During the week of 2–8 February 2026, a wide range of regulatory notifications, circulars, and judicial rulings were issued across income tax, GST, customs, foreign trade, securities, corporate law, insolvency, banking, and allied laws. Key income-tax developments included exemption notifications for statutory authorities, CBDT directions to defer litigation affected by the Finance Bill, and a Supreme Court ruling limiting judicial interference with tax software design. GST saw multiple AAR/AAAR rulings clarifying ITC eligibility, taxability of royalty, canteen recoveries, healthcare services, place of business, and classification issues, alongside significant Supreme Court and High Court guidance on exports, intermediary services, and taxpayer responsibility. Customs notifications revised tariff values repeatedly, while DGFT introduced import restrictions, compliance extensions, and digital validation processes. SEBI consolidated regulatory frameworks through master circulars and issued several consultation papers. RBI proposed liberalisation measures and draft directions, while courts delivered important rulings on arbitration, insolvency, labour law thresholds, family property, and cheque dishonour, collectively shaping compliance and litigation strategy.
Notifications & Circulars issued during week (2nd – 8th Feb 2026)
(Income Tax, GST, Central Excise, Custom Duty, DGFT, SEBI, MCA, IBBI, RBI)
(Click the Link for Notification/ Circular as issued)
A. Income Tax
Exemptions to District Legal Service Authority, Faridabad: District Legal Service Authority, Faridabad, an Authority constituted by Government of Haryana for every district, under the Legal Services Authorities Act, 1987, has been notified under section 10(46) for exemption on its income arising from amount received as Grants from High Court and Central Authority, Grants from Central and State Government, Under court orders, Fees and interest on bank deposits.
(Link: Income Tax Notification 17/2026 Dated 05/02/2026)
CBDT Directions to seek adjournments in litigation affected by Finance Bill: CBDT has directed to seek adjournments in tax litigations cases before ITAT and other High Courts, affected by the proposed amendments brought forth by Finance Bill 2026. The guidance pertains to cases on interpretative or procedural matters that are likely to be clarified or amended, so as to avoid further litigation and conflict between judicial decisions over the same.
(Link: Income Tax Directions Dated 02/02/2026)
SC Sets aside HC direction to CBDT to modify Income-Tax Software System: Case of ITO vs Shobhan Shantilal Doshi, SC Judgement Dated 12th January 2026. The apex court set aside directions requiring CBDT to modify its software. While upholding the relief granted to the taxpayer on merits (regarding TDS credit), the Court clarified that software-related directives for future cases were unnecessary.
B. GST
AAAR, Cross-Country Gas Pipelines treated as Immovable Property, ITC Denied: Case of GAIL (India) Limited, AAAR Odisha Ruling Dated 15th January 2026. AAR held that because the pipelines were held to be immovable property, ITC eligibility had to be tested under the blocked credit provisions of Section 17(5). These pipelines fall within the specific exclusion from plant and machinery. Therefore, the ITC is not available.
AAAR, GST Exemption allowed as medical procurement is Pure Service: Case of Odisha State Medical Corporation Limited (OSMCL), AAAR Odisha Ruling Dated 9th January 2026. As OSMCL acts as an implementing arm of the State for free distribution of medicines and related public health objectives, its services fall squarely within Serial No. 3 of Notification No. 12/2017 dated 28th June 2017. Accordingly, it was held to be a Government Entity providing pure services to the State Government, and those services were held eligible for GST exemption.
AAAR, Temporary spare parts storage is incidental, not fixed establishment for GST: Case of Thermo Fisher Scientific India Private Limited, AAAR Odisha Ruling Dated 9th January 2026. AAAR held that the repair and maintenance services provided by the Head Office of the Appellant which is in Maharashtra through Field Service Engineers under Annual Maintenance Contract or Comprehensive Maintenance Contracts with the Customers in Odisha does not constitute a ‘Place of Business’ in Odisha. The temporary storage of spare parts and tool kit at the Appellant’s location in Odisha also does not constitute a ‘Place of Business’ or a `Fixed Establishment’ under CGST Act. The appellant is not required to obtain separate GST registration in Odisha.
