Committee of Creditors is competent to revise the approved fees of Resolution Professional– Observes NCLAT
National Company Law Appellate Tribunal (“NCLAT”) on May 08, 2022 in the matter of Kushwinder Singhal v. Reena Tiwari held that the Committee of Creditors (“CoC”) is fully competent to revise its earlier approved fees of the Resolution Professional (“RP”). In the instant case, after the initiation of the Corporate Insolvency Resolution Process (“CIRP”) of Bestways Transport India Pvt Ltd. (“Bestways”), COC decided the fees […]
Power of arbitral tribunal to award interest is discretionary & subject to agreement between parties- Opines Supreme Court
The Supreme Court on May 05, 2022 in the matter of Delhi Airport Metro Express Pvt. Ltd. v. Delhi Metro Rail Corporation held that the power of the arbitral tribunal to award interest is subject to an agreement between the parties to the contrary and the tribunal cannot award interest, if the parties have agreed otherwise. In […]
Mere suppression of information about criminal complaint filed against the employee before submission of employment application form, does not mean that employer can arbitrarily terminate employee from service- Observes Supreme Court
The Supreme Court on May 02, 2022 in the matter of Pawan Kumar v. Union of India observed that mere suppression of material/false information in a given case does not mean that the employer can arbitrarily discharge/terminate the employee from service. In this case, the appellant was selected to the post of Constable in the Railway Protection […]
Employers can’t dispute employees’ date of Birth at fag end of their service- Opines Supreme Court
The Supreme Court on April 21, 2022 in the matter of Shankar Lal v. Hindustan Copper Ltd and others set aside the decision of a Public Sector Undertaking, Hindustan Copper Ltd (“employer”) to reduce the Voluntary Retirement Scheme (“VRS”) benefits to an employee by altering his date of birth and held that the rule that employees cannot raise a dispute relating […]
Corporate Insolvency Resolution Process (“CIRP”) can be initiated based on an unchallenged arbitral award- Observes NCLT Kolkata
The NCLT Kolkata Bench on April 20, 2022 in the matter of Viom Infra Ventures Ltd. v. Bahula Infotech Pvt. Ltd., while deciding a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) held that CIRP can be initiated based on an arbitral award, if the said Award has not been challenged. Bahula Infotech Pvt. […]
Wages/Salaries of only those workmen/employees who actually worked during Corporate Insolvency Resolution Process (“CIRP”) are to be included in CIRP Costs- Supreme Court Held
The Supreme Court on April 19, 2022 in the matter of Sunil Kumar Jain v. Sundaresh Bhatt held that the dues towards the wages/salaries of only those workmen/employees who actually worked during the CIRP are to be included in the CIRP costs. In this case, National Company Law Appellate Tribunal dismissed the appeal preferred by the workmen/employees […]
Quantum of debt not to be decided at the stage of admission of a Section 7 petition under Insolvency and Bankruptcy Code, 2016 (“IBC”) – Holds NCLAT, Delhi
The National Company Law Appellate Tribunal (“NCLAT“) Bench on April 16, 2022 in the matter of Rajesh Kedia v. Phoenix ARC Pvt. Ltd. while adjudicating an appeal has held that the quantum of debt is not be considered at the stage of admission of a petition under Section 7 of IBC. In this matter, UTI advanced […]
Amount disbursed by NBFC upon oral agreement not covered in Financial Debt- NCLT Kolkata
The NCLT Kolkata Bench on April 13, 2022 in the matter of Narendra Promoters & Fincon Pvt. Ltd. v. Vinline Engineering Pvt. Ltd. while deciding a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC“), held that a disbursement made by a Non-Banking Financial Institution (“NBFC“) over an oral agreement cannot be construed […]
Insolvency Resolution Process against legal heirs of personal guarantor by Financial Creditor not permissible- NCLT Kolkata
The NCLT Kolkata bench on April 9, 2022 in the matter of Bank of Baroda v. Ms. Divya Jalan while dismissing the application filed by the Bank of Baroda (“Financial Creditor”) held that the application is not maintainable against legal heirs of the personal guarantor under the Insolvency and Bankruptcy Code, 2016 (“IBC”). In the instant case, […]
Non-Disclosure of material information itself could be a ground for termination of services or employment – Reiterates Supreme Court
The Supreme Court on April 09, 2022 in the matter of Union of India vs Dillip Kumar Mallick reiterated that non-disclosure of material information itself could be a ground for cancellation of employment or termination of services. In the instant case, the bench observed that Dillip Kumar Mallick was appointed under the Central Reserve Police Force (‘CRPF’) […]