{"id":260563,"date":"2022-01-25T12:30:00","date_gmt":"2022-01-25T07:00:00","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=260563"},"modified":"2022-01-24T17:28:38","modified_gmt":"2022-01-24T11:58:38","slug":"2021-scc-vol-9-part-2","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/01\/25\/2021-scc-vol-9-part-2\/","title":{"rendered":"2021 SCC Vol. 9 Part 2"},"content":{"rendered":"
\n

In this part read a very interesting decision expertly analysed by our editors. Supreme Court ruled that the trustees are required to seek consent by majority of the unit holders, when they by majority decide to wind up a \u00a0mutual fund scheme. Also, consent by majority of the unit holders should be sought post-publication of the notice and disclosure of the reasons for winding up.[Franklin Templeton Trustee Services (P) Ltd. v. Amruta Garg, (2021) 9 SCC 606<\/a>]<\/p>\n

Short Notes: 15<\/strong><\/span><\/p>\n<\/blockquote>\n

\n

Civil Procedure Code, 1908 \u2014 S. 25 \u2014 Transfer of cases \u2014 Matrimonial dispute:<\/strong> In this case, prayer for transfer of case, declined. However, directions on manner of conducting of proceedings were issued. Trial court was directed to conduct proceedings online for effective participation of parties, if facility available. [Pooja Hemani v. Manish Hemdev, (2021) 9 SCC 320<\/a>]<\/p>\n

Companies Act, 2013 \u2014 Ss. 241 and 242 \u2014 Conduct of affairs of company prejudicial to public interest, or, to the company, or, prejudicial or oppressive to any member(s) of company \u2014 Relief on grounds of, under S. 241(1)(a) r\/w Ss. 242(1)(a) & (b) \u2014 When can be granted:<\/strong> In a petition under S. 241, the true question to be asked by the Tribunal is whether removal of a Director\/Executive Chairman tantamounts to conduct which is oppressive or prejudicial to some members. Further, even in cases where the Tribunal finds that the removal of a Director was not in accordance with law or was not justified on facts, the Tribunal cannot grant relief under S. 242 unless the removal is found to be oppressive or prejudicial. There may be cases where the removal of a Director might have been carried out perfectly in accordance with law and yet may be part of a larger design to oppress or prejudice the interests of some members and in such cases the Tribunal can grant a relief under S. 242. [Tata Consultancy Services Ltd. v. Cyrus Investments (P) Ltd., (2021) 9 SCC 449<\/a>]<\/p>\n

Constitution of India \u2014 Art. 226 \u2014 Passing of order in casual and\/or cryptic manner \u2014Unsustainability of:<\/strong> In this case, dispute between appellant and R-4 concerning alleged right to way of R-4 decided by Revenue Authorities against appellant. As appeal was dismissed, that order was challenged before High Court. While dismissing the writ petition, High Court passed cryptic order without considering essential issues. The Supreme Court held that the High Court ought to have considered essential issues arising in the matter in more detailed manner. Hence, writ petition was restored for decision afresh in accordance with law. [Sulochanabai Swaropchand Chawre v. Commr., Amravati, (2021) 9 SCC 317<\/a>]<\/p>\n

Constitution of India \u2014 Arts. 21 & 22 and Art. 19 \u2014 Preventive detention laws \u2014 Interpretation of: <\/strong>Preventive detention laws to be interpreted in light of Arts. 21 & 22 and not Art. 19. Hence, \u201cmaintenance of public order\u201d and \u201cpublic order\u201d in the context of preventive detention laws have to be interpreted in light of Arts. 21 & 22. Hence, ruling in Madhu Limaye, (1970) 3 SCC 746<\/a> that liberal meaning must be given to \u201cpublic order\u201d, held, is not applicable in interpreting \u201cpublic order\u201d in the context of preventive detention laws. Madhu Limaye case dealt with scope of expression \u201cin the interests of public order\u201d occurring in Arts. 19(2) to 19(4). [Banka Sneha Sheela v. State of Telangana, (2021) 9 SCC 415<\/a>]<\/p>\n