AAR, Mining Royalty taxed at 18% because it is a Licensing Service: Case of Ramandeep Upkarsingh Bindra (Black Rock Crusher), AAR Maharashtra Ruling Dated 28th November 2025. AAR held that what the government supplies is a licensing service granting the right to explore, extract, and use minerals, not a transfer of the right to use pre-existing goods. Such services fall under SAC 997337 and are taxable at 18% GST. Since the service is supplied by the State Government to a business entity, GST is payable by the recipient under the reverse charge mechanism as per Notification No. 13/2017. Thus, the royalty paid forms part of the consideration for taxable licensing services, and the applicant is liable to discharge GST under RCM at 18%.
AAR, GST applies on Canteen Charges recovered by Employer from Employees: Case of KSB Limited, AAR Maharashtra Ruling Dated 28th November 2025. The applicant is providing canteen facilities provided by KSB Limited to its employees through third-party canteen service providers. AAR held that the supply of canteen services by the applicant to its employees, using a third-party canteen services provider, amount to supply of services under the GST Act. GST is not applicable, if no amount is recovered from the employees for the canteen services as the cost of said service would be a perquisite. GST would be applicable on the amount recovered from the employees for the canteen services. The portion of the cost, not recovered, would be considered as a perquisite.
AAR, In-Patient hospital charges is Composite Supply due to Integrated Medical Care: Case of Laxmi Health Care Centre & ICCU, AAR Maharashtra Ruling Dated 28th November 2025. AAR ruled that charges recovered from in-patients towards tests, bed charges, medicines, and consumables are part of a composite supply of goods and services with healthcare services as the principal supply. Such composite supply is eligible for exemption under Entry 74 of Notification No 12/2017. However, GST is payable on room rent (other than ICU/CCU/ICCU/NICU) where the room charges exceed Rs 5,000 per day, as mandated by the proviso to the exemption entry.
AAR, Masala Paan taxed at 18% as it is not a Composite Supply: Case of Sharad Sadashiv Patil, AAR Maharashtra Ruling Dated 28th November 2025. AAR held that Masala Paan is a single, distinct edible product created by combining multiple ingredients, each essential to its identity. The supply does not involve naturally bundled supplies with a principal supply, and therefore cannot be treated as a composite supply. AAR concluded that Masala Paan is classifiable as a miscellaneous edible preparation, under HSN 2106 9099 and held taxable at 18% GST.
AAR, Condenser Fan & Blower classifiable as Parts of Air-Conditioning Machines for GST: Case of Pee Aar Automotive Technologies Private Limited, AAR Rajasthan Ruling Dated 14th November 2025. AAR held that the condenser fan and blower manufactured and supplied by the applicant are classifiable under sub-heading 8415 90, as parts of air-conditioning machines, attracting the applicable rate of GST prescribed for that heading.
AAR, No GST or ITC on Petrol and Diesel charges in Fleet Contracts: Case of Vision Plus Security Control Limited, AAR Chhattisgarh Ruling Dated 31st October 2025. AAR ruled that GST is not leviable on petrol and diesel charges, as these petroleum products continue to be taxed under the pre-GST regime through central excise and State VAT. It further held that credit of VAT paid on petrol and diesel is not admissible under GST law.
SC, Education Consultancy to Foreign Universities is Export of Services, not Intermediary: Case of Commissioner of DGST vs Global Opportunities Private Limited, , SC Judgement Dated 27th January 2026. The apex court upheld the HC ruling that respondent is not an “intermediary” under Section 2(13) of the IGST Act. It held that the consultancy services provided to foreign universities are rendered on a principal-to-principal basis and therefore qualify as export of services, eligible for GST refund.
