Tribunals and Commissions Roundup April 2024 | Maggie Noodles consumer dispute, Bengaluru water crisis, Flipkart’s Liability, missing girls in Andhra Pradesh; and more

Tribunal Roundup April 2024

National Human Rights Commission

Over 3000 missing girls in State of Andhra Pradesh | NHRC issues notice to Chief Secy, Govt. of Andhra Pradesh and DGP

While considering the critical matter of over 3000 missing girls in Andhra Pradesh, that was reported by “The Hans India” on 24-01-2024, the Commission issued notice to the Chief Secretary, Govt. of Andhra Pradesh and Director General of Police calling upon them to submit requisite response in the matter within twelve weeks.

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National Consumer Disputes Redressal Commission

NCDRC sets aside SCDRC’s Rs 1 Lakh compensation order against Honda Cars due to lack of expert opinion on non-deployment of the airbag

While deciding the instant appeal challenging the order of the SCDRC, Maharashtra, directing Honda Cars to pay compensation of Rs 1,00,000 to the respondent, wherein the main issue was that whether the non-deployment of the airbags constituted a manufacturing defect warranting the invoking of doctrine of punitive damages as claimed by the respondent; the Bench of Subhash Chandra (Presiding Member) and Dr Sadhna Shanker (Member), allowed the appeal and held that SCDRC’s findings vis-a-vis manufacturing defect was not established under Section 13(1)(a) of Consumer Protection Act, 1986, and was not based on any finding of fact or legal precedent. The NCDRC found that in absence of any technical expert opinion regarding the main issue, the findings of SCDRC were unsustainable.

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NCDRC upholds repudiation of claim by Aviva Life Insurance due to violation of ubberima fidei principle by the insured

While considering the instant appeal under Section 19 of the Consumer Protection Act, 1986 challenging the order of Chhattisgarh State Disputes Redressal Commission dismissing the appellant’s complaint regarding rejection of her insurance claim by Aviva Life Insurance; the Bench of Subhash Chandra, Presiding Member and Sadhana Shanker, Member, upheld the decision of the State Commission noting that the Deceased Life Assured (DLA) had failed to disclose material facts in the Policy Proposal, therefore violating the principle of ubberima fidei (utmost good faith), hence, Aviva Life Insurance had rightfully repudiated the claims of the appellant.

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NCDRC dismisses Government’s 2015 complaint vis-à-vis Lead content found in Nestle’s Maggie Noodles

While considering the instant complaint instituted by the Department of Consumer Affairs, Government of India seeking to prevent Nestle from undertaking any unwanted manufacturing activity of Maggi Masala Noodles and Maggie Oats Noodles and other variants with the alleged deceptive labelling of “No Added MSG”, as these commodities are likely to jeopardize the general health conditions of people who consume these products extensively; the Bench of A.P. Sahi, J., (President) dismissed the complaint on the ground that neither the violation of the advisory dated 11-05-2013 nor the violation of the provisions of either the Food Safety and Standard Act, 2006, or any ingredient under the Consumer Protection Act, 1986, has been established in the instant complaint. It was noted that the scientific analysis and the clarifications issued by the Government itself did not indict Nestle India, therefore, there is no material to support the allegations made in the complaint so as to proceed any further.

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State Consumer Disputes Redressal Commission

SCDRC holds seller liable to pay compensation of Rs 30,000 for selling counterfeit Protein Powder through Flipkart

SCDRC, West Bengal: While considering the instant petition filed against Flipkart for selling counterfeit whey protein milk powder, the Bench of Kundan Kumar Kumai (Presiding Member) and Swapan Kumar Das (Member) ascertained N.H. Traders’ (seller) liability for selling counterfeit protein powder via Flipkart and directed them to refund Rs. 6524 i.e., the amount paid for the counterfeit protein, along with compensation of Rs. 20000/- for mental and physical agony and Rs. 10000 as litigation cost.

