Saturday, 19 September 2026

The dispute. Methanol manufacturers and industrial consumers challenged amended state poison rules following a spurious liquor tragedy. The impugned amendments mandated pre-sale verification of retail poison licences and addition of denaturants to industrial-grade methanol. The Supreme Court heard direct writ petitions challenging the constitutional validity of Rules 18A and 18B of the Maharashtra Poisons Rules.

The reasoning. Subordinate legislation that imposes commercially impossible compliance burdens without a proximate nexus to preventing chemical misuse is manifestly arbitrary under Article 14.

For your practice. Provides a direct constitutional weapon to challenge disproportionate state licensing restrictions on bulk industrial raw materials.

The order. The Supreme Court struck down Rules 18A and 18B of the Maharashtra Poisons Rules, 1972 as unconstitutional, and quashed all consequential regulatory notices.

Article 14, Constitution of India

Case

M/S. BALAJI FORMALIN PVT. LTD. THROUGH DIRECTOR vs UNION OF INDIA

Citation

Supreme Court of India · W.P.(C) No.-000893 - 2019 · 2026 INSC 1009 · 18.09.2026

Bench

J.B. Pardiwala, K. Vinod Chandran

The dispute. Tax authorities executed a statutory search under Section 67 CGST Act at the office premises of a consulting firm and seized digital devices from an advocate's cabin. The advocate challenged the search as a violation of legal professional privilege and sought immediate return of equipment. The Delhi High Court heard a writ petition seeking to quash a GST search authorization and seeking return of seized electronic records.

The reasoning. Professional privilege protects confidential legal advice but does not immunise an advocate from investigation when personal complicity in tax evasion is alleged.

For your practice. Clarifies the limits of professional privilege when tax enforcement agencies target lawyer cabins for alleged personal transactions.

The order. The High Court dismissed the challenge to the search authorisation, permitted imaging of seized data, and established strict protocols to seal privileged client communications.

Section 67, Central Goods and Services Tax Act, 2017

Case

PUNEET BATRA vs UNION OF INDIA & ors.

Citation

Delhi High Court · W.P.(C)-11021/2025 · 2026:DHC:7976-DB · 18.09.2026

Bench

Anil Kshetarpal

The dispute. An elected state legislator filed nomination and actively campaigned as a parliamentary candidate for a rival political party without resigning his legislative seat. Rival legislators filed disqualification petitions which the Assembly Speaker dismissed as lacking proof of formal party resignation. The Telangana High Court heard writ petitions challenging the Speaker-cum-Tribunal order dismissing Tenth Schedule disqualification petitions.

The reasoning. Voluntarily giving up membership under Paragraph 2(1)(a) of the Tenth Schedule does not require formal written resignation and is inferred from overt political conduct.

For your practice. Bars defecting legislators from retaining assembly membership while running for rival parties during pending disqualification proceedings.

The order. The High Court set aside the Speaker's order, declared the legislator disqualified from the date of filing his parliamentary nomination, and declared the assembly seat vacant.

Paragraph 2(1)(a) of the Tenth Schedule to the Constitution of India

Case

Alleti Maheshwar Reddy vs The Honourable Speaker-Cum-Tribunal

Citation

Telangana High Court · WP 8409/2026 · 18.09.2026

Bench

G.M. Mohiuddin

The dispute. A footwear merchant's current business account was frozen without notice following an interstate cybercrime complaint regarding a single Rs 1,700 credit. The bank refused all account operations despite petitioner offering a lien over the disputed sum. The Gauhati High Court heard a writ petition challenging total account debit freezes ordered by cybercrime police.

The reasoning. Police authorities cannot freeze an entire operational bank account when an investigation concerns a specific suspected credit. Freezing funds beyond the disputed transaction violates the constitutional right to livelihood under Article 21.

When the investigating agency has suspicion about a specific transaction or amount credited to a Bank Account, it is not reasonable to freeze the Bank Account totally. The freezing of the entire Bank Account in such a situation, when the Account holder’s involvement as a culprit in a crime has not been prima facie established at the particular moment, is not justified.

For your practice. Practitioners must now advise banks to restrict account freezes to the specific sum indicated in investigative directions and obtain clear authorization before blocking funds. Litigants can challenge overbroad freezes as violations of Article 21, seeking relief to operate the unfrozen balance and claim compensation for losses incurred due to arbitrary restrictions.

The order. The Court directed Bandhan Bank to restrict the debit freeze on petitioner’s account to Rs. 1,700 by placing a lien over that sum, allowing operation of the remaining balance upon submission of KYC form and compliance with any further instructions from competent authority.

Section 102, Code of Criminal Procedure, 1973

Case

ISMAIL HUSSAIN VERSUS THE BANDHAN BANK & ors.

