ARMED FORCES TRIBUNAL(‘AFT’)
AFT grants war injury pension to soldier who sustained injuries resulting in disability during Operation Hifazat
The Bench of Justice Dharam Chand Chaudhary (Member J) and Vice Admiral HCS Bisht (Member A), granted war injury pension to the ex-serviceman who had sustained injuries resulting in disability during Operation Hifazat.
Whether dismissal order served without show cause notice justified when there’s suspicion of involvement in espionage & anti-national activities? Armed Forces Tribunal decides
The Division Bench of Justice Umesh Chandra Srivastava, Member (J) and Vice Admiral Abhay Raghunath Karve, Member (A) upheld the antedated dismissal of the applicant which was served without any show cause notice on the ground of his involvement in espionage and anti-national activities.
Armed Forces Tribunal | Once policy and rules were followed in matters of appointments in the Armed Forces, sympathy cannot be a substitute to grant benefit to a person
In an application seeking to quash the order discharging the applicant from service on the ground “unlikely to make an efficient Airman” under Chapter III Clause 15(2)(j) of the Air Force Rules, 1969 (‘AF Rules’), two-member bench of Rajendra Menon, J. and Lieutenant General P.M. Hariz held that neither was there any violation of the principles of natural justice nor the applicant was denied adequate opportunity before taking action, which allegedly has vitiated the proceedings. Further, once the requirements of the policy and rules were followed in matters of appointments to sensitive posts in the Armed Forces, sympathy cannot be a substitute to act in violation to the laid down administrative policies and grant benefit to a person.
AUTHORITY FOR ADVANCE RULING (‘AAR’)
Free IPL tickets: Supply of Complimentary tickets is promotion of business; attracts GST
Arun Narayan Gupta Chief Commissioner, CGST Commissionerate, and Kamal Kishor Yadav, Commissioner of State Tax held that the distribution of match tickets to related persons for the promotion of business attracts GST.
Authority for Advance Ruling determines GST to be charged on sale of a car by company after using it for business purpose
Members Atul Mehta and Arun Richard has held that 18% GST is payable on value for intended supply on the sale of a car by a company after using it for business purposes.
CENTRAL INFORMATION COMMISSION (‘CIC’)
Disclosure of inspection reports of the law colleges in public domain will benefit students: CIC to BCI
Saroj Punhani, Information Commissioner addressed a matter with regard to the disclosure of the inspection reports of the law colleges in the public domain.
DLF is a dominant enterprise in developing commercial space in Kolkata? CCI analyses
On finding that DLF being a new entrant in developing commercial space in Kolkata and having only one property, Commission held that the same cannot be treated as a dominant enterprise which can operate independently of competitive forces. Instant information was filed under Section 19(1)(a) of the Competition Act, 2002 by Informant 1 and Informant 2 against DLF Commercial Complexes Limited (OP 1) and others alleging inter alia, abuse of dominant position in contravention of the provisions of Section 4 of the Competition Act.
TI on pay scales, gross pay, PF deduction and TDS| Unhappy with CPIO’s response, Central Information Commission allows inspection of records
In a second appeal filed under Section 19 of the Right to Information Act, 2005 on the ground of unsatisfactory reply furnished by the Central Public Information Officer (CPIO), the Information Commissioner Amita Pandove, has directed the CPIO and Assistant Director (E-Governance cell), to provide an opportunity to the appellant to inspect the relevant records as the information provided to the appellant was erroneous, and also, reprimanded the public authority for providing such mindless and incongruous replies.
RTI on WHO’s suspension of Covaxin procurement| ‘CPIO’s reply incorrect, vague and mindlessly prepared’; CIC issues show cause notice
In a complaint for an action against the Central Public Information Officer (CPIO) for wilfully misleading and furnishing false information to the appellant, the Information Commissioner Heeralal Samariya, observed that the initial reply provided by the CPIO was incorrect, vague and mindlessly prepared and directed him to send his written submissions to justify as to why action should not be initiated against him under Section 20 of the Right to Information Act, 2005 (RTI) for the gross violation of its provisions.
Central Information Commission| No information of the third parties can be sought via the RTI Act without their consent
In a second appeal filed by the appellant under Section 19 of the Right to Information Act, 2005 on the ground of arbitrary denial of information by the Chief Public Information Officer (CPIO), the Chief Information Officer has held the information sought by the appellant was rightly denied by the CPIO as it pertains to the third party who expressed their dissent from divulging the same to any other third party.
“Supreme Court acted in violation of the provisions of the Constitution”; CIC on SC’s 1993 ruling on payment of honorariums/salaries to Imams.
Zee news-report stating that the Delhi CM declared that the salaries to Imams and others in mosques under and outside the purview of the DWB will be increased from rupees 10,000 to rupees 18,000 per month for Imams and from rupees 9000 to rupees 16,000 for helpers. CIC observed that same was virtually being paid by the Delhi Government using the taxpayer’s money.
CIC reacts in negative when the Complainant tries to outstretch the scope and ambit of Section 2(f) of the RTI Act
The complainant being dissatisfied with the information being provided by the First Appellate Authority, on the ground of non-receipt of complete and correct information regarding the reimbursement of pending medical bills of the Damodar Valley Corporation, Kolkata (‘DVC’) pensioners since long, filed a complaint before the Central Information Commission (‘The Commission’) wherein the Information Commissioner, Saroj Punhani stated that “The issue raised by the Complainant during hearing in the instant matter is not as much as about seeking access to information per se and in fact, it is about the Complainant’s resolve of bringing to fore his grievance pertaining to alleged delay caused by DVC in reimbursement of medical expenditure/ bills of pensioners and further seeking clarifications from the CPIO in this regard.”
