Page 23 - Banking Finance December 2023

LEGAL UPDATE

during online check-in and to ensure Department, a Division Bench of Jus- that the intended buyer had provided
that passengers are charged the cor- tices S Ravindra Bhat and Dipankar proof of the Agreement to Sell's execu-
rect fare at the time of booking with- Datta stated, "A notification under tion.
out any additional fees. Section 90(1) is necessary and a man- In 2010, the Karnataka High Court
Additionally, the department ordered datory condition for a court, authority, upheld the intended seller's decision in
the online travel aggregators to pay all or tribunal to give effect to a DTAA, or a second appeal, finding that the
outstanding balances for tickets that any protocol changing its terms or con- agreement violated the 1996
ditions, which has the effect of alter-
were canceled during the Covid-19 Karnataka Prevention of Fragmenta-
pandemic by this month's third week. ing the existing provisions of law." The tion and Consolidation of Holdings Act,
If they don't, the Central Consumer Division Bench was handling a number which forbade the registration of sales
Protection Authority (CCPA) will file a of 11 petitions, with Nestle SA as the of property fragments unless they con-
contempt petition against the plat- respondent in the main petition. formed with the Act's provisions.
forms that are in default with the Su-
preme Court and begin legal proceed- SC: A sale agreement does Bank cannot get money
ings. Consumer refunds of over Rs 30- not grant ownership or a
40 crore are still pending with airlines title. back from a deceased per-
and online travel aggregators. son: Judge
In a recent ruling, the Supreme Court
According to sources, concerns about reaffirmed that an agreement to sell State Bank of India (SBI) has come
hidden fees and quicker complaint re- does not grant any title or transfer under fire from a Delhi court for at-
sponse were raised during the meet- ownership to the intended buyer. tempting to collect money from a de-
ing between officials from the civil avia- ceased person.
tion ministry and representatives from The decision was made in response to The bank was presenting its request to
online travel aggregators. The proposal a plea in which it was questioned recover around Rs 13.5 lakh in arrears
whether or not the parties' May 1990
put up by Union Consumer Affairs Sec- to the Karkardooma courts, where
retary Rohit Kumar Singh calls for the agreement to sell a piece of property Surinder S. Rathi, the district judge,
appointment of an aviation industry had really been completed. presided over the commercial courts in
ombudsman to expeditiously address A bench of Justices Vikram Nath and the Shahdara district.
consumer complaints. Rajesh Bindal stated in their ruling
"It is reiterated that State Bank of In-
earlier this month that the agreement
The delegates discussed how to inte- dia is the leading nationalised bank in
to sell "is not a conveyance; it does not
grate NCH with the Air Sewa portal to our country and shall lead the banking
effectively resolve customer concerns, transfer ownership rights or confer any industry as the torchbearer of effi-
according to the consumer affairs de- title." ciency, professionalism, transparency
partment. According to the facts of the case, the and ethics," the court said, stating
intended buyer had agreed to pay the that any bank is expected to take pro-
DTAA can't be enforced entire price and purchase a home from active steps to ascertain whether the
the suggested seller. The buyer also people being sought to be sued by it
unless notified under In- received custody of the item. But in are alive or dead.
come Tax Act: SC October 2001, the prospective buyer The bank said that when it launched a
A Double Taxation Avoidance Agree- filed a lawsuit for specific performance lawsuit against the person, it was un-
ment (DTAA) cannot take effect unless when the seller declined to implement aware that the person had passed
it is published under the Income Tax it. away. SBI petitioned Delhi's
Act, the Supreme Court ruled, which In September 2004, the trial court dis- Karkardooma court in July 2023, re-
may lead to demands for increased missed the lawsuit, finding it question- questing the recovery of over 13.5 lakh
dividend taxes from companies like able that the Agreement to Sell was from Municipal Corporation of Delhi
Nestle SA, the parent company of executed. official Siya Nand, who passed away in
Nestle India. The trial court's ruling was overturned August 2021. This fact came to light
In ruling in favor of the Income Tax by the first appellate court, which held throughout the case's procedures.

BANKING FINANCE | DECEMBER | 2023 | 21