Limitation to be counted from the date of preparation of Certified Copy, not delivery: Holds NCLAT Delhi
The National Company Law Appellate Tribunal (“NCLAT”) on August 24, 2022 in the matter of Wadhwa Rubber v. Bandex Packaging Pvt. Ltd. held that the limitation is to be counted from the date of preparation of the certified copy and not from the date of delivery of the certified copy. In the instant matter an appeal was filed against […]
Resolution plan which ignores statutory dues payable to State Government/Legal Authority liable to be rejected: Holds Supreme Court
The Supreme Court on September 06, 2022 in the matter of State Tax Officer (1) v. Rainbow Papers Limited held that Section 48 of the Gujarat Value Added Tax, 2003 (“GVAT”) is not contrary to or inconsistent with Section 53 or any other provisions of the Insolvency and Bankruptcy Code, 2016 (“IBC”) and that the State is a secured creditor under […]
CIRP can be initiated against Corporate Guarantor without proceeding against Principal Borrower: Holds Supreme Court
The Supreme Court on September 06, 2022 in the matter of K Paramasivam v. Karur Vysya Bank Ltd. held that Corporate Insolvency Resolution Process (“CIRP”) can be initiated against the corporate guarantor without proceeding against the principal borrower and that the liability of the Guarantor is co-extensive with that of the principal borrower. In the instant matter an appeal […]
Scheme for appointing Heirs of Employees on their retirement is unconstitutional: Holds Supreme Court
The Supreme Court on September 05, 2022 in the matter of Ahmednagar Mahanagar Palika v. Ahmednagar Mahanagar Palika Kamgar Union held that the appointment of the heirs of the employees on their retirement and/or superannuation is contrary to the object and purpose of appointment on compassionate grounds and is hit by Article 14 of the Constitution of […]
Non-Issuance of Completion Certificate amounts to pre-existing dispute: Holds NCLAT New Delhi
The National Company Law Appellate Tribunal (“NCLAT”) on August 22, 2022 in the matter of Navkar Urban structure Ltd v. Niyojit Infratech Pvt. Ltd. held that the non-issuance of the completion certificate amounts to a pre-existing dispute between the parties. In the instant matter an appeal was filed by the Appellant (“Operational Creditor”) against the order of NCLT rejecting its application […]
Status of Debtor attained finality, can’t be altered based on a subsequent judgment: Holds NCLAT Delhi
The National Company Law Appellate Tribunal (“NCLAT”) on August 24, 2022 in the matter of Raghavendra G. Kundangar & Ors. v. Shashi Agarwal & Anr. held that when status of a debtor attains finality, the same cannot be altered on the basis of a subsequent judgment in different proceedings and further held that NCLT is exclusively invested […]
Arbitrator has discretion to award Post – Award interest on a part of the ‘Sum’: Holds Supreme Court
The Supreme Court on September 01, 2022 in the matter of Morgan Securities and Credits Pvt. Ltd. V. Videocon Industries Ltd. held that the arbitrator has the discretion to determine the rate of reasonable interest, the sum on which the interest is to be paid, that is whether on the whole or any part of the principal […]
In cases of conflict, Insolvency and Bankruptcy Code, 2016 prevails over Custom Act, 1961: Holds Supreme Court
The Supreme Court on August 26, 2022 in the matter of Sundaresh Bhatt v. Central Board of Indirect Taxes & Customs held that the Insolvency and Bankruptcy Code, 2016 (“IBC”) will prevail over the Customs Act to the extent that once moratorium is imposed, the Customs authority have only limited jurisdiction to assess the quantum and they […]
Section 7(5)(b) of IBC to notify Financial Creditor before rejecting claim extends to appeals before NCLAT: Observes Supreme Court
The Supreme Court on August 13, 2022 in the case of Kotak Mahindra Bank Limited v. Kew Precision Parts Private Limited and Ors., observed that Section 7(5)(b) of the Insolvency and Bankruptcy Code, 2016(“IBC”) which requires the Adjudicating Authority to notify the Financial Creditor before rejection of a claim, would be applicable to appeals as well, since […]
Continuity of service with back wages can be directed in cases where the retrenchment was not bona fide: Observes Supreme Court
The Supreme Court on August 12, 2022 in the case of Armed Forces Ex Officers Multi Services Cooperative Society Ltd v. Rashtriya Mazdoor Sangh (INTUC) observes that continuity of service can be directed in cases where, the retrenchment was not bona fide. In the instant matter, Armed Forces Ex Officers Multi Services Cooperative Society Ltd retrenched the […]