Gujarat High Court Weekly Round-Up: February 26 - March 03, 2024

Judgements/Orders This Week

Gujarat High Court Directs Authorities To Follow Court Orders In IGST Refund Case

Case Title: Real Prince Spintex Pvt. Ltd. Versus Union Of India

LL Citation: 2024 LiveLaw (Guj) 17

The Gujarat High Court, in its decision on a special civil application, while emphasising the binding nature of its directions on respondent-authorities, stated that once the Court issues directions, they hold authority over the respondent-authorities, and consequently, the respondent-authorities are obligated to adhere to the directions issued by the Court when exercising their powers under Article 226 of the Constitution of India.

Gujarat High Court Refuses To Interfere With Section 153C Income Tax Notice, Allows Assessee To Raise Objections

Case Title: Shyamlal Rupchand Parwani Versus The Assistant Commissioner Income Tax , Central Circle 1(1) (1)

LL Citation: 2024 LiveLaw (Guj) 18

In a judgment with significant implications, the Gujarat High Court has declined to intervene in a case challenging the validity of notices issued under Section 153C of the Income Tax Act, 1961.

The petition challenged the validity of several notices and orders issued under the Income Tax Act, 1961. Specifically, it challenges a notice dated 09.06.2022 for the Assessment Year 2014-15 under Section 153C, as well as an order dated 02.12.2023 which purportedly serves as the respondent No.2's disposal of objections.

Lender Banks Required To Provide Audit Reports To Borrowers & Allow Representation Before Classifying Accounts As Fraud: Gujarat High Court

Case Title: Amit Dineshchandra Patel Versus Reserve Bank Of India

LL Citation: 2024 LiveLaw (Guj) 19

The Gujarat High Court while partly allowing a special civil application has emphasized the importance of lender banks affording borrowers the opportunity to review audit reports and present their case before categorizing an account as fraudulent. The court stressed the need for lenders to provide a copy of audit reports and allow a reasonable window for borrowers to submit representations. Furthermore, the court mandated that lenders must issue a reasoned order addressing any objections raised by the borrower.

Gujarat High Court Grants Regular Bail to Accused in Rs. 67.72 Crore GST Fraud Case

Case Title: Shyamlal Parag Nathalal Haria Versus State Of Gujarat

LL Citation: 2024 Livelaw (Guj) 20

In a notable legal development, the Gujarat High Court has granted regular bail to Parag Nathalal Haria, who was implicated in an alleged Goods and Services Tax (GST) fraud amounting to Rs. 67.72 crores.

The ruling came in an Application filed under Section 439 of the Code of Criminal Procedure for enlarging the Applicant on Regular Bail in connection with F.No. GEXCOM / AE / INV / GST / 8107 / 2023 - AE / 19.12.2023 registered with Inspector (Anti Evasion), CGST, Rajkot for the offences punishable under Sections 132(1)(b), 132(1) (c) and 132(1)(1) of the Central Goods and Service Tax Act, 2017.

Bilkis Bano Case | 2 Convicts Withdraw Plea As Gujarat HC Expresses Disinclination To Grant Parole For Navchandi/Vastu Puja

Case Title: Bhatt Shaileshbhai Chimanbhai vs State of Gujarat

LL Citation: 2024 Livelaw (Guj) 21

Two convicts in the Bilkis Bano gangrape case on Thursday withdrew their petitions, seeking parole for Navchandi and Vaastu puja before the Gujarat High Court as the single judge expressed his disinclination to allow the relief.

When the matter came up for hearing before a bench of Justice Divyesh Joshi, the court orally remarked 'rejected' and that is when the counsel for the Convict brothers (Mitesh Bhatt and Shailesh Bhatt) sought permission to withdraw the petitions.

Court Cannot Sit In Appeal Over Arbitral Award And Re-Examine The Merits: Gujarat High Court Dismisses Section 34 A&C Appeal

Case Title: Board Of Trustees Of Deendayal Port Through Executive Engineer (H) Vs M/S. Shantilal B. Patel & Anr.

LL Citation: 2024 Livelaw (Guj) 22

The Gujarat High Court division bench of Chief Justice Sunita Agarwal and Justice Aniruddha P. Mayee held that Court cannot sit in appeal over the arbitral award and re-examine the merits. It held that it is not permissible for a court to reappreciate the evidence on record.

Further, it held that the arbitral award cannot be interfered with where on interpretation of any contract or document, two views are possible, and the Arbitrator has accepted one view.

Other Developments

Gujarat High Court Judge Criticizes Lawyers' Attempts To 'Browbeat' Him In Court Proceedings

Justice J C Doshi of the Gujarat High Court on Monday expressed dismay over what he described as attempts by lawyers to "browbeat" him in numerous cases.

His remarks came during hearing of two anticipatory bail applications filed by lawyers representing former IAS officer SK Langa, in a case concerning irregularities in land transactions.

[GNLU-Queerphobia, Rape Allegations] 'Fact-Finding Panel's Report Is Scary, Students' Voices Suppressed': Gujarat HC Castigates University Admin

In a scathing observation, the Gujarat High Court today castigated the Gujarat National Law University (GNLU) administration for 'suppressing' allegations made by two students regarding queerphobia and rape on the University campus.

Describing the sealed cover report submitted by the reconstituted Fact-Finding Committee, which was constituted to look into the allegations, as "scary", a bench of Chief Justice Sunita Agarwal and Justice Aniruddha P. Mayee asserted that the GNLU administration had deliberately concealed the entirety of the incident.