Contempt of Court \u2014 Criminal Contempt \u2014 General principles \u2014 Prejudice to or interference with judicial proceeding: <\/strong>In this case, suo motu proceedings were initiated by Court. Misconception of fact, was clarified before the Court. Suo motu proceedings were dropped and notice was discharged. Review petition on main matter, found to be without merit and review petitioner’s apprehensions to be baseless, hence, review petition dismissed with certain clarifications to allay apprehensions of review petitioner. [Bhavna Lall, In re., (2021) 9 SCC 314<\/a>]<\/p>\n

Criminal Procedure Code, 1973 \u2014 S. 482 \u2014 High Court’s power under \u2014 Scope of:<\/strong> High Court’s power under this section cannot be used to undermine a statutory dictate, in present case provided under Ss. 14 and 17 of the Insolvency and Bankruptcy Code, 2016 (IBC). Hence, interim order of High Court defreezing bank account of person concerned who had allegedly conspired with MD of corporate debtor to violate moratorium under S. 14 IBC, modified to the effect that said bank account could only be operated once amount in question transferred in violation of S. 14 IBC, was returned to corporate debtor. National Plywood Industries Ltd. [Resolution Professional v. JSVM Plywood Industries Ltd.,(2021) 9 SCC 401<\/a>]<\/p>\n

Income Tax Act, 1961 \u2014 Ss. 12-AA and 80-G:<\/strong> Cancellation of registration under S. 12-AA as charitable trust and approval granted under S. 80-G for deduction of donations made to such trust held, proper in present case as the facts clearly show that donations were bogus in nature and registration and approval conferred upon respondent Trust under Ss. 12-AA and 80-G were being completely misused by the Trust. [CIT v. Batanagar Education & Research Trust, (2021) 9 SCC 439<\/a>]<\/p>\n

Insolvency and Bankruptcy Code, 2016 \u2014 Ss. 2(e), 78, 79, 94 to 187, 239(2)(g), (h) & (i), (m) to (zc), (zn) to (zs) and 249 and S. 1(3) & proviso thereto:<\/strong> Validity of Notification dt. 15-11-2019 bringing into force provisions of IBC applicable to personal guarantors of corporate debtors, upheld. It was held that there is no illegality in Government bringing into force different provisions of IBC in a stage-by-stage process by repeatedly invoking the power of conditional legislation in this regard conferred by IBC, as the same has been done in a rational manner to better effectuate the objectives of IBC. Moreover, there is sufficient indication in IBC indicating that personal guarantors, though forming part of the larger grouping of individuals, are to be, in view of their intrinsic connection with corporate debtors, dealt with differently, through the same adjudicatory process and by the same forum (though not the same insolvency provisions) as the corporate debtors. Thus, held, impugned notification was issued within the power granted by Parliament, and in valid exercise of it. Amendment Act of 2018, altering S. 2(e) and sub-categorising three categories of individuals, resulting in Ss. 2 (e), (f) and (g), held, provides the necessary statutory backing for Government to apply IBC, in such a manner as to achieve the objective of the amendment i.e. to ensure that adjudicating body dealing with insolvency of corporate debtors also has before it the insolvency proceedings of personal guarantors of such corporate debtors. [Lalit Kumar Jain v. Union of India, (2021) 9 SCC 321<\/a>]<\/p>\n

SEBI (Mutual Funds) Regulations, 1996 \u2014 Regns. 18(15)(c), 39(2)(a) and 39(3) \u2014 Winding up of mutual fund scheme \u2014 Consent of majority of the unitholders, as envisaged under Regn. 18(15)(c): <\/strong>Regn. 18(15)(c) mirrored by use of the word \u201cshall\u201d is couched as a command. Further, the expression \u201cwhen the majority of the trustees decide to wind up\u201d in Regn. 18(15)(c) manifestly refers to Regn. 39(2)(a) as this is the only Regulation which entitles the trustees to wind up the scheme. Further, Regn. 18(15)(c), when it refers to trustees\u2019 decision to wind up, it implies the trustees\u2019 opinion to wind up the scheme. Applying the principle of harmonious construction, held, the opinion of the trustees would stand, but the consent of the unitholders is a prerequisite for winding up. Also, investments by the unitholders constitute the corpus of the scheme and to deny the unitholders a say, when Regn. 18(15)(c) requires their consent, debilitates their role and right to participate. [Franklin Templeton Trustee Services (P) Ltd. v. Amruta Garg, (2021) 9 SCC 606<\/a>]<\/p>\n

