No Clause, No Deduction: Delhi HC Sets Aside Arbitral Award Allowing MGCC Shortfall Deduction as Patently Illegal
“There cannot be quarrel with the proposition that no clause can be read into the contract entered between the parties.”
Justice Avneesh Jhingan
Explainer: Delhi High Court on Limitation, Waiver, and MGCC Shortfall Deductions under Arbitral Awards in Section 34 Proceedings
The Delhi High Court upheld an arbitral award holding that deduction towards Minimum Guaranteed CENVAT Credit (MGCC) shortfall was impermissible in the absence of an express contractual clause. The Court also ruled that limitation commenced from the date of actual deduction from final invoices and not from a prior notice contemplating such deduction.
Can shortfall in MGCC be deducted from net contract value? Delhi High Court explains
The Court held that deduction for shortfall in Minimum Guaranteed CENVAT Credit (MGCC) could not be made from the net contract value, as such an interpretation would effectively result in a double deduction unsupported by the contract terms.
Three new Judges administered the oath of office at Delhi High Court
Justice Avneesh Jhingan, Justice Chandrasekharan Sudha and Justice Dinesh Mehta were transferred to Delhi High Court from their respective High Courts on 14-10-2025.
Rajasthan High Court quashes order reducing Grants-in-Aid of Educational Institutions; says it affects Students’ education
“Even while passing administrative order having civil consequences, the reasons are not only to be recorded but are to be supplied to the affected parties.”
Rajasthan High Court stays cancellation of Rajasthan Madarsa Board Chairperson’s appointment
In the instant matter, the petitioner had filed a motion challenging the cancellation of the appointment and sought a stay due to violation of Section 7 of the Rajasthan Madrasa Board Act, 2020.
Supreme Court Collegium recommends transfer of Justice Avneesh Jhingan from Punjab and Haryana HC to Rajasthan HC
The Collegium had earlier (03-08-2023) proposed to transfer Justice Jhingan to Gujarat High Court, however, the proposal was pending before the Government since 11-08-2023.