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National Company Law Appellate Tribunal

Homebuyers/Allottees with or without RERA orders are treated equally under Section 7(1) proviso (2) IBC: NCLAT

In an appeal against the Adjudicating Authority’s order rejecting the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), a 3-member bench comprising of Ashok Bhushan,* J., (Chairperson), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member), allowed the appeal and set aside the order rejecting the Section 7 IBC application. The NCLAT upheld the appellant’s classification as Financial Creditors and rejected the respondent’s arguments based on RERA orders. NCLAT emphasised on the inclusive nature of the IBC’s provisions and the importance of uniform interpretation across enactments.

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Interim relief to Deccan Charters; NCLAT stays Corporate Insolvency Resolution Process

In an appeal filed by Suspended Director of Deccan Charters (P) Ltd., against the order of Adjudicating Authority admitting Corporate Insolvency Resolution Process (CIRP) petition against the appellant company, a 3-member bench comprising of M. Venugopal, Sharad Kumar Sharma, JJ., and Jatindranath Swain (Technical Member), stayed the CIRP against the appellant company till next date of hearing.

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NCLAT upholds Resolution plan and affirms parties’ right to seek redress for ‘reliefs and concessions’ in Competent Court

In an appeal against the approval of Resolution Plan including the provisions for the use of shared utilities and services, a division bench comprising of Ashok Bhushan,* J., (Chairperson) and Mr. Barun Mitra (Technical Member), upheld the approval of the Resolution Plan and all reliefs and concessions granted to facilitate the smooth and successful implementation of the Resolution Plan. The NCLAT emphasised that the same does not restrict the parties’ rights to settle their disputes regarding shared utilities and equipment through appropriate legal channels. The NCLAT stated that

“…grant of said reliefs and concessions cannot fetter the right of Appellant to enter into a fresh arrangement with SRA with regard to use of shared utilities, nor it can fetter the rights of the Appellant to seek appropriate relief in a competent Court with regard to shared utilities.”

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‘Merely shared management not enough to establish liability’; NCLAT finds claims against Corporate Debtor untenable

In an appeal challenging the order of Adjudicating Authority rejecting appellant’s Section 9 IBC application regarding the balance of his arrear salary, a 3-member bench comprising of Ashok Bhushan, J., Mr. Barun Mitra* (Technical Member) and Mr. Indevar Pandey (Technical Member), affirmed the Adjudicating Authority’s decision that “holding company and subsidiary company are to be considered as separate legal entities and merely because their management was the same, raising of claims by the Appellant against the Corporate Debtor was not tenable.” The NCLAT emphasised that the IBC should not be manipulated for debt recovery purposes and upheld the principle that insolvency proceedings should only be initiated in cases where no real dispute exists between the parties.

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CoCs cannot consider Resolution Plans from applicants not listed in Prospective Resolution Applicants’ List: NCLAT

In an appeal challenging the order of Adjudicating Authority which allowed the Committee of Creditors (CoCs) to consider the Resolution Plan of the applicant subject to certain conditions, a 3-member bench comprising of Ashok Bhushan, J., Mr. Barun Mitra, (Technical Member) and Arun Baroka (Technical Member), held that that Resolution Plans from applicants which are not included in the list of Prospective Resolution Applicants (PRAs) cannot be considered by the CoCs.

“When no fresh Form G has been issued, it is not open for any new applicant to submit application before the Adjudicating Authority for being permitted to participate in the CIRP and submit Resolution Plan.”

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National Green Tribunal

NGT seeks comprehensive plan from CPCB addressing Environmental Compensation Fund misuse and Health Hazards of Air Pollution

Taking suo motu cognizance in news item titled “Feeling anxious? Toxic air could be to blame” appearing in Times of India dated 10-10-2023 and news item titled “Delhi Chennai studies hint at pollution link to diabetes” appearing in Times of India dated 10-10-2023, a 3-member bench comprising of Prakash Shrivastava, J., (Chairperson), Sudhir Agarwal, J., and Dr. A. Senthil Vel (Expert Member), emphasised on the importance of transparent fund utilization and comprehensive planning to mitigate environmental hazards, particularly those related to air pollution, and directed the Central Pollution Control Board (CPCB) to submit a detailed report addressing the identified concerns.

