure fell within the intermediate-quantity category, the statutory bar under Section 37 of the NDPS Act did not apply, and the investigation was nearly complete.

    Background of the case

    The case arose from Crime No. 105/2026 registered at Mandya West Police Station. Police alleged that, on 11 August 2026, they received information that two individuals were attempting to sell ganja to members of the public and students within the station limits.

    Following the information, police conducted a raid and apprehended two accused persons. The prosecution alleged that a total of 1 kg and 25 grams of ganja was recovered and seized under a panchanama. Of this, 810 grams was alleged to have been recovered from Kiran Kumar, who was arraigned as Accused No. 1.

    Kiran Kumar was arrested on 11 August 2026 and remanded to judicial custody. His earlier bail application was rejected by the trial court on 15 September 2026. He then approached the High Court under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023, seeking regular bail in the case registered under Section 20(b)(ii)(A) of the Narcotic Drugs and Psychotropic Substances Act, 1985.

    Why the High Court granted bail

    Justice S. Vishwajith Shetty considered the quantity allegedly seized, the petitioner’s criminal record, and the status of the investigation.

    1. The alleged quantity was treated as intermediate quantity

    The Court noted that the total alleged recovery was slightly more than 1 kg of ganja. It treated this as an intermediate quantity rather than a commercial quantity. This classification was important because the stricter bail limitations applicable to commercial-quantity NDPS cases were not attracted.

    2. Section 37’s stringent bail restriction was held inapplicable

    The Court specifically observed that the rigor of Section 37(1)(b) of the NDPS Act could not be applied against the petitioner in the circumstances of the case. Section 37 imposes additional restrictions on bail in specified serious NDPS matters, particularly those involving commercial quantities.

    3. No prior NDPS case was shown against the petitioner

    The order records that Kiran Kumar had no other case registered against him for offences under the NDPS Act. The absence of prior NDPS allegations weighed in favour of granting bail.

    4. Investigation was almost complete

    The Court also took into account that the investigation was nearly complete. This reduced the concern that the petitioner’s release could interfere with the investigative process.

    Bail conditions imposed by the Court

    Although the petition was allowed, the High Court made the release subject to safeguards intended to secure the petitioner’s participation in the trial and protect the prosecution process. Kiran Kumar must:

    • Execute a personal bond of Rs. 1,00,000 with two sureties for the same amount, to the satisfaction of the jurisdictional court.
    • Appear regularly before the trial court on every hearing date, unless exempted for valid reasons.
    • Refrain from directly or indirectly threatening, influencing, or tampering with prosecution witnesses.
    • Not commit similar offences in the future.
    • Remain within the jurisdiction of the trial court unless permission is granted to leave, until the criminal case is disposed of.

    Legal significance of the order

    The order illustrates that bail in an NDPS prosecution depends heavily on the alleged quantity of contraband, the applicability of Section 37, the accused person’s prior record, and the stage of investigation. The Court did not decide guilt or innocence; it made a limited determination that regular bail could be granted with conditions while the case proceeds before the trial court.

    The petition was allowed on 30 October 2026, and Kiran Kumar was ordered to be released on bail subject to compliance with the stated conditions.

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    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.

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi

  • Punjab and Haryana High Court Rejects Repeated RERA Claims

    Punjab and Haryana High Court Rejects Repeated RERA Claims

    Date: 03.11.2026

    The Punjab and Haryana High Court has dismissed a homebuyers’ appeal against Tata Housing Development Company Ltd., holding that repeated complaints arising from the same apartment dispute could not be pursued in successive proceedings.

    Case at a glance

    In Ashok Kumar Soni and others v. M/s Tata Housing Development Company Limited, decided on 2 September 2026, the High Court upheld the Haryana Real Estate Appellate Tribunal’s decision to reject the appellants’ challenge. The case concerned an apartment in Tata Housing’s Premanti project in Sector 72, Gurugram.

    The apartment had been allotted to the appellants for β‚Ή2,77,74,702, under an Apartment Buyer’s Agreement dated 16 August 2014. Possession was offered on 28 June 2017.

    Homebuyers’ allegations

    The buyers had raised several grievances concerning the apartment and the project. They alleged that the developer had overcharged them after learning that 10 apartments of the same size had reportedly been sold to Oriental Bank of Commerce for β‚Ή2.18 crore each. They initially sought a refund of β‚Ή66 lakh.

