Summary: Between November 18-24, 2024, several key updates were made across Income Tax, GST, SEBI, and IBBI regulations. The CBDT mandated electronic filing for Forms 42, 43, and 44 under the Income Tax Rules. Circulars clarified the procedure for condonation of delay in filing trust-related forms, and the CBDT launched a campaign to help taxpayers report foreign assets accurately in their ITRs. In GST, Maharashtra and Jharkhand taxpayers received an extension for GSTR-3B filing. The AAAR Karnataka ruled that additional surcharges on open access consumers aren’t subject to GST, while the Delhi HC upheld refunds despite allegations of wrongful ITC availment. SEBI made amendments to regulations on buy-back, banker services, and Alternative Investment Funds, while also withdrawing certain circulars to ease business. SEBI also published consultation papers on SME frameworks, the appointment of KMPs in Market Infrastructure Institutions, and ownership structures in Clearing Corporations. The IBBI issued a discussion paper reviewing the grievance redressal and enforcement framework for assignments under the Insolvency and Bankruptcy Code (IBC).
Notifications & Circulars issued during week (18th– 24th Nov 2024)
A. Income Tax
Specifying Forms prescribed in Appendix-II of the Income Tax Rules, to be furnished electronically: CBDT has mandated electronic filing for certain forms under Rule 131 of the Income Tax Rules. It has been specified that Forms 42, 43, and 44 must be filed electronically and verified as per sub-rule (1) of Rule 131.
Form 42: Appeal against refusal or withdrawal of recognition for a provident fund.
Form 43: Appeal against refusal or withdrawal of approval for a superannuation fund.
Form 44: Appeal against refusal or withdrawal of approval for a gratuity fund. (Income Tax Notification 06/2024 (Systems) Dated 19/11/2024)
Condonation of delay under section 119(2)(b) of the Income-tax in filing of Form No. 9A/ 10/ 10B/ I0BB (relevant to Trusts): The circular update procedure for condonation of delays in filing Forms 9A, 10, 10B, and 10BB for Assessment Year (AY) 2018-19 and subsequent years under Section 119(2)(b) of the Income-tax Act. PCIT are authorized to handle delays of up to 365 days, while PCCIT and equivalent authorities will address delays exceeding 365 days. Applications must be filed within three years from the end of the relevant assessment year. Authorities aim to resolve applications within six months from the month of receipt. (Income tax Circular 16/2024 Dated 18/11/2024)
Condonation of delay under section 119(2)(b) of the Income-tax in filing of Form No. 10-IC or Form No. 10-ID: The circular update procedure for condonation of delays in filing Forms 10- IC and 10-ID for Assessment Years (AYs) 2020-21, 2021-22, and 2022-23 under Section 119(2)(b) of the Income-tax Act, 1961. These forms are required for exercising tax options under Sections 115BAA and 115BAB of the Act. The circular authorizes PCIT to handle delay cases of up to 365 days and PCCIT for delays exceeding 365 days. Applications must be submitted within three years from the end of the relevant AY, with a resolution target of six months from the application receipt. (Income tax Circular 17/2024 Dated 18/11/2024)
Compliance Cum Awareness Campaign for AY 2024-25 to assist taxpayers in accurately reporting Foreign Assets and Income in their Income Tax Returns: CBDT has launched a Compliance Cum Awareness Campaign for Assessment Year (AY) 2024-25 to assist taxpayers in accurately completing Schedule Foreign Assets (Schedule FA) and reporting income from foreign sources (Schedule FSI) in their Income Tax Returns (ITR). The compliance is mandatory under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which requires the full disclosure of foreign assets and income. Informational messages will be sent to taxpayers via SMS and email, particularly to those identified through bilateral and multilateral data-sharing agreements who may possess foreign assets or income. Taxpayers who may have omitted foreign asset details, especially for high-value assets, are urged to review their filings. (Income Tax Press Release Dated 16/11/2024)
B. GST
Due Date for GSTR-3B for October 2024 extended for Maharashtra, Jharkhand: CBIC has extended the due date for furnishing the return in FORM GSTR-3B for the month of October, 2024 till the twenty-first day of November, 2024, for the registered persons whose principal place of business is in the state of Maharashtra and Jharkhand and are required to furnish return under section 39(1) read with clause 61(1)(i) of CGST Rules. (CGST Notification 26/2024 Dated 18/11/2024)