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‘Undertake scheme for storm water drainage in Deoria’; NGT issues directions to prevent water logging and pollution while constructing drains

In an original application based on a letter, wherein, Jal Nigam was alleged of causing environmental pollution while digging a drain by the side of Deoria — Kheera Ram Road, Arun Kumar Tyagi (Judicial Member) and Dr. Afroz Ahmad (Expert Member) gave various directions in the matter. The Tribunal pointed out that the geo-physical setting of the Deoria city results in serious water logging during monsoon as it is located in Gangetic plain predominated by sandy loam soil which is susceptible to seepage. The Tribunal viewed that the project scheme of storm water drainage as designed/planned in Deoria for the control of water logging problems should be undertaken.

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Punjab’s groundwater pollution: NGT orders demarcation of contaminated sources as ‘unfit for drinking purposes’

Taking suo motu cognizance on news Item titled “Agriculture Runoff causing groundwater pollution in Punjab Making Drinking Water unsafe Reveals Study” appearing in The Times of India dated 12-10-2023, a division bench comprising of Sudhir Agarwal, J., and Dr. A. Senthil Vel (Expert Member), directed the Chief Secretary of Punjab to submit a comprehensive reply and appear in the next hearing and also ordered the demarcation of contaminated groundwater sources as unfit for drinking purposes and ensured safe water availability.

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NGT takes suo motu cognizance of Telangana Forest Land Encroachments; issues notice to Forest officials

In the instant matter, a 3-member bench comprising of Prakash Shrivastava, J., (Chairperson), Dr. A. Senthil Vel (Expert Member) and Dr. Afroz Ahmad (Expert Member), took suo motu cognizance based on a news article titled “Land grab in Telangana forests shrink space for big cats” published in ‘The Times of India’ on 04-02-2024, highlighting encroachments on forest land in Telangana and their adverse effects on the environment and wildlife.

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NGT bans further construction in Gurugram’s “Mayfield Garden” amidst Environmental Norms violation allegations

In an application involving a clear dispute regarding the alleged violation of environmental norms by the developers of “Mayfield Garden”, a division bench comprising of Prakash Shrivastava, J., (Chairperson) and Dr. A. Senthil Vel (Expert Member), issued directions to ensure compliance and to maintain the status quo until the next hearing. The NGT took interim measures to halt construction activities violating norms until further examination and instructed the relevant authorities to ensure compliance.

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NGT seeks Bihar State Pollution Control Board’s clarification on Rs. 39,25,000/- Environmental Compensation Notice

In an appeal stemming out of a tragic incident, a boiler explosion at the appellant’s factory, resulting in casualties, a division bench comprising of B. Amit Sthalekar, J., and Dr. Arun Kumar Verma (Expert Member), found the show-cause notice, demanding the appellant to file objections against the determination of Environmental Compensation amounting to Rs. 39,25,000 due to the operation of their unit without a valid Consent to Operate, lacking in detail regarding the computation of Environmental Compensation and directed the State Pollution Control Board to provide the methodology within 15 days.

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NGT issues notice to Centre, State and builders over illegal constructions and topsoil mining in Noida

In an original application against unauthorized and illegal construction of houses, shops and commercial establishments in Greater Noida and Noida in violation of environmental norms, Prakash Shrivastava (Chairperson) and Dr. A. Senthil Vel (Expert Member) issued notice to the Centre, State Government, builders, Uttar Pradesh Pollution Control Board, Central Pollution Control Board and others.

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NGT takes suo motu cognizance of water supply to Chinnaswamy Stadium for IPL 2024 amid Bengaluru water crisis

A Division bench comprising of Prakash Shrivastava, J., Chairperson and Dr. A. Senthil Vel, Expert Member, took suo motu cognizance based on a news item published in ‘India Today’ on 21-03-2024. The news item reported the supply of treated water to M Chinnaswamy Stadium in Bengaluru for IPL 2024 matches amid the water crisis and directed the Chairman of the Bangalore Water Supply and Sewerage Board to submit the report disclosing the quantity and source of water being used in the stadium, along with the quality of treated water supplied.

