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  • Bombay High Court: Registrars Must Not Mechanically Disqualify Society Committee Members

    Bombay High Court: Registrars Must Not Mechanically Disqualify Society Committee Members

    Date: 04.11.2026

    The Bombay High Court has ruled that a cooperative housing society office-bearer cannot be disqualified automatically for failing to supply records: the Registrar must first assess whether the refusal was deliberate, unjustified, and serious enough to warrant that consequence.

    Background of the dispute

    The case arose from Ishan Co-operative Housing Society in Wakad, Pune, whose land and membership history had been subject to prolonged disputes. Several plot allottees, including Ramdas Baban Kate and Dhanraj Charansingh Birda, were recognised as deemed members through orders passed under the Maharashtra Co-operative Societies Act, 1960.

    After an administrator-led election in November 2021, Kate became Chairman of the society. Within two weeks, Birda sought copies of election-related records, meeting minutes, membership registers, audit reports, and other society documents. He enclosed Rs. 1,000 and offered to pay additional copying charges.

    The society, through its Chairman, declined the request. The stated reason was that Birda was not considered a society member at that time. The Deputy Registrar had directed the society to provide the documents, but the refusal continued.

    The disqualification orders

    Birda initiated proceedings under Section 154B-23 of the Maharashtra Co-operative Societies Act. The Deputy Registrar initially disqualified Kate for five years in July 2022. That decision was remanded in revision, but the Deputy Registrar again imposed a five-year disqualification in January 2023. The Divisional Joint Registrar upheld it in October 2023.

    The disqualification was based on Section 154B-8(2), which requires a society to provide members with copies of specified records on a written request and payment of the prescribed fees. Section 154B-23 provides for disqualification where a committee member is held responsible for violating that obligation.

    The High Court stayed the disqualification in March 2025 and ultimately heard the matter finally instead of deciding a later application seeking vacation of the stay.

    The key legal issue: Is disqualification automatic?

    The Court held that it is not. While the statute makes the consequences of a validly established disqualification mandatory, it does not require the Registrar to mechanically declare a committee member disqualified whenever documents have not been supplied.

    Justice Sandeep V. Marne explained that the Registrar must conduct a fact-specific assessment of whether the concerned office-bearer should actually be held responsible for the failure under Section 154B-8(2). This requires consideration of the nature of the breach, the reasons for non-compliance, the duration of the default, its effect on transparency, and whether there was any deliberate attempt to conceal wrongdoing or misuse authority.

    The Court stressed that Sections 154B-8 and 154B-23 are intended to secure transparency in housing societies, not to remove elected committee members for every technical lapse. A five-year bar is a serious civil consequence, particularly because it may exceed the normal tenure of a managing committee.

    Why the Chairmanโ€™s refusal was treated differently

    Although Kate had refused to provide the requested records, the Court found that the circumstances did not establish a deliberate or mala fide denial.

    An earlier auditor and administrator had prepared a membership list for the 2021 election that excluded 52 persons who had allegedly not paid amounts toward their lease plots. Birda was among the persons excluded. When the newly elected committee received his request, it had not yet obtained all society records. The Chairman relied on the administratorโ€™s report and the election-related membership list in believing that Birda was not entitled to seek the documents as a member.

    The Court noted that both Kate and Birda had earlier secured deemed membership under common orders. However, the later administrative records had created a genuine doubt about Birdaโ€™s membership status. The Court therefore concluded that the refusal was based on a belief formed from the available records, rather than an oblique motive to withhold information.

    The requested documents were also supplied later. In these unusual circumstances, the Court held that the Chairmanโ€™s conduct did not amount to a deliberate violation warranting disqualification.

    Principles clarified by the judgment

    The ruling reinforces several important standards for cooperative housing societies and Registrars:

    • Members have a statutory right to records. Societies must ordinarily provide the documents listed in Section 154B-8(1), including minutes, audited financial statements, committee-member lists, and membership registers.
    • The right supports transparency. Withholding records to hide financial irregularities, misuse of power, or significant committee decisions can justify strict action.
    • A breach alone is not decisive. The Registrar must determine whether the office-bearer is truly responsible for the default and whether it was intentional, unjustified, or harmful.
    • Context matters. Genuine uncertainty, prompt corrective conduct, and substantial compliance may weigh against disqualification.
    • Sanctions must be proportionate. A five-year disqualification should reflect the seriousness of the misconduct and cannot be imposed mechanically for a minor or technical lapse.

