MEN OF FEW WORDS ARE THE BEST MEN.
WILLIAM SHAKESPEARE
CORPORATE
- Rita Kapur v. Invest Care Real Estate LLP and Others
Corporate insolvency proceedings cannot be initiated once debt is converted into capital-2 September 2020
The National Company Law Appellate Tribunal (NCLAT) has said insolvency proceedings cannot be triggered on the basis of debt that has been converted into capital such as equity of a company. The appellate tribunal also said any investment cannot be ‘financial debt’ and the provisions of Section 7 of the Insolvency & Bankruptcy Code provides for initiation of CIRP by a financial creditor only and that too, if there is ‘debt’ and ‘default’.
The Judgment can be accessed at:
https://nclat.nic.in/Useradmin/upload/13359909205f4f784f19d43.pdf - Prakash Kalash v. Apeejay Surrendra Park Hotels Ltd and Other
Can an ex parte order be passed against a Corporate Debtor after substituted service through newspaper publication?-23 September 2020
Apeejay Surrendra Park Hotels Ltd, Operational Creditor/Respondent had initiated the proceedings under Section 9 Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor, Gurusukh Vintrade Service Pvt Ltd for alleged unpaid dues arising out of the services performed under a Management and Technical Service Agreement. The plea was admitted ex parte by the National Company Law Tribunal, Cuttack and corporate insolvency resolution process was initiated against the Corporate Debtor. Aggrieved by the Order, a representative of the Corporate Debtor filed an appeal before the NCLAT. The NCLAT first held that the appeal was filed within the statutory period of limitation prescribed under Section 61(2) IBC as it was filed within 30 days from the date of Order. The NCLAT thereafter examined the issue of service of notice through publication in newspaper. The NCLAT noted that as per records, the notice issued against the Corporate Debtor could not be served on account of insufficient address and thereafter, the NCLT/Adjudicating Authority passed an order of publication of notice in the newspaper. Holding that the publication of notice in the newspaper was sufficient, an ex-parte order was passed against the Corporate Debtor by the NCLT, it added. Looking to material before it, the NCLAT also concluded that there is a pre-existing dispute between the parties before the issuance of the demand notice. The appeal was thus allowed and the NCLT Order was set aside.
The Judgment can be accessed at:
https://nclat.nic.in/Useradmin/upload/9681380025f6b25c557ac9.pdf - Sulochana Gupta & Others v. RBG Enterprises Private Ltd
High Court (HC) can’t interfere in any order of National Company Law Tribunal (NCLT) as an appeal lies to NCLAT-9 September 2020
The Kerala High Court (HC) while ruling on the issue of jurisdiction of High courts held that under the provisions of the Companies Act, 2013, against any order of National Company Law Tribunal (NCLT), an appeal lies to National Companies Appellate Tribunal.
The Judgement can be accessed at:
https://www.livelaw.in/pdf_upload/pdf_upload-381972.pdf - Neesa Infrastructure Limited v. State Bank of India & Others
Corporate Insolvency Resolution Process under Insolvency Bankruptcy Code(IBC)is barred if no returns have been filed by the company-17 September 2020
The National Company Law Tribunal (NCLT) dismissed the application for Corporate Insolvency Resolution Process under Section 10 of Insolvency Bankruptcy Code filed by Neesa Infrastructure Limited on the grounds that no returns have been filed by the company.
The Order can be accessed at:
https://nclt.gov.in/sites/default/files/September/final-orderspdf/FINAL%20CP%28ib%29%2061%20of%202018.pdf - Alibaba Nabibasha v. Small Farmers Agri-Busines Consortium & Ors
Retired Director of a Company is not responsible for conduct of day-to-day affairs of Company-23 September 2020
The Delhi High Court (HC) said that a person who has retired as the director of the company can not be held liable for the day to day acts of company and cheques issued and dishonoured post-retirement.
The Judgement can be accessed at:
https://www.livelaw.in/pdf_upload/pdf_upload-382058.pdf - Bishal Jaiswal v. Asset Reconstruction Company (India) Ltd & Others
National Company Law Appellate Tribunal (NCLAT) may reconsider its 5-member bench ruling on debt acknowledgment for insolvency plea-25 September 2020
In a rare instance, a three-member bench of the National Company Law Appellate Tribunal (NCLAT) last week said that the five-member bench’s judgment, which was passed in March this year was “contrary to settled law”. The three-member bench observed that “judgment in V Padmakumar’s case requires reconsideration” as a consistent view of the Supreme Court (SC) and High Court (HC)of Allahabad, Calcutta, Delhi, Karnataka, Kerala, and Telangana is that the entries in the balance sheet of the company be treated as an acknowledgment of debt for the purpose of Section 18 of the Limitation Act. “The majority view in V Padmakumar’s case is just contrary to settled law,” it said and directed the registrar to place the “attached reference along with V Padmakumar’s case before the Acting Chairperson for constituting appropriate bench”.
The Order can be accessed at:
https://www.livelaw.in/pdf_upload/pdf_upload-381999.pdf
INFORMATION TECHNOLOGY
- ONE97 Communications Limited and Anr v. Union of India and Ors
Take action against those not complying with regulations on unsolicited communications: High Court (HC) to TRAI-18 September 2020
The Delhi High Court (HC) has asked Telecom Regulatory Authority of India (TRAI) to take action in accordance with law against entities and persons not complying with Telecommunication Commercial Communication Customer Preference Regulations, 2018. The court has given 8 weeks to TRAI to take some action on the show-cause notices issued by it to show progress made in ensuring compliance with the said regulations. The direction comes on a plea filed by One97 Communications Limited that runs Paytm, alleged damages to its reputation due to “phishing” activities over mobile networks of major telecom companies. - Living Media India Limited & Anr v. Rakesh Krishnan Thiyya@ Rakesh Krishnan Simha & Anr
Delhi High Court (HC) orders removal of defamatory Tweets against India Today & Rajdeep Sardesai-25 September 2020
The Delhi High Court (HC) ordered Twitter to remove several defamatory tweets against India Today Group and Rajdeep Sardesai. The tweets were made by a former employee Rakesh Krishna Thiyya and the court noted that they lack justification, and use of cuss words in the tweets impacts the image of Sardesai and the media house.
The Order can be accessed at:
https://www.livelaw.in/pdf_upload/pdf_upload-382061.pdf
CONTRACTS
- Magma Fincorp Ltd v. Rajesh Kumar Tiwari
Financier continues to be owner of goods which are subject of hire purchase Agreement until hirer pays all installments: Supreme Court (SC)
The financier continues to be owner of the goods being the subject of hire purchase, until the option to purchase is exercised by the hirer, upon payment of all amounts agreed upon between the hirer and the Financier, the Supreme Court (SC) has reiterated in a judgment passed on Thursday.
https://www.livelaw.in/pdf_upload/pdf_upload-382316.pdf