HC, Assessee cannot escape GST default by blaming CA: Case of Fone Zone NXT vs Commissioner of DGST, HC Delhi Judgement Dated 22nd January 2026. HC held that taxpayers cannot evade GST liabilities by blaming their Chartered Accountant (CA) for not responding to Show Cause Notices (SCN). It held that responsibility for monitoring GST compliance and communications lies with the taxpayer, not their consultant.
C. Central Excise
Excise Duty rate NIL, on unmanufactured tobacco or tobacco refuse, unbranded and not packed for Retail Sale: The notification 03/2025 dated 31st December 2025, has been amended to revise duty treatment on unmanufactured tobacco and tobacco refuse, creating a clear distinction based on branding and retail packaging. Under the new amendment, such tobacco will attract a nil rate of excise duty only when it does not bear a brand name and is not packed for retail sale, effectively targeting raw, bulk, or agricultural-stage tobacco supplies that are not meant for direct consumer markets. A new entry has been inserted prescribing an 18% excise duty on all other forms of unmanufactured tobacco or tobacco refuse that do not meet these two conditions.
(Link: Central Excise Notification 04/2026 (T) Dated 01/02/2026)
D. Custom Duty
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver: CBDT notified the Tariff Values of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver, which shall come into force w.e.f. 2nd February 2026. The tariff value for crude palm oil is set at USD 1066 per metric ton, while gold and silver have tariff values of USD 1604 per 10 grams and USD 3339 per kilogram, respectively. The tariff value for areca nuts is fixed at USD 7679 per metric ton.
(Link: Customs Notification 16/2026 (NT) Dated 02/02/2026) (Corrigendum)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver: CBDT notified the Tariff Values of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver, which shall come into force w.e.f. 4th February 2026. The tariff value for crude palm oil is set at USD 1066 per metric ton, while gold and silver have tariff values of USD 1518 per 10 grams and USD 2657 per kilogram, respectively. The tariff value for areca nuts is fixed at USD 7679 per metric ton.
(Link: Customs Notification 17/2026 (NT) Dated 03/02/2026)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver: CBDT notified the Tariff Values of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver, which shall come into force w.e.f. 6th February 2026. The tariff value for crude palm oil is set at USD 1066 per metric ton, while gold and silver have tariff values of USD 1605 per 10 grams and USD 2934 per kilogram, respectively. The tariff value for areca nuts is fixed at USD 7679 per metric ton.
(Link: Customs Notification 18/2026 (NT) Dated 05/02/2026)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver: CBDT notified the Tariff Values of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver, which shall come into force w.e.f. 7th February 2026. The tariff value for crude palm oil is set at USD 1066 per metric ton, while gold and silver have tariff values of USD 1605 per 10 grams and USD 2552 per kilogram, respectively. The tariff value for areca nuts is fixed at USD 7679 per metric ton.
(Link: Customs Notification 19/2026 (NT) Dated 06/02/2026)
E. Directorate General of Foreign Trade (DGFT)
Amendment in Import Policy and Policy condition of Umbrellas: The notification amends the import policy for umbrellas and sun umbrellas. Imports of finished umbrellas classified under HS Codes 66019100 (telescopic shaft) and 66019900 (other umbrellas) have been changed from “Free” to “Restricted” category. However, a relaxation has been provided, i.e. imports will continue to be treated as ‘Free’ if the CIF value is Rs 100 or more per piece.
(Link: DGFT Notification 57/2026 Dated 05/02/2026)
Platinum Articles shifted from Free to Restricted Import Policy: DGFT has revised the import status of platinum articles from ‘Free’ to ‘Restricted’. A new Policy Condition No. 6 has been introduced, under which imports of platinum articles remain restricted, except for specified categories. These permitted categories include re- import of Indian origin goods taken abroad for exhibitions or export promotion tours, re-import of Indian origin goods that are rejected, returned, or remain unsold, and re-import of Indian origin goods intended for repair.
