National Company Law Appellate Tribunal
Insolvency proceeding can be restored when Consent term entered between parties includes a revival clause: NCLAT
A Division Bench comprising of Ashok Bhushan, * J., and Barun Mitra (Technical Member), has held that the withdrawn CIRP process can be restored against the Corporate Debtor when the consent terms entered between the parties include a revival clause in case any default is committed by the Corporate Debtor. Read more
While admitting application under Section 7 of the IBC, existence of Debt and Default needs to be examined not ‘Quantum of Debt’: NCLAT
A Division bench comprising of M. Venugopal, J., and Shreesha Merla* (Technical Member), held that at the stage of admission of application under S. 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), the Adjudicating Authority only need to examined whether there is a Debt and Default not the exact ‘Quantum of Debt’ Read more
Can Resolution Professional keep claims in abeyance during pendency of Corporate Debtor’s counter claim before arbitrator? NCLAT Answers
A Division bench comprising M. Venugopal, J., and Shreesha Merla* (Technical Member), held that a Resolution Professional can keep a claim in abeyance on the basis that the counterclaim of the Corporate Debtor is pending for determination in an Arbitration Proceedings. Read more
[Condonation of Delay] Filing of claim under wrong category is not substantial ground for condoning delay: NCLAT
While rejecting an application for condonation of delay, a Division bench comprising Rakesh Kumar Jain, J., and Shreesha Merla* (Technical Member), held that filing of a claim under a wrong category is neither a substantial reason nor can it be construed as a sufficient cause. Read more
Transition between the parties should be direct to construe the debt as ‘Financial Debt’ under Section 5(8) of the IBC: NCLAT
A Division bench comprising M. Venugopal, J., and Shreesha Merla* (Technical Member), held that the owed amount should be a direct disbursal between the Financial Creditor and the Corporate Debtor to construe the same as a ‘Financial Debt’ under S. 5(8) of the Insolvency and Bankruptcy Code, 2016 (IBC). Read more
Whether prior approval of RBI is required by an Asset Reconstruction Company for participating as Co-Resolution Applicant under IBC? NCLAT Answers
While deciding the eligibility of an Asset Reconstruction Company (ARC) as Co-Resolution Applicant, a Division bench comprising M. Venugopal, J., and Shreesha Merla* (Technical Member), held that prior permission of RBI is not required by an ARC for participating as a Co-Resolution Applicant in the Resolution Plan when no equity rights are acquired by the ARC. Read more
Does NCLAT have power to review or recall its judgment? NCLAT 5-member bench answers
A 5-member bench comprising of Ashok Bhushan*, Rakesh Kumar Jain, J Rakesh Kumar, JJ., Dr. Alok Srivastava and Mr. Barun Mitra (Technical Member) held that though NCLAT is not vested with any power to review its judgments, but NCLAT can exercise its inherent power under R. 11 of the National Company Law Appellate Tribunal Rule, 2016 (NCLAT Rules, 2016) to recall its judgements when any procedural error has been committed while delivering the earlier judgment. Read more
Operational creditor cannot seek to initiate CIRP against Corporate Debtor when real dispute exists: NCLAT
A Division bench comprising of Ashok Bhushan, J., and Barun Mitra* (Technical Member) reiterated that an Operational Creditor can only seek to initiate Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor under S. 9 of the IBC, if there exist no real dispute between the parties. Read more
Go Airlines insolvency: NCLAT approves appointment of new Resolution Professional by CoC
A Division bench comprising of Mahendra Khandelwal, J. and Rahul Bhatnagar (Technical Member) approved the appointment of IRP Mr. Shailendra Ajmera as the Resolution Professional of the Corporate Debtor. Read more
Section 74 of Contract Act has no application on Public Auction conducted under the Liquidation Process Regulations, 2016: NCLAT
A Division Bench comprising of Ashok Bhushan*, J., and Barun Mitra (Technical Member), observed that S. 74 of Contract Act, 1872 has no application in the case of public auction conducted by the Liquidator under the IBC Liquidation Process Regulations, 2016. The NCLAT further added that the Liquidator can cancel the sale and forfeiture the amount deposited by the H1 Bidder when the Tender document empowers him to forfeit the EMD/any payment on default by the H1 Bidder. Read more
Can Corporate Debtor raise issue of pre-existing dispute if there is no evidence of any lacuna prior to demand notice? NCLAT answers
While upholding the order passed by the Adjudicating Authority admitting an application filed under S. 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), a Division bench comprising of Ashok Bhushan, J., and Barun Mitra* (Technical Member), opined that a Corporate Debtor cannot raise an issue of pre-existing dispute when there is no evidence of any lacuna prior to demand notice. Read more
Income Tax Appellate Tribunal
Can deemed dividend be taxed in the hands of non-shareholders? ITAT answers
In an appeal filed by Revenue against the order passed by the Commissioner of Income Tax (‘CIT’), wherein he held that the non-reporting of the transaction in the tax audit report could be an error and had no implication on the fact of receipt of unsecured loans by the assessee from the party, the two-member bench of Annapurna Gupta* (Accountant Member) and T.R. Senthil Kumar (Judicial Member) upheld the order of CIT deleting the addition made on account of deemed dividend and said that deemed dividends cannot be taxed in the hands of non-shareholders. Read more