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NGT appoints amicus curiae for effective resolution of unauthorised encroachments on public parks in Ghaziabad

In an application related to unauthorised encroachments on public parks in Ghaziabad, a Division bench comprising of Arun Kumar Tyagi, J., and Dr. Afroz Ahmad (Expert Member), after considering the seriousness of environmental issues, appointed Mr. Rahul Khurana as amicus curiae to assist the NGT in fair adjudication and directed the Uttar Pradesh Pollution Control Board to pay an honorarium and cover expenses.

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Customs, Excise and Service Tax Appellate Tribunal

BookMyShow is not receiving any consideration by allowing card companies to extend discount offers, thus not providing any service to them: CESTAT

In an appeal challenging the order passed by Commissioner of Service Tax VI, Mumbai, the bench of Dr. Suvendu Kumar Pati, Member (Judicial) and Anil G. Shakkarwar, Member (Technical) opined that appellant entered into agreements with cinema houses for payment of tickets booked through their platform, and collected convenience fee and paid service tax on the same. Appellant had not retained any amount to itself which was received from card companies. The Tribunal noted that it was admitted in the show cause notice that appellant was not raising any invoice to the card companies and opined that it was very simple in the accounting standards that unless invoice was raised, consideration was not collected. Therefore, it was very clear from the record that the appellant was not receiving any consideration from card companies. Thus, the Tribunal opined that appellant was not providing any service to card companies and, accordingly, set aside the impugned order and allowed the present appeal.

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Wireline logging and perforation for drilling oil well deserves classification under mining services and not TTA services under Finance Act, 1994: CESTAT

In an appeal challenging the order dated 30-10-2009, passed by the Commissioner (Appeals), Central Excise, Delhi-I, the bench of Dilip Gupta,* J. (President) and P.V. Subba Rao (Technical Member) opined that the services like wireline logging, perforation and other wireline related services involving mechanical jobs like cutting, puncture, plug/packer setting, cable splicing, etc., which were undertaken by appellant at the time of drilling an oil well were integrally connected with the mining of oil or gas and had a direct nexus with the drilling of a well. Thus, these activities would be covered by the taxable category of mining service with effect from 01-06-2007.

Thus, the Tribunal opined that the activities undertaken by appellant could not be classified under ‘technical testing and analysis’ service (‘TTA services’) as defined under section 65(106) of the Finance Act, 1994 (‘the Act’) and deserved classification under ‘mining services’ made taxable under section 65(105)(zzzy) of the Act from 01-06-2007. Accordingly, the Tribunal set aside the order passed by the Commissioner (Appeals) and held that appellant was entitled to refund with applicable rate of interest.

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Administrative Tribunal

Maternity leave cannot be denied during probation period: Maharashtra Administrative Tribunal

In an Original Application challenging an order by which the maternity and postnatal child care leave of the applicant was illegally regularized as extra-ordinary leave, Medha Gadgil, Member, quashed and set aside the impugned order, and held that the applicant would be deemed to have completed her probation irrespective of her maternity leave and shall also be granted all consequential service benefits.

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Income Tax Appellate Tribunal

S. 269-SS of Income Tax Act not applicable to receipt of sale consideration of immovable property in cash but only on loan or deposit: ITAT, Delhi

In an appeal filed by the assessee against an order of the Commissioner of Income Tax (Appeals) (‘CIT (A)’), wherein the CIT (A) dismissed an appeal against the order of the Joint Commissioner of Income Tax (JCIT), levying penalty of Rs. 28,13,000/- under Section 271-D of the Income Tax Act, 1961 (‘the Act’) for the violation of Section 269-SS of the Act, the two-member Bench of Yogesh Kumar U.S. (Judicial Member) and Dr. B. R. R. Kumar (Accountant Member), allowed the appeal and set aside the impugned order imposing penalty. The Tribunal held that Section 269-SS of the Act does not deal with the receipt of ‘sale consideration of immovable property’ in cash, and only deals with loan or deposit.

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