(Link: DGFT Notification 58/2026 Dated 05/02/2026)
Industrial Chemicals warehousing permitted in Bonded Warehouses Under FTP: The circular clarifies that the exclusion of “hazardous chemicals” in Para 2.36(a) of Foreign Trade Policy (FTP) was intended only to restrict unregulated warehousing of hazardous waste and prohibited items. Accordingly, warehousing of industrial chemicals is permitted in public and private bonded warehouses, subject to compliance with domestic laws governing safe storage and handling, applicable import and export policy conditions, and the provisions of the Customs Act.
(Link: DGFT Policy Circular 09/2026 Dated 06/02/2026)
Extension of deadline for filing Annual RoDTEP Returns: DGFT has extended the deadline for filing the Annual RoDTEP Return (ARR) for Financial Year 2023-24 to 31st March 2026, subject to payment of a composition fee of Rs 15,000. The notice also clarifies that failure to file the ARR by the extended deadline will invite action under paragraph 4.94 of the Handbook of Procedures, including denial of RoDTEP benefits and scroll-out of scrips.
(Link: DGFT Public Notice 46/2026 Dated 05/02/2026)
Implementation of NPCI-based Workflow for Bank Account Validation in IEC Applications: NPCI-based workflow for bank account validation in Importer Exporter Code (IEC) applications and modifications, has been implemented. DGFT has integrated its system with the National Payments Corporation of India (NPCI) to enable real-time verification of bank account information as submitted by the applicants. It is assigned a status of Success, In Progress, or Failed.
(Link: DGFT Trade Notice 23/2026 Dated 06/02/2026)
F. Securities and Exchange Board of India (SEBI)
Master Circular for Investment Advisers (IAs): The master circular consolidates all relevant directions and instructions issued earlier into a single reference document, enabling Investment Advisers, the Investment Adviser Administration and Supervisory Body (IAASB), and other stakeholders to access the complete regulatory framework at one place. All prior circulars listed in its appendix stand rescinded to the extent they relate to Investment Advisers.
(Link: SEBI Master Circular Dated 06/02/2026)
Master Circular for Research Analysts (RAs):
The master circular consolidates various instructions previously issued from time to time, enabling Research Analysts, the Research Analysts Administration and Supervisory Body (RAASB), and other market participants to access the entire regulatory framework in one place. All earlier circulars listed in its appendix stand rescinded to the extent they relate to Research Analysts.
(Link: SEBI Master Circular Dated 06/02/2026)
Master Circular for Registrars to an Issue and Share Transfer Agents (RTAs): The master circular consolidates all relevant directions and instructions previously issued from time to time, providing RTAs and market participants with a single, comprehensive reference point. All earlier circulars listed in the appendix stand rescinded to the extent they relate to RTAs.
(Link: SEBI Master Circular Dated 06/02/2026)
Reporting of value of units of Alternative Investment Funds (AIFs) to Depositories: The circular mandate the reporting of the Net Asset Value (NAV) of Alternative Investment Fund (AIF) units to depositories to enhance transparency and operational efficiency. AIFs issue units in dematerialised form and undertake periodic valuations under existing regulations. Now, AIFs are required. through their Registrars and Transfer Agents, to upload the latest available NAV for each ISIN to the depository system by 1st Ma 2026, or within 30 days from the valuation date, whichever is later.
(Link: SEBI Circular Dated 06/02/2026)
Calendar Spread margin benefit for Single Stock Derivatives on expiry day: Under the existing framework, calendar spread benefits allow margin offsets for positions across different expiries, but such benefits were disallowed for index derivatives on the expiry day. SEBI has now decided to extend the same restriction to single stock derivatives. Accordingly, on the expiry day, calendar spread margin benefits will not be available for positions involving contracts expiring on that day, while spreads across non-expiring contracts will continue to receive the benefit.
(Link: SEBI Circular Dated 05/02/2026)
Creation/Invocation of pledge of securities through depository system: The circular requires that depositories must now ensure that pledge request forms contain undertakings by the pledgee to provide reasonable notice to the pledger before sale of pledged securities and to comply with applicable contract law and regulatory provisions. Further, upon invocation of a pledge, depositories are required to send immediate intimation to both the pledger and pledgee confirming invocation and recording of the pledgee as the beneficial owner.