Can revenue bring expenditure incurred in earlier years to be taxed in subsequent years? ITAT answers
In an appeal filed by the assessee against the order of Commissioner of Income Tax (‘CIT’), wherein the CIT upheld the addition made by the Assessing Officer (‘AO’),the two-member Bench of C. M. Garg (Judicial Member) and Dr. B. R. R. Kumar* (Accountant Member) held that the revenue can bring the expenditure incurred in the earlier years to be taxed in the subsequent years, if it is proved that the expenditure incurred was bogus and the revenue can deem the liabilities ceased, as time went, by taking into consideration the period of non-payment of dues and the intention to pay the dues. Read more
CIT was right in deleting addition made on account of low Gross Profit rate by AO without any justified reasoning: ITAT
In an appeal against the order of Commissioner of Income Tax (‘CIT’), the two-member bench of Chandra Mohan Garg*, (Judicial Magistrate) and Pradip Kumar Kedia (Accountant Member) held that the CIT was right in deleting the addition made by the Assessing Officer without any justified reasoning and cogent basis. Read more
National Consumer Disputes Redressal Commission
Loan settled but account frozen for outstanding amount; NCDRC directs HSBC to pay compensation of Rs 15 lakhs for deficiency in services
In a complaint filed against the opposite party (‘HSBC’) primarily seeking declaration of HSBC as deficient in providing banking and allied services, guilty of gross negligence and liable to compensate Rs 3.55 Crores to the complainants, the Presiding Member Dr. Inder Jit Singh directed HSBC to de-freeze the complainants’ savings account and pay compensation of Rs 15 lakhs along with Rs 1 lakh of litigation cost. Read more
NCDRC imposes a penalty of INR 1.5 crores against a hospital responsible for tragic mix-up of a sperm sample used during Intra-Cytoplasmic Sperm injection
While deciding the instant complaint wherein a paternity test had revealed that complainant-2 was not the father of the twins born to his wife via Intra-Cytoplasmic Sperm injection (ICSI) and had thereby alleged medical negligence on part of the hospital; the bench of Dr. S.M. Kantikar (Presiding Member) held the hospital to be negligent and liable for unfair medical practices. Pointing out that the hospital was duty bound to provide quality services but indulged in misleading advertisement to lure anxious infertile couples for Artificial Reproductive Techniques (ART) and adopted unethical practices, the Commission determined a total lump sum liability of INR 1.5 Crores against the opposite parties. Read more
No sensible medical professional would intentionally harm or injure a patient, as their professional reputation would be at stake: NCDRC dismisses complaint against medical professionals
While considering the instant complaint filed under Section 21 of the Consumer Protection Act, 1986 for alleged medical negligence which resulted into death of the complainant’s son; the Bench of Dr S.M. Kantikar (Presiding Member)* was of the view that no sensible medical professional would intentionally commit an act or omission which would result in harm or injury to the patient, since their professional reputation would be at stake. “A single failure or lapse may cost them dear”. Read more
Know why NCDRC rejected claim of medical negligence in Justice Verma’s death
In a complaint by the wife, and children of Justice J.S. Verma, Former CJI seeking directions to the three hospitals and treating doctors to pay exemplary damages and compensation of Rs 10 Crores alleging medical negligence in Justice Verma’s treatment resulting in his death, the Presiding member, Dr S.M. Kantikar and two members namely, Ram Surat Ram Maurya and Dr Inder Jit Singh dismissed the complaint holding that there was no negligence on the part of the doctors who treated Justice Verma. Read more
NCDRC | Hospital wins medical negligence case, but pays compensation on humanitarian grounds
While considering the appeals arising from order passed by State Consumer Disputes Redressal Commission (‘SCDRC’), Kerala holding the opposite parties negligent to pay compensation of Rs. 7 lakhs, Kantikar (Presiding Member) reversed the decision and held that negligence could not be attributed to the hospital and doctors while dismissing the instant appeals and complaint before SCDRC. Read more
National Human Rights Commission
NHRC directs Union Govt and Andhra Pradesh Govt to ensure provision of necessary nutrition to TB patients in Andhra Pradesh
While dealing with a petition highlighting the sorry state of affairs concerning the nutritional support for TB patients in the State of Andhra Pradesh, the Commission in its order dated 28-04-2023, directed the Government of Andhra Pradesh and Union Ministry of Health and Family Welfare to ensure the needful action and submit their “Action Taken Report” to the NHRC within six weeks. Read more
National Financial Reporting Authority
NFRA imposes monetary penalty of Rs. 1.10 Crore on Auditors of Coffee Day Enterprises Ltd
The National Financial Reporting Authority (‘NFRA’) has imposed monetary penalty of Rs. 1.10 Crore on 1 Auditor Firm and 2 Chartered Accountants (Auditors) and debarred the auditors of Coffee Day Enterprises Limited from being appointed as Auditors for professional misconduct. Read more
National Green Tribunal
Mula-Mutha Riverfront Project: NGT prohibits PMC from cutting any trees till July 31
In an application filed against the Pune Municipal Corporation(‘PMC’) for cutting trees for the Mula-Mutha Riverfront Development Project, the two Member Bench of Dinesh Kumar Singh (Judicial Member) and Dr. Vijay Kulkarni (Expert Member), ordered PMC to not cut any trees till the next date of hearing i.e., 31-07-2023. Read more
