Corporate
Corporate Debtor Cannot Escape Liability By Transferring Debt To Holding Company: NCLT New Delhi
The National Company Law Tribunal (NCLT), New Delhi Bench, comprising Shri Manni Sankariah Shanmugha Sundaram (Member-Judicial) and Shri Atul Chaturvedi (Member-Technical), has observed that merely the internal arrangements between the group companies cannot absolve the corporate debtor of its obligation towards third-party creditors. The appellant was engaged in the trade of Kraft...
Bombay High Court Directs Dept To Pay ₹71.31 Lakh Interest On Refund Of Illegal IGST Collected Under RCM On Ocean Freight
The Bombay High Court has directed the department to pay Rs. 71.31. Lakh interest on refund of illegal IGST (Integrated Goods and Services Tax) collected under RCM (Reverse Charge Mechanism) on ocean freight. Justices M.S. Sonak and Advait M. Sethna stated that admittedly, the Petitioner had paid the amount of IGST which the respondents utilized up to the date of grant of refund....
Bombay High Court Directs WhiteHat Jr To Secure Rs 80.35 Lakh Arbitral Award In Favor Of Former Employee
The Bombay High Court has recently ordered WhiteHat Education Technology Pvt. Ltd. (popularly known as WhiteHat Jr), a subsidiary of embattled ed-tech Byju's, to secure an arbitration award of Rs 80.35 lakh in favour of its former employee, Prashant Singh.The award was granted in an employment dispute following Singh's sudden termination from the company. The Court also directed the...
Resolution Professional Cannot Suo Moto Reject Claims Once They Have Been Admitted: NCLT Mumbai
The NCLT, Mumbai Bench, comprising Ms. Lakshmi Gurung (Member-Judicial) and Sh. Hariharan Neelakanta Iyer (Member-Technical), has ruled that once the claim of the creditor has been admitted by the resolution professional, it cannot on its own reject it later. The applicant advanced a loan of Rs. 212 Cr. to the corporate debtor, secured by the corporate guarantee and the mortgage...
NCLT Delhi Admits TDT Copper Into Insolvency Over ₹154 Crore Debt
The National Company Law Tribunal (NCLT) at Delhi recently admitted TDT Copper Limited to insolvency proceedings, acting on a plea filed by Bank of India under Section 7 of the Insolvency and Bankruptcy Code (IBC).The public sector lender had approached the Tribunal seeking recovery of dues amounting to Rs 153.98 crore.A coram comprising Judicial Member Mahendra Khandelwal and Technical...
Non-Redemption Of Redeemable Preference Shares In Absence Of Distributable Profits Doesn't Amount To Financial Debt: NCLT New Delhi
The NCLT, New Delhi Bench, comprising Ashok Kumar Bhardwaj (Member-Judicial) and Reena Sinha Puri (Member-Technical), has held that the non-redemption of the redeemable preference shares in the absence of distributable profit doesn't amount to financial debt under section 7 of the IBC. The applicant is a financial institution and a member of a consortium of lenders. It filed the...
SARFAESI Act | Lending Banks Only Obligated To Consider Revival Scheme For NPA MSMEs If Borrower Claims Relief U/S 13(3A): Bombay High Court
The Bombay High Court bench, comprising Justice Suman Shyam and Justice Manjusha Deshpande, has held that the lending bank is obligated to consider the MSME revival scheme for classification of account as NPA only if it has been claimed by the MSME in response to the demand notice under Section 13(3A) of the SARFAESI Act. The petitioner's MSME unit took certain loans from ICICI Bank...
Proceedings Can Be Terminated U/S 32(2)(C) Of A&C Act When Underlying Contract Is Unenforceable: Delhi High Court
The Delhi High Court upheld an arbitral award terminating proceedings under section 32(2)(c) of the Arbitration and Conciliation Act, 1996 (Arbitration Act) on the ground that an agreement to sell (ATS) between the parties was unforceable for being unregistered and unstamped under Uttar Pradesh law. Justice Amit Bansal held that an agreement concerning transfer of sub-leasedhold rights...
NCLT Has Jurisdiction U/S 60(5)(C) IBC To Adjudicate Lease Disputes In Liquidation Proceedings: Gujarat High Court
The Gujarat High Court bench led by Justice Niral R. Mehta held that the NCLT has jurisdiction under section 60(5)(c) of the IBC to adjudicate the lease and license dispute during the liquidation proceedings. The petitioners, Fivebro Water Services Pvt. Ltd. and another, had the lease and license agreements with the corporate debtor for its premises in Ahmedabad and Mumbai....
Limitation Under Rule 68B Of Income Tax Act Does Not Apply To RDDB Act Proceedings: Kerala High Court
The Kerala High Court held that the limitation under Rule 68B of the second schedule to the Income Tax Act does not apply to RDDB Act (Recovery of Debts Due to Banks and Financial Institutions Act, 1993) proceedings. Justice Mohammed Nias C.P. stated that Rule 68B of the Second Schedule to the Income Tax Act, 1961, has no mandatory application to recovery proceedings under the RDDB...
Terminating Arbitrator's Mandate Over Mere Allegations Of Corruption Would Set Dangerous Precedent: Delhi High Court
The Delhi High Court held that mere allegations of corruption or pendency of an unverified complaint against an arbitrator cannot justify termination of arbitrator's mandate under section 14 of the Arbitration and Conciliation Act, 1996 (Arbitration Act). Justice Jyoti Singh held that “mandate of an Arbitrator cannot be terminated solely on the basis of unsubstantiated allegations...
Allahabad High Court Stays Rs.110 Crore GST Demand On Dabur's Hajmola Candy
The Allahabad High Court on October 10 stayed a ₹110 crore GST show cause notice issued to Dabur India Ltd. over the classification of its Hajmola Candy Tablets.A bench of Justice Saumitra Dayal Singh and Justice Indrajeet Shukla passed the interim order in a petition filed by Dabur challenging the DGGI notice issued earlier this year.The dispute revolves around how Hajmola Candy Tablets...