    Their complaints also referred to delayed possession, deficiencies in promised facilities, alleged changes to the project’s site plan, and a claimed change in the main entrance of Tower II. They sought compensation for financial loss, mental agony, and physical loss.

    History of repeated proceedings

    The dispute had already gone through several rounds before the Haryana RERA Authority, the Adjudicating Officer, and the Appellate Tribunal:

    • The first complaint resulted in possession and delayed-possession charges being granted.
    • An appeal against that order was withdrawn, while reserving the buyers’ right to seek compensation for alleged non-availability of facilities.
    • A later compensation complaint was dismissed by the Adjudicating Officer on 15 September 2021.
    • The buyers’ appeal from that decision was also withdrawn on 31 March 2023, without liberty to file another case.
    • A second compensation complaint was then filed, alleging material changes in the site plan and deficiencies in facilities. It was dismissed on 13 January 2025.

    The Adjudicating Officer found that the buyers had not produced evidence supporting the alleged site-plan changes or road-access issues. Neither the purported original or revised site plan nor other proof of the asserted changes was placed on record.

    Why the appeal failed

    The High Court concluded that the buyers had been aware of their grievances when they initiated the earlier proceedings but had nonetheless pursued sequential complaints regarding the same apartment and substantially connected claims.

    The Court held that such repeated litigation was barred by the principles of res judicata and Order II Rule 2 of the Code of Civil Procedure, 1908. These principles prevent parties from re-litigating matters that have already been decided, or from splitting claims arising from the same cause of action across multiple cases.

    The Court also examined Sections 88 and 89 of the Real Estate (Regulation and Development) Act, 2016. While RERA has overriding effect in case of conflict, Section 88 preserves the operation of other laws where they do not conflict with the Act. The Court therefore found that relevant procedural principles of the CPC could apply to RERA proceedings.

    Court’s key observation

    The Court stressed that permitting multiple complaints based on known, connected grievances would be contrary to public policy. It found no factual or legal defect in the Appellate Tribunal’s order and dismissed the appeal as lacking merit.

    Significance for RERA disputes

    The ruling reinforces that homebuyers and developers should present all known claims relating to a transaction in the appropriate proceeding, supported by documentary evidence. A party cannot ordinarily revive or divide claims through successive complaints after earlier proceedings have been decided or withdrawn without permission to refile.

    For site-plan or amenity-related claims in particular, the case highlights the importance of filing concrete evidence, such as sanctioned plans, revised plans, contractual representations, correspondence, photographs, and other records demonstrating the alleged deviation.

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  • Bombay High Court Overturns Arbitral Award in Stockbroker-Client Dispute

    Bombay High Court Overturns Arbitral Award in Stockbroker-Client Dispute

    Date: 03.11.2026

    The Bombay High Court has set aside an NSE appellate arbitral award against 5Paisa Capital Ltd., finding that the tribunal failed to decide essential factual and legal issues behind losses allegedly caused by a trading-platform glitch.

    Background of the dispute

    The dispute arose from an online trading account held by Ankit Agarwal with 5Paisa Capital Ltd., a SEBI-registered stockbroker and trading and clearing member of the NSE and BSE. The account was opened in October 2016 under a Member-Client Agreement and was used for online trades through the client’s credentials.

    Between September 18 and October 4, 2018, 5Paisa’s software reportedly displayed excess holdings or margin in the client’s Demat and trading account. According to the broker, this technical issue enabled additional trading exposure, while the client continued to receive contract notes, margin statements, and SMS alerts about declining margin cover and the risk of square-off.

    The client disputed the broker’s position. He alleged that trades, including Futures and Options transactions, were unauthorized and that he had not received complete notifications or contract notes. He also argued that the broker liquidated his positions without proper notice and in breach of applicable exchange rules and its own risk policy.

    Arbitration outcome

    5Paisa claimed that, after it squared off the client’s positions under its risk policy, a debit balance of more than Rs. 6.5 lakh remained outstanding. The client instead sought compensation of approximately Rs. 15 lakh for alleged trading losses, along with the value of 1,260 Adani Gas bonus shares.

    In June 2019, the sole arbitrator rejected 5Paisa’s recovery claim and partly allowed the client’s counterclaim. The award directed 5Paisa to pay:

    • Rs. 14,30,509 towards the client’s alleged losses; and
    • Rs. 1,62,162 towards the Adani Gas bonus shares.

