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  • Karnataka High Court Quashes Cheque Dishonour Proceedings

    Karnataka High Court Quashes Cheque Dishonour Proceedings

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

    Date: 05.09.2026

    Karnataka High Court Quashes Cheque Dishonour Proceedings

    This Short Article has been prepared & written by Advocate G Sridharamurthy. The views expressed are based on his interpretation of the law. He can be reached at his email id sriadv3@gmail.com . 

    The Karnataka High Court recently delivered a significant judgment in a series of criminal petitions involving Kavitha Chopra and Dhirendra Chopra, directors of Osia Hyper Retail Limited. The petitions sought to quash proceedings related to cheque dishonour cases initiated by M/s 63Ideas Infolabs Pvt. Ltd. (Ninjacart). This article provides a comprehensive overview of the case background, legal arguments, judicial reasoning, and the implications of the court’s decision.

    Case Background

    • Parties Involved:
      • Petitioners: Kavitha Chopra and Dhirendra Chopra, directors of Osia Hyper Retail Limited.
      • Respondent: M/s 63Ideas Infolabs Pvt. Ltd. (Ninjacart), a company engaged in wholesale trade of agricultural products.
    • Nature of Dispute:
      • Osia Hyper Retail Limited entered into a sale and purchase agreement with Ninjacart for the supply of 37 metric tons of loose tuvar dal gili, valued at β‚Ή50,02,400.
      • Cheques issued by Osia Hyper Retail Limited towards payment were dishonoured due to insufficient funds.
      • After statutory demand notices went unanswered, Ninjacart filed private complaints under Section 138 of the Negotiable Instruments Act (NI Act) and Section 223 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023.
      • Five separate criminal cases were registered, leading to the present petitions seeking quashing of proceedings against the Chopras.

    Legal Arguments

    Petitioners’ Contentions

    1. Role of Directors:
      • Kavitha Chopra was not involved in the day-to-day affairs of the company and was not a signatory to the dishonoured cheques.
      • The complaints lacked specific averments regarding her role or knowledge of the transactions.
      • Dhirendra Chopra, though a signatory in some cases, was not involved in all cheque issuances, and the complaints did not detail his responsibilities.
    2. Vicarious Liability:
      • Merely naming someone as a director is insufficient to fasten criminal liability under Section 138 read with Section 141 of the NI Act.
      • The twin requirements under Section 141β€”being in charge of and responsible for the conduct of the businessβ€”were not satisfied.

    Respondent’s Contentions

    • Both Chopras were authorized representatives and signatories for Osia Hyper Retail Limited.
    • The agreement, GST certificate, and board resolutions demonstrated their involvement.
    • The grounds raised by the petitioners should be tested during trial, not at the quashing stage.

    Judicial Reasoning

    Key Legal Principles Cited

    • Supreme Court Precedents:
      • Merely being a director does not automatically make one liable under Section 138/141 of the NI Act.
      • Specific averments are required to show how a director was in charge of and responsible for the conduct of the business at the relevant time.
      • Only signatories to the dishonoured cheque or those proven to be managing the company’s affairs can be held vicariously liable.

    Application to the Present Case

    • The complaints and sworn statements did not specify the roles of the directors, especially Kavitha Chopra, in the company’s daily operations.
    • The only evidence was that both were directors and signatories to the agreement, but not all cheques.
    • In one case, a cheque was issued from a joint account, but only the signatory can be prosecuted under Section 138.
    • The court found that continuing proceedings against Kavitha Chopra, without specific allegations of her involvement, would be an abuse of process.

    Court’s Order

    1. Petitions by Kavitha Chopra:
      • Allowed. Proceedings against her in the relevant criminal cases were quashed.
    2. Petitions by Dhirendra Chopra:
      • Dismissed. Proceedings against him will continue, as he was the Managing Director and signatory in some cases.

    Implications and Takeaways

    • For Directors:
      • Directors not involved in day-to-day management or not signatories to disputed cheques cannot be held vicariously liable without specific allegations.
    • For Complainants:
      • Complaints must clearly state how each accused was responsible for the company’s business at the time of the offence.
    • For Legal Practitioners:
      • The judgment reinforces the need for precise pleadings and adherence to statutory requirements in cheque dishonour cases.

