Between The Lines – Vaish Associates Advocates

Bombay High Court: Mere long-term continuance of employment does not entitle an employee to seek regularization of his services

The Bombay High Court (“Bombay HC”), vide its judgement dated May 6, 2024, in the case of The Chief Officer, Pen Municipal Council and Another v. Shekhar B. Abhang and Another [Writ Petition No. 4129 of 2009], held that long-term continuance of employment does not constitute as a ground to seek regularization of services. Facts […]

Telangana High Court: Civil courts have jurisdiction to determine share title, not NCLT/NCLAT.

The Telangana High Court (“Telangana HC”), vide its judgment dated April 24, 2024, in the case of Cherukuri Ramakrishna v. Sandhya Hotels Private Limited and Others [C.C.C.A. No. 57 of 2023], upheld the jurisdiction of civil courts in matters pertaining to determination of title of shares under the Companies Act, 2013 (“Companies Act”). Facts Cherukuri […]

NCLAT: Debt arising out of advance payment for supply of goods or services is an operational debt in terms of Section 5(21) of IBC

The National Company Law Appellate Tribunal, New Delhi (“NCLAT”), in its judgement dated May 6, 2024, in the matter of Sanam Fashion and Design Exchange Limited v. Ktex Nonwovens Private Limited [Company Appeal (AT) (Ins.) No. 1234 of 2023], has held that a debt arising out of an advance paid towards the supply of goods […]

Supreme Court: Exclusion clauses in insurance contract should be interpreted strictly as they may absolve all the liabilities of the insurer

In the matter of United India Insurance Company Limited v. M/s. Hyundai Engineering and Construction Company Limited and Others [Civil Appeal No. 1496 of 2023], decided on May 16, 2024, the Division Bench of the Supreme Court reiterated that the insurer has the burden of proving applicability of exclusionary clauses in insurance contracts and such […]

Telangana High Court: Dispute concerning partners’ rights and obligations during insolvency and winding-up of partnership is arbitrable

The Telangana High Court (“Telangana HC”), vide its order dated April 14, 2024, in the case of Shameem Sultana Khan v. Faizunnissa Begum and Others [Arbitration Application No. 164 of 2023], has allowed an application for appointment of arbitrator under Section 11(6) (Appointment of arbitrators) of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”), in […]

Delhi High Court: Arbitration clause in the T&Cs on a website is binding on the parties if the digital agreement incorporates a hyperlink to such T&Cs

The Delhi High Court (“Delhi HC”), in its judgement dated April 23, 2024, in the matter of M/s. Oravel Stays Private Limited v. Nikhil Bhalla [FAO (COMM) 212/2023 & CM No.54229/2023], has held that an arbitration clause contained in the terms and conditions (“T&Cs”) available on a website is binding on the parties if the […]