The Hon’ble Supreme Court[1] expounded the applicability of Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 (TOLA) with respect to the newly introduced scheme of income escaping assessment/re-assessment introduced into the Income Tax Act (ITA) vide Finance Act, 2021 if any action falls due during Covid-19 disruption period (March 20, 2020 to March…
In a recent ruling dated October 15, 2024, the Hon’ble NCLAT has ruled that the provisions of the Income Tax Act do not create any charge or security interest. Further, while deciding on another issue concerning the method of communication of the status of the claim, the Tribunal held that posting the status of claims…
In its landmark decision, the Hon’ble Supreme Court of India, revisited the aspect of invocation of the inherent powers of the Hon’ble National Company Law Appellate Tribunal under Rule 11 of the National Company Law Appellate Tribunal Rules, 2016. The Hon’ble Supreme Court disapproved a settlement without having followed the prescribed procedure for withdrawal of…
The Hon’ble Supreme Court of India, in the case of Vidyasagar Prasad v UCO Bank has reiterated the position that the entries in the balance sheets of a company, coupled with the note of the auditor, amounts to clear acknowledgment of debt. The Hon’ble Supreme Court also noted that a one-time settlement proposal made by…
The National Company Law Appellate Tribunal (NCLAT) has issued a significant ruling regarding the treatment of funds in a ‘No Lien Account’ during the Corporate Insolvency Resolution Process (CIRP). The Tribunal held that any amount lying in the ‘No Lien Account’ must be considered an asset of the Corporate Debtor. This decision is a game-changer…
In a recent ruling, the National Company Law Tribunal (NCLT) addressed a complex case involving the Gujarat State Road Development Corporation (Applicant) and Valecha Kachchh Toll Roads Ltd. (Corporate Debtor). The case centered around the Corporate Debtor’s failure to complete a road project on the Bhuj-Bhachau section of State Highway No. 42 in Gujarat, despite…
In a significant ruling, the Appellate Tribunal has clarified the applicability of interim moratoriums under Section 96 of the Insolvency and Bankruptcy Code (IBC). The Tribunal determined that the interim moratorium applies solely to personal guarantees and not to the assets of partnership firms, allowing creditors to proceed with the auction of partnership properties despite…
The Hon’ble Supreme Court (SC), vide its judgement in NDMC v. S.A. Builders Ltd. clarified that the 30-day time limit provided under Section 33(1) of the Arbitration and Conciliation Act, 1996 is flexible and stated that the same can be extended by the parties. The present case pertains to a challenge to the clarification…
Background: This dispute arose out of a railway electrification contract between the Central Organization for Railway Electrification (“CORE”) and M/s ECI-SPIC-SMO-MCML (JV). This contract included an arbitration clause (Clause 64(3)(b) of the Indian Railways General Conditions of Contract), which stipulated that any dispute arising out of this contract would be resolved by a panel…
The Supreme Court of India has held that the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC) override the Special Economic Zone Act and Rules. The judgment reiterates the overriding effect of IBC over other statutes and that valuations done following due process should not be interfered with, if based on relevant material. …