Between The Lines – Page 4 – Vaish Associates Advocates

NCLAT: Security for refund of advance amount cannot change the nature of transaction for supply of goods into financial debt

The National Company Law Appellate Tribunal, Principal Bench, New Delhi (“NCLAT”), in its judgement dated January 11, 2024, in the matter of Sainik Industries Private Limited v. Ritesh Raghunath Mahajan, Resolution Professional, Indian Sugar Manufacturing Company Limited [Company Appeal (AT) (Insolvency) No. 1614 of 2023], has held that the security of refund of the advance […]

NCLT: Corporate insolvency resolution process cannot be initiated under Section 7 of IBC based on transfer agreement for purchase of debentures from financial creditors

The National Company Law Tribunal, Mumbai (“NCLT”), vide its judgment dated January 29, 2024, in the matter of Edelweiss Asset Reconstruction Company Limited v. Ajmera Realty and Infra India Limited [CP (IB) No. 877/MB/2023], has held that if the element of disbursal against the consideration for time value of money is absent, such transaction, cannot […]

NCLAT: Liquidator is not entitled to charge any fee from a scheme proponent submitting a scheme under Section 230 of the Companies Act

The National Company Law Appellate Tribunal, Principal Bench, New Delhi (“NCLAT”), in its judgement dated December 8, 2023, in the matter of CA Jai Narayan Gupta v. Radhasiriya Properties Private Limited [Company Appeal (AT) (Insolvency) No. 1473 of 2023], has held that a liquidator is not entitled to charge any fee from a scheme proponent […]

Bombay High Court: High Court upholds termination of an employee stating that freedom of speech and expression cannot be allowed beyond reasonableness

The Bombay High Court (“HC“) vide its judgement dated December 12, 2023, in the matter of Hitachi Astemo Fie Private Limited v. Nirajkumar Prabhakarrao Kadu [2023 SCC OnLine Bom 2652], while upholding the termination of an employee on account of inciting hate against the company, has held that the freedom of speech and expression cannot […]

Supreme Court: Statutory set-off or insolvency set-off inapplicable to Corporate Insolvency Resolution Process

The Supreme Court, vide its judgment dated January 3, 2024, in the matter of Bharti Airtel Limited and Another v. Vijaykumar V. Iyer and Others [Civil Appeal Nos. 3088-3089 of 2020], has undertaken an in-depth analysis of various types of set-offs recognized under law and their applicability during Corporate Insolvency Resolution Process (“CIRP”) of a […]

Supreme Court: Nomination process under the Companies Act, 1956/ Companies Act, 2013 does not override succession laws

The Supreme Court, vide its judgment dated December 14, 2023, in the matter of Shakti Yezdani and Another v. Jayanand Jayant Salgaonkar and Others [Civil Appeal No. 7107 of 2017], held that the Companies Act, 1956 (“CA, 1956”) does not deal with the law of succession nor does it override the laws of succession and […]