    Conclusion

    The Karnataka High Court’s decision underscores the importance of specific allegations and evidence when seeking to hold company directors criminally liable for cheque dishonour. The ruling provides clarity on the application of vicarious liability under the NI Act and sets a precedent for similar cases involving corporate directors.

    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: Karnataka High Court

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  • 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.

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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.

    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

  • Madras High Court Affirms RERA Non-Applicability to Pre-2017 Completed Projects

    Madras High Court Affirms RERA Non-Applicability to Pre-2017 Completed Projects

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

    Date: 03.09.2026

    Madras High Court Affirms RERA Non-Applicability to Pre-2017 Completed Projects

    This Short Article has been prepared & written by Advocate Narendra Singh. The views expressed are based on his interpretation of the law. He can be reached at his email id amitnaren@outlook.com .  

    A recent judgment by the High Court of Judicature at Madras has brought clarity to the rights of homebuyers and the jurisdiction of regulatory authorities under the Real Estate (Regulation and Development) Act, 2016 (RERA). The case, involving R. Santhi Pitchaiya Nattar and Homefinders Housing Ltd, revolved around refund claims, project completion, and the applicability of RERA to projects completed before the Act came into force.

    Background of the Case

    • Parties Involved:
      • Appellant: R. Santhi Pitchaiya Nattar
      • Respondent: Homefinders Housing Ltd
    • Project in Dispute: Apartments 13A and 16B in the ‘Elegant Palm’ project, Aatchikadu Village, Villupuram District.
    • Timeline:
      • Booking and payments made in June 2012.
      • Construction agreement and sale deed executed in June 2012.
      • Dispute arose due to alleged delay in completion and handover.

    Key Issues Raised

    1. Whether the project was exempt from RERA registration under Rule 2(h)(iii) of the Tamil Nadu RERA Rules, 2017.
    2. Whether the appellant was entitled to a refund with interest due to non-completion.
    3. Whether a completion certificate from a private architect sufficed in the absence of a certificate from the competent authority.
    4. The jurisdiction of RERA and its appellate bodies over unregistered or pre-RERA projects.

    Proceedings and Arguments

    • Appellant’s Stand:
      • Paid almost the entire sale consideration by 2012.
      • Alleged non-completion and failure to hand over possession.
      • Sought refund with interest from the developer.
    • Respondent’s Stand:
      • Claimed project completion in 2014 and communication to the buyer.
      • Argued that the buyer failed to pay the final installment and did not take possession.
      • Asserted exemption from RERA as the project was completed before 01.05.2017.

    Orders by Regulatory Authorities

    1. TNRERA (Regulatory Authority):
      • Directed the developer to refund the amount paid by the buyer after deducting certain charges.
    2. TNREAT (Appellate Tribunal):
      • Set aside the TNRERA order, holding that the project was exempt from RERA registration and outside its jurisdiction.

    High Court’s Analysis and Judgment

    • The High Court examined the applicability of RERA and the Tamil Nadu RERA Rules, especially Rule 2(h)(iii), which exempts projects completed before 01.05.2017 from registration.
    • The Court found that:
      • The project was listed as completed before the cut-off date and notified as such by the authorities.
      • The regulatory authority (TNRERA) lacked jurisdiction over the dispute as the project was not required to be registered under RERA.
      • Aggrieved buyers in such cases must seek remedies through civil courts or consumer forums, not RERA.
    • Final Decision: The appeals by the buyer were dismissed, upholding the appellate tribunal’s order.

    Implications of the Judgment

    1. Jurisdictional Clarity: Projects completed before 01.05.2017 and duly notified are outside RERA’s purview in Tamil Nadu.
    2. Remedy for Buyers: Buyers in such projects must approach civil courts or consumer forums for grievances, not RERA.
    3. Importance of Timely Communication: Developers must ensure timely completion and proper communication to avoid disputes.
    4. Documentation: Both buyers and developers should maintain clear records of payments, agreements, and communications.

    Conclusion

    This judgment reinforces the boundaries of RERA’s jurisdiction and provides guidance for both homebuyers and developers regarding disputes in pre-RERA projects. It underscores the importance of understanding the legal framework and seeking appropriate forums for redressal.