    The NSE Appellate Arbitral Tribunal upheld that decision in October 2019. It concluded that both sides had a responsibility to report abnormalities in the trading system, but held 5Paisa liable because it had acknowledged a system glitch that provided excess margin and had not notified clients promptly.

    Why the High Court intervened

    In its Section 34 petition, 5Paisa argued that the appellate tribunal had not actually decided the central controversies. The Bombay High Court agreed, emphasizing that judicial review of arbitral awards is limited but remains available where an award is patently illegal or lacks adjudicatory findings on material issues.

    The Court held that the appellate award largely reproduced the parties’ submissions and reached a conclusion without explaining how the evidence supported it. In particular, the tribunal had not determined:

    • Whether the technical glitch in fact gave the client excess margin or credit;
    • Whether the client’s trades and losses were caused by that glitch;
    • Whether the Member-Client Agreement required either party to report the system issue;
    • Whether 5Paisa had a contractual or regulatory duty to monitor and warn the client about the excess margin;
    • Whether timely notice would have prevented or reduced the losses;
    • Why the broker alone should bear the loss when the tribunal found both parties had notification responsibilities;
    • Whether an email-address discrepancy was merely a typographical error; and
    • Whether the broker could square off positions and sell the bonus shares under its risk policy because the account had a debit balance.

    Court’s ruling

    Justice Aarti Sathe found that the absence of findings on these core questions made the appellate award a non-speaking and perverse award. The Court ruled that it could not supply missing reasoning or independently decide the merits in a Section 34 proceeding.

    Accordingly, the Court set aside the NSE appellate award that had confirmed the earlier arbitral award. The petition was allowed without costs, and any amount deposited in court was directed to be released after one month from upload of the judgment.

    The parties were left free to commence fresh arbitration proceedings in accordance with law.

    Legal significance

    The decision reinforces that an arbitral tribunal must do more than summarize arguments and announce a result. Even within the narrow scope of court intervention under Section 34 of the Arbitration and Conciliation Act, 1996, an award can be set aside when it fails to address the disputed issues that are necessary to determine liability.

    For brokers, investors, and trading-platform operators, the case highlights the importance of documented system alerts, accurate margin records, clear contractual risk-allocation terms, and reasoned dispute-resolution decisions when technology failures affect trading exposure and losses.

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  • Karnataka HC Denies Anticipatory and Regular Bail to Accused in Kolar Robbery FIR

    Karnataka HC Denies Anticipatory and Regular Bail to Accused in Kolar Robbery FIR

    Date: 03.11.2026

    The Karnataka High Court has dismissed both anticipatory and regular bail petitions filed by two accused in a robbery case registered by Malur Police in Kolar district.

    Case background

    The matter arose from Crime No. 355/2026, registered by Malur Police for alleged offences under Section 309(4) of the Bharatiya Nyaya Sanhita, 2023, and Sections 4 and 25 of the Arms Act, 1959. The petitions were heard together by Justice S. Vishwajith Shetty and decided on 30 October 2026.

    The prosecution case is based on a complaint made by a truck driver, Shantesh, who alleged that two unidentified persons intercepted his truck on the night of 22 August 2026. According to the complaint, the men arrived on a two-wheeler bearing registration number KA53 Y 1623, threatened the driver with a long, bladed weapon, and allegedly took Rs. 15,000 before fleeing.

    Bail petitions before the High Court

    M. Ananda, identified as accused No. 1, sought anticipatory bail because he feared arrest in the case. His earlier application before the Sessions Court had been rejected on 16 September 2026.

    Prabhu Rao K.M., also known as Prabhu and identified as accused No. 2, sought regular bail. He was arrested on 23 August 2026 and had remained in judicial custody since then. His earlier bail plea was rejected by the Sessions Court on 24 September 2026.

    Investigation status and prosecution objections

    During the investigation, police arrested accused No. 2 and reported recovering Rs. 5,000 and the motorcycle allegedly used in the offence from him. Accused No. 1 was stated to be absconding at the time of the hearing.

    The State opposed bail on the basis that a test identification parade had not yet been conducted. The High Court Government Pleader also informed the court that both accused had criminal antecedents and had previously been implicated in a similar case.

    Court’s decision

    The High Court held that, given the pending test identification parade, the allegation of prior criminal involvement, and the stage of the investigation, the requests for anticipatory bail and regular bail could not be accepted.