Citation

Gauhati High Court · WP(C)/2308/2026 · 2026:GAU-AS:13907 · 18.09.2026

Bench

Manish Choudhury

The dispute. An award-holder sought execution of a commercial money decree against a corporate debtor whose authorized representative filed false asset affidavits concealing operational bank accounts. The representative made substantial post-award withdrawals while claiming total corporate insolvency. The Delhi High Court heard a civil revision petition challenging an executing court order issuing bailable warrants against a company representative.

The reasoning. Order XXI Rule 41(3) CPC empowers executing courts to commit corporate officers to civil prison for willful non-compliance with asset disclosure orders.

For your practice. Gives decree-holders a coercive procedural remedy to secure personal arrest warrants against evasive company directors and officers.

The order. The High Court dismissed the revision petition, upheld the issuance of warrants against the representative, and directed compliance with full asset disclosure.

Order XXI Rule 41(3) of the Code of Civil Procedure, 1908

Case

SYED FARHAN ALI vs M/S ABB INDIA LIMITED

Citation

Delhi High Court · CM(M)-1689/2026 · 2026:DHC:8008 · 18.09.2026

Bench

Ajay Digpaul

The dispute. Secured banks and financial institutions sought to enforce debt recovery against personal guarantors who had obtained interim moratoria by filing repeated insolvency applications. The lenders argued that newly enacted Section 96(4) immediately lifted protection from secured assets. The Bombay High Court heard a batch of writ petitions by secured creditors challenging DRT orders that restrained asset realisation under interim moratorium.

The reasoning. Sub-section (4) of Section 96 applies retroactively to pending individual insolvency applications from its effective date of 26 May 2026.

It held that a plain reading of sub-section (4) added by way of amendment shows that it must apply retroactively.

For your practice. Allows commercial lenders to immediately resume DRT and SARFAESI recovery against personal guarantors despite pending Section 94 or 95 filings.

The order. The High Court allowed the writ petitions, set aside the DRT restraint orders, and held that interim moratoria ceased to operate over secured assets from 26 May 2026.

Section 96, Insolvency and Bankruptcy Code, 2016

Case

RBL BANK LTD vs STATE OF MAHARASHTRA THRU SENIOR INSPECTOR OF POLICE, BORIVALI POLICE STATION

Citation

Bombay High Court · WPL/22742/2026 · 2026:BHC-OS:20542-DB · 18.09.2026

Bench

Manish Pitale, Shreeram V. Shirsat

The dispute. A railway catering contractor faced contract termination following tender certificate disputes and invoked arbitration under a public procurement agreement. The clause required the contractor to select an arbitrator solely from a pre-determined panel curated exclusively by the public entity. The Delhi High Court heard a Section 11 petition under the Arbitration and Conciliation Act seeking the appointment of an independent sole arbitrator.

The reasoning. An arbitration clause that restricts one party's choice to a narrow panel maintained exclusively by the other violates the equal treatment mandate under Section 18.

For your practice. Enables commercial contractors to bypass restrictive public sector arbitrator panels and obtain independent judicial appointments.

The order. The High Court allowed the petition, held the curated panel clause invalid, and appointed a retired High Court Judge as independent sole arbitrator.

Section 18, Arbitration and Conciliation Act, 1996

Case

EXPRESS FOOD SERVICES vs INDIAN RAILWAY CATERING AND TOURISM CORPORATION LIMITED

Citation

Delhi High Court · ARB.P.-1664/2026 · 2026:DHC:7993 · 17.09.2026

Bench

Sachin Datta

The dispute. Shareholder factions in a closely held software firm locked into severe management deadlock after an agreed settlement remained unimplemented. A minority shareholder petitioned the tribunal alleging continuous oppression and financial mismanagement. The NCLAT heard a company appeal challenging an NCLT order directing a Swiss Challenge mechanism for intra-shareholder share valuation and buyout.

The reasoning. Tribunals exercising equitable jurisdiction under Sections 241 and 242 of the Companies Act possess broad discretion to devise fair exit mechanisms.

For your practice. Enables corporate counsel to seek Swiss challenge bidding as a fast judicial remedy in shareholder oppression disputes.

The order. The NCLAT dismissed the appeal, affirmed the NCLT directions for Swiss Challenge bidding under court supervision, and ordered adherence to the valuation schedule.

Section 242(2)(b), Companies Act, 2013

Case

Mr. Nayan Shah & ors. vs Cheers Interactive (India) Private ...

Citation

National Company Law Appellate Tribunal · Company Appeal (AT) No. 122 of 2026 · 18.09.2026

Bench

Ajai Das Mehrotra