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Orders and Judgments Duration – January 23 – February 07, 2019

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Orders and Judgments Duration – January 23 – February 07, 2019

“LAW IS EXPERIENCE DEVELOPED BY REASON AND APPLIED CONTINUALLY TO FURTHER EXPERIENCE.”

ROSCOE POUND, DEAN EMERITUS, HARVARD LAW SCHOOL

ALTERNATIVE DISPUTE RESOLUTION

IFGL Refractories Ltd v. Lindsay International Pvt. Ltd

Court clarifies limited scope under Section 11 of Arbitration Act – Kolkata High Court

The Kolkata High Court held that after insertion of Section 11(6A), courts examining applications for appointment of arbitrators are primarily confined to determining the existence of an arbitration agreement.

The Court followed the Supreme Court ruling in Duro Felguera while rejecting challenges to the constitutional validity of the amendment.

Rajasthan Small Industries Corporation Limited v. M/s Ganesh Containers Movers Syndicate

Delay alone is insufficient to replace an arbitrator – Supreme Court

The Supreme Court held that mere delay in passing an arbitral award cannot by itself justify appointment of another arbitrator contrary to agreed contractual procedure.

The Court also reiterated that the 2015 Arbitration Amendment Act does not apply retrospectively unless parties specifically agree.

Union of India v. Khaitan Holdings (Mauritius) Limited & Ors

Delhi High Court refuses to stay BIT arbitration against India

The Delhi High Court refused to grant an interim injunction against arbitral proceedings initiated under the India-Mauritius Bilateral Investment Treaty concerning cancellation of telecom licences.

The Court held that objections raised by the Union Government should be considered by the arbitral tribunal itself.

The State Trading Corporation of India Ltd v. J.K. International Pty. Ltd & Anr

Majority arbitral award not invalid merely for not discussing minority opinion – Delhi High Court

The Delhi High Court held that failure of a majority arbitral award to specifically discuss the minority award does not automatically invalidate the award.

The Court observed that only when the majority award lacks reasoning or confidence would deeper scrutiny become necessary.

M/s Five Star Builders v. The State of Himachal Pradesh and Others

Arbitrator’s mandate can terminate for undue delay – Himachal Pradesh High Court

The Himachal Pradesh High Court held that an arbitrator’s mandate may be terminated if he fails to act without undue delay or is unable to effectively perform his functions.

The Court appointed a new arbitrator after finding unreasonable delay in completion of proceedings.

Sashidhar v. Indian Overseas Bank & Ors

NCLT cannot question commercial wisdom of Committee of Creditors – Supreme Court

The Supreme Court held that the National Company Law Tribunal has no authority to evaluate the justness of rejection of a resolution plan by dissenting financial creditors.

The Court reaffirmed primacy of the commercial wisdom of the Committee of Creditors under the Insolvency and Bankruptcy Code.

The Judgement can be accessed at:
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The Government of Haryana PWD Haryana (B and R) Branch v. G.F. Toll Road Pvt. Ltd & Ors

Former employees are not automatically disqualified from acting as arbitrators – Supreme Court

The Supreme Court clarified that former employees are not disqualified from appointment as arbitrators merely because of prior employment relationships.

The Court held that absence of reasonable apprehension of bias remains the determining factor.

The Judgement can be accessed at:
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Balkrishna Dattatraya Galande v. Balkrishna Rambharose Gupta

Actual possession is mandatory in suits for permanent injunction – Supreme Court

The Supreme Court held that plaintiffs seeking permanent injunction under Section 38 of the Specific Relief Act must prove actual possession of the property on the date of filing the suit.

The Court denied relief where possession could not be established through evidence.

The Judgement can be accessed at:
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CORPORATE

IDBI Bank Ltd v. Odisha Slurry Pipeline Infrastructure Ltd

Only financial creditor and corporate debtor need hearing at admission stage – NCLAT

The NCLAT held that third parties and intervenors are not entitled to hearing during admission of insolvency applications under Section 7 of the Insolvency and Bankruptcy Code.

The Tribunal reiterated that admission depends solely upon existence of debt and default.

Alloysmin Industries v. Raman Casting Private Limited

Demand notice served at registered or corporate office amounts to valid service – NCLAT

The National Company Law Appellate Tribunal held that service of demand notice under Section 8 of the IBC is valid if delivered either at the registered office or corporate office of the debtor.

The Tribunal restored insolvency proceedings after setting aside contrary findings of the NCLT.

Forech India Ltd v. Edelweiss Assets Reconstruction Co Ltd

IBC proceedings can continue despite pending winding-up proceedings – Supreme Court

The Supreme Court held that Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code may continue independently even when winding-up petitions are pending before High Courts.

