Between The Lines – Page 28 – Vaish Associates Advocates

Between the Lines | NCLAT: Reiterated that rent is not to be considered as an operational debt under the IBC

The National Company Law Appellate Tribunal (“NCLAT”) has in its judgment dated November 10, 2020 (“Judgement”) in the matter of Promila Taneja v. Surendri Design Private Limited [Company Appeal (Insolvency) No. 459 of 2020], held that rent is not to be considered as an operational debt (“Operational Debt”) as defined under Section 5(21) of Insolvency […]

Between the Lines | Supreme Court: Tenancy disputes under Transfer of Property Act, 1882 are arbitrable except when governed by rent control legislations

The Hon’ble Supreme Court (“SC”) has in its judgment dated December 14, 2020 (“Judgement”) in the matter of Vidya Drolia and Others v. Durga Trading Corporation [Special Leave Petition (Civil) Nos. 5605-5606 of 2019], held that landlord-tenant disputes are arbitrable as the Transfer of Property Act, 1882 (“TPA”) does not forbid arbitration. However, the landlord-tenant […]

Between the Lines | NCLAT: Creditor could not be restrained from simultaneously initiating CIRP against both the principal borrower and the guarantor

The National Company Law Appellate Tribunal (“NCLAT”) by way of its judgement dated November 24, 2020 in the matter of State Bank of India v. Athena Energy Ventures Private Limited [CA (AT) (Ins) No. 633 of 2020] set aside the order passed by the National Company Law Tribunal, Hyderabad Bench (“NCLT”) on March 4, 2020. […]

Between the Lines | Supreme Court: Proceedings under Section 34 of the Arbitration and Conciliation Act, 1996 not maintainable against foreign award

The Supreme Court (“SC”) has in its judgment dated November 26, 2020 in the matter of M/s Noy Vallesina Engineering SpAv. M/s Jindal Drugs Limited and Others [Civil Appeal No. 8607 of 2010], held that proceedings under Section 34 of the Arbitration and Conciliation Act, 1996 (“ACA”) are not maintainable against a foreign award. Facts […]

Between the Lines | Supreme Court: Trivial procedural lapses not a ground to nullify SARFAESI proceedings initiated by secured creditor if no substantial prejudice was caused to borrower

The Supreme Court (“SC”) has in its judgment dated October 27, 2020 in the matter of M/s L&T Housing Finance Limited v. M/s Trishul Developers and Another [Civil Appeal No.3413 OF 2020], observed that proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (“SARFAESI Act”), initiated by secured […]

Between the Lines | NCLT, Mumbai: The jurisdiction to grant reliefs for recovery of rent from the tenant and the eviction of tenant from the property of the corporate debtor is in the exclusive domain of the civil court

The National Company Law Tribunal, Mumbai (“NCLT”) has in its judgement dated October 27, 2020 (“Judgement”) in the matter of Asset Reconstruction Company (India) Limited v. Precision Fasteners Limited [C.P. (IB) No. 1339/NCLT/MB/2017], held that jurisdiction to grant reliefs of recovery of rent from tenant and the eviction of tenant from the property of the […]