Cases Reported in Comp Cas| Latest Cases on Company Laws

Corporate Laws — Company Law — Directors — Serious Fraud Investigation — Look out circular against erstwhile promoter-director of company under investigation by Serious Fraud Investigation Office — Failure to come to court with clean hands and that by itself disentitling him to grant of any discretionary relief — Held, paramount to National interest and interests of stakeholders who have been deprived of their hard earned investments in company and other companies to be safeguard — Denial by special judge to suspend look out circular and permission to go abroad to be affirmed [Shivinder Mohan Singh v. SFIO, (2025) 253 Comp Cas 379]

Corporate Laws — Company Law —Winding up and Liquidation — Proof of claims to be filed before liquidator — Application to release amount — Allegations that incompetent and unprofessional advice given to it by erstwhile counsel — Held, failure by creditor to comply with formalities and eventually waiving rights in lieu of placing a claim before official liquidator — Amount deposited should be utilised for satisfying claims of secured creditors — Creditor at liberty to submit claim before liquidator [Usha Jain v. Vigneshwara Developwell (P) Ltd., (2025) 253 Comp Cas 485]

Insolvency and Bankruptcy Laws — Corporate Insolvency — Liquidation — Recovery of statutory dues — Acquisition of corporate debtor as going concern — No legal proceedings can be instituted by or against corporate debtor after liquidation order — Claim of Department extinguished upon approval of acquisition of corporate debtor as going concern and issuance of sale certificate — Held, direction to concerned authority to remove charge on corporate debtor’s property from revenue records [Su-Kam Power System Ltd. v. State of H.P., (2025) 253 Comp Cas 511]

Corporate Laws — Company Law — Offences and prosecution — Wrongful withholding of company’s property — Petition to quash proceedings — Held, Trial Court to decide case on its merits — Order of rejection of discharge from case by Magistrate Court — Proper [Meeta Bansal v. State of W.B., (2025) 253 Comp Cas 697]

Corporate Laws — Company Law — Notice — Show-cause notice — Transaction in securities — Securities and Exchange Board of India — Writ — Res judicata — Challenging on ground that delay and laches in issuance of show-cause notice — Held, no case made out showing delay or laches — Writ petition dismissed [Nalwa Sons Investments Ltd. v. SEBI, (2025) 253 Comp Cas 776]

Insolvency and bankruptcy laws — Corporate Insolvency — Moratorium — Effect — Prevention of money-laundering — Provisional attachment of property — Power to attach or confiscate ceases only on approval of resolution plan or on initiation of liquidation proceedings — Held, orders of provisional attachment and confirmation under Act not interfered with — Resolution professional can seek release of provisionally attached property in accordance with law [Rajiv Chakraborty v. Enforcement Directorate, (2024) 252 Comp Cas 12]

Insolvency and bankruptcy laws — Corporate Insolvency— Assets of corporate debtor — Assets sold during liquidation proceedings —Held, no material to form “reason to believe” that properties acquired by auction purchaser were proceeds of crime — Provisional attachment order passed on mere suspicion set aside [Welspun Steel Resources (P) Ltd. v. Union of India, (2024) 252 Comp Cas 130]

Insolvency and bankruptcy laws — Corporate Insolvency — Insolvency resolution — Proceedings initiated against personal guarantor — Writ to quash demand notice — Held, not maintainable [Vineet Saraf v. Rural Electrification Corpn. Ltd., (2024) 252 Comp Cas 499]

Insolvency and bankruptcy laws — Corporate Insolvency — Insolvency resolution — Overriding effect of Code — Attachment of assets sold during liquidation proceedings — Protection granted under Sections 33(5) and 32A(2) of Code would override power of Adjudicating Authority under Act to attach properties — Held, orders passed without jurisdiction to be set aside [AM Mining India (P) Ltd. v. Union of India, (2024) 252 Comp Cas 557]

Debt, financial and monetary laws — Banking business — Banker and customer — Declaration as wilful defaulter — Show-cause notice and decision of wilful defaulter identification committee solely relying on transaction audit report — Review committee mechanical grouping list of borrowers and affirming of wilful defaulter declaration ignoring natural justice and master circular — Held, failure by review committee to pass reasoned order — Decisions of both committees declaring borrowers as wilful defaulters to be reversed [Vishambhar Saran v. Central Bank of India, (2024) 252 Comp Cas 798]