Assets of subsidiary company cannot be dealt with in CIRP of a holding company : Observed NCLAT, Delhi
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, while adjudicating an appeal filed in the matter Greater Noida Industrial Development Authority (GNIDA) vs. Roma Unicon Designex Consortium, has held that assets of the subsidiary company cannot be dealt with in the CIRP of the holding company. A parcel of land was leased by Greater NOIDA Authority […]
No fetter, embargo or legal impediment for a trust to be a Resolution Applicant: Observed NCLAT Chennai
The National Company Law Appellate Tribunal (“NCLAT”), Chennai Bench, while adjudicating an appeal filed in M/s. Aswathi Agencies v Bijoy Prabhakaran Pulipra & Ors., has held that there is no fetter, embargo or any legal impediment for a Trust to become a Resolution Applicant. In this matter, PVS Memorial Hospital Private Limited (“Corporate Debtor”) runs a […]
SPA which gives option to resell shares to the vendor, not a ‘Forward Contract’: Observes Bombay High Court
The Bombay High Court in the matter of Percept Finserve Pvt Ltd & Anr. versus Edelweiss Financial Services Ltd., ruled that a Share Purchase Agreement (SPA), which gives an option to the purchaser to require the seller/vendor to repurchase the shares on the occurrence of a contingency, does not constitute a ‘forward contract’ and thus, the same […]
MOU terminating the main agreement containing the arbitration clause can be referred to arbitration: Observes Delhi High Court
The Delhi High Court in the matter of Super Blastech Solutions vs. Rajasthan Explosives and Chemicals Limited observed that a dispute arising out of an Memorandum of Understanding (MOU) or Memorandum of Settlement (MoS), wherein no arbitration clause is present, can be referred to arbitration if these agreements were directly linked to the main agreement. The Delhi […]
Invoking CIRP would not make the dispute non-arbitrable : Observes Delhi High Court
The Delhi High Court in the matter Brilltech Engineers Pvt. Ltd. v. Shapoorji Pallonji and Co. Pvt Ltd has held that the dispute would not become non-arbitrable merely because the Petitioner, before filing the application for appointment of arbitrator, has filed a corporate insolvency application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (“IBC”). The […]
Provident Fund dues are not assets of corporate debtor, they have to be paid in full: Observes NCLAT Delhi
The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, while adjudicating an appeal filed in Assam Tea Employees Provident Fund Organization v Mr. Madhur Agarwal & Anr., has held that provident fund dues are not the assets of the Corporate Debtor and they have to be paid in full. In this matter, HAIL Tea Limited (“Corporate […]
Arbitration invoked Without authority, the defect cannot be ratified with a fresh board resolution: Observes Bombay High Court
The Bombay High Court on November 01, 2022, in the matter of Sushma Arya and Ors. versus Palmview Overseas Ltd. and Ors., observed that the issue whether the arbitration was invoked and the Statement of Claim was filed, by a person duly authorized by the claimant, goes to the root of the matter, with respect to […]
Standard of pre-existing dispute under IBC is not equivalent to principle of ‘preponderance of probability’: Opines Supreme Court
The Supreme Court on October 22, 2022, while adjudicating an appeal filed in Rajratan Babulal Agarwal v. Solartex India Pvt. Ltd. & Ors., held that the standard with reference to which a case of a pre-existing dispute under the IBC must be employed, cannot be equated with the principle of preponderance of probability, which guides a civil […]
Operational Creditor cannot change the ‘date of default’ by confining the invoices to a later period: Reiterates NCLT, Mumbai
The National Company Law Tribunal (NCLT), Mumbai Bench, on October 19, 2022 while adjudicating a petition filed in M/s Shri Sadguru Traders v. M/s Gajalee Coastal Foods Pvt. Ltd., reiterated that the Operational Creditor cannot change the ‘date of default’ by confining the invoices to a later period. In the instant matter, M/s Shri Sadguru Traders (“Operational Creditor”), […]
Adjudicating Authority can consider any application arising out of sale in liquidation: Opines NCLAT, Delhi
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, on October 18, 2022, while adjudicating an appeal filed in RMY Industries LLP v Apple Industries Pvt. Ltd., held that the Adjudicating Authority is empowered to consider any application filed by the Liquidator or Successful Auction Purchaser, which may arise with regard to terms and conditions of […]