(Link: SEBI Circular Dated 05/02/2026)
Revision of Order-to-Trade Ratio (OTR) framework: The circular revises the Order-to-Trade Ratio (OTR) framework applicable to algorithmic trading. The key revisions include exempting equity option orders placed within ±40% of the last traded price (premium) or ± Rs 20, whichever is higher, from OTR penalty computation. Further, algorithmic orders placed by Designated Market Makers for market-making activities are excluded from OTR calculations. The framework continues to apply to orders in the cash and derivative segments, including liquidity enhancement schemes, subject to these exemptions.
(Link: SEBI Circular Dated 04/02/2026)
Consultation paper on extending facility of standing instructions for SWP/ STP for Mutual Fund units: The consultation paper proposes to extend the facility of standing instructions for Systematic Withdrawal Plans (SWP) and Systematic Transfer Plans (STP) to mutual fund units held in dematerialised form. Currently, such standing instructions are available only for units held in Statement of Account mode, while demat investors must issue transaction-specific instructions. SEBI has proposed a phased implementation. Phase I would enable unit-based SWP/STP registrations through Depositories and Stock Exchanges with minimal system changes, while Phase II would allow amount- based and advanced variants through RTAs. The comments/ feedback from stakeholders is invited.
(Link: SEBI Consultation Paper Dated 05/02/2026)
Consultation Paper On Measures Towards Ease of Doing Business For REITs And InvITs: The key proposals include allowing InvITs to continue holding SPVs even after concession agreements end or are terminated, subject to time-bound exit or reinvestment and enhanced disclosures. Further, to reduce concentration risk, REITs and InvITs may be permitted to invest in liquid mutual fund schemes with a lower credit risk threshold (CRV ≥10), expanding eligible options beyond the limited Class A-I universe. It also proposes aligning private InvITs with public InvITs by allowing up to 10% investment in pure greenfield projects. The comments/ feedback from stakeholders is invited.
(Link: SEBI Consultation Paper Dated 05/02/2026)
Consultation paper on draft circular on stress-testing norms and Settlement Guarantee Fund (SGF) coverage for commodity derivatives: It is proposed that, for standardized stress testing using historical scenarios, the applicable Z-Score for capping extreme price movements over a 15-year look- back period be reduced from 10 to 5, aligning stress tests with ‘extreme but plausible’ market conditions. Further, the existing requirement to maintain SGF coverage equal to 50% of credit exposure arising from the default of all clearing members is be removed. The clearing corporations would calculate SGF coverage based on the simultaneous default of at least three clearing members and their associates, generating the highest credit exposure. The comments/ feedback from stakeholders is invited.
(Link: SEBI Consultation Paper Dated 05/02/2026)
Consultation Paper on Flexibility to Alternative Investment Funds (AIFs) in Winding up the scheme / Surrendering the Registration: It has been observed that several AIFs face difficulties in surrendering registration because liquidation proceeds remain undistributed beyond the permissible fund life due to pending or anticipated litigation, tax demands, or residual operational expenses. The paper proposes allowing retention of funds beyond the liquidation period under specified conditions, including demonstrable litigation or tax notices, investor consent in cases of anticipated liabilities, and substantiation of operational expenses. A new framework is proposed to classify such funds as “inoperative AIFs,” with proportionate regulatory compliances, prohibition on new schemes and management fees, and annual reporting obligations. The comments/ feedback from stakeholders is invited.
(Link: SEBI Consultation Paper Dated 05/02/2026)
Consultation paper on proposed amendments to SEBI Intermediaries Regulations- ‘Fit and Proper Person’ Criteria: The paper proposes removing rule-based disqualifications triggered merely by the pendency of criminal complaints or charge sheets, relying instead on principle-based assessment, while expanding disqualification to include convictions for economic offences and securities law violations. Other proposals include aligning winding-up disqualification only to cases where winding-up orders are passed, introducing explicit provisions for disclosure and opportunity of hearing, removing the default five-year prohibition where no period is specified, reducing the non-consideration period for registration applications after a show cause notice from one year to six months, and replacing mandatory divestment of holdings with restriction of voting rights. The comments/ feedback from stakeholders is invited.
