There cannot be two arbitration proceedings with respect to same contract/ transaction: Holds Supreme Court
The Supreme Court on July 22, 2022 in the case of M/s Tantia Constructions Limited v. Union of India made a firm opinion that there cannot be two arbitration proceedings with respect to the same contract/ transaction and stated that when a dispute has earlier been referred to arbitration and an award was passed on the claims […]
Court while deciding ‘Section 11’ application seeking appointment of arbitrator can consider the question as to whether dispute falls within ‘Excepted Clause’: Supreme Court Opines
The Supreme Court on July 20, 2022 in the case of Indian Oil Corporation Limited v. NCC Limited held that at the stage of deciding application for appointment of arbitrator, a court can consider whether the dispute falls within the excepted clause and also held that Section 11(6A) of Arbitration Act does not prevent courts from considering […]
Discretionary power for the admission of application by a Financial Creditor for initiation of CIRP vested with the adjudicatory authority: Holds Supreme Court
The Supreme Court on July 12, 2022 in the matter of Vidarbha Industries Power Limited v. Axis Bank Limited, observed that discretionary power has been vested with the adjudicatory authority as per section 7(5) of the Insolvency and Bankruptcy Code (“IBC”) for the admission of application by a Financial Creditor for initiation of CIRP. In the […]
Appointment on the basis of false cast certificate cannot be permitted to retain benefit of wrongful appointment: Observes SC
The Supreme Court on July 11, 2022 in the matter of The Chief Executive Officer, Bhilai Steel Plant, Bhilai v. Mahesh Kumar Gonnade & ors, observed that when a person secures appointment on the basis of a false caste certificate, he cannot be permitted to retain the benefit of wrongful appointment. In the instant matter, the […]
Lease Rental is an operational debt under the IBC: Holds NCLAT
NCLAT on July 05, 2022 while adjudicating an appeal in the case of Jaipur Trade Expocentre Pvt. Ltd. v. Metro Jet Airways Training Pvt. Ltd. held that the lease rental qualifies as an operational debt within the meaning of Section 5(21) of the Insolvency Bankruptcy Code, 2016 (“IBC”). In the instant case, Jaipur Trade Expocentre Private Limited […]
Sale of Corporate Debtor as a ‘Going Concern’ includes both assets and liabilities: NCLT Mumbai
The NCLT, Mumbai on July 02, 2022 in the matter of Harsh Vinimay Pvt. Ltd. v Gajanan Industries Ltd., held that when a Corporate Debtor is sold as a ‘going concern’, then such sale shall include both assets and liabilities and not merely assets sans liabilities. In the instant matter, NCLT Mumbai Bench (“Adjudicating Authority”) passed […]
Under ‘Right of Subrogation’ guarantor is entitled to initiate CIRP against principal borrower: NCLT Kolkata
The NCLT, Kolkata on June 27, 2022 in the matter of Orbit Towers Pvt. Ltd. v. Sampurna Suppliers Pvt. Ltd. while deciding a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, held that if a guarantor pays the […]
The interest or claim of a partner against another partner or firm is not protected under IBC: NCLT Mumbai
The NCLT, Mumbai Bench on June 27, 2022 in the matter of Parul A Vora v. Kavya Buildcon Private Limited, while deciding a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) held that the IBC does not protect the interest or claim of a partner against another partner or the partnership firm. […]
Market value does not become decisive of valuation merely because litigation involves immovable property: Supreme Court
The Supreme Court on June 16, 2022 in the matter of Bharat Bhushan Gupta v. Pratap Narain Verma And Anr., held that the nature of relief claimed in a plaint is decisive of the valuation of the suit. Market value does not become decisive of suit valuation merely because immovable property is the subject-matter of litigation. […]
NCLT/NCLAT should not sit in appeal over commercial wisdom of CoC to allow withdrawal of CIRP: Opines Supreme Court
The Supreme Court on June 03, 2022 in the matter of Vallal Rck v. M/s. Siva Industries And Holdings Limited And Ors. held that when 90% or more of the creditors decide that it will be in the interest of all the stake¬holders to permit Settlement Plan filed by promoter of the Corporate Debtor and withdraw […]