    Both Criminal Petition No. 15510 of 2026, filed by M. Ananda, and Criminal Petition No. 15186 of 2026, filed by Prabhu Rao K.M., were dismissed.

    Key implication

    The decision reflects the court’s view that bail may be declined where identification procedures remain incomplete and the investigation indicates alleged prior criminal conduct, particularly in a case involving allegations of armed robbery and recovery of suspected evidence.

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  • Himachal Pradesh High Court: Pending CBI or Vigilance Inquiry Cannot Justify Interference with Arbitral Award Under Section 37

    Himachal Pradesh High Court: Pending CBI or Vigilance Inquiry Cannot Justify Interference with Arbitral Award Under Section 37

    Date: 02.11.2026

    The Himachal Pradesh High Court has dismissed the Union of India’s appeal against an arbitral award in favour of contractor Pramod Sood, reaffirming that courts have only a narrowly limited role in reviewing arbitration decisions under the Arbitration and Conciliation Act, 1996.

    Background of the dispute

    The dispute arose from work relating to the trenching and laying of optical fibre cable (OFC). Pramod Sood, the claimant, pursued arbitration following directions of the High Court. The sole arbitrator, V.K. Khurana, issued an award on 21 July 2006.

    The Union of India and another party challenged that award before the District Judge, Shimla, under Section 34 of the Arbitration and Conciliation Act, 1996. Their objections were dismissed on 1 September 2011. They then appealed to the High Court under Section 37(1)(b) of the Act.

    Grounds raised by the Union of India

    The appellants argued that the award was founded on surmises and conjectures. They also relied on the fact that records connected with the work had been seized by the Central Bureau of Investigation in 1997 and that a vigilance inquiry had earlier been underway.

    According to the Union of India, requiring payment while those inquiries remained pending could undermine the purpose of examining alleged irregularities. It further challenged the award of interest at 14% per annum from 1 November 1996, contending that Clause 16.2 of the contract barred interest on earnest money, security deposits, or sums payable to the contractor.

    High Court’s reasoning: Section 37 review is highly restricted

    Justice Virender Singh held that an appeal under Section 37 is not a routine appeal on facts or contractual interpretation. Where an arbitral award has already survived a challenge under Section 34, the appellate court’s scope is even narrower.

    The Court relied on Supreme Court guidance in Konkan Railway Corporation Ltd. v. Chenab Bridge Project Undertaking and Bombay Slum Redevelopment Corporation Pvt. Ltd. v. Samir Barain Bhojwani. These decisions establish that courts should not set aside an award merely because another interpretation of the evidence or contract is possible.

    Interference is justified only where the award is perverse, manifestly arbitrary, or otherwise falls within the limited statutory grounds under Section 34. Under Section 37, the court primarily examines whether the Section 34 court exercised that limited jurisdiction correctly.

    CBI seizure and vigilance inquiry did not invalidate the award

    The High Court found that the CBI seizure of records and the vigilance inquiry did not affect the merits of the arbitral determination. The arbitrator had decided the dispute after providing both sides an opportunity to present their case.

    The District Judge had also considered this issue. The High Court noted that the appropriate stage to raise such objections was when the application under Section 18 of the Act was being considered. Crucially, the appellants did not show how the award violated public policy.

    Decision

    The High Court found no basis to interfere with the District Judge’s well-reasoned order dismissing the Section 34 objections. The appeal under Section 37 was therefore dismissed, along with any pending applications.

    Key legal takeaway

    The decision reinforces the finality of arbitration in India. A party challenging an arbitral award cannot succeed under Section 37 simply by offering a different reading of the facts or contract. It must demonstrate a serious legal defect, such as perversity or manifest arbitrariness, within the narrow limits set by the Arbitration and Conciliation Act, 1996.

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  • Delhi High Court Ruled Deemed Occupancy Certificate Claim Cannot Override RERA

    Delhi High Court Ruled Deemed Occupancy Certificate Claim Cannot Override RERA

    Date: 02.11.2026

    The Delhi High Court has dismissed two appeals by CJ Infrastructure Pvt. Ltd., holding that the developer could not avoid the Real Estate (Regulation and Development) Act, 2016 (RERA) on the basis of a claimed β€œdeemed” occupancy certificate and was required to comply with the statutory pre-deposit condition before its appeals could be heard.