    The Court distinguished cases in which society committees had deliberately withheld records despite repeated requests and official directions. In those matters, the refusal indicated disregard for transparency and justified disqualification. Here, the evidence did not show a comparable attempt to conceal wrongdoing.

    Final outcome

    The Bombay High Court allowed the writ petition and set aside both the Deputy Registrarโ€™s order dated 30 January 2023 and the Divisional Joint Registrarโ€™s order dated 12 October 2023. Kateโ€™s five-year disqualification was therefore cancelled, and the related interim application was disposed of.

    The judgment confirms that transparency obligations in cooperative housing societies are enforceable, but the power to disqualify elected committee members must be exercised with careful, evidence-based, and proportionate consideration of the actual circumstances.

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  • Karnataka HC Sends Developer to RERA Appellate Tribunal Over Refund Dispute

    Karnataka HC Sends Developer to RERA Appellate Tribunal Over Refund Dispute

    Date: 04.11.2026

    The Karnataka High Court has dismissed a developerโ€™s writ petition challenging a RERA refund order, holding that the dispute must be pursued through the statutory appellate remedy available under the Real Estate (Regulation and Development) Act, 2016.

    Background of the dispute

    The case arose from an agreement dated 14 June 2012 for the purchase of residential Site No. C68 in the M/s Asset Habitat project in Mysore. The agreed sale price was Rs.21.60 lakh.

    According to the record, the purchaser and her husband initially paid Rs.7 lakh, which was acknowledged by the developer. They later paid further amounts, bringing the amount claimed before the Karnataka Real Estate Regulatory Authority (KRERA) to Rs.12.40 lakh.

    The purchaser alleged that the project was not completed and that the site had not been conveyed even by 2018. After repeated reminders did not resolve the issue, she filed a complaint before KRERA in 2020 seeking a refund, interest and compensation.

    RERA proceedings and refund direction

    KRERA initially passed an order on 22 May 2020 after the developer did not participate in the proceedings. It directed refund of Rs.12.40 lakh, with interest at 9% per annum up to 30 April 2017 and thereafter at 2% above the State Bank of Indiaโ€™s MCLR until payment.

    The developer subsequently sought to set aside that order, contending that notice had not been properly served. KRERA allowed that application on 15 December 2020 and restored the complaint for fresh consideration.

    The matter was then heard over multiple dates between 2021 and 2023. The developer was allowed to place final written submissions on record. KRERA ultimately passed its fresh order on 24 August 2023, which became the subject of the High Court challenge.

    Why the High Court declined to examine the merits

    The developer approached the High Court under Articles 226 and 227 of the Constitution, arguing that the RERA order violated principles of natural justice and that the appellate tribunal was not functioning when the writ petition was filed.

    The Court rejected both grounds:

    • Functional appellate remedy: The Court noted that the RERA Appellate Tribunal has since been constituted and is functioning. The earlier difficulty concerning the tribunalโ€™s availability therefore no longer existed.
    • Adequate opportunity to be heard: The Court found that the developer had received sufficient opportunity after the earlier ex parte order was recalled. The proceedings remained pending for a substantial period, hearings were held, and the developer filed additional objections and written submissions before the matter was decided.
    • RERA jurisdiction upheld: The Court held that KRERA had jurisdiction to decide the purchaserโ€™s complaint because it concerned alleged non-compliance with the sale agreement.

    The Court reiterated that a writ petition is ordinarily not entertained when a statutory appeal is available, unless there is a fundamental-rights issue, a genuine breach of natural justice, a complete lack of jurisdiction, or a challenge to the validity of legislation. It found that none of these exceptions applied.

