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,...

IBC | Corporate Guarantee Qualifies As 'Financial Debt' : Supreme Court

The Supreme Court has held that a corporate guarantee furnished by a company to secure another company's borrowing, backed by arrangements such as hypothecation, constitutes a “financial debt” under the Insolvency and Bankruptcy Code, 2016. A Bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe considered a dispute in which an SBI-led consortium sought recognition of...

Unsuccessful Party Can Invoke S. 9 Arbitration Act Post-Award: Supreme Court Settles Conflicting HC Views

The Court held that Section 9 Arbitration Act is open to any party to the arbitration, and is not qualified by success in the arbitral proceedigs.

IBC Mechanism Not Substitute For Decree Execution Or Recovery Proceedings : Supreme Court

IBC is not to be misused as a tool for recovery or as a lever to coerce payment, the court said.

Legal Representatives Can Challenge Arbitral Award Only Under S 34 Arbitration Act, Not Article 227: Supreme Court

The Supreme Court has held that the appropriate remedy for a legal representative aggrieved by an arbitral award is to file an application under Section 34 of the Arbitration and Conciliation Act, 1996, and not a petition under Article 227 of the Constitution or Section 115 of the Code of Civil Procedure."In the considered view of this Court, the appropriate relief for a legal representative...

'Very Unfortunate' : Supreme Court Flags NCLT Delay In Approving Resolution Plan, Calls For Nationwide Report

In an important development, the Supreme Court has expressed serious concern over prolonged delays in approval of resolution plans by the National Company Law Tribunal (NCLT), calling out a case where a plan has remained pending for nearly two years. A bench of Justice JB Pardiwala and Justice KV Viswanathan directed both the NCLT Principal Bench, New Delhi and the Insolvency and...

Clause Saying 'Can Be Settled By Arbitration' Does Not Create Mandate To Arbitrate : Supreme Court

The Supreme Court on Friday (April 17) held that an arbitration clause employing the word “can” does not constitute a binding arbitration agreement. A bench of Justice Sanjay Karol and Justice N. Kotiswar Singh dismissed an appeal filed against the Bombay High Court's decision, which held that Clause 25 of the Bill of Lading containing the arbitration agreement lacked the...

Death Of "Paper Shield": Re-Evaluating CA Certificates In Indian Construction Arbitration

For decades, the Indian construction arbitration landscape has been dominated by a convenient fiction: the "Certificate Culture." Claimants, faced with the daunting task of proving voluminous damages for idling, overheads, or loss of profit, have historically relied on a single sheet of paper, a Chartered Accountant (CA) certificate, as a proxy for thousands of pages of primary...

Distinction Between 'Seat' & 'Venue' Of Arbitration : Supreme Court Summarises Principles

The Supreme Court has reiterated that merely conducting arbitral proceedings at a place different from the designated seat of arbitration does not confer jurisdiction on the courts of that location. A bench of Justices PS Narasimha and Alok Aradhe set aside the Jammu & Kashmir and Ladakh High Court's decision, which had refused to entertain the Appellant's Section 34 plea for challenging...