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16 interesting stories from Tribunals and Commissions [November, 2022]

COMPETITION COMMISSION OF INDIA (‘CCI’)

CCI holds Google to be dominant in the relevant markets for licensable OS for smart mobile devices and app store for Android OS; Imposes penalty of Rs. 936.44 crore.

While deciding upon the complaint filed against Google alleging contravention of the provisions of the Competition Act, 2002 the bench of Ashok Kumar Gupta (Chairperson), Sangeeta Verma and Bhagwant Singh Bishnoi (Members), held that Google has a dominant position in the market for licensable OS for smart mobile devices in India and market for app store for Android smart mobile OS in India; and it has abused its dominant position in contravention of the provisions of Section 4(2)(a)(i), Section 4(2)(a)(ii) , Section 4(2)(b)(ii), Section 4(2)(c) and Section 4(2)(e) of the Competition Act, 2002.

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CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL (‘CESTAT’)

Whether Section 73A of the Finance Act,1994 applicable when service tax has been collected and retained by the Assessee; CESTAT answers.

The coram of Ramesh Nair (Judicial Member) and Raju (Technical Member) set aside the order of the Commissioner confirming imposition of service tax and interest thereon, along with penalties for ‘Broadcasting Services’ on an ‘Advertising Services’ agency. The Tribunal has directed Prasar Bharti to return the amount of Rs. 36,92,874 collected by it, under the garb of its liability to pay service tax when actually it was not liable, to all those customers from whom it was collected that too within a period of two months.

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‘Welding Electrodes’ do not qualify as ‘consumables’; CESTAT holds recovery of Modified VAT credit to be incorrect.

While dealing with an issue relating to recovery of Modified Value Added Tax (MODVAT) credit charged on ‘welding electrode’, C J Mathew (Technical Member) held that characteristics of ‘consumables’ do not attach to ‘welding electrodes’, therefore, recovery of MODVAT credit ordered by Commissioner of CGST and Central Excise was incorrect.

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CENTRAL INFORMATION COMMISSION (‘CIC’)

CIC directs PMO to revisit denial to disclose report on armed forces pay and allowances.

In a second appeal filed by the appellant being dissatisfied and aggrieved by the reply furnished by the CPIO, PMO, the Chief Information Commissioner has directed the PMO to revisit the RTI application considering the written submission of the appellant and furnish a revised reply.

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Central Information Commission directs CPIO to disclose information subject to completion of investigation

In the second appeal filed by the appellant under Section 19 of the Right to Information Act, 2005 (‘Act’) on the ground of unsatisfactory information furnished by the Chief Public Information Officer (‘CPIO’) seeking direction to the CPIO to provide the complete information and take necessary action as per Section 20 (1) of RTI Act, Suresh Chandra, Chief Information Officer, directed the CPIO (respondent) to verify the status of the investigation and in case the same has been concluded, the information sought by the appellant may be disclosed after redacting the name of the third parties.

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“Supreme Court acted in violation of the provisions of the Constitution”; CIC on SC’s 1993 ruling on payment of honorariums/salaries to Imams.

Zee news-report stating that the Delhi CM declared that the salaries to Imams and others in mosques under and outside the purview of the DWB will be increased from rupees 10,000 to rupees 18,000 per month for Imams and from rupees 9000 to rupees 16,000 for helpers. CIC observed that same was virtually being paid by the Delhi Government using the tax payer’s money.

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CONSUMER DISPUTES REDRESSAL COMMISSION, KOLLAM

Consumer Disputes Redressal Commission directs Zomato to compensate a student for mental agony sustained due to non-delivery of ordered food item.

While deciding upon the instant consumer complaint against Zomato for failing to deliver the food item ordered by the complainant and upon the non-delivery of the order failing to refund the amount paid for the same, the Bench of Muhammed Ibrahim (President), S. Sandhya Rani and Stanley Harold (Members) directed Zomato to refund Rs. 362 (Rs. l76 + 186) with interest at 9% p.a from the date of order till realization. Further directions were given for the payment of Rs. 5000 as compensation for mental agony sustained by the complainant and Rs. 3000 as costs of the proceedings.

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DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, GURUGRAM

Gurugram District Consumer Forum issues stringent interim directions to Gurugram Municipal Corporation vis-a-vis banned foreign dog breeds and increased cases of pet and stray dog menace.

The Commission directed the Corporation to pay compensation of Rs. 2 Lakhs to the victim. Since the opposite party-1 had violated the law of the land by keeping a banned breed, therefore the Corporation is at liberty to recover the compensation amount from her.

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NATIONAL COMPANY LAW APPELLATE TRIBUNAL (‘NCLAT’)

No prohibition on advocate to represent different company in separate proceedings filed under Section 7 IBC: NCLAT.