COMPETITION COMMISSION OF INDIA (‘CCI’)
Why did CCI suspend the Amazon-Future deal? Detailed analysis of CCI order imposing Rs 202 crores penalty on Amazon
Coram of Ashok Kumar Gupta (Chairperson) and Sangeeta Verma and Bhagwant Singh Bishnoi (Members) in view of a deliberate design on the part of Amazon to suppress the actual scope and purpose of the Combination, levied the maximum penalty of INR One Crore each under the provisions of Sections 44 and 45 of the Competition Act. Due to failure to notify combination under Section 6(2) of the Act, Section 43A of the Act, a penalty was imposed.
Apple charging a commission of up to 30% on all payments made through its in-app purchase system, is a violation of its dominant position? CCI orders investigation
Coram of Ashok Kumar Gupta (Chairperson) and Sangeeta Verma, Bhagwant Singh Bishnoi (Members) directs the investigation in view of an alleged violation of provisions of the Competition Act.
Forcing buyers to purchase insurance policies? Even if dealers offer to sell insurance policies to customers, customers may yet have option to buy such policies from alternative channels: CCI
The Coram of Ashok Kumar Gupta (Chairperson) and Sangeeta Verma and Bhagwant Singh Bishnoi (Members) addressed a matter wherein it was alleged that certain Car Companies were abusing their dominant position and denying the cashless claim to consumers if the insurance policy had not been obtained through them, their dealers or their insurance broking companies.
7 entities indulged in anti-competitive agreement for supply of signages for branches/offices/ATMs of SBI: E-mails exchanged between parties formed basis for manipulation of bidding process | Detailed decision of CCI
Noting that in respect of cases concerning cartels that are hidden or secret, there is little or no documentary evidence and may be quite fragmentary, Coram of Ashok Kumar Gupta (Chairperson) and Sangeeta Verma and Bhagwant Singh Bishnoi (Members) imposed penalties on 7 entities and signages for bid-rigging activities and cartelization with respect to the supply of signage for branches, offices and ATMs of State Bank of India.
CCI | Conduct of Zomato and Swiggy, anti-competitive? DG to investigate
The Coram of Ashok Kumar Gupta (Chairperson) and Sangeeta Verma and Bhagwant Singh Bishnoi (Members) held that, in the case of both Swiggy and Zomato, prima facie there existed a conflict-of-interest situation, warranting detailed scrutiny into its impact on the overall competition between the RPs vis-à-vis the private brands/entities which the platforms may be incentivised to favour. An information had been filed under Section 19(1)(a) of the Competition Act, 2002 by National Restaurant Association of India (Informant/NRAI) against Zomato and Swiggy (OPs) alleging that the practices of Zomato and Swiggy were in violation of Section 3(4) read with Section 3(1) of the Act.
CCI | Google faces penalty of Rs. 1337.76 crores for abusing its dominant position in multiple markets in the Android Mobile Device Ecosystem; Cease and Desist order issued
The Commission Bench comprising of Ashok Kumar Gupta (Chairperson), Sangeeta Verma and Bhagwant Singh Bishnoi (Members) in a significant 293-page ruling, imposed a heavy penalty on Google of Rs. 1337.76 crores for abusing its dominant position in multiple markets in the Android Mobile device ecosystem thereby contravening Sections 4(2)(a)(i), Section 4(2)(b)(ii), Section 4(2)(c), Section 4(2)(d) and Section 4(2)(e) of the Competition Act.
“Fair market opportunity is the hallmark of competition”; CCI imposes hefty monetary penalty on MakeMyTrip, Goibibo and OYO for their anti-competitive practices and abuse of dominant position
In a significant development, the Commission while deliberating upon the alleged contravention of Sections 3 and 4 of the Competition Act by MakeMyTrip, Goibibo and OYO, was of the view that the commercial arrangement between OYO and MakeMyTrip and Goibibo which led to the delisting of FabHotels, Treebo and the independent hotels, which were availing the services of these franchisors, was anti-competitive and abuse of dominant position within the meaning of Section 3(4)(d) read with Section 3(1) of the Competition Act. The Bench comprising of Ashok Kumar Gupta (Chairperson), Sangeeta Verma and Bhagwant Singh Bishnoi (Members) found it fit to impose a monetary penalty.
CCI holds Google to be dominant in the relevant markets for licensable OS for smart mobile devices and app store for Android OS; Imposes penalty of Rs. 936.44 crore.
While deciding upon the complaint filed against Google alleging contravention of the provisions of the Competition Act, 2002 the bench of Ashok Kumar Gupta (Chairperson), Sangeeta Verma and Bhagwant Singh Bishnoi (Members), held that Google has a dominant position in the market for licensable OS for smart mobile devices in India and market for app store for Android smart mobile OS in India; and it has abused its dominant position in contravention of the provisions of Section 4(2)(a)(i), Section 4(2)(a)(ii), Section 4(2)(b)(ii), Section 4(2)(c) and Section 4(2)(e) of the Competition Act, 2002.
CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL (‘CESTAT’)
CESTAT | Jurisdiction for claim of refund filed/initiated to be dealt under the provision Central Excise law and not by the provision of CGST law
Ashok Jindal (Judicial Member) dismissed the application filed by the Revenue (CCE & ST, Panchkula) for ratification of mistake in a final order by the Tribunal which was noticed by the Applicant. The Tribunal dealt with two issues (a) whether to ratify previous order & (b) to deal with the jurisdiction.