AAAR, Additional surcharge on open access consumers exempt from GST: Case of Chammundeshwari Electricity Supply Corporation Limited, AAAR Karnataka Ruling Dated 6th November 2024. The AAAR ruled that the additional surcharge collected by Electricity Supply Corporation is not subject to GST. The surcharge is a statutory levy forming part of the electricity tariff, intended solely to recover fixed costs from open access consumers. It set aside the ruling by the Advance Ruling Authority, concluding that the consideration received as an additional surcharge does not qualify as payment for tolerating an act under Section 7(1) of the CGST Act. (AAAR Karnataka Ruling Dated 06/11/2024)
HC, Keeping refund order in abeyance merely on allegation of wrongful availment of ITC unjustified: Case of HCC VCCL Joint Venture vs Union of India, HC Delhi Judgement Dated 5th November 2024. HC held that keeping in abeyance refund order by exercising powers conferred under section 108 of the CGST Act merely on the basis of intelligence regarding wrongful availment of ITC unjustified since pre-requisite conditions for invoking the section not satisfied. (HC Delhi Judgement Dated 05/11/2024)
HC, GST Fraud applicability of IPC & CGST Act prosecution: Case of Jatinder Menro vs State of Punjab, HC P&H Judgement Dated 14th November 2024. The court considered section 26 of the General Clauses Act, which allows prosecution under multiple laws for the same act but prohibits double punishment. It emphasized that prosecution under the IPC is permissible even if the same facts constitute an offense under the CGST Act, as the two enactments address different legal elements and provide distinct penalties. The IPC, offering harsher punishment, remains applicable alongside the CGST Act unless explicitly barred by statute. Despite the severity of allegations, anticipatory bail was granted as the petitioners had previously undergone significant incarceration under CGST Act charges, were not absconding, and the new IPC charges largely overlapped with the prior case. (HC P&H Judgement Dated 14/11/2024)
HC, Demo Vehicles Capitalized by Dealers Qualify as Capital Goods for ITC: Case of BMW India Pvt Ltd vs AAAR Haryana, HC P&H Judgement Dated 12th November 2024. The Court referred to Circular No. 231/25/2024-GST dated 10th September 2024, issued by the CBIC, which clarified that demo vehicles used by authorized dealers to promote vehicle sales and capitalized in their accounts qualify as “capital goods” under Section 2(19) of CGST Act. Such vehicles are deemed to be used in the course or furtherance of business, making ITC available under Section 16(1) of the CGST Act. However, the ITC is subject to specific conditions, such as the restriction under Section 16(3) that disallows ITC if depreciation is claimed on the tax component under the Income Tax. HC directed that the petitioner be entitled to ITC as per the conditions outlined in the circulars. (HC P&H Judgement Dated 12/11/2024)
C. Central Excise
Excise Duty exemptions related to Aviation Turbine Fuel and Blended Aviation Turbine Fuel: The notification amends the first proviso of the opening paragraph of notification 11/2017 dated 30th June 2017, the reference to “goods specified against Sl. No. 7” has been revised to include “goods specified against Sl. No. 7 and 7C.” Serial number No 7 relates to Aviation Turbine Fuel and serial number 7C relates to Blended Aviation Turbine Fuel. (Excise Duty Notification 28/2024 Dated 19/11/2024)
SC, Ruling on CENVAT credit for telecom towers and prefabricated buildings (PFBs): Case of Bharti Airtel vs CCE, SC Judgement Dated 20th October 2024. The apex court deliberated on whether mobile towers and prefabricated buildings (PFBs) used in telecommunications qualify as “capital goods” eligible for CENVAT credit. The mobile towers and PFBs, are used to house telecom equipment and ensure network stability. Supreme Court agreed with the High Court judgment that mobile towers and PFBs should be treated as accessories to antennas and BTS, which are classified as capital goods. Since these items support the essential telecom infrastructure, they fulfill the criteria for being classified as capital goods under Rule 2(a)(A)(iii). Consequently, telecom service providers are entitled to CENVAT credit on the excise duties paid for these goods. (SC Judgement Dated 20/10/2024)
D. Custom Duty
