Supreme Court
NCLT Can Order Forfeiture Of Entire Deposit If Purchaser Of Liquidation Assets Defaults In Payments : Supreme Court
The Supreme Court held that if a purchaser defaults on payment for assets acquired in liquidation under a judicially supervised sale, the entire amount already deposited may be forfeited. It further clarified that Section 74 of the Indian Contract Act, 1872 cannot be invoked to seek a refund, as no contract exists between the purchaser and the liquidator, the sale being conducted under...
Supreme Court Restores Property Of Corporate Debtor Attached Under PMLA To Successful Resolution Applicant
The Supreme Court recently reiterated that the objective of Section 8(8) of the Prevention of Money Laundering Act(PMLA) is to ultimately restore any attached properties to the bonafide successful resolution application(SRA) who have a legitimate interest in it.Section 8(8) allows the Special Court to direct the Central Government to restore property that has been confiscated under the Act to...
IBC | Section 7 Application Can't Be Rejected For Curable Defects In Affidavit : Supreme Court
The Supreme Court on Monday (November 24) observed that procedural defects in a Section 7 insolvency application under IBC, such as a defective affidavit, are curable and cannot be used as a basis for summary dismissal. “Mere filing of a 'defective' affidavit in support of an application would, however, not render the very application non est and liable to be rejected on that ground as it...
Can Telecom Spectrum License Be Subjected To Insolvency Proceedings? Supreme Court Reserves Judgment
The Supreme Court on Friday reserved judgment in a batch of appeals challenging the National Company Law Appellate Tribunal's decision in the insolvency proceedings of Aircel and Reliance Communications holding that spectrum can be subjected to insolvency/liquidation proceedings being an intangible asset of the Corporate Debtor.The NCLAT further held that the right to use the spectrum can only...
Byju's Insolvency | Supreme Court Refuses To Interfere With NCLAT Order Allowing Byju's Subsidiary Aakash To Proceed With Rights Issue
The Supreme Court on Monday refused to interfere with an order of the National Company Law Appellate Tribunal (NCLAT) which had allowed Aakash Educational Services Ltd., a subsidiary of Byju's (Think and Learn Pvt. Ltd.), to proceed with its proposed rights issue.A bench of Justice PS Narasimha and Justice Atul Chandurkar dismissed two appeals filed by US-based lender GLAS Trust Company LLC...
GLAS Trust Moves Supreme Court Against NCLAT Order Allowing Aakash to Proceed wth Rights Issue
GLAS Trust Company LLC, a US-based lender to embattled ed-tech Byju's (Think & Learn Pvt. Ltd.), has moved the Supreme Court challenging the National Company Law Appellate Tribunal's (NCLAT) order that refused to stay Aakash Educational Services Ltd.'s Extra Ordinary Meeting to approve rights issue.The lender, which represents Byju's largest creditors, has sought an immediate halt to...
Can Multi-State Cooperative Societies Submit Resolution Plans Under IBC? Supreme Court To Consider
The Supreme Court recently directed that the Central Registrar of Multi-State Cooperative Societies be made a party to the appeal filed by a multi-state co-operative society against a National Company Law Appellate Tribunal (NCLAT) judgment that had held the society ineligible to submit a resolution plan for a company under the Insolvency and Bankruptcy Code, 2016.A bench of Justice JB...