CESTAT | ‘obiter dictum’ not legally binding as precedent; jurisdictional commissioner cautioned for filing frivolous applications
Suvendu Kumar Pati (Judicial Member) dismissed an appeal which was filed in response to the order passed by this Tribunal for rectification of mistake on the ground that the order to the extent of availment of service of outdoor catering was not proper.
CESTAT | Unless 7.5% of the penalty is deposited when the penalty is in dispute, the appeal cannot be entertained by the Tribunal
The Coram of Sulekha Beevi, C.S. (Judicial Member) and P. Anjani Kumar (Technical Member) decided on an appeal which was filed in the matter of non-compliance with the pre-deposit.
CESTAT | Promotional activity for IPL not covered under ‘Business Auxiliary Service’; Anil Kumble not liable to pay Service Tax
The Division Coram of P. Anjani Kumar (Technical Member) and P. Dinesha (Judicial Member) allowed appeals against the order of First Appellate Authority which upheld the demand of service tax by the adjudicating authority.
Will compensation paid by an employee to an employer for resigning from service without giving requisite notice, fall under taxable service? CESTAT decodes
The Coram of S.K. Mohanty (Judicial Member) and P. Anjani Kumar (Technical Member) reiterated that, any compensation paid by the employee to the employer for resigning from the service without giving the requisite notice, would not be termed as consideration for the contract of employment and as such, would not fall within the preview of taxable service.
CESTAT exempts All India Football Federation from paying service tax in accordance with the tripartite agreement between parties
The bench of Anil Choudhary (Judicial Member) and P.V. Subba Rao (Technical Member), while deciding the appeal filed by All India Football Federation (‘AIFF’) against the order passed by the Central Board and Service Tax, Audit-II, held that AIFF had concurred to the agreement, whereby the rights were transferred from Zee Entertainment Enterprises Pvt. Ltd. (‘ZEEL’) to IMG Reliance Pvt. Ltd (‘IMGR’) which does not amount to rendering any service.
DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION(‘DCDRC’)
KOLKATTA UNIT-II (CENTRAL)
Consumer cannot be forced to pay “service charge” in a restaurant: Consumer Forum finds conduct of restaurant contrary to principles of Consumer Protection Act
Coram of Swapan Kumar Mahanty (President) and Ashoke Kumar Ganguly (Member) directed for return of the amount charged as “service charge” along with compensation.
SCDRC| Consumers should not suffer due to VLCC’s unfair trade practices of giving misleading ads and then slapping them with a disclaimer regarding outcome of their programs
While deciding the instant appeal filed by VLCC Health Care Ltd. against the order of the District Consumer Court whereby they were directed to refund and compensate the respondent for the mental agony caused due to the failure of VLCC’s weight loss program; the Bench of Raj Shekhar Attri, J. (President) and Rajesh K. Arya (Member) observed that VLCC’s act of giving false assurances on one hand by way of misleading advertisements, and on the other hand obtaining a declaration from the consumers qua no guarantee/assurance regarding the result and outcome of the program, is a clear example of unfair trade practices adopted by them, and for which the consumers cannot be made to suffer at their hands. “The appellants are very much held liable to refund the amount paid by the respondent purely on the basis of their own advertisement, ‘Lose 4 Kgs in 30 days or take your money back!’”.
DCDRC | Why Uber India was held liable for the cab driver whose negligence caused the complainant to miss her flight to Chennai?
In a significant decision delivered in August over a complaint alleging deficiency of service on part of Uber India Systems, the Bench of R.P. Nagre (President-in-Charge), G.M. Kapse and S.A. Petkar (Members) held that Uber India is liable for providing deficient services on behalf of the cab driver in the instant case, whose negligence caused the complainant to miss her flight to Chennai. It was further held that Uber India’s liability was caused as the driver was acting as an agent of the Company while receiving the consideration i.e., the cab fare.
Consumer Disputes Redressal Commission directs Zomato to compensate a student for mental agony sustained due to non-delivery of ordered food item.
While deciding upon the instant consumer complaint against Zomato for failing to deliver the food item ordered by the complainant and upon the non-delivery of the order failing to refund the amount paid for the same, the Bench of Muhammed Ibrahim (President), S. Sandhya Rani and Stanley Harold (Members) directed Zomato to refund Rs. 362 (Rs. l76 + 186) with interest at 9% p.a from the date of order till realization. Further directions were given for the payment of Rs. 5000 as compensation for mental agony sustained by the complainant and Rs. 3000 as costs of the proceedings.
Gurugram District Consumer Forum issues stringent interim directions to Gurugram Municipal Corporation vis-a-vis banned foreign dog breeds and increased cases of pet and stray dog menace.
The Commission directed the Corporation to pay compensation of Rs. 2 Lakhs to the victim. Since the opposite party-1 had violated the law of the land by keeping a banned breed, therefore the Corporation is at liberty to recover the compensation amount from her.
INCOME TAX APPELLATE TRIBUNAL (‘ITAT’)
Does Income Tax Act prohibit HRA Exemption on Rent Paid to Wife? ITAT answers
An appeal was filed by the assessee against the order of CIT(A)-21, New Delhi dated 21-01-2019 before the bench comprising of Sh. A. D. Jain (Vice-President) and Dr. B. R. R. Kumar (Accountant Member).
ITAT | Notice issued against a dead person is null and void and all consequent proceedings/orders being equally tainted are liable to be set aside
The Coram of Amit Shukla (Judicial Member) and Pradip Kumar Kedia (Accountant Member) allowed an appeal against a revisional order passed under Section 263 of the Income Tax Act, 1961.