    Courtโ€™s decision

    Justice T.P. Vivekananda dismissed the writ petition as not maintainable. Importantly, the dismissal was not a ruling on the underlying merits of the refund dispute.

    The Court preserved the developerโ€™s right to file a statutory appeal under Section 43(5) of the RERA Act. It also clarified that the developer may seek exclusion, under Section 14 of the Limitation Act, of the time spent pursuing the matter before the High Court from 2 January 2024.

    All factual and legal contentions of both sides have been left open for consideration by the appellate authority, which has been directed to assess any appeal independently and without being influenced by the High Courtโ€™s observations.

    Key legal takeaway

    The ruling reinforces that parties challenging RERA orders should generally use the appeal mechanism provided by the RERA Act. A writ petition cannot ordinarily replace that remedy merely because a party disputes the decision on merits; a demonstrable jurisdictional defect or real denial of a fair hearing is required before the High Court will intervene directly.

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  • Bombay High Court Sets Aside Arbitral Award Against Guarantor Over Unreasoned Findings and Four-Year Delay

    Bombay High Court Sets Aside Arbitral Award Against Guarantor Over Unreasoned Findings and Four-Year Delay

    Date: 04.11.2026

    The Bombay High Court has set aside an arbitral award against a guarantor after finding that the arbitrator failed to address material defences and delivered the award more than four-and-a-half years after reserving the matter for judgment.

    Overview of the dispute

    In Manish Mehta v. India Cements Capital & Finance Limited & Ors., the petitioner challenged an arbitral award dated 4 August 2012 under Section 34 of the Arbitration and Conciliation Act, 1996. The dispute arose from a hire-purchase agreement executed on 7 January 1998.

    India Cements Capital & Finance Limited had extended a loan facility to Munis Forge Limited. Manish Mehta was a guarantor for that facility. Arbitration was invoked in 2003 under the agreementโ€™s arbitration clause, and the proceedings ultimately resulted in an award against the parties.

    The petitioner argued that he had not been served with the award when it was made and received a certified copy only in March 2014, after approaching the High Court.

    Key objections raised by the guarantor

    The guarantor challenged the award on several grounds, including that it was unreasoned and that the arbitrator had ignored his substantive defences.

    His principal contentions included:

    • Variation of the underlying contract: The lender and borrower allegedly altered the delivery schedule for machinery without the guarantorโ€™s knowledge or consent. The petitioner argued that this discharged him as surety under Section 133 of the Indian Contract Act, 1872.
    • Impairment of the suretyโ€™s remedy: The petitioner contended that the lenderโ€™s conduct, including its handling of a proposed one-time settlement and the delay in acting on the debt, prejudiced his rights against the principal borrower. He relied on Section 139 of the Contract Act.
    • Defects in the documentation: Concerns were raised about the execution of the hire-purchase agreement and deed of guarantee, including discrepancies in names, stamp-paper issues, and alleged interpolation.
    • Invalid invocation of arbitration: The petitioner disputed whether a proper notice commencing arbitration had been served under Section 21 of the Arbitration Act.
    • Extraordinary delay in the award: The matter had been reserved on 30 January 2008, but the award was delivered only on 4 August 2012, with no explanation for the delay.

    Courtโ€™s ruling on the arbitratorโ€™s appointment

    The Court rejected the challenge to the arbitratorโ€™s appointment. Because the arbitration predated the 2015 amendments to the Arbitration Act, any objection to the constitution of the tribunal had to be raised within the prescribed period before the tribunal.

    The petitioner had participated in the proceedings and did not challenge the appointment at the required stage. The Court held that this amounted to a waiver of the objection under the statutory scheme.

    Why the award was set aside

    The Court found that the award did not properly deal with the guarantorโ€™s key defences. Although the award referred to the petitionerโ€™s response, it did not meaningfully address the arguments concerning discharge of the surety, changes to the hire-purchase agreement, the lenderโ€™s conduct, or the alleged defects in arbitration notice and documentation.

    The arbitrator broadly dismissed the objections as unsupported oral assertions, but did not analyse the relevant evidence or legal issues. The Court also noted an internal inconsistency: the award recorded that the petitioner had submitted an affidavit intended to serve as examination-in-chief, yet later stated that he had led no evidence.

