“MEN OF FEW WORDS ARE THE BEST MEN.”
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 held that insolvency proceedings cannot be initiated on the basis of debt that has already been converted into equity or capital of a company.
The Tribunal observed that any investment cannot automatically qualify as financial debt and proceedings under Section 7 of the Insolvency & Bankruptcy Code require existence of debt and default.
The Judgment can be accessed at:
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Prakash Kalash v. Apeejay Surrendra Park Hotels Ltd and Other
Ex parte insolvency order set aside due to pre-existing dispute – 23 September 2020
The NCLAT set aside the ex parte order passed by the NCLT initiating Corporate Insolvency Resolution Process against the Corporate Debtor.
The Tribunal observed that there existed a pre-existing dispute between the parties prior to issuance of the demand notice.
The NCLAT further examined substituted service through newspaper publication and held that the appeal was filed within the prescribed limitation period.
The Judgment can be accessed at:
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Sulochana Gupta & Others v. RBG Enterprises Private Ltd
High Court cannot interfere where appeal lies before NCLAT – 9 September 2020
The Kerala High Court held that where statutory appellate remedy is available before the National Company Law Appellate Tribunal, High Courts should not interfere with orders passed by the NCLT.
The Court relied upon provisions contained in the Companies Act, 2013 regarding appellate jurisdiction.
The Judgement can be accessed at:
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Neesa Infrastructure Limited v. State Bank of India & Others
CIRP application barred where company failed to file statutory returns – 17 September 2020
The National Company Law Tribunal dismissed an application under Section 10 of the Insolvency & Bankruptcy Code seeking initiation of Corporate Insolvency Resolution Process.
The Tribunal noted that the company had failed to file statutory returns and therefore was not entitled to invoke the insolvency process.
The Order can be accessed at:
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Alibaba Nabibasha v. Small Farmers Agri-Business Consortium & Ors
Retired Director not liable for post-retirement company acts – 23 September 2020
The Delhi High Court held that a retired director cannot be held liable for acts carried out by the company after retirement.
The Court specifically observed that dishonoured cheques issued post-retirement cannot create liability against the former director.
The Judgement can be accessed at:
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Bishal Jaiswal v. Asset Reconstruction Company (India) Ltd & Others
NCLAT considers reconsideration of ruling on debt acknowledgment in balance sheets – 25 September 2020
The NCLAT observed that entries in company balance sheets may amount to acknowledgment of debt under Section 18 of the Limitation Act.
The Tribunal noted that earlier five-member bench ruling in V Padmakumar’s case required reconsideration as it appeared contrary to settled law.
The matter was referred for constitution of an appropriate larger bench.
The Order can be accessed at:
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INFORMATION TECHNOLOGY
ONE97 Communications Limited and Anr v. Union of India and Ors
Delhi High Court directs TRAI to act against unsolicited communications – 18 September 2020
The Delhi High Court directed TRAI to take action against entities failing to comply with Telecommunication Commercial Communication Customer Preference Regulations, 2018.
The petition was filed by One97 Communications Limited alleging reputational damage caused by phishing activities over telecom networks.
The Court granted eight weeks for TRAI to demonstrate progress regarding show-cause notices issued under the regulations.
Living Media India Limited & Anr v. Rakesh Krishnan Thiyya @ Rakesh Krishnan Simha & Anr
Delhi High Court orders removal of defamatory tweets against India Today and Rajdeep Sardesai – 25 September 2020
The Delhi High Court directed Twitter to remove defamatory tweets targeting India Today Group and journalist Rajdeep Sardesai.
The Court observed that the tweets lacked justification and contained abusive language affecting reputation and goodwill.
The Order can be accessed at:
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CONTRACTS
Magma Fincorp Ltd v. Rajesh Kumar Tiwari
Financier remains owner under hire purchase agreement until all installments are paid
The Supreme Court reiterated that under a hire purchase agreement, the financier continues to remain owner of the goods until the hirer exercises the option to purchase by paying all agreed installments.
The Judgement can be accessed at:
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