Karnataka High Court
Karnataka High Court Refuses To Quash Case Over Dishonoured ₹52 Lakh Loan Payment Woman Links To Digital Arrest
The Karnataka High Court has refused to quash criminal proceedings initiated by ICICI Bank against a woman over the dishonour of a payment instruction for ₹52.41 lakh towards a personal loan, which she claimed was obtained during a digital arrest scam.Justice M Nagaprasanna was hearing a petition filed by Srividya Bhaskar, who also sought to restrain the bank from taking coercive steps to recover the loan and to restore her CIBIL score.Bhaskar claimed that she was subjected to a digital arrest...
Karnataka HC Bars Coercive Action Against Broadcasters Including Zee, JioStar Challenging 2% Cine Cess
The Karnataka High Court on Wednesday sought the State Government's response to a challenge by television broadcasters to the 2% cess imposed on TV channels operating in Karnataka. The court also directed that no coercive action be taken against the broadcasters in connection with the levy.The petition has been filed by the Indian Broadcasting and Digital Foundation (IBDF), along with broadcasters including JioStar India and Zee Entertainment Enterprises, challenging the Karnataka Cine and...
Karnataka High Court Refuses To Quash FIR Against MyFitness Founders Over Alleged Misrepresentation On Brand Use
The Karnataka High Court has refused to quash a criminal case against the former promoters of MyFitness, a peanut butter brand, over allegations that they concealed contractual restrictions on the use of its brand name before Mensa Brands invested over ₹142 crore in the company.Justice M. Nagaprasanna, in an order dated October 16, held that the existence of parallel arbitration and company law proceedings did not prevent an investigation into the alleged suppression of material information.The...
Karnataka High Court Refuses Winzo US Plea To Transfer PMLA-Attached Funds To Another US Bank
The Karnataka High Court on 9 October refused to permit Winzo US Inc. to transfer funds held in its attached Silicon Valley Bank accounts to another bank in the United States, while allowing it to approach the Enforcement Directorate (ED) to seek transfer of the funds to the agency's designated account in India. Justice C.M. Poonacha noted that funds already covered by attachment orders cannot be transferred in a manner that could dilute the effect of the attachment and its confirmation under...
Karnataka High Court Upholds Reitzel India Relief, Says Export Incentives Count As Operating Income
The Karnataka High Court on 8 October dismissed the Income Tax Department's appeal against an Income Tax Appellate Tribunal (ITAT) order directing it to include export incentives received by Reitzel India Pvt. Ltd. in its operating income while determining the arm's length price (ALP) of international transactions. A Division Bench comprising Justices S.G. Pandit and Chillakur Sumalatha held that export incentives directly linked to a taxpayer's export business must be included in operating...
Karnataka High Court Directs Refund Of ₹15.41 Lakh Deducted From Iron Ore Auction Proceeds, Awards 8% Interest
The Karnataka High Court has directed the State government to refund ₹15.41 lakh deducted from the refund due to an iron ore auction purchaser after the auction failed because the ore was not available at the site. The Court also awarded interest at 8% per annum on the amount of ₹2.89 crore deposited by the purchaser, holding that the State cannot retain money without providing the corresponding consideration.A Division Bench comprising Chief Justice Vibhu Bakhru and Justice K.S. Hemalekha held...
Karnataka High Court Quashes Reassessment Over ₹13.39 Crore Turnover Without Supporting Computation
The Karnataka High Court on 7 October set aside an income tax reassessment order against Kunjalu Venkatesh Kini over alleged non-disclosure of business turnover of Rs. 13.39 crore, holding that the Income Tax Department must disclose the computation and supporting material before proceeding with reassessment. Justice B.M. Shyam Prasad partly allowed Kini's petition and quashed the order passed under Section 148A(3) of the Income Tax Act, 1961, the related approval and the consequential...
Karnataka High Court Refuses To Quash Case Against Super Royal Holidays Directors For Ignoring Summons
The Karnataka High Court on 17 October dismissed a petition filed by Madhukar and Prashanth Bhadrappan, directors of Super Royal Holidays (India) Private Limited, challenging criminal proceedings for alleged non-compliance with an investigation under the Companies Act, 2013. Justice H.P. Sandesh held that the Special Court for Economic Offences, Bengaluru, had applied its mind to the complaint and accompanying documents before taking cognizance of the alleged offence under Section 217(4) of the...
Lawyer's Assumption That Judgment Was Postponed Cannot Justify IRCT's Delayed Appeal: Karnataka High Court
The Karnataka High Court has recently ruled that a lawyer's assumption that judgment would be postponed cannot justify a delayed appeal. The failure to check whether the judgment was subsequently delivered remained unexplained.Dismissing a commercial appeal filed by the Indian Railway Catering and Tourism Corporation (IRCTC) against Amulya Enterprises, the court refused to condone a 92-day delay in challenging a Commercial Court decree dated June 11, 2024.A Division Bench of Justice Anu...
Karnataka High Court Appoints Arbitrator In ₹2.53 Cr. Dispute Concerning Military Engineer Services
The Karnataka High Court on 8 October appointed retired District Judge Prabhavathi Hiremath as the sole arbitrator to resolve contractual disputes between Varsha Constructions and the Military Engineer Services over the construction of an Academic Block at the Air Force Technical College in Jalahalli, Bengaluru.A Single Judge Bench of Justice H.T. Narendra Prasad observed: “Having regard to the existence of the arbitration clause contained in the Construction Agreement, which provides for...
Karnataka High Court Upholds Unishire Property Attachment, Says Final K-RERA Order Can't Be Reopened
The Karnataka High Court on 6 October held that a developer cannot challenge a consequential property attachment after its appeal against the underlying Karnataka Real Estate Regulatory Authority (K-RERA) order has been dismissed and the order has attained finality. Justice E.S. Indiresh dismissed Unishire Promoters Private Limited's writ petition and upheld the attachment of its property in Bengaluru to recover unpaid dues owed to a homebuyer. The Bench observed: “In that view of the matter,...
Arbitrator Can't Make Independent Lease Termination Right Conditional On Default: Karnataka High Court
The Karnataka High Court on 16 September held that an arbitrator cannot interpret a contract in a manner that nullifies an independent right of termination expressly provided under its terms. A Division Bench comprising Justices D.K. Singh and H. Shanthi Bhushan dismissed an appeal filed by Padma, the landlord's legal representative, and upheld the Bengaluru Commercial Court's decision to partly set aside an arbitral award against Capgemini Technology Services India Limited. It observed: ...