    This lack of reasoning became especially significant because of the unexplained four-and-a-half-year delay between reservation and pronouncement of the award. Relying on the Supreme Courtโ€™s reasoning in M/s. Lancor Holdings Limited v. Prem Kumar Menon, the Court observed that delay alone is not automatically a ground to invalidate an award. However, an inordinate and unexplained delay can indicate that the arbitratorโ€™s assessment of evidence and submissions was impaired.

    On the facts, the High Court concluded that the delay had affected the arbitratorโ€™s consideration of the material defences available to the guarantor. The award was therefore virtually unreasoned in relation to him and suffered from patent illegality.

    Relief limited to the challenging guarantor

    The Court did not set aside the award in its entirety. It held that the award could be severed and annulled only insofar as it affected Manish Mehta, the guarantor who had brought the Section 34 petition.

    Drawing on recent Supreme Court authority on limited modification and severance of arbitral awards, the Court confirmed that an award may be set aside only for the party whose rights were affected by the identified illegality, while leaving it intact against parties who did not challenge it.

    Key legal takeaways

    This decision reinforces several important principles in Indian arbitration law:

    • A party must raise objections to the composition or appointment of an arbitral tribunal promptly; participation without a timely objection can amount to waiver.
    • Arbitrators must give reasons that address material defences, particularly where a guarantor claims discharge under Sections 133 or 139 of the Indian Contract Act.
    • Delay in delivering an award is not, by itself, a statutory basis to set it aside. But a lengthy, unexplained delay may invalidate an award where it demonstrably affects the arbitratorโ€™s consideration of the record.
    • Courts can grant targeted relief by setting aside an award only against the party that successfully establishes a Section 34 ground, where the award is severable.

    The judgment highlights that arbitrationโ€™s finality does not excuse a failure to provide reasoned adjudication, especially when a guarantorโ€™s distinct statutory defences have not been examined.

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  • Karnataka High Court Confirms Acquittal in Dowry Death

    Karnataka High Court Confirms Acquittal in Dowry Death

    Date: 04.11.2026

    The Karnataka High Court has dismissed an appeal challenging the acquittal of a husband and his relatives in a case involving allegations of dowry harassment, dowry death, and abetment of suicide, holding that the prosecution did not establish the essential facts required to invoke statutory presumptions.

    Background of the case

    The appeal was filed by the father of the deceased, Smt. Nayana, against the acquittal of her husband and his family members. Nayana married the first accused in August 2012 and was found dead by hanging at her rented home in Munchuru, Surathkal, on 23 May 2014.

    The prosecution alleged that, at the time of marriage, the deceasedโ€™s family had given Rs. 2.5 lakh and 250 grams of gold as dowry. It further alleged that the accused later harassed her, compared the marriage unfavourably with a potential match that could have brought Rs. 10 lakh in dowry, and demanded Rs. 1 lakh for the husbandโ€™s Ph.D. studies.

    The trial court acquitted the accused of offences under Sections 498-A, 304-B and 306 read with Section 34 of the Indian Penal Code, as well as Sections 3 and 4 of the Dowry Prohibition Act. The High Court affirmed that acquittal.

    Why the High Court declined to interfere

    The Court stressed that an appellate court may re-examine evidence in an acquittal appeal, but should interfere only where the trial courtโ€™s findings are perverse, unreasonable, or materially disregard evidence. If two reasonable views are possible, the view favouring the accused should generally prevail because an acquittal reinforces the presumption of innocence.

    1. Dowry allegations emerged later

    A central weakness was that the first complaint, made on the day of the death, did not mention a demand for or payment of dowry. Detailed allegations appeared only in a later complaint filed after consultation with an NGO advocate.

    The Court accepted the trial courtโ€™s view that this later version could be treated as an improvement or afterthought. The claimed figures also shifted: allegations initially referred to Rs. 3 lakh and 300 grams of gold, while later references described Rs. 2.5 lakh and 250 grams.