List of goods allowed for clearance at designated Border Haats updated: The notification updates the list of goods allowed for clearance at designated Border Haats, namely Balat, Kalaichar, Srinagar, Kamalasagar, Bholaganj, Nalikata, and Ryngku. The permitted goods include locally produced vegetables, fruits, food items, spices, minor forest produce like bamboo and broomsticks (excluding timber), and products from cottage industries such as handloom items (gamcha, lungi, saree). Other items include small household and agricultural tools (e.g., ploughs, axes, spades), garments, melamine products, processed food, toiletries, cosmetics, plastic and aluminum products, cookeries, and stationery. The term “locally produced” refers to items originating within the relevant border district. (Custom Notification 82/2024 (NT) Dated 20/11/2024)
New Cargo Facility at Dhanakya: The notification number 12/1997 dated 2nd April 1997 has been amended, and location of Dhanakya in Rajasthan has been added in the notification’s table. Dhanakya has been designated as a facility for unloading imported goods and loading export goods or specific classes of such goods. (Custom Notification 83/2024 (NT) Dated 21/11/2024)
Amendment to Anti-dumping Duty (ADD) notification No. 18/2021 dated the 27th March 2021: The notification 18/2021 relates to ADD levied on Polyethylene Terephthalate resin having an intrinsic viscosity of 0.72 decilitres per gram or higher (Bottle-grade PET resin, excluding recycled PET resin). In the said notification, in the TABLE, against Sl. No. 2, in column 7, for the entry, the entry “40.41” has been substituted. The rate of ADD in case of a producer stands modified. (Custom Notification 25/2024 (ADD) Dated 22/11/2024)
Mandatory additional qualifiers in import declarations in respect of coking/ non-coking coal: The circular requires that importers provide detailed qualifiers for coal, based on ash content for coking coal and gross calorific value (GCV) for non-coking coal. The coking coal will now be categorized based on ash percentages (e.g., not exceeding 15%, 15-18%,……. 42-49%, exceeding 49%), while non-coking coal will be classified by GCV ranges (e.g., exceeding 7000 K.Cal./Kg., 6700-7000 K.Cal./Kg……….2200-2500 K.Cal./Kg.). These qualifiers, specified under the Bill of Entry Regulations, aim to enhance the efficiency of assessments, minimize queries, and facilitate smoother trade processes. (Custom Circular 24/2024 (NT) Dated 20/11/2024)
Implementation of automation in the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules: In view of challenges faced by importers in filing monthly returns via the IGCR portal, CBIC has decided to permit manual filing of the IGCR-3 monthly statements until 31st January 2025. The electronic filing will be mandatory from February 2025. To assist with the transition, it will provide an Excel utility by enabling importers to file their IGCR-3 statements online for both current and past periods. (Custom Circular 25/2024 (NT) Dated 21/11/2024)
Clarifications on the applicability of concessional duty under IGCR Rules in certain instances: The circular provide clarifications on the applicability of concessional duty under the IGCR Rules, 2022, for units operating under the Manufacturing and Other Operations in Warehouse Regulations (MOOWR). It reaffirms that MOOWR units can simultaneously avail benefits under IGCR and MOOWR schemes, provided they adhere to stipulated conditions, including compliance with time limits and documentation requirements. It also includes clarifications on using intermediate goods in manufacturing processes for cellular mobile phones, emphasizing that the components need not be imported directly by the final manufacturers. (Custom Circular 26/2024 (NT) Dated 21/11/2024)
SC, Officers of DRI entrusted to issue notice for recovery of duty under section 28 of Customs Act: Case of Commissioner of Customs vs Canon India Pvt Ltd, SC Judgement Dated 7th November 2024. The Review Petition has been filed by the Customs Department seeking review of the judgment and order dated 09.03.2021 passed by this Court in Civil Appeal No. 1827 of 2018 titled M/s Canon India Private Ltd. v. Commissioner of Customs. The circular No. 4/1999 dated 15th February 1999 issued by the CBEC, New Delhi which empowered the officers of DRI to issue show cause notices under Section 28 of the Act, as well as Notification No. 44/2011 dated 6th July 2011 which assigned the functions of the proper officer for the purposes of Sections 17 and 28 of the Act, respectively to the officers of DRI were not brought to the notice of this Court during the proceedings in Canon India. Supreme Court held that officers of DRI are entrusted with the functions of proper officer and thus has jurisdiction to issue show cause notices for recovery of duty under section 28 of the Customs Act. (SC Judgement Dated 07/11/2024)
E. Directorate General of Foreign Trade (DGFT)
No notification/ circular during the week.