While dealing with a matter seeking expunging the adverse remarke made against the appellant, a bench comprising of Ashok Bhushan*, J., Dr. Alok Srivastava and Barun Mitra (Technical Members), held that there is no prohibition according to the statutory provision governing appearance of an advocate in representing a different company in separate proceedings filed under S. 7 of Insolvency and Bankruptcy Code, 2016 . The Tribunal noted that the observations made by the Adjudicating Authority in the judgment were not necessary for deciding the issues and the observations made against the appellant were uncalled for.

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NATIONAL COMPANY LAW TRIBUNAL (‘NCLT’)

NCLT approves acquisition of Sterling Biotech Ltd by US-based food tech ‘Perfect Day’

The Tribunal opined that the “Acquirers” will be granted all the rights, title and interest in the whole and every part of the Corporate Debtor, including but not limited to the assets, properties, contracts and Approvals, free and clear of all security interest after the payment of the Final Consideration and the Acquirers will not have any financial obligation or liability to any Person or Stakeholder after that. The Tribunal allowed the issuance and allotment of shares to the Acquirers after the cancellation and extinguishment of existing share capital of the Corporate Debtor.

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NATIONAL GREEN TRIBUNAL (‘NGT’)

[Solid Waste Management] NGT directs Municipal Corporation to focus on preventing landfill fires and remediation of its legacy waste

The bench comprising of Adarsh Kumar Goel (Chairperson), Sudhir Agarwal (Judicial Member), JJ., and A. Senthil Vel (Expert Member) took suo motu cognizance based on media report titled “7 Charred to death in fire near Ludhiana dumpsite” reporting the death of seven person, who belonged to a ragpicker family living near the landfill for the last ten years, in a fire at a garbage dump site at Tajpur road.

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National Green Tribunal directs for replacing 15 years old diesel generator sets with new ones which run on cleaner fuel.

An application was filed by the applicant, Satish Govind with regards to violation of air quality norms by operation of diesel generators by the Management Board of the Windsor Park Residents Welfare Association (WPRWA) at Ghaziabad, UP. The Tribunal opined that “Operation of DG sets in violation of environmental norms has to be stopped and for past violations, accountability fixed, following due process of law.”

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Ranthambore Musical Festival can be held only after taking due consideration regarding its impact on wildlife and the ecosystem: NGT

Taking suo motu cognizance to consider the impact of musical festival which was proposed to be held near the Tiger reserve at Ranthambhore, Rajasthan, a bench comprising of Adarsh Kumar Goel (Chairperson), Sudhir Agarwal (Judicial Member), JJ., and A. Senthil Vel (Expert Member) allowed the music festival to be held only if the authorities concerned permit it after considering its impact on wildlife and the ecosystem.

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NGT| Tyre Pyrolsis Oil units (TPOs) must follow ‘zero liquid’ and ‘zero emission’ norms; directs for closure of non-compliant units.

While dealing a matter related to absence of proper management of end-of-life tyres/waste tyres (ELTs), a bench comprising of Adarsh Kumar Goel (Chairperson), Sudhir Agarwal (Judicial Member), JJ., and A. Senthil Vel (Expert Member) held that Tyre Pyrolysis Oil units (TPOs) need to follow ‘zero liquid’ and ‘zero emission’ norms and the carbon produced during the process needs to be utilized in cement industries rather than simply transported to landfills.

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NGT halts Pakhro Tiger Safari Project, Corbett Tiger Reserve; directs to identify offenders and restore environmental damage.

A bench comprising of Adarsh Kumar Goel (Chairperson), Sudhir Agarwal (Judicial Member), JJ., and A. Senthil Vel (Expert Member) took suo motu cognizance based on media report “Over 6,000 trees illegally cut for tiger safari project in Corbett Reserve, says FSI report” published on 02-10-2022 in the Hindu newspaper, and acknowledged the illegality in cutting the trees. “The area cleared is estimated as 16.21 ha. The trees estimated on this cleared area are 6093 in no. with lower bound of 5765 and upper bound of 6421 with 95% confidence interval and 2.72% Standard Error.”

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SECURITY AND EXCHANGE BOARD OF INDIA (‘SEBI’)

SEBI bans Mehul Choksi from securities market for 10 years and imposes a penalty of Rs. 5 Crores for indulging in fraudulent and unfair trade practices.

Mehul C. Choksi has been restrained from buying, selling or dealing in securities and is prohibited from accessing securities market for a period of 10 years with a penalty of Rs. 5 crores for indulging in fraudulent and unfair trade practices. Through the investigation, it was revealed that the bank accounts of GGL was singly operated by the Mehul Choksi. On considering the same, it is evident that he was using the Front Entities for executing trades in the scrip of GGL.

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