    2. Payment of dowry was not reliably proved

    The Court found no reliable documentary proof of the alleged dowry payment. Bills cited for marriage expenditure exceeding Rs. 16 lakh were largely handwritten, lacked supporting receipts, or related to periods before the marriage.

    The father also acknowledged a relatively modest annual income and an unpaid Rs. 1 lakh loan received from one of the accused. Defence bank records indicated that the husband had withdrawn funds for his own Ph.D. fees, weakening the allegation that the deceasedโ€™s family funded that expense.

    3. Evidence of cruelty was general rather than specific

    The testimony about harassment lacked clear, specific incidents. The deceasedโ€™s parents also acknowledged that the familiesโ€™ overall relationship was cordial and that disagreements had been settled through mutual discussions.

    Photographs produced by the defence showed the couple attending functions, celebrating the deceasedโ€™s birthday, performing religious ceremonies after she passed a bank examination, and travelling together. While such photographs do not conclusively disprove private conflict, the Court considered them relevant surrounding circumstances when assessing whether continuous dowry-linked harassment had been proved.

    4. Independent witnesses did not support the prosecution version

    Neighbours and house owners stated that the couple appeared to have a cordial relationship. Their evidence did not clearly establish that the injuries on the deceasedโ€™s face had been inflicted by the accused.

    The witnesses described the process of cutting the veil and lowering the body, during which it came into contact with a table. The Court found that their evidence did not definitively attribute the facial abrasions either to this process or to an assault by the accused.

    5. Medical evidence did not conclusively establish assault

    The post-mortem recorded two small facial abrasions and a ligature mark on the neck. The doctor stated that death resulted from pressure on the neck caused by hanging. Although the doctor said the possibility of blunt-force assault could not be ruled out, the injuries were small and there was no firm medical conclusion excluding other explanations.

    The Court held that the trial courtโ€™s assessment of this medical evidence was not unreasonable. In the absence of clear and cogent proof linking the injuries to physical assault by the accused, the medical evidence did not advance the prosecution case sufficiently.

    6. An alternative explanation for suicide was available

    Medical records produced by the defence showed that the deceased had received treatment for anxiety associated with difficulty conceiving. The Court treated this as a plausible alternative explanation for the suicide, alongside evidence suggesting that the couple otherwise maintained a normal relationship.

    Dowry-death presumption is not automatic

    The judgment clarifies an important legal point: a death within seven years of marriage under unnatural circumstances does not, by itself, establish a dowry death or automatically trigger the presumptions under Sections 113-A and 113-B of the Indian Evidence Act.

    Before Section 113-B can apply, the prosecution must prove beyond reasonable doubt that:

    • the woman died from burns, bodily injury, or otherwise than under normal circumstances;
    • the death occurred within seven years of marriage;
    • she was subjected to cruelty or harassment by her husband or his relatives soon before her death; and
    • that cruelty or harassment was connected with a demand for dowry.

    The High Court found that the last two foundational requirements were not established. In particular, the evidence did not reliably prove a dowry demand or dowry-related cruelty shortly before the death. As a result, neither the dowry-death presumption nor the presumption concerning abetment of suicide could be invoked.

    Courtโ€™s final order

    The High Court dismissed the criminal appeal and confirmed the 2017 acquittal of all accused. It also discharged any bail bonds executed by them and recorded its appreciation for the services of the amicus curiae appointed for the accused.

    Key takeaway

    This decision underscores that allegations of dowry death must be supported by credible proof of dowry-linked cruelty or harassment shortly before the death; an unnatural death within seven years of marriage, without those proven facts, is not enough to reverse an acquittal.

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  • 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 Registryโ€™s refusal to register โ€œDOUBLE-CHOICEโ€ 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 โ€œDOUBLE-CHOICEโ€ 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 โ€œDOUBLE-CHOICEโ€ was inherently incapable of distinguishing one traderโ€™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 Courtโ€™s findings

    A composite trademark cannot be broken into isolated words

    The Court held that a trademark must be evaluated in its entirety. Although โ€œDOUBLEโ€ and โ€œCHOICEโ€ are individually common English words, their combination had to be assessed as the composite expression โ€œDOUBLE-CHOICEโ€.

