COMPANY LAW
Court Must See If Company Is A Threat To Commercial World For Winding Up U/S 433(f) Of Companies Act: Allahabad High Court
The Allahabad High Court has held that for winding up of a company under Section 433(f) of the the Companies Act, the Court must opine that the company is a threat to the commercial world if it remains in existence.Rejecting the application for winding up of a company, Justice Pankaj Bhatia held “To appreciate a case for winding up of a company on the ground that it is just and equitable, it...
Schrödinger's Cat of Jurisdiction
Is it possible to exist in two states at once, alive and dead, until observed? The thought experiment - 'Schrodinger's cat' offers us the answer to it. On similar lines, jurisdictional boundaries in corporate law often exist in a state of quantum ambiguity, much like Schrödinger's cat—neither fully alive (adjudicatory) nor entirely dead (non-adjudicatory) until the box is opened, that is to say, until a prima facie analysis is run. The Tribunals (National Company Law Tribunal and National...
SAT's Achilles' Heel: The Urgent Case For Contempt Powers
Born from a need for expediting resolutions, tribunals have evolved into an indispensable part of the Judiciary since they represent the hope to satisfy public demand for quick and effective justice. Still, a Tribunal needs respect and adherence to its decisions if it is to be an authoritative judicial body. While tribunals such as the National Company Law Tribunal (“NCLT”) and National Company Law Appellate Tribunal (“NCLAT) wield codified contempt powers to enforce their orders, the...
Pre-Pack Insolvency Resolution: A Solution for MSME Distress? - Examining India's Pre-Pack Schemes And Their Role In Resolving MSME Insolvency
63 million MSMEs employ nearly 115 million individuals, contributing to over 30% of India's GDP. MSMEs in India are also renowned for producing over 6,000 products, a good part of which earns precious forex. When the pandemic struck, there was a need to safeguard these MSMEs from adverse financial conditions. Enter pre-pack insolvency resolution process (PPIRP). The legal-process balanced the interests of stakeholders by ensuring that the company continued its operations and the overall business...
Eligibility Of Suspended Director To Submit A Resolution Plan: Revisiting Hari Babu Thota
Section 29A of the Insolvency and Bankruptcy Code, 2016 (“IBC”), excludes certain classes of persons from submitting a resolution plan in the Corporate Insolvency Resolution Process (“CIRP”) of a Corporate Debtor (“CD”). This includes the promoter or suspended director of a CD[1] among others. The objective of this provision is to inter alia eliminate the risk of an unsuitable person such as a defaulting promoter from submitting a resolution plan and returning to the management of the CD...
Eligibility Of Suspended Director To Submit A Resolution Plan: Revisiting Hari Babu Thota
Section 29A of the Insolvency and Bankruptcy Code, 2016 (“IBC”), excludes certain classes of persons from submitting a resolution plan in the Corporate Insolvency Resolution Process (“CIRP”) of a Corporate Debtor (“CD”). This includes the promoter or suspended director of a CD[1] among others. The objective of this provision is to inter alia eliminate the risk of an unsuitable person such as a defaulting promoter from submitting a resolution plan and returning to the management of the CD...
Roc Hyderabad Imposes Rs. 40,000 Penalty On Sai Silks (Kalamandir) Limited And Directors For Non-Disclosure Of Asset In Rs. 50.94 Million Impairment Loss
The Registrar of Companies, Hyderabad has held imposed a penalty of Rs. 40,000/- on Sai Silks (Kalamandir) Limited and its directors for failure to disclose the nature of the asset associated with an impairment loss of Rs. 50.94 million. IND AS 36 deals with the impairment of assets. This standard requires companies to ensure that their assets are carried at no more than their...
Roc Hyderabad Imposes Rs. 40,000 Penalty On Sai Silks (Kalamandir) Limited And Directors For Non-Disclosure Of Asset In Rs. 50.94 Million Impairment Loss
The Registrar of Companies, Hyderabad has held imposed a penalty of Rs. 40,000/- on Sai Silks (Kalamandir) Limited and its directors for failure to disclose the nature of the asset associated with an impairment loss of Rs. 50.94 million. IND AS 36 deals with the impairment of assets. This standard requires companies to ensure that their assets are carried at no more than their...
A Study On Inherent Power Of NCLT To Recall CIRP
The purpose of Courts is to dispense justice which necessarily means both timely justice and quality justice. The interest of every party has to be taken care of by the court. However, at certain times procedural errors might take place, that need to be rectified, otherwise the whole proceeding will get vitiated.[1] For so doing, it becomes necessary that every court has the power to rectify the wrongs done in the misbelief of facts. These powers are also needed in such situations where...
“Accustomed To Act” Test Under Indian Corporate Law – An Objective Critique Of The Inherent Subjectivity
Objectivity is a key attribute of any legislation. The element of objectivity is critical to ensure clarity in a way that there is little or no room for more than one interpretation. That said, history is witness to a plethora of cases of ambiguities in interpretation or legal “grey areas” which have been time and again evaluated and somewhat settled by judicial intervention. The interplay of subjectivity and objectivity in any statute lies at the core of such statute. While objectivity...
Cognitive Enhancement Drugs In Academic And Professional Settings: Legal And Ethical Considerations
In a world where the boundaries between human and machine blur with each passing day, a new frontier of human enhancement has emerged, not in the realm of cybernetics or genetic engineering, but in the form of tiny pills promising to unlock the full potential of our minds. Welcome to the era of cognitive enhancement drugs, where the pursuit of mental superiority has become the latest battleground in academic halls and corporate boardrooms alike.The Allure and Efficacy of Smart DrugsImagine a...
Companies Act | NCLT Mumbai Dismisses Oppression-Mismanagement Petition For Being In The Nature Of Family Property Dispute
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Justice Shri V.G. Bisht (Judicial Member) and Shri Prabhat Kumar (Technical Member), has dismissed a petition filed under Section 241-242 of the Companies Act, 2013, citing that the petition is in the nature of a family dispute for share in the properties owned by the Company. Section 241 of the Companies...