    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: Madras High Court

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  • Defining Party Autonomy and Judicial Review in Indian Arbitration

    Defining Party Autonomy and Judicial Review in Indian Arbitration

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

    Date: 03.09.2026

    Defining Party Autonomy and Judicial Review in Indian Arbitration

    This Short Article has been prepared & written by Arbitrator Shobhit Mallik. The views expressed are based on his interpretation of the law. He can be reached at his email id shobhit.Ica23@gmail.com .

    This article explores the Supreme Court of India’s decision in Ssangyong Engineering & Construction Co. Ltd. v. National Highways Authority of India (NHAI), Civil Appeal No. 4779 of 2019, and its far-reaching impact on arbitration law and contract enforcement in India.

    Background of the Dispute

    1. Project and Contract
      • NHAI invited bids for a four-lane bypass on National Highway 26 in Madhya Pradesh.
      • Ssangyong Engineering & Construction Co. Ltd., a Korean company, won the contract for INR 219 crore.
      • The contract included a price adjustment clause (sub-clause 70.3) for key construction components (cement, steel, plant & machinery, and other materials), based on the Wholesale Price Index (WPI).
    2. Change in WPI Series
      • Initially, price adjustments used the WPI (1993-94 = 100, “Old Series”).
      • In 2010, the Ministry of Industrial Development switched to a new WPI series (2004-05 = 100, “New Series”).
      • Both old and new indices were available for calculation, and payments continued accordingly until 2013.
    3. Policy Circular and Dispute
      • In 2013, NHAI issued a circular introducing a “linking factor” to connect the old and new WPI series, requiring contractors to accept this adjustment with an undertaking.
      • Ssangyong objected, provided only a conditional undertaking, and initiated dispute resolution.

    Arbitration and Court Proceedings

    1. Dispute Adjudication and Arbitration
      • The Dispute Adjudication Board (DAB) recommended applying the linking factor, but one member dissented, supporting Ssangyong’s position.
      • The arbitral tribunal (majority) upheld the use of the linking factor and rejected Ssangyong’s claim. The dissenting arbitrator awarded the full claim to Ssangyong.
    2. Court Challenges
      • Ssangyong challenged the majority award under Section 34 of the Arbitration and Conciliation Act, 1996, arguing that the award was beyond the scope of arbitration and violated public policy.
      • Both the Single Judge and Division Bench of the Delhi High Court upheld the majority award, citing limited grounds for interference.

    Supreme Court’s Analysis and Ruling

    Key Legal Issues Addressed

    1. Scope of Judicial Review under Section 34
      • The Court clarified that post-2015 amendments, the grounds for setting aside arbitral awards are narrower, focusing on fundamental policy of Indian law and most basic notions of justice or morality.
      • Patent illegality is a ground only for domestic (not international commercial) arbitrations.
    2. Application of Unilateral Circulars
      • The Court held that a unilateral circular (like NHAI’s 2013 circular) cannot alter the contract without the other party’s consent.
      • Imposing a new formula via the circular amounted to creating a new contract, breaching fundamental principles of justice.
    3. Natural Justice and Due Process
      • The majority arbitrators relied on government guidelines not disclosed to the parties, violating Ssangyong’s right to present its case.
      • This procedural lapse was sufficient to set aside the award under Section 34(2)(a)(iii).

    Final Decision

    • The Supreme Court set aside the majority arbitral award and the High Court judgments.
    • Instead of remanding for fresh arbitration (which would cause delay), the Court invoked Article 142 of the Constitution to enforce the minority award in Ssangyong’s favor.
    • Ssangyong was awarded INR 2,01,42,827 plus interest as per the contract.

    Impact and Significance

    1. Reinforcement of Party Autonomy
      • The judgment affirms that contract terms cannot be unilaterally altered by one party or by administrative circulars.
    2. Clarification of Public Policy and Patent Illegality
      • The Court narrowed the scope of “public policy” challenges, aligning Indian law with international standards and reducing judicial interference.
    3. Due Process in Arbitration
      • Awards based on undisclosed evidence or guidelines violate natural justice and are liable to be set aside.
    4. Speedy Dispute Resolution
      • By enforcing the minority award directly, the Court prioritized efficiency and finality in arbitration.

    Conclusion

    The Ssangyong Engineering judgment is a milestone in Indian arbitration jurisprudence. It strengthens the sanctity of contracts, limits judicial intervention, and upholds due process, making India a more arbitration-friendly jurisdiction.