    Background: Metroplex East commercial complex

    CJ Infrastructure developed Metroplex East, a commercial complex at 21, District Centre, Laxmi Nagar, Delhi. The project comprises 197 units along with common areas, including the entrance lobby, elevators and staircases. The developer stated that construction was completed on 14 February 2013 and that an architect had certified the building as fit for occupation.

    According to the company, it applied to the Delhi Development Authority (DDA) for an Occupancy-cum-Completion Certificate (OCC) in 2013 and early 2014. It argued that, because the DDA did not respond within the applicable period, the OCC should be treated as having been granted by operation of the building bye-laws.

    Between 2013 and 2015, the company sold or allotted 149 commercial units and executed registered conveyance deeds in favour of purchasers. Later, several purchasers initiated proceedings under RERA, principally alleging that the developer had not obtained a formal OCC for the building.

    The central dispute: Was the OCC deemed to have been granted?

    The developer’s principal argument was that the project had effectively been completed before RERA came into force and that a deemed OCC had arisen because of the DDA’s alleged inaction. On that basis, it contended that the RERA authorities lacked jurisdiction over the complaints.

    The Court did not accept this position. It examined the record placed by the DDA and highlighted key deficiencies:

    • The developer claimed that it had applied for completion on 14 February 2013, but the Fire Safety Certificate relied upon was dated 30 October 2013. The certificate was required for a completion application.
    • The OCC-fee receipt produced by the developer was dated 20 April 2017, approximately four years after the claimed OCC application.
    • The DDA reported deviations from the sanctioned plan.
    • The application was scrutinised under the Unified Building Bye-Laws, 2016, and the stated deficiencies were not rectified despite opportunities to do so.
    • The DDA rejected the OCC application on 8 September 2021.

    The Court held that a deemed OCC could not be claimed in these circumstances. It noted that deemed approval requires the applicant to have met the necessary requirements, including payment of applicable fees, and cannot authorise conduct contrary to lease conditions, the master plan, regulations or building bye-laws.

    Most importantly, the Court found that no OCC existed when the appeals were before the Real Estate Appellate Tribunal (REAT). Therefore, the project remained subject to RERA.

    Why the RERA pre-deposit requirement applied

    The second major issue concerned Section 43(5) of RERA. This provision requires a promoter challenging an order before the appellate tribunal to first deposit at least 30% of the penalty, or such higher percentage as the tribunal directs, or the total amount payable to the allottee, including interest and compensation, depending on the nature of the order.

    The REAT had required CJ Infrastructure to deposit the full adjudicated amounts as a condition for continuing its appeals. When the company did not make that deposit, the REAT dismissed the appeals.

    The Delhi High Court upheld that decision. It emphasised that the statutory wording, including β€œit shall not be entertained,” makes pre-deposit a mandatory threshold condition for a promoter’s appeal. The Court relied on the Supreme Court’s ruling in Newtech Promoters and Developers Pvt. Ltd. v. State of Uttar Pradesh, which had held that this requirement is not unconstitutionally burdensome and serves to protect allottees’ financial interests.

    The Court also rejected the developer’s offer to provide immovable-property security instead of making the deposit. RERA contains no provision permitting such a substitute.

    Judgment and implications

    The High Court found no error in the REAT’s orders and dismissed both appeals. It nevertheless allowed the appellants an opportunity to seek revival of their REAT appeals within 30 days of the judgment, provided they comply with the applicable pre-deposit condition under Section 43(5).

    The ruling reinforces two important principles for real-estate developers:

    1. A deemed occupancy certificate cannot be assumed merely from alleged administrative inaction. The applicant must show compliance with the applicable approval requirements, including supporting documentation, fees and rectification of identified shortcomings.
    2. The RERA pre-deposit requirement is mandatory for promoters’ appeals. A developer cannot ordinarily have an appeal heard by REAT without first making the required statutory deposit, and offering property as security is not an authorised alternative.

    The judgment, pronounced on 29 August 2025 by a Division Bench of Justice Anil Kshetarpal and Justice Harish Vaidyanathan Shankar, underscores the courts’ approach of enforcing RERA’s safeguards for allottees while requiring strict compliance from promoters seeking appellate relief.

