Joginder Singh Nijjar and Anr. v. M/S Omaxe Ltd.
Case brief
What is this about?
In an emergency application, the Bench considered whether the respondent could deduct TDS from an arbitral award amount awarded to an NRI applicant. The applicant cited Bombay High Court and Supreme Court precedents suggesting TDS is impermissible for judgment debts absent specific statutory provisions. The respondent requested time to address the issue.
What the court decided
$~34
- IN THE HIGH COURT OF DELHI AT NEW DELHI
- OMP (ENF.) (COMM.) 65/2021
JOGINDER SINGH NIJJAR AND ANR .....Decree Holder Through: Ms. Shobhana Takiar and Mr. Kuljeet Singh, Advs.
versus
.....Judgement Debtor Through: Mr. Ramesh Singh, Sr. Adv. with Mr. Muktibodh, Ms. Amala Diwadi and Ms. Hage Nanya, Advs.
M/S OMAXE LTD.
CORAM: HON'BLE MR. JUSTICE C. HARI SHANKAR
%
O R D E R 25.07.2024
1. The petitioner is a Non-Resident Indian (NRI), in whose favour there exists an arbitral award whereunder an amount of ₹ 7,51,99,324/- along with interest has been awarded. By an order of this Court, the rate of interest payable post award was reduced.
Issues for consideration
2 issues framed by the court
Whether the respondent is entitled to deduct tax at source (TDS) from the arbitral award amount awarded in favour of the petitioner.
Whether deduction of TDS is impermissible once an amount assumes the character of a judgment debt in the absence of a specific provision in the Income Tax Act.
Parties & counsel
- applicant
Joginder Singh Niijar and Anr
- respondent
M/s Omaxe Ltd.
Coram
C. Hari Shankar
Case details
As recorded by the court registry
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