Corporate
BREAKING| Telecom Spectrum Community Resource, IBC Can't Determine Its Ownership & Control : Supreme Court
The Supreme Court today held that the ownership and control of telecom spectrum cannot be determined by the Insolvency and Bankruptcy Code (IBC), since it is a common good. A bench of Justice PS Narasimha and Justice Atul Chandurkar held that the spectrum is a material resource of the community in the Constitutional sense. Hence, the spectrum must benefit the common good, so its control...
Rights Issues In India: Law, Process And Practical Concerns
Rights issue is virtually one of the most common methods used by the companies to raise more cash. Instead of approaching new investors, companies issue new shares to existing shareholders in proportion to their holdings, usually at a discounted price. This is to protect the owners against dilution of their stakes and also provide the company with a boost to its finances. In India, the entire thing is governed by the Companies Act, 2013 and in the case of listed companies there is a dosage of...
Understanding Secondment Under The GST Regime In India
In recent years, several Indian subsidiaries of multinational corporations have received show cause notices (SCNs) from GST authorities seeking to levy tax on salaries paid to employees seconded from foreign group entities. These notices, typically issued under the reverse charge mechanism (RCM), proceed on the premise that secondment arrangements amount to a supply of manpower services by...
Non-Borrowers Can Approach DRT If Affected By SARFAESI Action, Writ Not Maintainable: Rajasthan High Court
While rejecting the writ petition filed by a flat purchaser which was declared a secured asset, the Rajasthan High Court held that even if a person was not a borrower or a guarantor, s/he was entitled to approach Debts Recovery Tribunal (DRT) if their rights were affected by the notice issued under the SARFAESI Act, and they were “aggrieved person”.The bench of Justice Sunil Beniwal...
Party Who Accepted S.11 Order For Arbitrator Appointment Can't Later Question Validity Of Arbitration Clause Under Pre-2015 Regime: Supreme Court
The Supreme Court on Wednesday (February 4) reiterated that under the pre-2015 amendment regime, once a party consents to a court order appointing an arbitrator, they cannot subsequently challenge the existence or validity of the arbitration clause before the arbitral tribunal or in proceedings under Section 34. A bench comprising Justices J.B. Pardiwala and K.V. Viswanathan heard an...
NBFC Status Of Corporate Debtor And Insolvency Jurisdiction
In insolvency litigation, one of the most frequently raised preliminary objections is that the Corporate Debtor is a “Financial Service Provider” (“FSP”) and hence immune from the rigours of the Insolvency and Bankruptcy Code, 2016 (“IBC”). The exclusion under Section 3(7) for the FSP is frequently used as a jurisdictional shield to delay or defeat admission of insolvency petitions. The difficulty arises where an entity once held NBFC registration but had lost that status before initiation of...
Award Passed After Arbitrator's Mandate Expiry Not Void If Court Extends Time: Supreme Court
In a notable development, the Supreme Court on Tuesday (February 3) held that where an arbitral award is rendered beyond the statutory period prescribed under Section 29A, such an award, though rendered after the tribunal's mandate has technically terminated, can be given effect if an application is filed before the competent court under Section 29A seeking extension of the arbitral...
Supreme Court Asks NCLAT To Take Fresh Decision On Whether Probe Needed Against Flipkart Under Competition Act
The Supreme Court on Tuesday set aside the order passed by the National Company Appellate Tribunal (NCLAT) in 2020 directing a probe by the Director General on whether there was any violation of the Competition Act 2000 by Flipkart.The Court remanded the matter to the NCLAT for fresh consideration, after considering Flipkart's argument that the NCLAT passed the order relying on the...
When Arbitration Agreement Is Alleged To Be Forged, Dispute Is Not Arbitrable : Supreme Court
The Supreme Court on Monday (February 2) observed that the parties cannot be compelled to arbitrate when the very existence of the contract containing the arbitration clause was alleged to be fake. “…in a case where plea is taken with regard to non-existence of an arbitration clause or agreement, the same would amount to serious allegation of fraud and would render the subject matter of...
Can Employer Claim Income Tax Deduction On Delayed PF-ESI Deposits? Supreme Court To Settle Conflicting Decisions
The Supreme Court agreed to examine the contentious issue under the tax law of whether an employer is entitled to claim income tax deductions for employees' Provident Fund (PF) and Employees' State Insurance (ESI) contributions that are deposited after the prescribed due date. A bench of Justices JB Pardiwala and Sandeep Mehta issued notice in an appeal filed against the Delhi High...
'Will US Authorities Cooperate If Indians Seek Information?' : Supreme Court Asks Pfizer On Plea To Access Indian Company's Docs
The Supreme Court today, while hearing a plea by US pharmaceutical giant Pfizer, asked whether foreign courts and Western Authorities would cooperate in providing information to India, when it comes to abiding by the principle of reciprocity. The bench of CJI Surya Kant and Justice Joymalya Bagchi was hearing the challenge to the Madras High Court order, which refused Pfizer to enforce...