Whether gift received from HUF to any member of HUF is exempt from taxable income? ITAT Explains
The Coram of Sanjay Garg (Judicial Member) and Annapurna Gupta (Accountant Member) examined the issue as to the taxability of the amount of gift received by the assessee from his ‘HUF’. An appeal was preferred by the assessee against the Principal Commissioner of Income Tax against revision order passed under Section 263 of the Act, whereby the PCIT had set aside the assessment order passed by the Assessing Officer with a direction to make the assessment afresh under Section 143(3) read with Section 147 of the Income Tax Act.
ITAT | Delayed payment of employee’s contribution to EPF/ESIC is not disallowable as amendments to S. 36(1) (va) and S. 43-B effected by Finance Act, 2021 were applicable prospectively; appeal allowed
The Coram of Pradip Kumar Kedia (Accountant Member) and Narender Kumar Choudhry (Judicial Member) allowed an appeal which was filed at the instance of the assessee against the order of the Commissioner of Income Tax (Appeals) -XXXVI, New Delhi passed by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961 concerning AY 2013-14.
Bogus Parties and Dubious Transactions- Read ITAT’s observations on a matter concerning “non-existent lenders”
While deciding the instant appeal pertaining to the Assessment Year 2015-16 where the Revenue challenged the decision of CIT(A) for deleting the addition of Rs 4,33,18,870 made on account of unsecured loan under Section 68 of the Income Tax Act, 1961, the Bench of Shamim Yahya (Accountant Member) and Yogesh Kumar US (Judicial Member) held that the non-existence of the parties who have given loan to the assessee, clearly indicates their nature being prima facie bogus. Furthermore, non-discussion of the financials further cast doubt on the lender’s creditworthiness.
Why did ITAT decide to delete the addition of streedhan as ‘unexplained investment’ for the purposes of income assessment? Read to know
While deciding the instant appeal revolving around the addition of the assessee’s generational streedhan as unexplained investment for the purposes of income assessment, the Bench of Sandeep Gosain (Judicial Member) and Rathod Kamlesh Jayantbhai (Accountant Member), held that the AO ignored and failed to verify the factual position in the instant matter whereby which it was clear that the assessee lives with his parents and belongs to the high-status Rajput family where it is traditional to have jewelleries received from mother and wife in the form of streedhan. The Tribunal, keeping in mind the high status, family tradition, deduction on account of purity and the deduction towards streedhan, held that the excess jewellery found during search was nominal and the addition sustained by the CIT(A) deserves to be deleted on the grounds raised by the assessee.
ITAT| Hospitals providing medical facilities on a commercial basis are not charitable organisations; Not exempted from income tax
In appeals against the order of Commissioner of Income Tax(‘CIT’), involving proceedings under Section 12-AA(1)(b)(ii), 80-G(5)(vi) and 10(23C)(vi) of Income Tax Act, 1961 (‘the Act’), two-member bench of Rama Kanta Panda and Laliet Kumar upheld the order of CIT and held that as the hospital (assessee) is charging on the basis of commercial rates from the patients, therefore it is not entitled to registration as a charitable organisation under Section 12-A of the Act.
NATIONAL GREEN TRIBUNAL (‘NGT’)
Unregulated tourism activities resulting in damage to environment in eco-sensitive Himalayan States of India: NGT takes suo motu cognizance
The Coram of Justice Adarsh Kumar Goel (Chairperson) and Justice Sudhir Agarwal (Judicial Member), Prof. A. Senthil Vel (Expert Member) and Dr Vijay Kulkarni (Expert Member) took suo moto cognizance based on media report highlighting the damage to the environment in eco-sensitive Himalayan States of India due to unregulated tourism.
Fine of Rs 41.21 Crores imposed on a Government Corporation for excess mining and violation of conditions of Environmental Clearance: NGT issues 10 directions || If no fine, would rule of law be impacted? Read
While imposing a fine of Rs 41.21 crores on Singareni Collieries Company Limited, for violation of environmental clearance conditions and mining excess coal, the Coram of Justice K. Ramakrishnan (Judicial Member) and Dr Satyagopal Korlapati (Expert Member) expressed that, “The Government Corporations are expected to be more law abiding and if any leniency or discrimination is shown for committing violation, then it is very difficult to maintain the rule of law, if any violations were committed by other persons. There will not be any moral right for the regulators to take action against others if similar violations were committed by them.”
NGT | Strict Actions against illegal beach sand mining and shrimp farming
The Coram of Justice K. Ramakrishnan (Judicial Member) and Dr Satyagopal Korlapati (Expert Member) directed to take action against violators, initiate prosecution, and recover penalties under the respective mining rules for illegal beach sand mining and shrimp farming along the coastal stretches of the Bay of Bengal.
National Green Tribunal | Noise Pollution – violation of right to peaceful, comfortable and pollution-free life guaranteed by Article 21
Passing a revolutionary direction to the State for controlling Noise Pollution, a bench comprising of Sheo Kumar Singh (Judicial Member), J. and Dr. Arun Kumar Verma (Expert Member) come down heavily on the State government on their insouciant and careless feet dragging over controlling noise pollution from vehicular horns and modified exhausts in the State and directed the State to compulsorily abide and implement the existing legislative framework on the subject matter.
NGT| Tyre Pyrolsis Oil units (TPOs) must follow ‘zero liquid’ and ‘zero emission’ norms; directs for closure of non-compliant units.
While dealing a matter related to absence of proper management of end-of-life tyres/waste tyres (ELTs), a bench comprising of Adarsh Kumar Goel (Chairperson), Sudhir Agarwal (Judicial Member), JJ., and A. Senthil Vel (Expert Member) held that Tyre Pyrolysis Oil units (TPOs) need to follow ‘zero liquid’ and ‘zero emission’ norms and the carbon produced during the process needs to be utilized in cement industries rather than simply transported to landfills.
