• NATIONAL

UP sugar mills agree to pay Rs 125/qtl to farmers

Indian Sugar Mills Association (ISMA) agreed to pay cane price at the rate of Rs 125 a quintal to farmers. In its submission before a division bench of Allahabad High Court, ISMA said the cane season had already started in the state and it was ready to pay at the rate of Rs 125. Earlier, ISMA had challenged State Advised Price (SAP) as arbitrary and its method to arrive at the cane rate as faulty.

SC rules that arbitration between company and director is allowed

The Supreme Court ruled, in the case of Comed Chemicals Ltd vs CN Ramchand, that there could be arbitration of disputes between a company and its director who also functions as an employee. The court held that consultancy agreements are commercial and that if the director performed functions inextricably linked with services which could be undertaken by a businessman or company then it involved 'commerce' and could be open to arbitration.

Arbitration petition of Sarku Engineering Services dismissed

The Supreme Court dismissed the arbitration petition of Standard Corrosion Controls Ltd, seeking the appointment of an arbitrator in its dispute with Sarku Engineering Services of Malaysia. The parties had agreed that any dispute between them shall be settled as far as possible by mutual consultation and consent, failing which by arbitration to be held at Mumbai, applying the Arbitration Rules of the International Chamber of Commerce (ICC). The Court stated that in view of the agreement, despite the provisions of the Arbitration and Conciliation Act, the Indian company should apply to the Secretariat of the ICC, and it could not approach the Supreme Court for appointment of an arbitrator.

New India Assurance loses appeal

The Supreme Court dismissed the appeals of New India Assurance Company and directed it to pay over Rs 1 crore as compensation for the losses suffered by Krishna Food & Baking Industry in terrorist attacks in Kashmir forcing the firm to move from Srinagar to Delhi. However, the insurance company was willing to pay only Rs 30,000 as damages. When the dispute reached the National Consumer Commission, it ordered compensation. On appeal, Supreme Court upheld the commission's finding and granted a higher compensation.

I-T department can question HC judgment years later

Supreme Court in Commissioner of Income Tax vs J.K. Charitable Trust held that if the income tax department fails to appeal against judgments against it by High Courts on a certain legal question for several years, it is not barred from raising the question later as the appeals were not filed perhaps because the amounts were small or the effect was neutral. That would not preclude the department from filing appeal in appropriate cases.

• INTERNATIONAL

U.S. Top Court Won't Review Dismissal of MySpace Rape Case

The U.S. Supreme Court has let stand a lower court's dismissal of a lawsuit filed against MySpace by the mother of a teenage girl who was sexually assaulted by a man she met on the popular social networking Web site. The 5th U.S. Circuit Court of Appeals had ruled that Section 230 of the Communications Decency Act shields MySpace Inc. from the suit, as the purpose of Section 230 is to ensure that the threat of litigation would not discourage the growth and development of the Internet.

Canadian court rules obese travelers to get 2 seats

The Canadian Supreme Court has rejected an appeal by Air Canada and has ruled that obese and disabled passengers will be eligible for additional seats at no charge. The Canadian Transportation Agency issued an order requiring Air Canada and other domestic airlines to make additional seats free to disabled or obese passengers who need extra room. The airlines' appeal was rejected twice - first by the Federal Court of Appeal and then by the country's highest court.

Automakers cannot block RI emission rules

A US Federal Judge has ruled that automakers cannot sue to block Rhode Island from enforcing tighter standards on tailpipe emissions first adopted by California because the industry has already lost similar lawsuits elsewhere. The U.S. District Judge dismissed General Motors Corp., DaimlerChrysler Corp. and two automakers associations from the case, but his ruling permits several local car dealers to pursue the lawsuit for now.

House of Lords endorses tougher pot penalties

The House of Lords endorsed a plan to toughen Britain's penalties for possessing marijuana, as a group of senior scientists warned that such a move would confuse people about the dangers of more potent drugs. The British Parliament's upper chamber endorsed the measure after it was passed by the more powerful House of Commons earlier this month.