    Connected Matter

    Bombay High Court’s Analysis of Arbitral Award Challenge under Section 34 of the Arbitration and Conciliation Act, 1996 in a Cotton Supply Dispute

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    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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  • Supreme Court Clarifies Railway Compensation: Passenger Rights and No-Fault Liability

    Supreme Court Clarifies Railway Compensation: Passenger Rights and No-Fault Liability

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

    Date: 03.09.2026

    Supreme Court Clarifies Railway Compensation: Passenger Rights and No-Fault Liability

    This Short Article has been prepared & written by Advocate Madhumita Jha. The views expressed are based on her interpretation of the law. She can be reached at her email id jhamadhumita27@gmail.com .  

    A recent Supreme Court judgment in the case of Lata v. Union of India has brought significant clarity to the rights of railway passengers and their families regarding compensation for untoward incidents, such as accidental falls from trains. This article provides a detailed analysis of the case, the legal framework, and its broader implications for railway safety and passenger rights in India.

    Case Background

    The appellant, Lata, filed a claim for compensation after her husband, Chandrakant Thakkar, died from falling off a running train (Train No. 12834 Ahmedabad-Howrah Mail) in November 2015. The Railway Claims Tribunal and the High Court both dismissed her claim, citing the absence of proof that the deceased was a bona fide passenger, as his ticket was not recovered. Lata appealed to the Supreme Court, arguing that her husband was indeed a valid ticket holder and a victim of an untoward incident as defined by law.

    Legal Framework

    Key Provisions of the Railways Act

    • Section 123(c)(2): Defines “untoward incident” to include accidental falling of any passenger from a train.
    • Section 124A: Establishes “no-fault liability” for the Railways, making them liable to pay compensation for death or injury resulting from untoward incidents, regardless of negligence, with certain exceptions (e.g., suicide, self-inflicted injury, criminal acts).
    • Section 2(29): Defines a “passenger” as someone traveling with a valid ticket or pass.

    Burden of Proof

    The Supreme Court emphasized that the absence of a ticket on the deceased does not automatically disqualify a claim. The initial burden is on the claimant to establish bona fide travel, which can be done through affidavits and circumstantial evidence. Once this is done, the burden shifts to the Railways to disprove the claim.

    Court’s Analysis and Ruling

    Liberal Interpretation of Beneficial Legislation

    The Court reiterated that welfare statutes like the Railways Act must be interpreted liberally to fulfill their humanitarian purpose. Technicalities should not defeat the objective of providing accessible compensation to victims and their families.

    Railway Duties and Passenger Safety

    The judgment reviewed various Railway Manuals and statutory duties, highlighting:

    • The responsibility of railway staff to ensure passenger safety, prevent overcrowding, and check tickets at multiple points.
    • The need for proper record-keeping and enforcement to prevent unauthorized travel and overcrowding, which are frequent causes of accidents.

    Overcrowding and Recent Incidents

    The Court cited several recent incidents of deaths and injuries due to overcrowding, underlining the persistent risks faced by passengers. Despite guidelines, overcrowding remains a major safety challenge.

    Shared Responsibility

    While the Railways have a duty to enforce safety protocols, the Court also noted that passengers must act responsibly and avoid risky behaviors, such as traveling on footboards or overcrowded compartments.

    Final Decision

    The Supreme Court found that the lower courts erred in denying compensation solely due to the missing ticket. The appellant’s affidavit and circumstances established bona fide travel. The Court awarded compensation of Rs. 8,00,000 to the appellant, as per the latest rules, with interest if not paid within four weeks.

    Implications and Recommendations

    1. For Passengers:
      • Always retain travel documents and avoid risky travel practices.
      • In case of an incident, affidavits and circumstantial evidence can support compensation claims.
    2. For Railways:
      • Strengthen enforcement of safety protocols and ticket checks.
      • Address overcrowding through operational improvements and increased capacity.
      • Improve record-keeping to reduce disputes over passenger status.
    3. For Policymakers:
      • Consider reforms to further simplify compensation processes.
      • Invest in modernization and manpower to enhance safety and service quality.

    Conclusion

    This Supreme Court judgment marks a progressive step in protecting the rights of railway passengers and their families. By prioritizing the welfare intent of the law over procedural technicalities, the Court has reinforced the humanitarian objectives of the Railways Act and set a precedent for future compensation claims.