NGT halts Pakhro Tiger Safari Project, Corbett Tiger Reserve; directs to identify offenders and restore environmental damage.
A bench comprising of Adarsh Kumar Goel (Chairperson), Sudhir Agarwal (Judicial Member), JJ., and A. Senthil Vel (Expert Member) took suo motu cognizance based on media report “Over 6,000 trees illegally cut for tiger safari project in Corbett Reserve, says FSI report” published on 02-10-2022 in the Hindu newspaper, and acknowledged the illegality in cutting the trees. “The area cleared is estimated as 16.21 ha. The trees estimated on this cleared area are 6093 in no. with lower bound of 5765 and upper bound of 6421 with 95% confidence interval and 2.72% Standard Error.”
NGT | Necessary safeguards to be adopted for safety of the pilgrims and protection of environment at Amarnath
The Principal Bench comprising of Adarsh Kumar Goel (Chairperson), Sudhir Agarwal (Judicial Member), and Senthil Vel (Expert Member) in an application against violation of environmental and safety norms in setting up of tents for pilgrims in dry riverbed near holy cave, Amarnath, Jammu and Kashmir (J&K) held that necessary safeguards should be adopted for safety of the pilgrims and protection of the environment. It further said that apart from having flood protection measures in place and discouraging overnight stay at the cave camp, augmentation of infrastructure is necessary.
“Victim should not remain without remedy”; NGT orders factory not to resume work unless compensation paid as per law
A bench comprising of Adarsh Kumar Goel (Chairperson), Sudhir Agarwal (Judicial Member), JJ., and A. Senthil Vel (Expert Member) took suo motu cognizance based on media report about footwear factory fire hazard in outer Delhi’s Narela Industrial Area on 01-11-2022 and directed district magistrate to ensure compensation is paid to the victim within two weeks.
NATIONAL COMPANY LAW APPELLATE TRIBUNAL (‘NCLAT’)
Once Adjudicating Authority approves Resolution Plan, does it still remain a confidential document? Read what NCLAT says
Justice Ashok Bhushan (Chairperson) and Dr Ashok Kumar Mishra (Technical Member) expressed that, once Resolution Plain is approved by the Adjudicating Authority, it no longer remains a confidential document, so as to preclude Regulator and other persons from accessing the said document.
Is approval with 90% vote of CoC required before allowing withdrawal of CIRP application even where CoC was not yet constituted? NCLAT clarifies law on S. 12-A IBC
The Coram of Justice Ashok Bhushan (Chairperson) and Jarat Kumar Jain (Judicial Member) and Dr Alok Srivastava (Technical Member) allowed withdrawal of application for initiation of Corporate Insolvency Resolution Process against the Corporate Debtor.
Insolvency for Individuals & Partnership Firms | Is it proper for NCLT to record finding regarding default when RP is yet to consider it and submit report? NCLAT discusses Ss. 95, 97, 99 IBC
Coram of Justice Ashok Bhushan (Chairperson) and Justice Jarat Kumar Jain, Judicial Member and Dr Alok Srivastava, Technical Member heard appeals filed against the decision passed by National Company Law Tribunal, Mumbai.
Once insolvency proceedings are put on Stay, can resolution professionals still be entitled to fees during Stay? NCLAT answers
In a matter with regard to fees of resolution professional, the Coram of Justice Ashok Bhushan (Chairperson) and Shreesha Merla (Technical Member) held that, when proceedings in a matter are put to stay, the resolution professional is not entitled to fees during the stay on insolvency.
Major setback to Amazon as NCLAT upholds CCI’s decision to impose Rs. 200 crore penalty vis-a-vis the Amazon-Future Deal
While deciding the instant appeal filed by Amazon.com NV Investment Holdings LLC challenging the order passed by the Competition Commission of India dated 17-12-2021 [Amazon.com NV Investment Holdings, In re, 2021 SCC OnLine CCI 71], wherein the CCI had imposed a penalty of INR Two Hundred Crore upon Amazon due to their failure to notify combination in terms of the obligation cast under S. 6(2) of the Competition Act; the Bench of Justice M. Venugopal (Judicial Member) and Dr. Ashok Kumar Mishra (Technical Member) in a 300-page deliberation, upheld the decision taken by the CCI to impose such a penalty. The Tribunal held that Amazon did not make full, whole, fair, forthright and frank disclosure of relevant materials and had furnished only limited details / disclosures, pertaining to its `acquiring strategic rights and interests’ over `FRL’, and executing `Commercial Contracts among itself and `FRL’ concerning the ambit and purpose of `Combination’, therefore the penalty imposed is justified.
NCLAT | Can a Resolution Professional “freeze” the Bank Accounts of Corporate Debtor?
The Bench of M.V. Venugopal, J. Judicial Member, and Kanthi Narahari, Technical Member has held that a Resolution Professional under Section 18(1)(f) of the Insolvency and Bankruptcy Code, 2016 is only an authority to exercise control over Bank Accounts operated by the ‘Corporate Debtor’. He cannot freeze the ‘Bank Accounts’.
“If one does not come before the Court or Tribunal with clean hands his claim deserves to be rejected”, says NCLAT; imposes a cost of Rs 1 lakh on the Appellant for appearing through counsel personifying to be an advocate
The Bench of Rakesh Kumar, J., Judicial Member, and Dr. Ashok Kumar Mishra, Technical Member, while dismissing a company appeal, imposed a cost of Rs 1 lakh on the appellant for not disclosing his status, to avoid court fees and appearing before the Bench through a third party, who pretended to be an advocate.