The Court clarified interaction between Companies Act proceedings and IBC mechanisms.

The Judgement can be accessed at:
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Unitech Ltd v. Registrar of Companies Delhi & Haryana

Delhi High Court quashes summons against Unitech officers over repayment defaults

The Delhi High Court set aside summons issued against Unitech officers relating to non-repayment of deposits after finding that appellate proceedings had already extended repayment timelines.

The Court held that the criminal complaint had become premature in light of appellate protection orders.

Anil Goel v. Amar Remedies Limited

NCLT rejects insolvency plea filed suppressing winding-up order

The Mumbai Bench of the NCLT dismissed a Section 10 insolvency application after discovering suppression of an existing winding-up order passed by the High Court.

The Tribunal imposed costs of ₹10 lakhs on the corporate applicant.

Vijay Kumar Jain v. Standard Chartered Bank & Ors

Former directors entitled to receive resolution plans – Supreme Court

The Supreme Court held that suspended directors of a corporate debtor are entitled to receive copies of resolution plans discussed during Committee of Creditors meetings.

The Court emphasized participatory rights available under the Insolvency and Bankruptcy Code.

The Judgement can be accessed at:
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Servomax India Brand Protection Matter

NCLT restrains unauthorized use of trademarks during insolvency proceedings

The National Company Law Tribunal restrained suspended directors and others from using trademarks and brand assets belonging to Servomax India during Corporate Insolvency Resolution Process.

The order highlighted protection of intellectual property assets during insolvency administration.

COMPETITION

Reliance Industries – Hathway & DEN Acquisition Matter

CCI approves Reliance acquisition of Hathway and DEN Networks

The Competition Commission of India approved Reliance Industries’ acquisition of majority stakes in cable operators Hathway Cable & Datacom and DEN Networks.

The acquisition was structured through special purpose vehicles controlled by Reliance entities.

GSK Consumer Healthcare and HUL Merger Matter

CCI clears merger between GSK Consumer Healthcare and Hindustan Unilever

The Competition Commission of India approved the amalgamation of GlaxoSmithKline Consumer Healthcare with Hindustan Unilever Limited.

The all-equity transaction valued the combined business at approximately ₹31,700 crore.

Zydus Wellness Share Sale Matter

CCI approves Cadila Healthcare investment in Zydus Wellness

The Competition Commission of India permitted Cadila Healthcare and associated entities to acquire shares in Zydus Wellness.

The transaction supported funding of Zydus Wellness’ acquisition of Heinz India.

INFORMATION TECHNOLOGY

People’s Union for Civil Liberties v. Union of India & Ors

Supreme Court issues notice in challenge to electronic surveillance framework

The Supreme Court issued notice in a petition challenging provisions of the Telegraph Act and Information Technology Act permitting electronic surveillance by Government agencies.

The petition questioned constitutional validity of interception and monitoring powers exercised through the 2018 surveillance circular.

The Order can be accessed at:
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MISCELLANY

Shanti Conductors (P) Ltd v. Assam State Electricity Board

Supreme Court explains distinction between retrospective and retroactive statutes

The Supreme Court clarified conceptual differences between retrospective and retroactive legislation while interpreting applicability of delayed payment laws.

The Court held that the relevant statute operated prospectively and not retroactively.

The Judgement can be accessed at:
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The Commissioner, Mysore Urban Development Authority v. S. S. Sarvesh

Litigants should not suffer for lawyer’s absence – Supreme Court

The Supreme Court emphasized that valuable rights of litigants should not be defeated merely due to non-appearance or negligence of their advocates.

The Court stressed the importance of substantial justice over technical procedural defaults.

The Judgement can be accessed at:
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Union of India & Ors v. Shreya Sen & Anr

Aadhaar-PAN linking mandatory for filing income tax returns – Supreme Court

The Supreme Court held that linking Aadhaar with PAN is compulsory for filing income tax returns.

The Court clarified that earlier interim protections ceased after constitutional validity of Section 139AA was upheld.

The Order can be accessed at:
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Bigtree Entertainment Pvt. Ltd v. D Sharma & Anr

Delhi High Court refuses injunction in BookMyShow trademark dispute

The Delhi High Court declined to grant interim injunction sought by BookMyShow against the use of “BookMyEvent”.

The Court observed that the term “BOOKMY” is a common English expression incapable of exclusive monopolization.

M/S Khushi Ram Behari Lal v. M/S Jaswant Singh Balwant Singh

Copyright registration irrelevant to proving trademark usage – Delhi High Court

The Delhi High Court held that copyright registration of artistic work is not determinative for establishing use of a mark as a trademark.

The Court distinguished rights arising under copyright law from trademark law principles.

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