Court exercising power under Section 9 of the A&C Act not strictly bound by CPC; Should not withhold Interim Relief on mere technicality: Holds Supreme Court
The Supreme Court on September 14, 2022 in the matter of Essar House Private Limited v. Arcellor Mittal Nippon Steel India Limited held that the power under Section 9 of the Arbitration and Conciliation Act, 1996 (“A&C Act”) should not ordinarily be exercised ignoring the basic principles of procedural law as laid down in the Code of Civil Procedure […]
Arbitration clause has to be given effect even if it does not expressly state that decision of Arbitrator is final & binding on parties: Holds Supreme Court
The Supreme Court on September 07, 2022 in the matter of Babanrao Rajaram Pund v. Samarth Builders & Developers held that an arbitration clause has to be given effect even if it does not expressly state that the decision of the arbitrator will be final and binding on the parties and that the deficiency of words in […]
Non-Payment/ Insufficiency of Stamp Duty cannot render the Arbitration Agreement invalid: Holds Delhi High Court
The Delhi High Court on August 26, 2022 in the matter of Drooshba Fabricators v. Indue Private Limited held that the court while exercising jurisdiction under Section 11 of the Arbitration and Conciliation Act, 1996 (“A&C Act”) should impound the unstamped/I nadequately agreement and direct the parties to cure the defect before the arbitrator could adjudicate upon such an […]
Arbitral Award with contradictory findings is liable to be set aside: Holds Calcutta High Court
The Calcutta High Court on August 25, 2022 in the matter of State of West Bengal v. Tapas Kumar Hazra held that an Arbitral award wherein the arbitrator has given contradictory findings and no reason for arriving at such particular finding is liable to be set aside. In the instant matter an application was filed under Section […]
Issue of CIRP cost to be decided in COC meeting, not by Adjudicating Authority: Holds NCLAT Delhi
The National Company Law Appellate Tribunal (“NCLAT”) on September 11, 2022 in the matter of Bharat Hotels Ltd. v. Tapan Chakraborty held that the issue of Corporate Insolvency Resolution Process (“CIRP”) cost is to be decided in the meeting of the Committee of Creditors (“CoC”) and not to be examined by the Adjudicating Authority even before the CoC takes a decision. In the […]
Erstwhile Resolution Professional has no right to be heard before being replaced under Section 27 of IBC: Holds NCLAT Delhi
The National Company Law Appellate Tribunal (“NCLAT”) on September 02, 2022 in the matter of Sumat Kumar Gupta v. Committee of Creditors of M/S Vallabh Textiles Company Ltd. held that when the Committee of Creditors (“CoC”) decides to replace the Resolution Professional under Section 27 of Insolvency and Bankruptcy Code, 2016 (“IBC”) and an application is filed before the Adjudicating Authority for approval, […]
NCLAT Delhi sets aside order of liquidation; Grants additional Opportunity for inviting Resolution Plans
The National Company Law Appellate Tribunal, Delhi (“NCLAT”) on September 01, 2022 in the matter of Nikhil Tandon v. Sanjeev Bindal & Ors., set aside an order for liquidation of Corporate Debtor and gave one more opportunity to the Committee of Creditors (“CoC”) and Resolution Professional for finding out a Resolution Plan to revive the Corporate Debtor. In the instant matter, […]
Limitation to be counted from the date of preparation of Certified Copy, not delivery: Holds NCLAT Delhi
The National Company Law Appellate Tribunal (“NCLAT”) on August 24, 2022 in the matter of Wadhwa Rubber v. Bandex Packaging Pvt. Ltd. held that the limitation is to be counted from the date of preparation of the certified copy and not from the date of delivery of the certified copy. In the instant matter an appeal was filed against […]
Resolution plan which ignores statutory dues payable to State Government/Legal Authority liable to be rejected: Holds Supreme Court
The Supreme Court on September 06, 2022 in the matter of State Tax Officer (1) v. Rainbow Papers Limited held that Section 48 of the Gujarat Value Added Tax, 2003 (“GVAT”) is not contrary to or inconsistent with Section 53 or any other provisions of the Insolvency and Bankruptcy Code, 2016 (“IBC”) and that the State is a secured creditor under […]
CIRP can be initiated against Corporate Guarantor without proceeding against Principal Borrower: Holds Supreme Court
The Supreme Court on September 06, 2022 in the matter of K Paramasivam v. Karur Vysya Bank Ltd. held that Corporate Insolvency Resolution Process (“CIRP”) can be initiated against the corporate guarantor without proceeding against the principal borrower and that the liability of the Guarantor is co-extensive with that of the principal borrower. In the instant matter an appeal […]