(Link: SEBI Consultation Paper Dated 04/02/2026)
G. Ministry of Corporate Affairs (MCA)
Draft Companies Registered Valuers and Valuation Amendment Rules: The rules provides for the eligibility criteria for recognition of Registered Valuers Organisations (RVOs). It stipulates that an RVO must be registered under Companies Act, with the sole object of dealing with matters relating to regulation of valuers of an asset class or asset classes and has in its bye laws the requirements specified in Annexure- III of the Rules. However, it does not specify any minimum share capital criteria for recognition as an RVO. It is proposed to prescribe Rs 25 lakh minimum paid-up share capital requirement for RVOs by amending such rule. A period up to 31st March, 2028 is proposed to be given to existing RVOs to align with this new requirement. The comments/ feedback from stakeholders is invited.
(Link: MCA Public Notice Dated 02/02/2026)
H. Insolvency and Bankruptcy Board of India (IBBI)
NCLAT, Each and every commercial transaction resulting into loss cannot be labelled as Fraudulent: Case of Nalinesh Kumar Paurush vs Arvind Mittal, NCLAT Delhi Judgement Dated 25th September 2025. The appellant authority held that each and every commercial transaction which has resulted in loss may not be labelled as fraudulent or to have been done to deceive creditors. Since ingredients of section 66(2) of IBC is lacking, the transaction cannot be labelled as fraudulent.
NCLAT, Dispensation from convening meeting of unsecured creditors granted post consent affidavit of 90%: Case of Archernar Board Technologies Private Limited, NCLAT Delhi Judgement Dated 4th September 2025. The appellate authority held that post consent affidavit representing at least 90% of the value of the unsecured creditors, dispensation from convening meeting of unsecured creditors can be granted under section 230(9) of the Companies Act 2013. Accordingly, the appeal is allowed.
NCLAT, Section 8 Notice does not extend limitation for IBC section 9 filing after Arbitral Award: Case of Haabia Resources Pvt Ltd vs Vidyut Metallics Pvt Ltd, NCLAT Delhi Judgement Dated 1st September 2025. The appellant authority held that the right to sue under Section 9 (Application for initiation of CIRP by Operational Creditor) of IBC begins when the MSME arbitral award becomes final and operative, and not from the date of issuance of a demand notice under Section 8 (Insolvency Resolution by Operational Creditor) of IBC.
I. Reserve Bank of India (RBI)
All Agency Banks to remain open for public on 31st March 2026 (Tuesday): RBI has directed all agency banks to keep their branches dealing with government receipts and payments open for public transactions on 31st March 2026, which is a notified public holiday. It is to ensure that all government-related receipts and payments are properly accounted for within the Financial Year 2025-26 itself.
(Link: RBI Notification 204/2026 dated 03/02/2026)
Voluntary Retention Route – Imparting predictability and increasing ease of doing business: RBI has revised the Voluntary Retention Route (VRR) framework for foreign portfolio investments in debt. Under the new directions, VRR investment limits are subsumed within the overall limits applicable to FPI investments under the General Route. Consequently, all existing VRR investments in Central and State Government securities and corporate bonds will be counted against the respective General Route limits. Further, FPIs that opted for retention periods longer than the prescribed minimum will have flexibility to partially or fully liquidate their holdings and exit VRR after completing the minimum retention period.
(Link: RBI Notification 205/2026 dated 06/02/2026)
Draft revised Master Direction on Credit Derivatives: The draft consolidates the existing framework for credit default swaps while introducing a comprehensive regulatory structure for derivatives on credit indices and total return swaps on corporate bonds, in line with the Union Budget 2026-27. It seeks to improve credit risk management, enhance liquidity in the corporate bond market, and enable issuances across the rating spectrum. It clearly defines eligible participants, market-makers, users, reference instruments, settlement mechanisms, reporting requirements, and customer protection norms across OTC and exchange-traded markets. The comments/ feedback from stakeholders is invited.