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  • Karnataka High Court Dismisses Retired FSL Officer’s Plea to Halt Forgery Case

    Karnataka High Court Dismisses Retired FSL Officer’s Plea to Halt Forgery Case

    Date: 02.11.2026

    The Karnataka High Court has dismissed a criminal petition by a retired Forensic Science Laboratory officer, holding that his claim that he was forced to sign a disputed experience certificate must be tested at trial rather than decided at the discharge stage.

    Background: recruitment complaint led to criminal case

    The case arose from the recruitment process for the post of Scientific Assistant in the Biology Section of the Forensic Science Laboratory (FSL). The complainant, K. Sridhar, who held an M.Sc. in Biotechnology, applied in response to a notification issued on 25 February 2003.

    After receiving no information about the recruitment outcome, Sridhar sought records through an application under the Right to Information Act in December 2007. Following proceedings before RTI authorities, he received certain documents that he alleged were false or misleading. These records, including documents dated in 2008, formed the basis of a complaint registered by the Madivala Police in July 2010.

    The investigation was subsequently transferred to the COD. After investigating, the agency filed a charge sheet alleging that officials had conspired to facilitate the appointment of another candidate by creating or issuing a false experience certificate.

    Allegations against the petitioner

    Rangegowda, a retired Deputy Director associated with the FSL, was named as Accused No. 3. The prosecution alleged that he and others conspired in relation to the appointment of Accused No. 2 as a Scientific Assistant, despite the candidate allegedly lacking the required qualification.

    The charge sheet invoked offences relating to preparation or signing of incorrect official documents, false certification, criminal conspiracy and provisions of the Prevention of Corruption Act. A central document was a certificate dated 12 March 2003 bearing Rangegowda’s signature.

    Defence: signature was allegedly obtained under pressure

    Rangegowda sought discharge before the trial court, maintaining that he had not committed the alleged offences. His principal defence was that Accused No. 1 had compelled him to sign a pre-typed document in the latter’s chamber and that he had no meaningful alternative.

    He also argued that:

    • he was initially treated as a witness, including in a statement recorded under Section 164 of the Criminal Procedure Code;
    • the trial court had not adequately considered the legal ingredients of the offences alleged;
    • certain allegations were barred by limitation; and
    • material from a departmental enquiry supported his position.

    The trial court rejected his discharge application. He then moved the High Court under Section 482 of the Criminal Procedure Code, seeking to have that order set aside.

    High Court’s reasoning: disputed defence requires evidence at trial

    Justice H.P. Sandesh held that the dispute could not be resolved at the discharge stage. The Court noted that Rangegowda did not dispute issuing the certificate dated 12 March 2003 or that it carried his signature. His contention was that the document had been signed under coercion.

    According to the Court, whether the petitioner was actually compelled to sign the certificate is a factual issue requiring examination of evidence. It cannot be decided merely by evaluating the defence version while considering an application for discharge.

    The Court also accepted that the investigating material indicated allegations of a cognizable offence and an alleged conspiracy involving the issuance of the certificate. At this preliminary stage, the court said it could not assess the reliability of the prosecution’s evidence or discard it in favour of the petitioner’s explanation.

    Why the discharge request failed

    The High Court emphasized that discharge is appropriate where allegations and collected material fail to disclose a case requiring trial. Here, however, the existence of the signed certificate was not disputed, and the prosecution had material supporting its allegation that the certificate was connected to an improper appointment.

    The Court treated the petitioner’s explanation, including his reliance on his earlier statements and departmental enquiry material, as a defence that may be raised during trial. It found no error in the trial court’s refusal to discharge him.

    Outcome and legal significance

    The criminal petition was dismissed, leaving the prosecution against Rangegowda to proceed before the trial court. The decision reinforces a key distinction in criminal procedure: at the discharge stage, courts assess whether the prosecution material discloses grounds to proceed, but they generally do not decide contested factual defences.

    Where a document’s issuance is admitted but the circumstances of signing are disputed, the matter ordinarily requires a full trial and evidence-based determination.

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  • Telangana High Court Quashes Customs Confiscation of Used MFD Imports

    Telangana High Court Quashes Customs Confiscation of Used MFD Imports

    Date: 02.11.2026

    The Telangana High Court has ruled that a later amendment imposing a 100-unit-per-model annual threshold could not be used to confiscate Arka Business Solutions’ consignment of used multi-function devices (MFDs) imported before that amendment took effect.

