Corporate
When Can Re-Assessment Be Opened U/s 147, 148 of Income Tax Act? Supreme Court Explains
While dealing with a tax case related to development of a housing project, the Supreme Court recently elucidated the position of law pertaining to reopening of assessments under Section 147 of the Income Tax Act, 1961. A bench of Justices JB Pardiwala and KV Viswanathan referred to Section 147 (pre-2012) and Section 148 (pre-2006) of the IT Act and observed that power to reopen assessment is...
Arbitration Clause Gets Incorporated In Later Contract When Earlier Agreement Is Imported “Body and Soul” : Supreme Court
The Supreme Court observed that when a subsequent contract incorporates, in its entirety, the terms and conditions of an earlier agreement containing an arbitration clause, such incorporation is sufficient to invoke arbitration, and the later agreement need not separately express a clear intention to refer disputes to arbitration or specifically mention the arbitration clause in the...
IBC | Appeals Must Be Filed With Certified Copy Of Impugned Order, Mere E-Filing Not Enough: Supreme Court
The Supreme Court on Tuesday (May 12) observed that an e-filing of an appeal before the National Company Law Appellate Tribunal (NCLAT) without a certified copy of the impugned order is not a mere defective filing but a “wholly incompetent appeal” that cannot subsequently be cured. A bench of Justice Sanjay Kumar and Justice K. Vinod Chandran set aside the National Company Law...
Consumers Cannot Be Made To Bear Power Plant Depreciation Costs For Period During Which No Electricity Was Supplied: Supreme Court
In a significant relief to the electricity consumers, the Supreme Court on Thursday (May 7) has observed that electricity consumers cannot be burdened with paying depreciation costs for a power plant that no longer supplies electricity to them, even if the asset continues to have remaining technical life. “…admittedly, electricity has not been supplied to the consumers beyond March-2018....
Companies Act 1956 | Entry In Register Of 'Members' Not Necessary To Maintain Plea Against Oppression/Mismanagement: Supreme Court
The Supreme Court recently upheld a stakeholder's locus to maintain a petition before the Company Law Board alleging oppression and mismanagement, holding that entry in the register of "members" is not the only mode of acquiring membership.The Court observed that even in the absence of a formal entry in the appellant-company's register of members, respondent No.1 was entitled to be treated as...
Corporate Veil Can Be Lifted To Include Assets Of Group Companies In CIRP Of Holding Company : Supreme Court
The Supreme Court on Tuesday (May 5) observed that for protecting the rights of the homebuyers and paving a way for completion of the stalled real estate projects, the corporate veil may be lifted during the Corporate Insolvency Resolution Process initiated against the holding company, by allowing the inclusion of the assets of the subsidiary companies. Setting aside the NCLAT's decision,...
'Perfect Order' : Supreme Court Dismisses Byju Raveendran's Appeal Against NCLT Restoring Original CoC In Think & Learn CIRP
The Supreme Court today(May 4) refused to interfere with an order of the National Company Law Appellate Tribunal, Chennai (NCLAT), which had restored the original Committee of Creditors (CoC), including Aditya Birla and Glas Trust Company LLC as financial creditor, in the insolvency resolution process concerning Think & Learn Pvt Ltd (the company which ran the ed-tech company Byju's).A...
Order XIII-A CPC | Supreme Court Lays Down Guidelines For Summary Judgment In Commercial Suits
The Supreme Court has laid down guidelines for the grant of summary judgment in commercial suits in terms of Order XIII-A of the Civil Procedure Code.Interpreting Order XIII-A of the Code of Civil Procedure, the Court emphasized that summary judgment is a vital procedural mechanism intended to promote efficiency and prevent unnecessary trials in commercial disputes.The Court clarified...
Numbers Do Lie: Rethinking Bright-Line Tests In Defining Control
Understanding “Control” under the SEBI SAST RegulationsThe concept “control” is regulated by Regulation 2(1)(e) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The provision states that “control” means the right to appoint a majority of the directors or control the management or policy decisions of a company. Such control may be exercised directly or indirectly, individually or through persons acting in concert, and may be exercised through shareholding,...
CIRP | Admission Of Claim By Resolution Professional Does Not Amount To Acknowledgment Of Debt: Supreme Court
The Supreme Court today set aside the NCLAT judgment which had held that admission of a creditor's claim by a resolution professional amounts to acknowledgment of debt and gives a fresh limitation period to file a application to initiate Corporate Insolvency Resolution Process under Section 7 of the Insolvency and Bankruptcy Code.A bench of Justices Pamidighantam Sri Narasimha and Alok...
'Situation Is Grim' : Supreme Court Takes Suo Motu Case On NCLT Delays In Approving Resolution Plans
The Supreme Court on Wednesday (April 29) took suo motu cognizance of systemic delays in approval of resolution plans by the National Company Law Tribunals, particularly at its Principal Bench in New Delhi. Also, the Court took note of the shortage of judicial and technical members across all NCLT benches. Taking note of a report submitted by the Registrar of the NCLT Principal Bench,...