    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 applicantโ€™s goods. The Registry had not identified any identical or similar marks, nor had it explained why use of โ€œDOUBLE-CHOICEโ€ would make it impossible for consumers to distinguish the applicantโ€™s goods from those of other traders.

    The mark was not shown to be descriptive

    The Registry had reasoned that โ€œDOUBLE-CHOICEโ€ 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 โ€œDOUBLE-CHOICEโ€ and rice, flour or cereal preparations.

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

    The Court also held that the Registryโ€™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 โ€œDOUBLE-CHOICEโ€ 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 applicantโ€™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.

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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 companyโ€™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 โ€œDiyasโ€ and โ€œmAntra.โ€ 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 companyโ€™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 supplierโ€™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 CESTATโ€™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.

    Customsโ€™ 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 consignmentโ€™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.

    CESTATโ€™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 departmentโ€™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 Courtโ€™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 importerโ€™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.

    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

  • 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 petitionerโ€™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 37โ€™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 petitionerโ€™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 petitionerโ€™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 personโ€™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.

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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 homebuyersโ€™ 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 Tribunalโ€™s decision to reject the appellantsโ€™ challenge. The case concerned an apartment in Tata Housingโ€™s Premanti project in Sector 72, Gurugram.

    The apartment had been allotted to the appellants for โ‚น2,77,74,702, under an Apartment Buyerโ€™s Agreement dated 16 August 2014. Possession was offered on 28 June 2017.

    Homebuyersโ€™ 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 โ‚น2.18 crore each. They initially sought a refund of โ‚น66 lakh.

    Their complaints also referred to delayed possession, deficiencies in promised facilities, alleged changes to the projectโ€™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 buyersโ€™ 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 buyersโ€™ 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.

    Courtโ€™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 Tribunalโ€™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.

    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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  • 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 clientโ€™s credentials.

    Between September 18 and October 4, 2018, 5Paisaโ€™s software reportedly displayed excess holdings or margin in the clientโ€™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 brokerโ€™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 clientโ€™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 5Paisaโ€™s recovery claim and partly allowed the clientโ€™s counterclaim. The award directed 5Paisa to pay:

    • Rs. 14,30,509 towards the clientโ€™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 partiesโ€™ 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 clientโ€™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.

    Courtโ€™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.

    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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  • Bombay High Court Sets Aside Registrarโ€™s NOC for Commercial Use of Residential Society Flat

    Bombay High Court Sets Aside Registrarโ€™s NOC for Commercial Use of Residential Society Flat

    Date: 03.11.2026

    The Bombay High Court has held that a Deputy Registrar of Co-operative Societies cannot issue, or compel a housing society to issue, a no-objection certificate (NOC) for converting a residential flat to commercial use when no such statutory duty exists.

    The dispute

    Surya Lok Co-operative Housing Society Ltd., a Mumbai housing society whose sanctioned building plan contained only residential flats, challenged an administrative NOC that supported commercial use of Flat No. 3 on the ground floor.

    The flat had changed hands several times before being transferred in January 2016 to Fazal Abbas Sayed and Aafreen Fatima Fazal Abbas Sayed. The purchasers sought membership in the society and were ultimately admitted after an undertaking that the flat would be used for residential purposes. They later pursued permission to use it commercially.

    Because the society declined to issue an NOC, the purchasers approached the Deputy Registrar. On 8 December 2016, the Deputy Registrar issued a letter stating that the office had no objection to commercial use of the flat. The societyโ€™s challenge to that letter was rejected in revision by the Divisional Joint Registrar in January 2018, leading to the writ petition before the High Court.

    What the society argued

    The society contended that the Deputy Registrar had no power under the Maharashtra Co-operative Societies Act, 1960 to approve a change in the use of a flat from residential to commercial. It also argued that:

    • Flat No. 3 was sanctioned for residential use under the municipal plan.
    • The purchasers had expressly undertaken to use the premises only for residential purposes.
    • The society had withdrawn an earlier 2000 resolution allowing commercial use of ground-floor flats through later resolutions in 2007 and 2014.
    • The NOC was issued without notice to, or a hearing for, the society.

