Cases Reported in Comp Cas | Latest Cases on Company Laws

Debt, financial and monetary laws — Banks — Banking business — Wilful default by customer — Declaration as wilful defaulter — Company committing default on debt — Show-cause notice issued to whole-time director of company by bank — Despite multiple requests bank not supplying material to director to substantiate his role to declare as wilful defaulter — Draft order of bank not supplied to director — Bank permitted to withdraw orders and supply material — Director permitted to respond to show-cause notice [Milind Patel v. Union Bank of India, (2024) 251 Comp Cas 1]

Corporate Laws — Company Law — Amalgamation — Scheme of amalgamation — Scheme for merger of wholly owned subsidiaries with holding company — Mandatory for central government to make an application before Tribunal and get adjudication if of opinion that scheme not in public interest or in interest of creditors — Held, order of Regional Director rejecting application undre Section 233 was to be set aside with consequences thereunder to follow [Asset Auto India (P) Ltd. v. Union of India, (2024) 251 Comp Cas 62]

Corporate Laws — Company Law — Winding up and Liquidation — Inability to pay debts — Advance paid for purchase of aircraft — Dispute between parties — Not an admitted debt — Company depositing entire amount, as claimed with registry — Not a case of inability to pay — No material to hold that substratum of company stood eroded — No reason to wind up company — Winding up order set aside [PCI Ltd. v. Kanakia Spaces (P) Ltd., (2024) 251 Comp Cas 162]

Insolvency and bankruptcy laws — Corporate Insolvency — Insolvency resolution — Resolution plan — Effect of approval of plan — Recovery of tax — Assessment proceedings for recovery initiated by Department of Income-tax after approval of resolution plan — Resolution plan binding on Department — All claims not part of resolution plan stood extinguished — Initiation and continuation of proceedings relating to period prior to approval of resolution plan not to be indulged in — Held, proceedings initiated by Department to be quashed [Uttam Value Steels Ltd. v. CIT, (2024) 251 Comp Cas 264]

Debt, financial and monetary laws — Recovery of Debts — Security — Bank — Enforcement of security interest — Writ — Challenge to assignment of debt — Disputed question of facts — To approach appropriate forum under 2002 Act [Disruptive Health Solutions (P) Ltd. v. Kotak Mahindra Bank Ltd., (2024) 251 Comp Cas 422]

Debt, financial and monetary laws — Recovery of Debts — Security — Enforcement of security interest — Assignment of debt — Assignment of stressed loan by bank to asset reconstruction company valid — Declaration of account as non-performing assets by assignee — Failure by borrower to challenge assignment until declaration of its loan account as non-performing assets — Held, decision of single judge to grant liberty to borrowers to agitate their grievances in terms of Section 17 to be affirmed [Disruptive Health Solutions (P) Ltd. v. Kotak Mahindra Bank Ltd., (2024) 251 Comp Cas 429]

Securities, markets and exchange — Securities — Demat Accounts — Stock exchange — Freezing of demat account — Freezing on ground that holder of account was promoter of a delisted company — No evidence that holder discharging obligations of promoter — Action of stock exchange arbitrary, illegal and unconstitutional — To be set aside — Holder of demat account deprived of trading for long — Costs to be awarded [Pradeep Mehta v. Union of India, (2024) 251 Comp Cas 530]

Corporate laws — Company Law — Winding up and Liquidation — Sale of assets — Enforcement of security interest by secured creditors — Secured creditor effecting sale of property of company by private treaty through company under its supervision and control — Entire sale consideration received and accounted for — No evidence to suggest that any part of sale consideration siphoned off or misappropriated by anyone connected with company — Not a case of under valuation of property or collusion between parties — No need to set aside sale [Sharun Wires (P) Ltd. v. M & A Orient Accessories (P) Ltd., (2024) 251 Comp Cas 649]

Corporate laws — Company Law — Winding up and Liquidation — Petition for winding up — Constitution of Company Law Tribunal — Held, since no substantive proceedings had been undertaken towards winding up of the company petition could not be allowed — Petition to be transferred to Tribunal [Buliders (P) Ltd. v. Fortis Hospital Ltd., (2024) 250 Comp Cas 1]

Corporate laws — Company Law — Winding up and Liquidation — Change of law — Petition for winding up — Constitution of Company Law Tribunal — Proceedings not at advanced stage to be transferred to Tribunal — Directions given [Arabian Oilfield Suppliers & Services v. Greka Drilling (India) Ltd., (2024) 250 Comp Cas 62]