Page 13 - Banking Finance December 2017

LEGAL UPDATE

LEGAL

CASES
CASES
CASES
CASES
CASES

China holds talks about Suit not barred if mediation skipped
The Delhi High Court recently stated in its judgment in case of HCL Learning Ltd
Brahmaputra tunnel
vs Oriental Fairfield School, that even if a
China has described a story published contract urges parties to go in for mediation
in Hongkong and conciliation before taking other legal
based news-
paper as steps, it would not stand in the way of filing
'false', which a suit by the aggrieved party. The suit of HCL
mentioned was dismissed in the trial court because the
about plans of building a 1,000-km agreement contained a clause that stated that in case of a dispute, the parties
long tunnel to divert waters of the shall endeavor to settle such disputes amicably within 15 days, which was not
Brahmaputra from Tibet to its arid complied. The high court stated that failure to take recourse to mediation would
Xinjiang region. Foreign ministry not render the party's right to move a suit in a civil court or go in for arbitration.
spokesperson said Beijing would hold As the clause was not a pre-condition or mandatory the aggrieved party has a
talks on issues related to the river choice to bypass the mediation route.
with countries down-stream, which
are India and Bangladesh. ESS Distribution Co. benefits from DTAA
Mallya offender over The Delhi High Court quashed all income tax notices issued to ESS Distribution
(Mauritius) Compagnie, a partnership firm
FERA violation established under the laws of Mauritius by
Vijay Mallya has been given the last op- ESPN Mauritius Limited, which was engaged
portunity to appear in the business of distribution of sports-re-
before the Delhi High lated TV programmes broadcast by ESPN
Court by December Star Sports, Singapore. The corporate body
18, 2017. It has initi- didn't have a Permanent Establishment in
ated the process to the country and is a tax resident of
declare him as a pro-
claimed offender for allegedly evading Mauritius. It claimed protection under the India-Mauritius Double Taxation Avoid-
ance Agreement.
summons in a Foreign Exchange Regu-
lation Act (FERA) violation case. Chief The assessing officer held against it, but on appeal, the Dispute Resolution Panel
metropolitan magistrate Deepak accepted the firm's view. The assessing officer had ignored that the ruling and
Shehrawat directed the Enforcement described it as "grossly illegal, against the intent of the legislature and not in
Directorate to take appropriate steps accordance with the provisions of the Act". Ultimately, the high court accepted
while initiating the process. the firm's view and allowed its writ petitions.

BANKING FINANCE | DECEMBER | 2017 | 13

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