Corporate
Advances Made By Shareholder After Lapse Of Shareholders Agreement Amount To 'Financial Debt': NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai Bench, has admitted a Section 7 application filed by Euro Corporate Services Pvt. Ltd. against Royal Fantasy Constructions Pvt. Ltd. The bench comprising Judicial Member Sushil Mahadeorao Kochey and Member Technical Prabhat Singh has ruled that the advances made by the shareholder after the expiration of the shareholder agreement amount...
Timeline For Filing Bankruptcy Application Under IBC Is Directory, Not Mandatory: NCLT Kochi
The NCLT, Kochi Bench, comprising Vinay Goel (Member-Judicial) and Madhu Sinha (Member-Technical), has held that the three-month period for filing bankruptcy applications against personal guarantors under Section 121(2) IBC, 2016, is directory and not mandatory. Kerala Financial Corporation filed the application under section 123 of the IBC, 2016, seeking bankruptcy proceedings...
NCLT Mumbai Rejects Financial Creditor's Plea To Revise Vote On Reliance Broadcast Resolution Plan
The National Company Law Tribunal (NCLT) at Mumbai on Thursday rejected an application by Authum Investment and Infrastructure Limited (which acquired the claim from Reliance Commercial Finance Limited) to revise its vote from No to Yes on the approved resolution plan for Reliance Broadcast Network Limited.A coram of Judicial Member Mohan Prasad Tiwari and Technical Member Charanjeet...
Interim Finance Is Financial Debt Requiring 66% CoC Approval; NCLT Cannot Direct Contribution Without Such Approval: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai Bench, has recently held that the interim finance constitutes financial debt under the provisions of the IBC, 2016, and can only be raised with the approval of at least 66% of the Committee of Creditors (CoC). The tribunal held that “the term contribution is not defined in the code; hence, the contribution is nothing else but...
Voluntary GST Cancellation Not Grounds To Freeze Company's Bank Account: Rajasthan High Court
The Rajasthan High Court has directed the Bank of Baroda to de-freeze the account of the petitioner-company, allowing it to use it freely till finally deciding the company's representation, observing that the bank could not freeze the account merely because the company's GST registration was voluntarily cancelled.The bench of Justice Nupur Bhati was hearing a petition filed by a company...
Customs | Drawback Cannot Be Denied On Grounds Of Alleged Forgery By Foreign Buyer Once Goods Are Exported: CESTAT
The New Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that drawback cannot be denied on the grounds of alleged forgery by a foreign buyer after goods are exported under the Customs & Central Excise Duties Drawback Rules 1995. The single bench consists of (Judicial Member) opined that any forgery, if revealed during a further...
Debtors Not Exempt From Insolvency For Defaults Occurring Before Covid-19 Suspension Period: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench upheld the initiation of Corporate Insolvency Resolution Process (CIRP) against Majestic Hotels Limited holding that defaults occurred before COVID-19 suspension period are not protected by section 10A of the Insolvency and Bankruptcy Code, 2016 (IBC) even if payments were to be made during the suspension period. A...
Mere Use Of Word 'Arbitration' Does Not Create Arbitration Agreement Unless Parties Clearly Intend So: Supreme Court
The Supreme Court upheld the Punjab and Haryana High Court's decision refusing to refer the dispute to arbitration, observing that the mere use of the term “arbitration” in a clause is not sufficient to mandate reference to arbitration unless the parties clearly intended to resolve their disputes through arbitration. “mere use of the word 'arbitration” is not sufficient to treat...
Delhi High Court Stays Order Directing Transfer Of 'Bima Sugam' Domain Names
The Delhi High Court has stayed a Single Judge's order that had directed the transfer of the domain names www.bimasugam.com and www.bimasugam.in to the Bima Sugam India Federation, pending the outcome of a trademark dispute with A. Range Gowda, a private individual and insurance agent.A Division Bench comprising Justice C Hari Shankar and Justice Om Prakash Shukla passed the interim order...
Fraud Not Barred By Time: NCLAT Upholds Director's Liability To Contribute ₹8.71 Crore To Corporate Debtor's Assets Obtained Through Fraud
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench upheld the suspended director's liability to restore the amount of Rs. 8.71 crore obtained through fraudulent transactions to the corporate debtor's assets holding that the manner in which the director engineered the transaction clearly amounted to conducting the business with intent to defraud the creditors under...
Justice Ashok Bhushan Appointed As NCLAT Chairperson For Second Term
The Central Government has approved the re-appointment of Justice Ashok Bhushan, former Judge of the Supreme Court of India, as Chairperson of the National Company Law Appellate Tribunal (NCLAT). The re-appointment will be effective from the date he assumes charge and will continue until he attains the age of 70 years, i.e., till July 4, 2026.Justice Bhushan was earlier appointed as the...
Delhi Court Permanently Restrains Bengaluru Restaurant From Using 'Carnatic' Mark In Suit By Delhi-Based Carnatic Cafe
A Commercial Court in Delhi has permanently restrained Bengaluru-based restaurant from using the mark “CARNATIC” or any deceptively similar name to “CARNATIC CAFÉ”, a Delhi-based South Indian restaurant chain, holding that their adoption of the mark amounted to infringement and passing off. The order was passed on October 29, 2025 by District Judge Neelam Singh of the...