    Background of the dispute

    Arka Business Solutions, an importer and seller of used digital multi-function devices, imported 73 used MFDs from the United States. The company filed its Bill of Entry on 4 June 2026 at ICD Thimmapur.

    Customs examined the consignment on 19 June 2026. A Chartered Engineer appointed at Customs’ instance found that the machines were functional second-hand capital goods, had more than six years of residual life, were neither hazardous waste nor electronic waste, and each weighed more than 80 kg.

    Those findings were significant because the weight criterion placed the devices within the exemption for Highly Specialised Equipment (HSE) under the Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2021 (CRO 2021).

    Customs’ decision to confiscate the goods

    Despite the technical certification, Customs issued a show-cause notice alleging that the importer required DGFT authorisation under the Foreign Trade Policy, 2023, and had not met BIS registration requirements. The adjudicating authority subsequently divided the 73 machines into two categories:

    • 36 units were treated as prohibited goods because their models allegedly exceeded a 100-unit annual threshold when imports by all importers across India were counted. These units could be redeemed only for re-export, subject to a redemption fine of Rs. 1,33,257.
    • 37 units were treated as restricted goods. Customs allowed redemption for home consumption on payment of a Rs. 3,95,021 redemption fine.

    The order was based on the view that the 100-unit threshold under the amended Paragraph 8 of CRO 2021 applied nationally and across unrelated importers.

    Court’s findings: the amendment could not operate retrospectively

    The High Court set aside the confiscation order, holding that the amendment adding the quantitative limit came into force only on 15 June 2026. Since Arka Business Solutions had filed its Bill of Entry on 4 June 2026, the amended provision did not govern the import.

    The Court emphasized that subordinate legislation is presumed to operate prospectively unless it clearly states otherwise. The notification did not contain language giving it retrospective effect.

    Under Section 15 of the Customs Act, the relevant legal position for goods entered for home consumption is determined on the date the Bill of Entry is presented. Accordingly, later events, including the Customs examination, show-cause notice, and adjudication order, could not subject the earlier import to a restriction that was not in force at the relevant time.

    Why the 100-unit interpretation was also flawed

    The Court found additional defects in Customs’ reasoning. The language of the amended provision referred to equipment β€œmanufactured/imported in less than 100 units per model per year,” but did not expressly create an industry-wide cap shared by all importers.

    The Court observed that Customs had not explained why one importer should lose an exemption because unrelated importers had brought in the same model. A restrictive interpretation that limits an exemption on the basis of third-party imports required clear statutory language, which was absent.

    The Court also noted that the show-cause notice did not tell the importer that eligibility would be tested using all-India import data from other importers. Deciding the case on a basis not disclosed in the notice violated the principle that a noticee must know the case it has to answer.

    HSE exemption meant the devices were freely importable

    The Court reaffirmed its earlier interpretation of the relationship between CRO 2021 and the Foreign Trade Policy. Where used MFDs satisfy the HSE exemption, the compulsory registration requirement does not apply. As a result, the import cannot be treated as restricted under the provision dealing with second-hand goods subject to CRO compliance.

    Instead, qualifying goods fall within the category of freely importable second-hand capital goods. Since the Chartered Engineer had confirmed the devices met the weight threshold and were functional capital goods rather than e-waste, there was no basis to classify them as prohibited or restricted.

    The Court therefore found no basis for confiscation under Section 111(d) of the Customs Act. It also held that the record did not support allegations of misdeclaration under Section 111(m) or a penalty under Section 112.

    Outcome and release conditions

    The High Court allowed the writ petition and quashed the Customs order to the extent it:

    • classified the goods as prohibited or restricted;
    • confiscated them under Section 111(d);
    • imposed redemption fines; and
    • imposed any related penalty.

    Customs was directed to release the goods covered by the Bill of Entry, subject to conditions adopted from an earlier Arka Business Solutions decision. These conditions require the importer to deposit the enhanced duty amount after Customs quantifies it, while preserving the parties’ rights to pursue valuation issues separately. The Court also stated that any demurrage-waiver request must be considered objectively.

    Key legal takeaway

    The ruling confirms that import restrictions and exemption conditions must be assessed under the law in force when the Bill of Entry is filed. Customs cannot apply a later quantitative restriction retrospectively, expand an exemption limitation through an unclear all-India interpretation, or rely on grounds that were not put to the importer in the show-cause notice.

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    Ravi Shekhar Jha – Advocate, Bar Council of Delhi