Companies Act | NCLT Permits 'Change' In Utilization Of Share Capital Reduction Amount By Invoking Powers Under Rule 11 Of NCLT Rules

The National Company Law Tribunal (NCLT), Chennai Bench, comprising of Shri Sanjiv Jain (Judicial Member) and Shri Ravichandran Ramasamy (Technical Member), while invoking its powers under Rule 11 of the NCLT Rules, 2016 has permitted a company to 'change' the utilization of its reduced share capital amount by altering the amounts to be adjusted towards Negative Capital Reserves and...

S.469 CrPC | Date Of Knowledge Of Offence Decides Limitation Period, Issuance Of Notice By ROC To Accused Company Indicates Knowledge: Telangana HC

The Telangana High Court has held that as per Section 469 of CrPC, issuance of notice by the Registrar of Companies indicates knowledge of the offence committed by the accused company and that this determines the limitation period.Justice K. Surender clarified that the date of issuance of sanction by the Central Government for initiating a complaint cannot be taken as the date of...

NCLT Mumbai: Tribunal Is A Judicial Authority With Power To Refer Matter To Arbitration If Dispute Falls Within Scope Of Arbitration Agreement

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Mr. Kishore Vemulapalli (Judicial Member) and Mr. Prabhat Kumar (Technical Member), dismissed an application and held that the Tribunal is a judicial authority, and has the power to refer the matter to Arbitration if it finds that the dispute is arbitral and falls within the scope of...

Corporate Ministry Can Order Company To Change Name After 12 Months If Deceptively Similar To Another Priorly Registered Company: Telangana HC

The Telangana High Court has upheld that the Regional Director, Ministry of Corporate Affairs is authorised to direct a company for change of name, even after expiry of 12 months, if it has reason to believe that the company incorporated at a later date is trying to pass off as a Company incorporated on a prior date.Justice K Lakshman has conceded with the view taken by the Delhi High Court...

Customs Act Does Not Create A Statutory First Charge Overriding Charge In Favour Of Secured Creditor Under S. 529A Of Companies Act : Supreme Court

The Supreme Court has ruled that in case of winding up of a company, the customs duty owed by the company would be treated as a preferential payment under Section 530(1) (a) of the Companies Act, 1956. But customs duty would not override and be given preference over the payments due to overriding preferential creditors covered under Section 529A of the Companies Act, which include the...

Guidelines On First Loss Default Guarantee: Brief Summary And Takeaways

Preface and regulatory developmentsWith increased penetration of internet and technological innovation, there has been a surge of FinTech players. Especially in digital lending space, there has been an increased reliance placed by the regulated entities (i.e., the banks and non-bank financial companies who are permitted to carry out lending business) (“RE”) upon third party lending service providers (“LSPs”). The LSPs (mostly unregulated) are essentially technology-centric entities which have...

Economic Offences Are Serious But Severity Of Allegations Cannot Be Justification For Pre-Trial Incarceration: Delhi High Court

Observing that severity of allegations cannot be a justification for pre-trial incarceration, the Delhi High Court has granted bail to a Director of M/s Parul Polymers Pvt Ltd. in a case under Section 447 of the Companies Act, 2013.Justice Anup Jairam Bhambhani said, “Needless to add, that nothing in this judgment should be taken to detract from the position that economic offences are...

MCA Approves Withdrawal Of 7,338 Prosecutions Pending In Courts Under Companies Act

The Ministry of Corporate Affairs (“MCA”), Government of India has issued a Press Release dated 14.07.2023, notifying that it has approved withdrawal of another 7,338 prosecutions pending before courts under Special Arrears Clearance Drive-II, in order to promote Ease of Doing Business and decriminalize compoundable offences under Companies Act, 2013. Withdrawal will lead to...

Using Fairness Opinions By IFAs To Improve India’s RPT Framework

Related Party Transactions [‘RPT’] refers to dealings between parties with an existing relationship or a common motive. Due to concerns with conflicts of interest and abuse of power in such transactions, the Securities and Exchange Board of India [‘SEBI’] has put in place measures in the Companies Act as well as the SEBI Listing Obligations and Disclosure Requirement [‘LODR’] Rules to prevent misuse of the power that the agents possess. However, the same have fallen short in the past....

Singh & Singh Law Firm LLP Announces Its Attorney Promotions For 2023

Amidst a spree of promotions, Singh & Singh Law Firm LLP recently announced its promotions at the onset of the new financial year. The matrix is a well-balanced mix of attorneys with a range of skills and experiences being promoted across various profiles. Rohan Swarup, Kunal Vats, Nitya Sharma, and Devanshu Khanna are now Associate Partners in the Firm. This increases the number of Associate Partners to an updated count of 7. In addition to the new deck of Associate Partners, the...

Prosecution Can’t Only Recite From Complaint To Oppose Bail In Cases With Additional Conditions For Bail: Delhi High Court

The Delhi High Court has observed that the prosecution cannot only recite from a complaint or simply say that it has material against an accused in respect of those offences for which twin conditions are stipulated in a statute for grant of bail. Justice Anup Jairam Bhambhani said that the prosecution must show how the material collected during investigation supports allegations in the...

Corporate Mismanagement And Oppression

Corporate mismanagement and oppression are persistent issues that have plagued organizations and their employees for many years. Mismanagement in various forms, including financial, ethical, and operational mismanagement, has resulted in decreased productivity, low morale, and reduced profitability. On the other hand, corporate oppression, which includes discrimination, harassment, and abuse, has dire consequences, such as employee turnover and decreased productivity. This research paper...