    Connected Matter

    Delhi High Court Overturns Tribunal Decision: Compensation Ordered for Railway Accident Victim’s Family

    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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  • Karnataka High Court Clarifies Advocate General’s Consent in Criminal Contempt: Suo Motu Powers and Procedural Safeguards Explained

    Karnataka High Court Clarifies Advocate General’s Consent in Criminal Contempt: Suo Motu Powers and Procedural Safeguards Explained

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

    Date: 03.09.2026

    Karnataka High Court Clarifies Advocate General’s Consent in Criminal Contempt: Suo Motu Powers and Procedural Safeguards Explained

    This Short Article has been prepared & written by Advocate G Sridharamurthy. The views expressed are based on his interpretation of the law. He can be reached at his email id sriadv3@gmail.com . 

    A recent judgment by the Karnataka High Court in CRL.CCC No. 5 of 2025 provides valuable insights into the procedural and legal nuances of criminal contempt proceedings in India. This article explores the background, legal arguments, and the court’s reasoning, offering clarity on the role of Advocate General’s consent and the court’s suo motu powers.

    Background of the Case

    The case originated from a petition filed by New Space Research and Technologies Pvt. Ltd. against several individuals, alleging deliberate and wilful disobedience of a High Court order. The complainant sought criminal contempt proceedings under Article 215 of the Constitution of India and the Contempt of Courts Act, 1971, for non-compliance with a court directive regarding search and seizure operations.

    Key Legal Issue: Is Advocate General’s Consent Mandatory?

    A central question was whether a criminal contempt petition filed by a private party, without the Advocate General’s consent, is maintainable. The accused argued that such consent is a substantive safeguard and a prerequisite under Section 15 of the Contempt of Courts Act, 1971. The complainant countered that the petition merely provided information to the court, which could act on its own motion (suo motu) under Article 215 of the Constitution.

    Legal Framework and Precedents

    Relevant Provisions

    • Article 215 of the Constitution: Empowers every High Court to punish for contempt of itself.
    • Section 15 of the Contempt of Courts Act, 1971: Outlines how criminal contempt can be initiatedβ€”by the court suo motu, by the Advocate General, or by any other person with the Advocate General’s written consent.
    • High Court of Karnataka (Contempt of Court Proceedings) Rules, 1981: Specifies procedures for filing and processing contempt petitions.

    Arguments and Judicial Reasoning

    • The accused relied on Supreme Court decisions (P.N. Duda v. P. Shiv Shanker and Bal Thackrey v. Harish Pimpalkhute) to assert the necessity of Advocate General’s consent for private motions.
    • The complainant cited cases (including Prashant Bhushan v. Alleged Contemnor) to argue that the court can act suo motu based on information received in any legally recognized form, including a petition.
    • The court analyzed the distinction between private motions and information that triggers suo motu action. It emphasized that while consent is mandatory for private motions, the court retains the power to act on its own motion upon receiving information, even if submitted as a petition.

    Court’s Decision and Its Implications

    The High Court concluded that:

    1. Consent of the Advocate General is mandatory for private motions under Section 15(1)(b) of the Act.
    2. However, the court can act suo motu upon receiving information, including through a petition, without such consent.
    3. Procedural Safeguards: The court reiterated that petitions seeking suo motu action should be treated as information and placed before the Chief Justice for consideration, not directly admitted as contempt cases.
    4. Outcome: The court recalled its earlier order overruling objections on maintainability and directed the Registry to treat the petition as information under Rule 7, to be placed before the Chief Justice.

    Practical Takeaways for Legal Practitioners and Litigants

    1. Understand the Distinction: Private parties must obtain Advocate General’s consent for criminal contempt petitions unless they are merely providing information for the court’s consideration.
    2. Follow Proper Procedure: Petitions intended as information for suo motu action should not be styled as regular contempt cases but routed through the administrative process.
    3. Court’s Discretion: The High Court’s inherent powers under Article 215 remain robust, allowing it to act on credible information of contempt, regardless of the source.

    Conclusion

    This judgment clarifies the procedural safeguards and the balance between preventing frivolous contempt petitions and empowering courts to uphold their authority. Legal professionals should carefully assess the mode of initiation and procedural requirements when dealing with criminal contempt matters in the High Courts.

    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: Karnataka High Court

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  • 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

    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