Supreme Court Weekly Round Up June 14 To June 20, 2021

JUDGMENTS THIS WEEK1. Secured Creditor Can't Challenge Resolution Plan Insisting That Higher Amount Should Be Paid Based On Security Interest : Supreme CourtTitle : India Resurgence ARC Pvt Ltd VS Amit Metaliks Ltd& Anr.Citation : LL 2021 SC 269A division bench comprising Justices Vineet Saran and Dinesh Maheshwari has held that a dissenting secured creditor cannot challenge a resolution plan approved under the Insolvency and Bankruptcy Code(IBC) with an argument that higher amount should have been paid to it on the basis of the security interest held by it over the corporate debtor.The Court observed that it is against the scheme of IBC to hold that a secured creditor is entitled to the amount in reference to its security interest. The Supreme Court observed that the amendment to sub-section (4) of Section 30 only amplified considerations for the Committee of Creditors while exercising its commercial wisdom so as to take an informed decision in regard to the viability and feasibility of resolution plan, with fairness of distribution amongst similarly situated creditors."..what amount is to be paid to different classes or sub-classes of creditors in accordance with provisions of the Code and the related Regulations, is essentially the commercial wisdom of the Committee of Creditors; and a dissenting secured creditor like the appellant cannot suggest a higher amount to be paid to it with reference to the value of the security interest" the bench said.2. CAG Report Can't Be Basis For Recovery Of Cess Without Statutory Adjudication : Supreme CourtCase Title : Uttar Pradesh Power Transmission Corporation Ltd and another vs CG Power and Industrial Solutions Ltd and anotherCitation : LL 2021 SC 270A division bench comprising Justice UU Lalit and Justice Indira Banerjee has held that there cannot be a recovery of cess solely on the basis of the report of the Comptroller and Auditor General (CAG) without any statutory adjudication process.The Court upheld a judgment of Allahabad High Court which had quashed the orders issued by the Uttar Pradesh Power Transmission Corporation Ltd (UPPTCL) directing a contractor to remit Labour Cess amounting to Rs.2,60,68,814/-.The top court noted that Cess under the Cess Act read with BOCW Act is leviable in respect of building and other construction works. The condition precedent for imposition of cess under the Cess Act is the construction, repair,demolition or maintenance of and/or in relation to a building or any otherwork of construction, transmission towers, in relation inter alia to generation, transmission and distribution of power, electric lines, pipelines etc. Mere installation and/or erection of pipelines, equipments for generation or transmission or distribution of power, electric wires,transmission towers etc. which do not involve construction work are not amenable to Cess under the Cess Act.3. "Accused Has Right To Hearing Of His Bail Application" Supreme Court Expresses Shock Over Bail Plea Not Being Listed For A YearA division Bench of Justice Hemant Gupta and Justice V Ramasubramanian observed that the accused has a right of hearing of his application for bail and denial of the same is an infringement of his right and liberty."The accused has a right to hearing of his application for bail. In fact, the denial of hearing is an infringement of right and liberty assured to an accused." the Bench said.While observing that the Court normally does not interfere with an interim order passed by the High Court, the Bench stated that it is "constrained to pass the present order as they are shocked to see that theSupreme Courtunder Section 439 CrPC is not being listed for hearing for more than one year."The Court was hearing a special leave petition filed against order declining the request for hearing of an application for bail under Section 439 of the Code of Criminal Procedure, 1973, pending since 28th Feb 2020.Also Read: At least Half Of HC Judges Should Sit On Alternative Days To Hear Persons In Distress, Non-Listing Of Bail Application Impinges On Liberty Of Accused: SCIMPORTANT APEX COURT UPDATES1. Centre And State Finances Under Severe Strain, Beyond States' Fiscal Ability To Pay Ex-Gratia To All Covid Victims: Centre Tells Supreme CourtThe Union of India has told the Supreme Court that payment of ex-gratia compensation to all deceased persons due to COVID-19, is beyond the fiscal affordability of the Governments, as the finances of State Governments and the Central Government are under severe strain, due to the reduction in tax revenues and increase in health expenses on account of the pandemic."It is an unfortunate but important fact that the resources of the Governments have limits and any additional burden through ex-gratia will reduce the funds available for other health and welfare schemes." Centre has said.The submissions have been made by the Ministry of Home Affairs through an affidavit filed in the pleas filed before Supreme Court seeking ex gratia...

Supreme Court Weekly Round Up June 14 To June 20, 2021

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Supreme Court Weekly Round Up June 14 To June 20, 2021

Nupur Thapliyal

This is a premium content Available exclusively to Our subscribers

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