COC’s decision for liquidation is open to judicial review by NCLT and NCLAT: Clarifies NCLAT, Delhi
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, on October 18, 2022, while adjudicating an appeal filed in Sreedhar Tripathy v Gujarat State Financial Corporation & Ors., held that when the Committee of Creditors (“CoC”) decides to liquidate the Corporate Debtor, the decision of liquidation is open to judicial review by the Adjudicating Authority and the Appellate […]
NCLAT, Delhi sets aside unreasoned order passed by Adjudicating Authority for not satisfying “requirements of an order”
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, on October 08, 2022, while adjudicating an appeal filed in Gandhar Oil Refinery (India) Ltd. v. City Oil Pvt. Ltd., has set aside an order passed by Adjudicating Authority dismissing a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 (“IBC”), for not being a reasoned […]
Withdrawal of Resolution Plan will have disastrous effect: NCLAT Observes
The National Company Law Appellate Tribunal (NCLAT) on October 04, 2022 in the matter of Shardha Buildcon Pvt. Ltd v. The Dhar Textile Mills Ltd., while dismissing the appeal filed by the Resolution Applicant seeking permission to withdraw its resolution plan, held that allowing withdrawal of a resolution plan will have serious disastrous effect on the whole […]
Leave Encashment Benefit is a part of salary: Holds Supreme Court
The Supreme Court on September 26, 2022 in the matter of Jagdish Prasad Saini v. State of Rajasthan held that that leave encashment is part of salary. In the instant matter, an appeal was filed against a judgment of the Rajasthan High Court, Jaipur Bench dismissing the Appellant’s plea by holding that neither gratuity nor leave encashment […]
Supreme Court orders reinstatement of Watchman who was illegally dismissed 20 years ago
The Supreme Court on September 23, 2022 in the matter of Jeetubha Khansangji Jadeja v. Kuttch District Panchayat granted relief to a watchman who was wrongfully terminated from service in 2002, by ordering his reinstatement. In the instant matter, an appeal was filed against an order of the Gujarat High Court setting aside the Bhuj Labour Court […]
Approval of a resolution in respect of one borrower cannot discharge a co-borrower: Holds Supreme Court
The Supreme Court on September 22, 2022 in the matter of Maitreya Doshi v. Anand Rathi Global Finance Ltd. held that the approval of a resolution in respect of one borrower cannot discharge a co-borrower and that if there are two borrowers or if two corporate bodies fall within the ambit of corporate debtors, there is no […]
No bar to withdraw admitted CIRP application before constitution of Committee of Creditors: Holds Supreme Court
The Supreme Court on September 22, 2022 in the matter of Ashok G. Rajani vs Beacon Trusteeship Ltd. held that there is no bar to withdrawal of an admitted Corporate Insolvency Resolution Process (“CIRP”) application before constitution of Committee of Creditors (“CoC”) and that settlement cannot be stifled before the constitution of the Committee of Creditors in anticipation of claims against […]
Court cannot decide as to whether the arbitration clause in a subsequent agreement would govern past transactions of similar nature: Holds Delhi High Court
The Delhi High Court on September 01, 2022 in the matter of OYO Hotels and Homes Pvt. Ltd. v. Agarwal Packers and Movers Ltd. held that the limited scope of judicial scrutiny under Section 11 of the Arbitration and Conciliation Act, 1996 (“A&C Act”) does not permit the High Court to examine an issue as to whether the arbitration […]
Clause giving only supervisory powers to third party with respect to disputes is not an arbitration agreement: Holds Madras High court
The Madras High Court on August 25, 2022 in the matter of Innovators Facade Systems Ltd. v. Larsen & Toubro Limited held that where the parties have agreed to give only supervisory powers to a third party with respect to the disputes arising between them, and a clause which does not disclose the intention of the parties to […]
Cheque case against Director/Partner of firm can be quashed only if there is unimpeachable & incontrovertible evidence that they were not concerned with issuance of cheque: Holds Supreme Court
The Supreme Court on September 16, 2022 in the matter of S P Mani and Mohan Dairy v. Dr. Snehalatha Elangovan held that vicarious criminal liability can be inferred against the partners of a firm when it is specifically averred in the complaint about the status of the partners ‘qua’ the firm and that the High Court […]