CIRP against solvent, MSME Company providing employment is not justified: NCLAT Delhi
The National Company Law Appellate Tribunal (“NCLAT“), Principal Bench, on August 07, 2022 while adjudicating an appeal filed in M/s Agarwal Veneers v Fundtonic Service Pvt. Ltd., upheld the dismissal of a Section 9 petition on the grounds of the Corporate Debtor being a solvent company, operating as a ‘going concern’ and is also a MSME […]
Mere use of words “Arbitration” or “Arbitrator” in a clause won’t make it arbitration agreement: Supreme Court
The Supreme Court on August 03, 2022 in the case of Mahanadi Coalfields Ltd. v. IVRCL AMR Joint Venture observed that an arbitration agreement should disclose a determination and obligation on behalf of parties to refer disputes to arbitration and noted that mere use of the word “arbitration” or “arbitrator” in a clause will not make it […]
Trust property cannot be alienated unless it is for benefit of trust and/or its beneficiaries: Observes Supreme Court
The Supreme Court on July 22, 2022 in the case of Khasgi (Devi Ahilyabai Holkar Charities) Trust Indore v. Vipin Dhanaitkar observed that a trust property cannot be alienated unless it is for the benefit of the Trust and/or its beneficiaries. The Trustees are not expected to deal with the Trust property, as if it is their […]
There cannot be two arbitration proceedings with respect to same contract/ transaction: Holds Supreme Court
The Supreme Court on July 22, 2022 in the case of M/s Tantia Constructions Limited v. Union of India made a firm opinion that there cannot be two arbitration proceedings with respect to the same contract/ transaction and stated that when a dispute has earlier been referred to arbitration and an award was passed on the claims […]
Court while deciding ‘Section 11’ application seeking appointment of arbitrator can consider the question as to whether dispute falls within ‘Excepted Clause’: Supreme Court Opines
The Supreme Court on July 20, 2022 in the case of Indian Oil Corporation Limited v. NCC Limited held that at the stage of deciding application for appointment of arbitrator, a court can consider whether the dispute falls within the excepted clause and also held that Section 11(6A) of Arbitration Act does not prevent courts from considering […]
Discretionary power for the admission of application by a Financial Creditor for initiation of CIRP vested with the adjudicatory authority: Holds Supreme Court
The Supreme Court on July 12, 2022 in the matter of Vidarbha Industries Power Limited v. Axis Bank Limited, observed that discretionary power has been vested with the adjudicatory authority as per section 7(5) of the Insolvency and Bankruptcy Code (“IBC”) for the admission of application by a Financial Creditor for initiation of CIRP. In the […]
Appointment on the basis of false cast certificate cannot be permitted to retain benefit of wrongful appointment: Observes SC
The Supreme Court on July 11, 2022 in the matter of The Chief Executive Officer, Bhilai Steel Plant, Bhilai v. Mahesh Kumar Gonnade & ors, observed that when a person secures appointment on the basis of a false caste certificate, he cannot be permitted to retain the benefit of wrongful appointment. In the instant matter, the […]
Lease Rental is an operational debt under the IBC: Holds NCLAT
NCLAT on July 05, 2022 while adjudicating an appeal in the case of Jaipur Trade Expocentre Pvt. Ltd. v. Metro Jet Airways Training Pvt. Ltd. held that the lease rental qualifies as an operational debt within the meaning of Section 5(21) of the Insolvency Bankruptcy Code, 2016 (“IBC”). In the instant case, Jaipur Trade Expocentre Private Limited […]
Sale of Corporate Debtor as a ‘Going Concern’ includes both assets and liabilities: NCLT Mumbai
The NCLT, Mumbai on July 02, 2022 in the matter of Harsh Vinimay Pvt. Ltd. v Gajanan Industries Ltd., held that when a Corporate Debtor is sold as a ‘going concern’, then such sale shall include both assets and liabilities and not merely assets sans liabilities. In the instant matter, NCLT Mumbai Bench (“Adjudicating Authority”) passed […]
Under ‘Right of Subrogation’ guarantor is entitled to initiate CIRP against principal borrower: NCLT Kolkata
The NCLT, Kolkata on June 27, 2022 in the matter of Orbit Towers Pvt. Ltd. v. Sampurna Suppliers Pvt. Ltd. while deciding a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, held that if a guarantor pays the […]