NCLAT | Rejection of Resolution Plan by the NCLT due to Non-Serious, Casual and Non-Diligent Conduct of Resolution Appellant is Good in Law
In an appeal filed by the appellant against the order passed by the National Company Law Tribunal (NCLT) for cancellation of non-bailable warrants, a bench comprising of Ashok Bhushan, M Satyanarayana Murthy, JJ., and Barun Mitra (Technical Member) held that the NCLT was right in refusing to approve the Resolution Plan due to non-serious, casual and non-diligent conduct of the Resolution Applicant.
Non-payment of full provident fund and gratuity violative of S. 30(2)(e) IBC; NCLAT directs Jet Airways to make payments
In a batch of appeals filed challenging order dated 22-06-2021 passed by the National Company Law Tribunal (NCLT), Mumbai approving the Resolution Plan submitted by ‘Jalan Fritesch Consortium’ with respect to the Corporate Debtor – ‘Jet Airways (India) Limited’ on various grounds primarily being non-payment of full provident fund, gratuity, leave encashment etc to the employees and workmen who are rightly entitled to it, a Division Bench of Ashok Bhushan J. (Chairperson) and Barun Mitra J. (Technical Member) held that non-payment of full provident fund amount to the workmen and employees and the gratuity payment till the insolvency commencement date amounts to noncompliance of provisions of Section 30(2)(e) of Insolvency and Bankruptcy Code, 2016 (IBC) finding no other parts of the resolution plan to be infirm in any manner. The Court further directed the Successful Resolution Applicant to make pending payments of provident fund and gratuity to the workmen and the employees.
Approval/Non-approval of Resolution Plan is a commercial wisdom and Tribunal can’t interfere with the commercial wisdom: NCLAT
Dismissing the appeal, Ashok Bhushan, J., Kanthi Narahari (Technical Member) and Barun Mitra (Technical Member) held that when a Resolution Plan is approved by the CoC, it is presumed that the approval was given to a viable and feasible plan.
Tyre Cartelization Matter | NCLAT remanded matter back to CCI; asks to review fines to save domestic tyre industry
In a landmark judgment related to cartelization activities of five major domestic tyre manufactures and their association namely Apollo, MRF, Ceat, JK Tyre, Birla Tyres, dating back around 10 years ago, a bench comprising of Rakesh Kumar, J. (Judicial Member) and Dr. Ashok Kumar Mishra (Technical Member) remanded back the tyre cartel matter back to Competition Commission of India (CCI) to review the penalty of Rs 1789 crores imposed upon the tyre manufacturers including Automotive Tyre Manufactures Association (ATMA).
NCLAT | Insolvency and Bankruptcy Code does not contemplate lookback period; Information and relevant documents not to be withhold from Liquidator to investigate transactions done even beyond two years from Insolvency Commencement Date
While dealing with an appeal challenging the impugned order passed by NCLT, Anant Bijay Singh, J. and Shreesha Merla (Technical Member), held that the promoters cannot withhold information and necessary documents from the Liquidator as the lookback period is not applicable qua the liquidator.
Fictional Scheme to benefit few selected related parties; NCLAT upholds Liquidation of Corporate Debtor
A bench comprising of Ashok Bhushan, J., Dr. Alok Srivastava (Technical Member) and Barun Mitra (Technical Member) held that the appellant’s Scheme of Compromise and Arrangement appears to be doubtful as it seems to be an attempt to inflate the pay outs to related parties.
Leniency application is like admission of guilt in a cartel; NCLAT upholds penalty imposed on United Breweries, Carlsberg and All India Breweries Association
While deciding the appeal, Rakesh Kumar, J., and Dr. Ashok Kumar Mishra (Technical Member), held that once the penalty is reduced based on leniency application filed by the appellants showing their involvement in cartelisation, their right to appeal on merit against order of the CCI can be deemed to have been forfeited.
NATIONAL COMPANY LAW TRIBUNAL (‘NCLT’)
Mumbai International Airport Limited temporarily restrained from removing Jet Airways assets from its premises including MIAL’s hangar: Airline’s representatives, workmen, etc. allowed access for maintenance of assets
The Coram of Kapal Kumar Vohra, Technical Member and Justice P.N. Deshmukh, Judicial Member, while addressing a matter wherein Jet Airways requested Mumbai Airport not remove its assets from its premises, expressed that,
“…it is to be noted that one of the principal objectives of the Code is to provide for revival of the CD and every attempt ought to be made to revive the CD and Liquidation being the last resort.”
Whether Shareholders have the right to remove Directors of a company? NCLT explains in light of Companies Act, 2013
Expressing that the management of business affairs in a company is not a sole duty of a director, the results of a company’s performance is a team of work of Board of Directors, the Coram of Ashok Kumar Borah, Judicial Member and Shyam Babu Gautam, Technical Member, held that, Companies Act gives shareholders the right to remove the Directors of the company.
Whether salary during notice period falls within definition of Operational Debt under IBC: Read NCLT’s decision
The Coram of H.V. Subba Rao, Judicial Member and Chandra Bhan Singh, Technical Member deliberated on what amounts to a pre-existing dispute.
Sahara Hospitality to go through Corporate Insolvency Process
The Bench of P.N. Deshmukh, J., Judicial Member, and Shyam Babu Gautam, Technical Member admitted an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) for the initiation of Corporate Insolvency Resolution Process (CIRP) against Sahara Hospitality Ltd. (Sahara).
Can Resolution Professional submit report prior to Adjudicating Authority’s direction?