F. Securities and Exchange Board of India (SEBI)
Amendment to SEBI Buy-Back of Securities Regulations: The amendments include changes in disclosure norms, entitlement calculations, and the record date definition. Specifically, terms like “sets out a lower amount” were replaced with “is lower” for clarity in financial assessments. A new proviso mandates excluding shares of promoters opting out of the buy-back from entitlement calculations. The “record date” has been redefined as the “date of public announcement,” and disclosure requirements for subsisting obligations, including their impact, must be included in public announcements. Amendments to schedules II, III, and IV introduce additional content requirements, such as detailing entitlement ratios, Registrar and Share Transfer Agent web links, and impacts of subsisting obligations on cover pages of offer letters. (SEBI Notification Dated 20/11/2024)
Amendment to SEBI Bankers to an Issue Regulations: The amendments include adding new services such as providing escrow facilities for issue management, buybacks, delisting, or open offers, and opening separate bank accounts for proceeds from IPOs or further public offers. The regulation 3 now mandates that no individual or entity can act as a banker to an issue without obtaining a registration certificate from SEBI. (SEBI Notification Dated 20/11/2024)
Amendment to SEBI Alternative Investment Funds Regulations: The amendments include the introduction of pro-rata rights for investors based on their commitment to the scheme in terms of investments and distribution proceeds. Differential rights may be offered to select investors under specified conditions without affecting others’ interests. However, these differential rights do not apply to Large Value Funds for Accredited Investors. (SEBI Notification Dated 18/11/2024)
Amendment to Para 15 of Master Circular for Credit Rating Agencies (CRAs): The revised guidelines focus on the treatment of “technical defaults,” where the failure to make debt payments is due to reasons beyond the issuer’s control, such as incorrect investor details or government instructions to freeze accounts. In these cases, the CRA is required to confirm the issuer’s ability to pay, verify the failure’s cause, and ensure the amounts are deposited in an escrow account. CRAs are now obligated to disclose details of these payment failures to stock exchanges, depositories, and debenture trustees. (SEBI Circular Dated 18/11/2024)
Withdrawal of Master Circular on issuance of No Objection Certificate (NOC) for release of 1% of Issue Amount: In order to facilitate ease of doing business to Issuer company, the requirement to deposit 1% of the issue size available for subscription to the public with the designated stock exchange by the Issuer company under ICDR Regulation 38(1) has been dispensed with. The Master Circular on Issuance of No Objection Certificate for release of 1% of Issue Amount stands withdrawn. (SEBI Circular Dated 21/11/2024)
Guidelines to Stock Exchanges, Clearing Corporations and Depositories: The guidelines relates to mechanism to enhance accountability, enhancing supervision and monitoring mechanism, training or knowledge up-gradation of directors on governing board, policy on data sharing, appointment of directors on governing board, and reporting lines of KMPs. The mechanism to enhance accountability includes meetings of public interest directors and their reporting, quarterly reporting by compliance officer, half yearly reporting by chief risk officer, disclosure of board meeting agenda and minutes, SOP for disciplinary action against KMPs, and whistle lowing policy. (SEBI Circular Dated 22/11/2024)
Consultation paper on Review of SME segment framework under ICDR and LODR Regulations to strengthen pre-listing and post-listing provisions: The consultation focus on improving corporate governance, eligibility criteria, and reporting requirements for SME segment. Under the existing framework, SMEs are eligible to list on the SME exchange with specific eligibility criteria, including post issue paid-up capital limits and underwriting requirements. The paper reviews the applicability of corporate governance provisions to SMEs, which are currently less stringent than those for larger entities listed on the main board. It also explore the impact of recent surges in SME IPO activity and their post-listing fundraising practices, such as preferential issues. The comments from stakeholders are invited. (SEBI Consultation Paper Dated 19/11/2024)
Consultation paper on Process for appointment of specific KMPs of an MII, and cooling-off period for KMPs and Directors of an MII joining a competing MII: The paper review the process for appointment of KMPs of Verticals 1 and 2 of a Market Infrastructure Institution (MII), viz., Compliance Officer (CO), Chief Risk Officer (CRiO), Chief Technology Officer (CTO) and Chief Information Security Officer (CISO) or by whatever designations referred. It also discuss the uniform regulatory treatment of minimum cooling-off period for KMPs and Directors of an MII before they join a competing MII. The comments from stakeholders are invited. (SEBI Consultation Paper Dated 22/11/2024)
Consultation paper on Review of ownership and economic structure of Clearing Corporations: The proposal involve more diversified ownership of equity clearing corporations, which are currently fully owned by the country’s exchanges. Present regulations require stock exchanges to own at least 51% of clearing corporations. One option is to allow existing shareholders of exchanges to own 49% of the clearing corporation directly, leaving the parent exchange to hold 51% initially. The exchange can then be required to bring down its holding to 15% over time. The comments from stakeholders are invited. (SEBI Consultation Paper Dated 22/11/2024)
G. Ministry of Corporate Affairs (MCA)
No Notification/ Circular during the week.