(Link: RBI Draft Master Directions dated 06/02/2026, Press Release)
Draft Amendment to NBFC Branch Authorisation Directions: The draft proposes a significant change in regulatory framework by dispensing with the requirement of prior approval or intimation for opening branches in India by NBFCs, reflecting a move toward greater operational flexibility. It clarifies applicability across NBFC layers and categories, revises provisions governing branch operations, and deletes earlier sections that mandated approvals and detailed procedures for branch opening and closure. The comments/ feedback from stakeholders is invited.
(Link: RBI Draft Amendments dated 06/02/2026, Press Release)
J. Miscellaneous
Monthly Limit of Ra 18000/- set to define Supervisory Employees as Workers: Central Govt has notified Rs 18,000 per month as the applicable wage limit for determining coverage under the definition of ‘worker’. Consequently, individuals employed in a supervisory role whose monthly wages exceed Rs 18,000 are expressly excluded from the statutory definition of ‘worker’ for the purposes of the Code on Wages.
(Link: Min Labour Notification Dated 30/01/2026)
SC, Joint Hindu Family properties presumed where Ancestral Nucleus Exists: Case of Dorairaj vs Doraisamy (Dead), SC Judgement Dated 5th February 2026. The apex court reiterated settled law that mere existence of a joint family is not enough, but once ancestral properties yielding income are established and acquisitions are made during the subsistence of the joint family, the burden shifts to the person asserting self-acquisition. In the present case, ancestral lands were proved to be income-yielding through revenue records, wells and irrigation facilities. The plea that later acquisitions in the name of the father (Karta) or one coparcener were self-acquired was held not proved by cogent evidence.
— The apex court also upheld rejection of an unregistered Will allegedly executed three days prior to death, noting suspicious circumstances (thumb impression despite habit of signing, execution close to death, doubtful scribe/attestors) and holding that the finding had attained finality.
SC, Once Arbitrator appointed under section 11, validity of Arbitration Clause cannot be reopened under section 34: Case of Eminent Colonizers Private Limited vs Rajasthan Housing Board, SC Judgement Dated 4th February 2026. The apex court emphasize the doctrinal difference between ‘precedent’ and ‘res judicata’, it has held that once a court exercising powers under Section 11 of the Arbitration and Conciliation Act, appoints an arbitrator under the pre-amendment framework and the order attains finality, the finding on the existence and validity of the arbitration agreement binds the parties in subsequent stages, and cannot be revisited under Section 34.
SC, Section 29A mandate can be extended even after arbitration award, late award Is unenforceable, not Void: Case of C Velusamy vs K Indhera, SC Judgement Dated 3rd February 2026. The apex court held that an application under section 29A(5) of the Arbitration & Conciliation Act, is maintainable even after expiry of the 12+6 month period and even after an arbitral award is rendered in the interregnum. Passing of an award after expiry of the tribunal’s mandate does not denude the court of power to extend time, such an award is unenforceable under section 36, but not a jurisdictional nullity that forecloses extension.
HC, Security Cheque not a shield against prosecution under NI Act: Case of Aarti Trehan vs Super Oils, HC P&H Judgement Dated 30 January 2026. HC has dismissed a petition seeking the quashing of a criminal complaint filed under Section 138 of the Negotiable Instruments, observing that a security cheque is an integral part of the commercial process and can be legally utilized to discharge a liability.
******
Compiled by:-CMA Yash Paul Bhola, MBA, FCMA, Former Director (Finance), National Fertilizers Limited.
Disclaimer: The contents of this article are for informational purposes only. The user may refer to the relevant notification/ circular/ decisions issued by the respective authorities for specific interpretation and compliances related to a particular subject matter)
Author Bio