Telecommunications Laws \u2014 Telecom Agreement\/Telecom Licence\/Spectrum Allocation\/Scams\/Auction\/Licence Fees \u2014 Licence fees \u2014 National Telecom Policy, 2012 \u2014 Sharing Guidelines dt. 24-9-2015 \u2014 AGR dues:<\/strong> In this case, applications purportedly for correction or rectification of defects or arithmetical errors in calculation of AGR dues of TSPs (telecom service providers) as specified in order of Supreme Court dt. 20-7-2020, Assn. of Unified Telecom Service Providers of India, (2020) 3 SCC 525, held, not maintainable as allowing the same would amount to allowing recalculation\/recomputation of AGR dues which has been held to be impermissible in earlier orders of Supreme Court pertaining to this issue. [Union of India v. Assn. of Unified Telecom Service Providers of India, (2021) 9 SCC 445<\/a>]<\/p>\n","protected":false},"excerpt":{"rendered":"

In this part read a very interesting decision expertly analysed by our editors. Supreme Court ruled that the trustees are required to <\/p>\n","protected":false},"author":8808,"featured_media":249204,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5,16],"tags":[4751,48432,29785,11411],"class_list":["post-260563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casesreported","category-supremecourtcases","tag-scc","tag-2021-scc-vol-9-part-2","tag-law","tag-supreme-court-cases"],"yoast_head":"\n2021 SCC Vol. 9 Part 2 | SCC Times<\/title>\n<meta name=\"description\" content=\"2021 SCC Vol. 9 Part 2\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2022\/01\/25\/2021-scc-vol-9-part-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta 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Custodial torture of petitioner was alleged before Division Bench of High Court which directed his medical examination. Both aforesaid orders were\u2026","rel":"","context":"In "Cases Reported"","block_context":{"text":"Cases Reported","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casesreported\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/SCC_Standard.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/SCC_Standard.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/SCC_Standard.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/SCC_Standard.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/SCC_Standard.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":251399,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/16\/franklin-templeton-3\/","url_meta":{"origin":260563,"position":1},"title":"Consent by majority of unit holders necessary when trustees decide to wind up Mutual Fund Scheme; SEBI (Mutual Funds) Regulations not arbitrary; Reg. 53 is ‘grey area’: SC in sequel to Franklin Templeton matter","author":"Editor","date":"July 16, 2021","format":false,"excerpt":"Supreme Court: In a sequel to its earlier order directing winding up of six mutual fund schemes of Franklin Templeton Mutual Fund, a Division Bench of S. Abdul Nazeer and Sanjiv Khanna, JJ. ruled that the trustees are required to seek consent by majority of the unit holders, when they\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-7-1.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-7-1.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-7-1.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-7-1.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-7-1.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":246840,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/04\/10\/2021-scc-vol-2-part-2\/","url_meta":{"origin":260563,"position":2},"title":"2021 SCC Vol. 2 Part 2","author":"Bhumika Indulia","date":"April 10, 2021","format":false,"excerpt":"SCC Issue dated February 28th, 2021 (Vol. 2 Part 1) Read the significant judgment of the Supreme Court expertly analysed by our Editors in over 12 Short Notes. The Judgment held that with the change in the manner of publishing gazette notifications from analog to digital, the precise time when\u2026","rel":"","context":"In "Cases Reported"","block_context":{"text":"Cases Reported","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casesreported\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/07\/scc-14-7-2017.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/07\/scc-14-7-2017.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/07\/scc-14-7-2017.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/07\/scc-14-7-2017.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/07\/scc-14-7-2017.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":224122,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/01\/10\/2019-scc-vol-10-december-28-2019-part-5\/","url_meta":{"origin":260563,"position":3},"title":"2019 SCC Vol. 10 December 28, 2019 Part 5","author":"Bhumika Indulia","date":"January 10, 2020","format":false,"excerpt":"Government Grants, Largesse, Public Property and Public Premises \u2014 Transfer of lease\/allotted plot: In this case, industrial land was given to the original allottee at a price fixed by Bihar Industrial Area Development Authority (BIADA). 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