COMPANY LAW
White-Collar Crimes Not Committed By Sudden Provocation But With Deep Understanding Of Consequences: Madras High Court
Denying bail to the former CEO of Surana Group of Companies in the alleged case of defrauding various banks to the tune of Rs 10,000 Crore, the Madras High Court recently observed that white-collar crimes are particularly harmful to the society as they are committed by well-educated and influential persons who understood the consequence of their actions. Justice AD Jagadish Chandira in the order said: Among other crimes, this sort of white-collar crimes are particularly harmful to...
Foreign Direct Investment In India: Law And Procedure
1.1 What is FDI? Foreign Direct Investment is an investment when a foreign company or individual acquires the stakes in the ownership of a business situated in another country. In terms of Rule 2(r) of Foreign Exchange Management (Non-debt Instruments) Rules, 2019, "Foreign Direct Investment means investment through equity instruments by a person resident outside India in an unlisted Indian company; or in ten percent or more of the post issue paid-up equity capital on a fully diluted...
NCLT Hyderabad Directs Emaar Group To Compensate Govt. Of Telangana In The Case Share Transfer To Emmar MGF Land Ltd
The National Company Law Tribunal ("NCLT"), Hyderabad Bench, comprising of Shri Bhaskara Pantula Mohan (Judicial Member) and Dr. Binod Kumar Sinha (Technical Member), while adjudicating an application filed in Telangana State Industrial Infrastructure Corporation v M/s Emaar Hills Township Pvt. Ltd. & Ors., has allowed a petition filed under Section 241-242 of the Companies Act, 2013 by Telangana State Industrial Infrastructure Corporation (TSIIC) against Emaar Hill Township Pvt....
S.138 NI Act | Non-Executive Directors Not Liable For Company's Actions/ Omissions Unless Involved In Day-To-Day Affairs: Bombay High Court
The Bombay High Court has quashed criminal proceedings against independent non-executive directors of Tecpro Systems Ltd while stating that they were not responsible for day-to-day functioning of the company. The court was dealing with an application requesting quashing of criminal proceedings before the trial court in a cheque bounce case under the Negotiable Instruments Act. "Non-executive director not being a promoter of or key managerial persons shall be held liable, only in respect...
Company Law Committee Report 2022 Suggests Many Amendments, Including Issue Of Fractional Shares
The latest Company Law Committee Report(CLC Report)of 2022 has proposed various significant amendments to the existing framework of the Companies Act, 2013 and some in the Limited Liability Partnership Act, 2008 ("LLP Act"). The Company Law Committee has been constituted by the Ministry of Corporate Affairs (MCA) and entrusted with responsibilities including promotion of greater ease of doing business for law-abiding corporates and improving the operational efficiency of the Companies...
Municipal Authority Can Rely On Previous Blacklisting Resolution Which Is Set Aside By Court, Must Justify It In Final Order: Gujarat High Court
The Gujarat High Court has permitted the Vadodara Municipal Corporation to rely on a previous blacklisting order passed by it against a Road Contractor, which was set aside by the High Court for being non-compliant with principles of natural justice, while issuing a fresh notice to the contractor in relation to three work orders.However, the Bench comprising Chief Justice Justice Aravind Kumar and Justice Ashutosh J. Shastri made it clear that the Corporation shall have to justify the same while...
NCLT-Kochi allows First Motion application in MIDAS Group merger
The National Company Law Tribunal ("NCLT"), Kochi Bench, comprising of Shri Ashok Kumar Borah (Judicial Member) and Shri Anil Kumar (Technical Member), while adjudicating a joint application filed under Sections 230 to 232 of the Companies Act, 2013 by thirteen Midas Group companies seeking sanction of Scheme of Amalgamation between them, has allowed the transferor companies to dispense with the requirements of convening Shareholder's and Creditor's meeting. The order was passed on...
Madras HC Holds Execution Petition Over Beneficial Ownership Of Award Debtor In Shares Held Ostensibly By Third Parties Maintainable
Madras High Court has recently held that the execution petition filed by a company incorporated in the Republic of Marshall Islands, in pursuance of a foreign arbitral award in its favour, against another company with its registered office in Dubai is maintainable before it.The single-judge bench of Justice Senthilkumar Ramamoorthy has held that the consecutive third execution petition filed by Award Holder, Pueblo Holdings Limited, seeking the enforcement of the decree against UAE based Award...
Delhi High Court Rules, Parties Under LLP Agreement Cannot Confer Jurisdiction On Courts
A Single Bench of Delhi High Court of Justice Amit Bansal, has held that carrying of business in any place does not confer jurisdiction on courts to adjudicate a dispute inter se partners in an LLP. The Partner of an LLP, registered at Hyderabad, had filed a suit before a Commercial Court in Delhi against the denial of access by remaining partners to the business accounts of LLP. The District Judge allowed the petition, dismissing the challenge to territorial jurisdiction raised by the...
'Public At Large Cannot Be Put To The Whim & Fancy Of Recalcitrant Directors': Calcutta HC Upholds Disqualification Of Directors U/S 164(2) Of Companies Act
The Calcutta High Court on Friday observed that the provisions for disqualification of directors due to non-filing of balance sheets and annual returns as envisaged under Section 164(2) and Section 167(1) of the Companies Act, 2013 is aimed at ensuring probity and the highest standard of governance in both private and public companies. Justice Rajasekhar Mantha was adjudicating upon a case wherein the petitioners had been disqualified as directors of a company one M/s. Hahnemann International...
Delhi High Court Issues Notice On Plea Challenging Constitutionality Of S.95 IBC
A Writ Petition has been filed by the personal guarantors of an MSME Corporate Debtor, Emkay Automobiles Industries Ltd., challenging the constitutional validity of Section 95 of the Insolvency and Bankruptcy Code, 2016. The Bench comprising of Justice Manmohan and Navin Chawla has issued notices to the Respondents including the Central Government, the Reserve Bank of India, the Insolvency and Bankruptcy Board and a Committee of Creditors. The Petitioners have alleged that...