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 […]
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 […]
Temporary unavailability of a member to sign the order not a ground for fresh hearing, if order was passed with consent of such member: NCLAT Delhi
The National Company Law Appellate Tribunal (“NCLAT”) principal bench on May 31, 2022 while adjudicating an appeal in Ashish Chandravandan Patel v. Axis Bank Ltd. & Anr, has held that an order passed with the consent of both members of an NCLT Bench but signed by only one of them due to temporary unavailability of the […]
SARFAESI proceedings cannot be continued against corporate debtor once CIRP is admitted and moratorium is ordered: Observes Supreme Court
The Supreme Court on May 18, 2022 in the case of Indian Overseas Bank v. RCM Infrastructure Ltd observed that the proceedings under the SARFAESI Act cannot be continued once the Corporate Insolvency Resolution Process (“CIRP”) is initiated and the moratorium is ordered. In this case, the Indian Overseas Bank (“the Bank”) had extended certain credit facilities […]
Section 18 Limitation Act Is Applicable To IBC Proceedings: Reiterates Supreme Court
The Supreme Court on May 18, 2022 in the case of State Bank of India v. Krishidhan Seeds Private Limited observed that the provisions of Section 18 of the Limitation Act are applicable to proceedings under the Insolvency and Bankruptcy Code, 2016 (“IBC”). In the instant case, the NCLT rejected the application filed by the State Bank […]