In a case where a Resolution Professional (RP) had submitted a report even prior to the order by the Adjudicating Authority that had appointed him, the bench of H. V. Subba Rao, Judicial Member and Chandra Bhan Singh, Technical Member, has asked him to submit a fresh report.
Claims of various stakeholders to be considered by Resolution Professional in accordance with law; NCLT, Chandigarh emphasizes
In a case filed by way of interlocutory applications, wherein various stakeholders prayed for setting aside the resolution plan as it was against the settled law, for the reconsideration of the Committee of Creditors (‘CoC’) as per the law laid down by the Supreme Court in Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta, 2019 SCC OnLine SC 1478, a Division Bench of Harnam Singh Thakur, Member (Judicial) and Subrata Kumar Dash, Member (Technical), held that wherever directed, the claims of various stakeholders are to be considered by the Resolution Professional under the relevant provisions of the IBC and in accordance with law and the same should be placed before Committee of Creditors for approval.
NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION(‘NCDRC’)
Minor treated for “Measles” instead of “Stevens-Johnson Syndrome” due to wrong diagnosis and leading to medical negligence: Read detailed report on NCDRC’s decision
While noting a case of medical negligence, the Coram of Justice R.K. Agrawal (President) and Dr S.M. Kantikar (Member) found that the doctor failed to correctly diagnose a serious disease of the minor which led to a lack of skill and reasonable standard of care.
Plastic pieces found in slices of bread, but compensation denied to consumer. Read why NCDRC set aside State Commission’s order of compensation
Ram Surat Maurya (Presiding Member) addressed a matter wherein Britannia was alleged to have pieces of plastic in its bread, but the complainant failed to prove that the bread was manufactured by the said company.
Home buyers cannot be expected to wait indefinitely for taking possession: NCDRC allows consumer complaint against Builder, directs refund, imposes costs
Deepa Sharma (Presiding Member) and Subhash Chandra (Member) dealt with a complaint filed under Section 21 read with Section 2(c) of the Consumer Protection Act, 1986 by the complainant in respect of a plot allotted to him promoted by the OP, claiming deficiency of service due to delay in handing over possession of the plot allotted and claiming refund of amount deposited with compensation.
Builder took money from homebuyer for formation of Co-operative Housing Society, but never formed so: Read why the homebuyer approached Commission
The Coram of R.K. Agrawal (President) and Dr S.M. Kantikar (Member) addressed a matter wherein the builder took money from the purchaser for the formation of a co-operative housing society but failed to do so and when asked for the refund, he did not return the money as well.
Patient developed serious complications after being operated which were promptly treated by doctors, yet she died. Would this amount to ‘medical negligence’? NCDRC analyses
The Coram of Justice R.K. Agarwal (President) and Dr S.M. Kantikar (Member) analyses a matter wherein a patient developed serious issues after being operated, which led to her death, hence the doctors/hospital were alleged for medical negligence.
Dental Negligence | Consensus between dentists and patients essential to standardize treatment plans and methods: No X-ray conducted prior to performing root canal treatment: Read how NCDRC found dentist negligent
Expressing that, the consensus between the dentists and patients is essential to standardize treatment plans and methods, Coram of Justice R.K. Agrawal (President) and Dr S.M. Kantikar (Member) addressed a case of dental negligence and remarked that,
“The teeth are only part of the face, and it cannot be simply concluded that the whole face will become more beautiful once the teeth become neat.”
If a person conceals facts about pre-existing fatal disease at the time of taking insurance, would it be a breach of insurance contract? NCDRC explains
The Coram of Dinesh Singh (Presiding Member) and Karuna Nand Bajpayee (Member) upheld the decision of the District Commission with respect to concealment of pre-existing fatal diseases at the time of taking insurance.
Due to burglary, customers lost their valuable articles from bank lockers. Will Bank be liable for deficiency in service? NCDRC answers
The Coram of Justice R.K. Agarwal (President) and Dr S.M. Kantikar (Member) expressed that, customer avails of Locker hiring facility is so that they may rest assured that their assets are being properly taken care of, but in the present matter, OP Bank failed to take care of the assets.
After forceps delivery, patient developed 4th degree perineal tear losing chance for normal delivery: Will doctor be liable for medical negligence? NCDRC answers
After forceps delivery, a woman lost her control over passing urine and stool due to the negligence of a doctor, the Coram of R.K. Agrawal (President) and Dr S.M. Kantikar (Member) upheld the decision of State Commission with respect to compensation of Rs 8 lakhs.
[Medical Negligence] Consumer Protection Act should not be a halter round the neck: NCDRC
In an alleged medical negligence case, the Coram of R.K. Agrawal, President and Dr S.M. Kantikar, Member, reiterates that the “Consumer Protection Act should not be a halter round the neck.”
Infected sponge left in the abdomen of a woman post Caesarean surgery, constitutes medical negligence; NCDRC directs compensation of Rs. 5 lakhs to the aggrieved party
While deliberating upon the instant revision petition claiming medical negligence on part of the doctors who had left a sponge in the complainant’s abdomen after performing a LSCS surgery; the coram of Justice R.K. Agarwal (President) and S.M. Kantikar (Member), relying on the cases of Jacob Mathew v. State of Punjab, (2005) 6 SCC 1 and Achutrao Haribhau Khodwa v. State of Maharashtra, (1996) 2 SCC 634, held that, since a foreign body was left in the system of the complainant during the surgery, it clearly indicated a failure of reasonable degree of care thus constitutes medical negligence. Therefore, without any hesitation, the Commission held the opposite parties liable for medical negligence. The Commission also directed the opposite parties to pay Rs. 5 lakhs to the complainant within 6 weeks from the receipt of the copy of this order.