H. Insolvency and Bankruptcy Board of India (IBBI)
Discussion Paper on Review of Grievance redressal and enforcement framework and rationalisation of timelines regarding Authorisation for Assignment: The discussion paper address critical aspects of grievance redressal, disciplinary processes, and timelines for the Authorisation for Assignment (AFA) under the IBC. It include clarifying the association of whole-time members in disciplinary processes to uphold impartiality and fairness, extending timelines for filing grievances to 30 days post-process closure for broader stakeholder participation, and relaxing timelines for AFA renewal to ensure operational continuity. The paper recommends extending the AFA renewal application window from 45 to 90 days before expiry and increasing processing time from 15 to 45 days to streamline compliance reviews. The comments from stakeholders are invited. (IBBI Discussion Paper Dated 19/11/2024)
Discussion Paper on proposed monitoring committees under CIRP: The discussion paper mandatory monitoring committees for implementing resolution plans under the IBC. This follows the Supreme Court’s judgment which highlighted the need for statutory recognition of such committees. The proposed amendment to Regulation 38 of the CIRP Regulations seek to ensure that all resolution plans include monitoring committees, comprising the resolution professional or another insolvency professional as chairperson, nominees from the Committee of Creditors (CoC), and equal representation from the successful resolution applicant. The committees would oversee plan implementation, statutory compliance, and asset transfers, while submitting quarterly progress reports to the Adjudicating Authority and IBBI. The expenses for these committees, including the professional’s capped fee, would be borne by the resolution applicant. The comments from stakeholders are invited. (IBBI Discussion Paper Dated 19/11/2024)
Discussion Paper on amendments to IBBI Liquidation Process Regulations and IBBI Voluntary Liquidation Process Regulations: The proposals include changes in the auction process to streamline bidder eligibility, enforce transparency, and prevent collusion by introducing affidavits for bidder compliance with section 29A, as well as mandatory consultation with stakeholders in rejecting the highest bid. The liquidation process will be more transparent by requiring liquidators to submit closure applications to the Adjudicating Authority when a scheme of compromise or arrangement is proposed. It also involves improving the management of unclaimed funds by eliminating the requirement for depositing unclaimed proceeds into the Public Accounts of India and instead allowing the IBBI to directly manage these funds. The comments from stakeholders are invited. (IBBI Discussion Paper Dated 19/11/2024)
SC, Corporate debtor to be taken in liquidation due to non- implementation of resolution plan even after lapse of 5 years: Case of State Bank of India vs Consortium of Murari Lal Jalan and Florian Fritsch, SC Judgement Dated 7th November 2024. Supreme Court held that jurisdiction under Article 142 of the Constitution of India invoked due to non-implementation of approved resolution plan even after five years of the approval. Accordingly, it is directed that the corporate debtor be taken in liquidation. (SC Judgement Dated 07/11/2024)
NCLAT, Admission of application under section 9 of IBC for default in payment of operational debt justified: Case of Surendra Sancheti vs Gospell Digital Technologies, NCLAT Delhi Judgement dated 13th November 2024. Held that the Appellant has defaulted in the payment of operational debt which amount had clearly become due and payable above the threshold limit, and further in the absence of any credible or plausible pre-existing dispute, we find that no error has been committed by the Adjudicating Authority in admitting the application under Section 9 of IBC and initiating CIRP. We find no merit in this Appeal. (NCLAT Judgement Dated 13/11/2024)
NCLAT, Development Rights were covered under definition of “Property” under section 3(27) of IBC: Case of Nilesh Sharma RP- Today Homes and Infrastructure vs Mordhwaj Singh, NCLAT Delhi Judgement Dated 25th October 2024. The Appellant Tribunal held that Adjudicating Authority had committed an error in observing that issue i.e., Rights of the Development which was claimed by the Corporate Debtor were to be decided by the Civil Court was wholly erroneous and against the Scheme of the IBC. Development Rights created in favour of the corporate debtor constituted “property” within the meaning of the expression under Section 3(27) IBC and the same could be claimed by a Developer in assets. (NCLAT Delhi Judgement Dated 25/10/2024)
NCLAT, No withdrawal of approved resolution plan unless the breach of section 30(2) of IBC: Case of Dharmesh Jain vs Jayesh Sanghrajka, NCLAT Delhi Judgement Dated 29th October 2024. It held that the law was well settled that the Resolution Plan which was approved by the CoC could not be allowed to be withdrawn and any clause which contemplate withdrawal of the plan was unenforceable unless section 30(2) of the IBC was breached. (NCLAT Delhi Judgement Dated 29/10/2024)
