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Draft Arbitration Clause

The Parties to the Contract may consider incorporating the following Arbitration Clause, in their Invoices / Purchase Orders / MoUs / any other Agreements / Contracts   Draft Arbitration Clause   Disputes or differences that may arise between the parties, arising under this transaction/ Contract, shall be resolved through the means of Arbitration, at “(Place / Mumbai”).   The Arbitration Clause may further provide for the following:   1.      The Arbitration shall be by Sole Arbitrator / by Arbitral Tribunal consisting of three Members. Each party shall appoint One Arbitrator and thereafter, these two Arbitrators shall appoint the third Arbitrator.   2.      The Arbitration shall be done by “Name of the Arbitral Institution”.   3.      Notice: All communication / correspondence / Notices shall be sent through Email. Any of the party, in addition to Email, may also communicate through Whatsa...

Blatant misuse Section 8 of Maharashtra Rent Control Act, 1999, to fix Standard Rent

    1.       Recently, I have come across a Case of my Cousin, where Landlord has filed a Section 8 Application under Maharashtra Rent Control Act, 1999, calling upon the Court to fix Standard Rent (essentially seeking huge increase in Rent), on the grounds that Suit premises is situate in prime commercial area and Rent has increased phenomenally in the immediate vicinity of Suit premises. 2.      And  I am told that Landlord is filing many such Applications against his tenants, and the  Small Causes Courts are entertaining such Applications, and are happily granting Reliefs to the Landlords; and Tenants are compelled to pay sky rocketing increased Rent, and that too, under the umbrella of Rent Control Legislation.   3.      And therefore, I dwelled upon the Maharashtra Rent Control Act, 1999, and looked thru the history of Rent Control Legislations in India, and in particularly, the history of...

A fresh look into "Cause of action"

The expression “Cause of action” perhaps is the most dynamic legal expression, embracing diverse aspects. Remarkably, given the judicial meaning assigned to the expression “Cause of action”, one may notice that the Cause of action is “complete” at the “accrual” of Cause of action. Therefore, the “fact” (overt act of commission or omission) that triggered the Cause of action, actually completes the “chain of events”; and proving of this solitary “important fact” may entitle Plaintiff / Petitioners the Judgment. Technically speaking, if this fact is proved, all other facts in the chain of events are deemed to have been proved.  It may be appreciated that Cause of action is a bundle of facts; and these bundle of facts are not isolated or independent facts, but are a chain of events.  The principle ingrained in section 114 of the Evidence Act, 1872, may be of greatest assistance at every stage in the dispensation of justice. I am convinced that while arguing any case before Court,...

Defaults under “Settlement Agreement” are Operational debts under IBC

In various rulings of NCLT and NCLAT, while deciding Section 9 Petition under IBC, a view is taken that “Settlement Agreement” do not constitute “Operational debt” within the meaning of Section 5(21) of IBC. (The latest ruling appears to be of Trifigura India Pvt Ltd versus TDT Copper Ltd. NCLAT Order / Judgment dated 15.9.2022, passed in Company Appeal (AT) (Insolvency) No. 742 of 2020) With greatest respect to the Learned Members at the Bench, all such rulings are ex-facie erroneous. 1.        Section 5(21) of IBC says Operational Debt "means a “Claim” and then sets out the class of debts that are considered as “Operational debts”. What is covered are (1) claims in respect of the provision of goods or services (2) claims in respect of Employment and (3)   A debt in respect of the payment of dues arising under any law payable to the Central Government, any State Government or any local authority. 2.        Now the C...

Judicial Notice of facts and presumption of facts by Courts

This Court is pained to observe the manner in which the Corporation functions and deals with individuals who are economically weak and not so literate, and who are unfortunately compelled to incur additional expense of obtaining Court Orders, only due to the careless manner in which the Corporation discharges its duties. This is “judicial notice / observation” of “matter of a common knowledge” of “ill treatment being meted out by officers of Mumbai Municipal Corporations to poor and illiterate section of the Society. [WP (L) No.3180 of 2019] The “Judicial notice of fact” implies that, a fact which is otherwise all pervasive yet elusive, attains the status of judicial recognition of its existence. A litigant who knocks the doors of Justice, are require to prove their Case, by leading evidence, to claim judgment in their favour. The Courts and the Judges too are anxious to hand out justice, in the very real sense of the term. Therefore, in the administration and dispensation of ju...

What is Convenience Note

As the name would indicate, a Convenience Note is one that is tendered before Court in any judicial or quasi proceeding, which makes job of the presiding Judge, Convenient, in the dispensation of justice. The Hon’ble Apex Court, in a Criminal Appeal, arising out of an SLP (Criminal), in the Case of Kaushal Verma versus State of Chhatisgarh (Order dated 08.12.2020) had the occasion to whole heartedly praise the Standing Counsel for Chhatisgarh for tendering Synopsis of the Case in 2 pages “Convenience Note”, which gave snapshot of the entire Case, and assisted the Hon’ble Court in quickly appreciating the facts of the Case; and passing appropriate Order. The Hon’ble Court went on to direct the Registry that, “Note may be taken as the Standard Format by all the learned counsel appearing for various State Governments in this Court. The Registry may circulate copies of this Order to all the learned Standing Counsel for the States”. A Convenience Note is a Written Note of Argument which...

Property tax Holiday in Pandemic time, for Mumbai

Can we Claim it in existing legal framework ? The property tax is a kind of impost / tax levied by Local bodies / Municipalities, upon lands and buildings, situate in their territorial jurisdiction. Due to the peculiar nature of tax, the property tax are regarded as “rate”, and not as “tax” or “fee”. The Apex Court in a case before it (AIR 1963 SC 1742), had the occasion to distinguish the rate from tax or fee, wherein it was stated that rate is an hybrid of tax and fee, as it has the elements of both, and is more in the nature of compensation paid for the services availed, although not directly attributable to the measurable benefits of the services availed. The first elementary principle which governs any Municipal taxation is – the Tax levied by Municipal Corporation / Local bodies are compensatory in nature. Municipalities levy taxes under respective State legislations. In area of Municipal taxation, the State Govts do not enjoy the same freedom and latitude as otherwise bein...