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2020 SCC Vol. 8 Part 2

Insolvency and Bankruptcy Code, 2016 — S. 43 — Preferential nature of transactions — Determination/Identification of: Satisfaction of three fold requirements i.e. (I) Twin requirements of S. 43(2); (II) “Relevant time” requirement of S. 43(4); and (III) Non-satisfaction of/being outside the ambit of exclusions carved out in S. 43(3), is necessary for “preferential transaction” to be considered as offending and thereby subject to consequences provided therefore. Intention to enter into preferential transaction is irrelevant in view of deeming provision. Exclusion from the purview of preferential transaction is not permissible where transferee alone is acting in the ordinary course of its business or financial affairs. Jaypee Infratech Ltd. [Interim Resolution Professional v. Axis Bank Ltd., (2020) 8 SCC 401]

Mines and Minerals — Illegal mining: Directions and conditions for condonation of delay in payment of compensation and interest as per directions in (2017) 9 SCC 499, resumption of mining and sale of undisposed stock, issued. [Common Cause v. Union Of India, (2020) 8 SCC 399]

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 — S. 24(2) — Deemed lapse of 1894 Act acquisition proceedings under — When occasioned — Law clarified: Deemed lapse of proceedings initiated under 1894 Act is occasioned where award under S. 11 of the 1894 Act has been made five years or more prior to date of commencement of the 2013 Act, and the two conditions specified in S. 24(2) are cumulatively satisfied i.e. (A) possession of the acquired land has not been taken, and (B) compensation has not been paid. Even if one of these two conditions is not satisfied, the 1894 Act acquisition proceedings shall not lapse. Word “or” used in S. 24(2) between the abovesaid two conditions in S. 24(2) has to be read as “nor” or as “and”. This is because where two negative conditions or two prohibitions are coupled by the word “or”, the said “or” has to be read as “and” or “nor”. If possession taken, but compensation not paid then there would be no lapse. If compensation paid, but possession not taken then also there would be no lapse. [Indore Development Authority (Lapse 5J) v. Manoharlal, (2020) 8 SCC 129]

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