Corporate
Delay Condonable When Composite Appeal Was Filed Within Limitation But Refiled Separately After Registry's Objection: NCLAT
The National Company Law Appellate Tribunal (NCLAT), New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has allowed an appeal where a composite appeal was filed within limitation, but defects were raised by the registry necessitating re-filing as separate appeals, which was beyond the period of 45 days. Initially the appellant filed a...
Order Passed By Emergency Arbitrator Under DIAC Rules 2023 Can Only Remain In Operation For 90 Days: Delhi High Court
The Delhi High Court, while hearing an appeal u/s 37 of the A&C Act filed against the the Award dated 11.12.2024 (“Impugned Award”) passed by the Emergency Arbitrator under the Delhi International Arbitration Center (Arbitration Proceedings) Rules, 2023 (“Rules of 2023”) observed that the terms 'Emergency Arbitrator' and 'Arbitral Tribunal' are not interchangeable. Rule...
NCLT Kochi Approves Capital Reduction Of Cochin Aircraft Maintenance Company Ltd
The National Company Law Tribunal (NCLT) Kochi bench of Smt. Madhu Sinha (Member Technical) and Shri Vinay Goel (Member Judicial) allowed a petition filed by M/s. Cochin Aircraft Maintenance Company Limited under section 66 of the Companies Act seeking reduction of paid up share capital holding that no creditors or employees were affected by such reduction and the proposal was...
Interest Of Homebuyers Paramount In Insolvency Process Of Real Estate Company: Allahabad High Court
The Allahabad High Court has held that the interest of the homebuyers is paramount in an insolvency resolution process of a real estate company as it directly impacts their rights and interests.Justice Arun Kumar held“In an insolvency resolution process of a real estate company the primary concern is the interest of a homebuyer in the real estate project. The homebuyers are vital...
Bank Advancing Loans To Homebuyers Can't Claim Status Of Financial Creditor Against Builder In Absence Of Undertaking To Repay: NCLAT
The National Company Law Appellate Tribunal (NCLAT), New Delhi bench of Justice Ashok Bhushan and Mr. Arun Baroka (Technical Member) held that a bank disbursing loans to homebuyers cannot be treated as a financial creditor in the Corporate Insolvency Resolution Process (CIRP) of the builder, since the loan amount was sanctioned to the homebuyers and not to the corporate debtor. The...
Customs | FOB Value Determined Between Parties Protected By Privity Of Contract; Cannot Be Modified By Stranger: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the FOB (Free On Board) value determined between the parties is protected by privity of contract, and it cannot be modified by a stranger to the contract. Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) opined that FOB value is the product of...
Resignation From Directorship Does Not Discharge Personal Guarantor From Liability Under Continuing Guarantee: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi held that once a personal guarantee is executed, the resignation from the directorship does not discharge the guarantor from liability, particularly when the guarantee is a continuing one, unless it has been expressly revoked. A bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) held that “we are...
NCLT Rejects Sterling Biotech's Plea To Reclaim Pune Land From Sterling Healthcare
The National Company Law Tribunal (NCLT) at Mumbai on Friday rejected an application filed by Sterling Biotech Ltd (SBL) seeking possession of an industrial plot in Pune leased to Sterling Healthcare Ltd (SHL), which is currently under insolvency proceedings.The dispute related to a 29-year lease executed in 2008 for land located at Village Urse in Pune district. A coram comprising...
Income Tax | Verification By Dept Is Mandatory Before Treating Charitable Donations As Involuntary: ITAT
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has held that an independent enquiry or verification by the department is mandatory before treating charitable donations as involuntary. George George K (Vice President) stated that the First Appellate Authority (FAA) treated the donations as not voluntary donation and sustained the addition made by the AO. The FAA has...
CENVAT Credit Rules | Variable 'P' Under Rule 6(3A) Refers Only To Common Credit, Not Total Credit, Prior To 01.04.2016: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that variable 'P' under Rule 6(3A) of CENVAT Credit Rules, 2004, refers only to common credit, not total credit, prior to 01.04.2016. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) were addressing the issue of whether, for the tax periods April 2012 to March 2014,...
Superior Authority Not Bound To Record Or Communicate Detailed Reasons When Rejecting Representation Against Adverse Remarks: Delhi HC
A Division bench of the Delhi High Court comprising Justice Subramonium Prasad and Justice Vimal Kumar Yadav held that a superior authority rejecting a representation against adverse remarks is not legally obligated to record or communicate detailed reasons for its decision. Background Facts The employee joined the BSF as a Group A officer in November 2012. Before that he served in...
Suspended Directors Are Not Entitled To Access Valuation Reports Rejected By CoC: NCLAT New Delhi
The National Company Law Appellate Tribunal (NCLAT) New Delhi held that suspended directors are not entitled to access valuation reports rejected by Committee of Creditors (CoC), since such documents were confidential and not relied upon in the resolution process. A bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) held that “when only the fresh...