    What the flat owners argued

    The flat owners submitted that ground-floor premises in the area were commonly used commercially and that Flat No. 3 had allegedly been used for commercial activity in the past. They relied on municipal assessment records, electricity bills, stamp-duty valuation and transfer-deed recitals to support that position.

    They also argued that the membership order issued in 2016 had already addressed the commercial-use issue, and that the society was improperly withholding its consent.

    The Courtโ€™s ruling on the Registrarโ€™s powers

    Justice Sandeep V. Marne held that the Deputy Registrar lacked jurisdiction to issue the NOC.

    At the time of the 2016 NOC, Section 79 of the Maharashtra Co-operative Societies Act applied. That provision permits the Registrar to enforce action that a society is legally required to take under the Act, rules or bye-laws. The Court found that it does not create a duty requiring a society to issue an NOC for conversion from residential to commercial use.

    The Court also examined Section 154B-27, introduced later for co-operative housing societies. It concluded that this provision similarly does not give the Registrar broad authority to resolve every dispute between a member and a society or to compel support for planning-related changes. Its scope is limited to enforcing obligations already created by co-operative law, rules or bye-laws.

    The judgment emphasized a key distinction: even if a Registrar could direct a society to perform a legally mandated act, that would not empower the Registrar to issue the societyโ€™s NOC personally.

    Why the NOC was invalid

    The Court identified several defects in the Deputy Registrarโ€™s action:

    • No statutory authority: The Act, rules and bye-laws did not obligate the society to issue an NOC for change of user.
    • Registrar acted beyond supervisory power: The Deputy Registrar directly stated that the office had no objection to commercial use, effectively substituting the Registrarโ€™s view for the societyโ€™s decision.
    • No hearing for the society: The NOC was issued after the purchasersโ€™ request without giving the society notice or an opportunity to be heard.
    • Lack of application of mind: The Court noted that the Registrar did not verify whether the building contained commercial premises or whether the society supported the proposed conversion.

    The Court described the NOC as arbitrary, without jurisdiction and void from the outset.

    Membership did not authorize commercial use

    The Court rejected the argument that the 2016 membership order had conclusively allowed commercial use. That order dealt with admission to membership, not permission to alter the use of the premises.

    The Court found that membership and use of a flat are distinct issues. Observations in the membership order about commercial activity in other flats or municipal assessments did not amount to legal permission for commercial use of Flat No. 3.

    The ownersโ€™ residential-use undertaking was also material. The Court recorded that membership was granted after an undertaking that the flat would be used exclusively for residential purposes and that no change of use would occur without the societyโ€™s prior written permission.

    Municipal records and utility connections are not enough

    The judgment clarified that commercial municipal assessment, a commercial electricity connection or payment of stamp duty based on commercial valuation do not automatically convert a residential flat into commercial premises.

    The Court held that, in a tenant co-partnership housing society, the society owns the land and building while members hold rights to occupy allotted premises. Therefore, a change in use from residential to commercial requires the societyโ€™s NOC where the building consists exclusively of residential premises.

    Final order and legal remedy

    The High Court allowed the writ petition and set aside:

    1. The Deputy Registrarโ€™s letter/NOC dated 8 December 2016; and
    2. The Divisional Joint Registrarโ€™s revisional order dated 15 January 2018.

    The flat owners remain free to pursue a dispute under Section 91 of the Maharashtra Co-operative Societies Act before the appropriate Co-operative Court to seek the societyโ€™s NOC. Any such dispute must be decided independently on its merits, without being influenced by the High Courtโ€™s observations in this case.

    Key takeaway for housing societies and members

    A Deputy Registrar cannot be used as a substitute decision-maker for a housing society on a proposed change from residential to commercial use. Where a member disputes a societyโ€™s refusal to grant an NOC, the proper course is adjudication before the legally competent forum, rather than an administrative NOC issued by the 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.

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