Order Terminating Proceedings For Non-Payment Of Arbitral Fees Can Be Challenged U/S 14 A&C Act, Not Through Writ Petition: Bombay HC

The Bombay High Court held that when the arbitration proceedings are terminated under section 38(2) of the Arbitration and Conciliation Act, 1996 (Arbitration Act) for non-payment of arbitral fees, the proper remedy is to file application under section 14 of the Arbitration Act and not a writ petition. Justice Manish Pitale held that “in situations where the arbitral proceedings...

NCLT President Cannot Transfer Cases Beyond Territorial Jurisdiction Of Bench: Gujarat High Court In Essar Steel Insolvency Case

The Gujarat High Court has recently held that the President of the National Company Law Tribunal (NCLT) has no authority to transfer cases from one State to another through administrative orders.The ruling came in proceedings linked to the Essar Steel insolvency process, where the court also found that repeated recusals by NCLT Members in Ahmedabad were neither "legal" nor "justified."A...

Departmental Proceedings Against Retired Employees Can't Be Initiated For Incidents Occurring More Than Four Years Before Issuance Of Charge Memo: Madras HC

A Division bench of the Madras High Court comprising Chief Justice Manindra Mohan Shrivastava and Justice R. Poornima held that the departmental proceedings against a retired government servant cannot be instituted for an event that took place more than four years prior to the issuance of the charge memo. Background Facts The petitioner was a judicial employee. He purchased two...

S.238 IBC Is Non-Obstante Clause, Overrides Provisions Of Electricity Act: Allahabad High Court

The Allahabad High Court has held that the Insolvency and Bankruptcy Code, 2016 overrides the provisions of Electricity Act, 2003 read with Electricity Supply Code, 2005.A bench of Justice Arindam Sinha and Justice Prashant Kumar held“Section 238 of Insolvency and Bankruptcy Code, 2016 is a non- obstante clause meaning it grants the IB Code a power of overriding effect on other laws, for...

When Two Or More Courts Have Jurisdiction, Parties' Choice Of Court Prevails Even If Cause Of Action Arises Elsewhere: Karnataka High Court

The Karnataka High Court held that when parties to a contract have agreed to exclusive jurisdiction of a particular court, suit instituted in other courts is not maintainable even if the cause of action has arisen in other jurisdiction. Setting aside the interim injunction granted by the commercial court at Bengaluru, the Division Bench comprising Chief Justice Vibhu Bakhru and...

Documents Not Filed Before NCLT Cannot Be Entertained As Evidence By NCLAT For Deciding Appeal: NCLAT Chennai

The NCLAT, Chennai Bench, comprising Justice Sharad Kumar Sharma (Member-Judicial) and Jatindranath Swain (Member-Technical), has held that any document available but not filed before the NCLT cannot be entertained as evidence by the NCLAT at the appellate stage. The CIRP of the corporate debtor was initiated, and due to the failure to receive the resolution plan, a liquidation order...

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...