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 recoverable amount. If the carrying amount of an asset exceeds its recoverable amount, the asset is considered...

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 recoverable amount. If the carrying amount of an asset exceeds its recoverable amount, the asset is considered...

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 Act, 2013 empowers any member of a company to file an application before NCLT seeking its intervention, when...

Mergers & Acquisitions In India

In the competitive business world today, companies are always looking for ways to minimize costs and increase revenue. In this process, many times companies are amalgamated, merged, demerged, or converted into LLP or partnership firms for economies of scale, to increase in market share and to improve their business, and generally to plan their affairs. On the other hand, acquisitions provide a means of market expansion, diversification, synergy, and technology enhancement among other...

Reversal Of Input Tax Credit In Schedule-I Transactions (Without Consideration): Interplay Between Section 16(2) And Rule 37

Often transactions such as stock transfers, supply of corporate guarantee services, supply of technical and administrative services etc., between related parties (under GST) are carried out without any consideration. Since such supplies fall under the purview of Schedule-I of the CGST Act, the supplier is responsible to pay the applicable taxes to the Government. On the recipients' end, in terms of Section 16 of the CGST Act, the eligibility to avail the Input Tax Credit (“ITC”) would be subject...

Reversal Of Input Tax Credit In Schedule-I Transactions (Without Consideration): Interplay Between Section 16(2) And Rule 37

Often transactions such as stock transfers, supply of corporate guarantee services, supply of technical and administrative services etc., between related parties (under GST) are carried out without any consideration. Since such supplies fall under the purview of Schedule-I of the CGST Act, the supplier is responsible to pay the applicable taxes to the Government. On the recipients' end, in terms of Section 16 of the CGST Act, the eligibility to avail the Input Tax Credit (“ITC”) would be subject...

No Restriction On 'Serious Fraud Investigation' Against Company Owned By CM Pinarayi Vijayan's Daughter: Centre To Kerala High Court

The Central government has informed the Kerala High Court that there is no restriction on investigation by the Serious Fraud Investigation Office into Exalogic Solutions, an IT company owned by CM Pinarayi Vijayan's daughter, which is allegedly involved in CMRL bribery case.The company is alleged to have received kickbacks from Cochin Minerals and Rutile Ltd., without having rendered any service. A probe against it is already initiated under Section 210(1)(c) of the Companies Act,...

Companies Act | Under Sec. 59, Registered Society Can't Seek Rectification Of Share Register Of Company's Members: NCLT Hyderabad

The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Dr. N. Venkata Ramakrishna Badarinath (Judicial Member) and Shri Charan Singh (Technical Member), has held that a company petition filed by a Society registered under Andhra Pradesh Societies Registration Act, 2001, for rectification of share register of the members of a Company under Section 59 of the Companies Act, 2013, is not maintainable. The Bench held that the Society is not a 'person' for the purpose of...