NCLAT, Dissenting financial creditor was only entitled to liquidation value of secured interest under section 30(2)(b) of IBC: Case of Merina Commotrade Pvt Ltd vs Anand Sonbhadra, NCLAT Delhi Judgement Dated 25th October 2024. The intent of the legislature was not that a security interest available to a dissenting financial creditor over the assets of the corporate debtor gave him some right over and above other financial creditors so as to enforce the entire of the security interest and thereby bring about an inequitable scenario, by receiving excess amount, beyond the receivable liquidation value proposed for the same class of creditors as per Section 30(2)(b) of the Code. It was held that there is no error in the order of the Tribunal which calls for any interference by this Court and hence, the appeal is hereby dismissed. (NCLAT Delhi Judgement Dated 25/10/2024)
IBBI suspends registration of IP Praveen Kumar Aggarwal for failing to act in homebuyers interest during CIRP: IBBI concluded that he failed to cast vote in accordance with Section 25A(3A) of the Code to protect the interest of homebuyers and therefore, decided to suspend the registration of Mr. Jitender Arora for a period of one years. (IBBI Order Dated 22/11/2024)
I. Reserve Bank of India (RBI)
No notification/ circular during the week.
J. Miscellaneous
Revised Guidelines on Capital Restructuring of Central Public Sector Enterprises (CPSEs): The Revised Guidelines on Capital Restructuring of Central Public Sector Enterprises (CPSEs) have been issued in supersession of earlier guidelines issued vide DIPAM OM No. 5/2/2016-Policy dated 27th May, 2016. It provides updated norms for dividend pay-outs, buybacks, bonus share issues, and financial restructuring. A minimum annual dividend of 30% of PAT or 4% of net worth is now mandatory, with flexibility for CPSEs to pay higher dividends based on financial conditions. Buybacks are encouraged for CPSEs with excess cash reserves and undervalued market shares. Additionally, issuing bonus shares is recommended for entities with substantial reserves to enhance market liquidity. An inter-ministerial committee, chaired by the Secretary of DIPAM, will oversee compliance and address exemptions. The guidelines apply to CPSEs where the government holds a controlling interest, excluding public sector banks, insurance companies, and entities under liquidation. (DIPAM Office Memo Dated 18/11/2024)
SC, Money laundering cognizance against public servant without previous sanction untenable: Case of Directorate of Enforcement vs Bibhu Prasad Acharya, SC Judgement Dated 6th November 2024. The appellant has filed complaints against the respondents and others under Prevention of Money Laundering Act (PMLA). The complaint is for an offence under Section 3 of the PMLA, which is punishable under Section 4. The Special Court took cognizance of the complaints and issued summons to the respondents. The respondents filed writ petitions before the High Court challenging the cognizance taken by the Trial Court and inter alia prayed for quashing the complaints on the ground that both of them were public servants and, therefore, it was necessary to obtain prior sanction under CrPC. HC upheld the respondents’ contentions and quashed the orders. SC also held that cognizance of the offence under section 3 of the Prevention of Money Laundering Act, 2002 against the public servant without obtaining previous sanction under section 197(1) of the CrPC, untenable in law. However, it will be open for the appellant to move the Special Court to take cognizance of the offence against the respondents if a sanction is granted in future. (SC Judgement Dated 06/11/2024)
SC, Scope of inquiry under section 11 of Arbitration and Conciliation Act is limited: Case of Goqii Technologies Pvt Ltd vs Sokrati Technologies Pvt Ltd, SC Judgement dated 7th November 2024. SC held that the scope of inquiry under Section 11 of the Arbitration and Conciliation Act, 1996 is limited to ascertaining the prima facie existence of an arbitration agreement. Thus, appeal allowed due to existence of arbitration agreement. (SC Judgement Dated 07/11/2024)
HC, Decision causing hardship to employee not incitement under section 306 IPC: Case of Dr GK Arora vs State, HC Delhi Judgement Dated 29th October 2024. It was held that person holding a certain post, whether in private sector or public sector, in the course of duties have to take certain decisions which at time can be harsh causing hardship to an employee. The same cannot, in the absence of the requisite mens rea, be termed as an action which would amount to incitement/abetment in terms of Section 306 of the IPC. (HC Delhi Judgement Dated 29/10/2024)
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