A child was found HIV + 2 decades ago, after a blood transfusion; NCDRC reprimands discussion on “ifs” and “buts” as it would be against the object of Consumer Protection Act
The Coram of Justice R.K. Agrawal (President) and Dr S.M. Kantikar (Member), on finding that a child was found to be HIV positive after 5 years of his operation for correction of diaphragmatic hernia, held that compensation, in this case, cannot be measured in monetary terms.
“Hospitals are vicariously liable for the acts of negligence committed by their doctors”; NCDRC grants compensation of Rs 1 crore to the parents who lost their only child in a corrective surgery for squint eye
While deciding the instant complaint wherein the issue was that whether the treating doctors at Sankara Nethralaya committed the breach in their duty of care while performing a corrective surgery for squint eye, which was the proximate cause of death of the child; the Bench of R.K. Agarwal, J., (President), Dr. S.M. Kanitkar and Binoy Kumar (Members) observed that it is well established that a hospital is vicariously liable for the acts of negligence committed by the doctors engaged or empanelled to provide medical care and it is common experience that when a patient goes to a hospital, he/she goes there on account of the reputation of the hospital, with the hope that proper care will be taken by the hospital authorities. If the hospital fails to discharge their duties through their doctors, it is the hospital which has to justify the acts of commission or omission on behalf of their doctors.
REAL ESTATE REGULATORY AUTHORITY (‘RERA’)
If change of promoter is left to wisdom of society, it will create chaos and uncontrollable situation leaving fate of flat purchasers in doldrum: Maharashtra Real Estate Appellate Tribunal
The Coram of Indira Jain J., (Chairperson) and Dr K. Shivaji, Member (A), expressed that, if the change of promoter without following the procedure prescribed under the law is left to the wisdom of society, it will not only render the relevant provisions of revocation of registration redundant but also create chaos and uncontrollable situation leaving the fate of allottees /flat purchasers in doldrum.
Maharashtra RERA | Saif Ali Khan to get possession of his office unit in Indian Newspaper Society within a period of 15 days, with interest for delayed possession
In a complaint filed for seeking directions to the respondent to handover the possession and to pay interest/ compensation for the delayed possession as per the provisions of section 18 of the Real Estate (Regulation & Development) Act, 2016 (‘RERA’), Mahesh Pathak (Member) has directed the respondent to handover possession of the said units to Saif Ali Khan-complainant within a period of 15 days from the date of this order and directed to pay interest for the delayed possession to Saif Ali Khan from 1.02.2018 till 12.02.2021.
Builder deliberately not handing over the possession to the allottee despite receiving the whole of consideration; Haryana RERA modifies order of the State Authority to extend due date of delivery of the unit
The bench comprising of Inderjeet Mehta (Judicial Member) and Anil Kumar Gupta (Technical Member), while dealing with the appeal preferred under Section 44(2) of the Real Estate (Regulation and Development) Act, 2016 against the order passed by the Haryana Real Estate Regulatory Authority, Gurugram (‘The Authority’), partly allowed the appeal and modifying the order of the Authority to the extent of changing the due date of delivery of the unit.
SECURITIES EXCHANGE BOARD OF INDIA (‘SEBI’)
Zee Insider Trading Case | In absence of direct evidence, matters of insider trading are to be tested on what grounds? SEBI lifts restrictions on 10 entities
The Coram of Santosh Kumar Mohanty (Whole Time Member) lifted restrictions imposed on 10 Entities who were alleged in insider trading, though the Tribunal added that the said relaxation was being granted subject to the outcome of appeal proceedings filed by SEBI against SAT Order before Supreme Court.
SEBI fines Rs. 7 crores on NSE and nearly 35 crores on guilty officials and stockbrokers in Dark Fibre Case
Dark Fibre/Leased Line connectivity allowed to certain Stockbrokers, theAdjudicating Officer in the matter relating to Dark Fibre/ Leased Line connectivity allowed to certain Stock Brokers, the Adjudicating Officer Suresh B Menon has who was CEO of NSE at the relevant time; observed some irregularities in respect of co-location and corporate governance at National Stock Exchange Limited (‘NSE’) for which it has been penalized with Rs. 7 crores fine. Chitra Ramakrishna, who was CEO of NSE at the relevant time; and Key Management Persons Subramanian Anand, and Ravi Varanasi were fined with Rs. 5 Crores each
SEBI bans Mehul Choksi from securities market for 10 years and imposes a penalty of Rs. 5 Crores for indulging in fraudulent and unfair trade practices.
Mehul C. Choksi has been restrained from buying, selling, or dealing in securities and is prohibited from accessing securities market for a period of 10 years with a penalty of Rs. 5 crores for indulging in fraudulent and unfair trade practices.
FOR MORE UPDATES FROM VARIOUS OTHER TRIBUNALS, COMMISSIONS AND REGULATORY BODIES LIKE APPELLATE TRIBUNAL ELECTRICITY (‘ATE’), ARBITRAL TRIBUNAL(‘AT’), INSOLVENCY AND BANKRUPTCY BOARD OF INDIA, MAHARASHTRA ADMINISTRATIVE TRIBUNAL, MUMBAI, NATIONAL HUMAN RIGHTS COMMISSION (‘NHRC’), NEWS BROADCASTING AND DIGITAL STANDARDS AUTHORITY(‘NBDSA’) SECURITIES APPELLATE TRIBUNAL (‘SAT’) AND MANY MORE, ALSO READ
*Simran Singh, Editorial Assistant has reported this story.