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’) […]
Challenge against arbitrator appointment, can’t be under Section 14 of the Arbitration and Conciliation Act, 1996 – Delhi High Court
The Delhi High Court on April 03, 2022 in the matter of Sacheerome Advanced Technologies (SAT) versus NEC Technologies Pvt. Ltd. (NECI) ruled that Section 14 of the Arbitration and Conciliation Act, 1996 does not provide a separate remedy to the parties to challenge the appointment of an arbitrator, notwithstanding the provisions under Section 13 of the […]
State has to pay salary for work done by employee, even if appointment was irregular- Supreme Court
The Supreme Court on April 03, 2022 in the matter of Man Singh v. State of Uttar Pradesh has set aside a direction to recover from a person the salary paid to him after his appointment as a teacher was found to be irregular. In the Instant case, Supreme Court noted that the person had worked for […]
Party’s participation insufficient to infuse life to arbitral proceedings if award is void due to arbitrator’s ineligibility: Delhi HC Opines Prima Facie
The Delhi High Court on March 30, 2022 in the matter of Ruia Exports & Another v. Moneywise Financial Services Private Limited & Others. expressed a prima facie opinion that the participation of any party is not sufficient to infuse life to arbitral proceedings if the award is void ab initio on the ground of ineligibility […]
Workmen must be heard before their wages are deducted for “Go Slow” Approach- Supreme Court Directs
The Supreme Court on March 29, 2022 in the matter of Bata India Ltd v. Workmen of Bata India Ltd and another affirmed a Karnataka High Court judgment of 2008 which held that an employer must give proper opportunity of hearing to the workmen before deducting their wages for “go slow” approach by which they had failed […]
Notice served to the address shown in ROC records is valid – Observes NCLT, Delhi
The Principal Bench of NCLT, New Delhi on March 26, 2022 in the plea of M/s. Jones Lang Lasalle Building Operations Pvt. Ltd held that demand notice had to be taken to be validly served if delivered at the previous registered address prior to recording of change of address in records of the Registrar of Companies. In […]
Resolution plan cannot be rejected on a perceived grievance by a suspended director who failed to take appropriate steps – NCLT Kolkata observed
The NCLT, Kolkata Bench on March 25, 2022 in the case of Anand Kariwala v. Mr. Partha Pratim Ghosh, held that initiation of Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor does not bar the suspended Board of Directors (“BOD”) from objecting to the acts of the Resolution Professional (“RP”), if the same are prejudicial […]
Can Arbitrators fix their fee without Parties’ consent? Is 4th Schedule the standard fee scale? -Supreme Court Considers
The Hon’ble Supreme Court on March 24, 2022, in the matter of Oil and Natural Gas Corporation ltd. v. Afcons Gunanusa JV, considered arbitration petition filed by the Oil and Natural Gas Corporation (“ONGC”) on the issue related to the mandatory nature of the model fee scale for arbitrators prescribed under the Fourth Schedule of the […]