Shareholders Can File Application To Approve Settlement With Creditors Even After Appointment Of Official Liquidator : NCLAT [Read Judgment]

The National Company Law Appellate Tribunal has held that shareholders/promoters of a company can file application for approval of settlement with creditors, even after official liquidator has been appointed.This ruling was made while allowing an appeal filed against the decision of the National Company Law Tribunal, Mumbai bench, which had held that the application filed under Section 391 of the Companies Act 1956( corresponding to Section 230(1), Companies Act 2013) could not have been moved...

Secured Creditor Can File Winding Up Petition Despite Obtaining Recovery Certificate From DRT: SC [Read Judgment]

"When secured creditors like the respondent are driven from pillar to post to recover what is legitimately due to them, in attempting to avail of more than one remedy at the same time, they do not "blow hot and cold", but they blow hot and hotter."

Each And All Proceedings Under Companies Act 1956 Stands Transferred To NCLT, Holds Calcutta HC [Read Judgment]

“Sec. 434 (1)(c) of the 2013 Act carries an absolutely clear mandate that all proceedings under the Companies Act, 1956 including proceedings relating to arbitration, compromise, arrangements and reconstruction and winding up of companies before the date of coming into operation of that Section in the High Court shall stand transferred to the NCLT. The word all means all. It admits of no exception.”The Calcutta High court has upheld a single bench order that held that the High court has lost...

No Legal Bar On Indian LLP Merging With Indian Firm, Says NCLT [Read Order]

Can an Indian Limited Liability Partnership (LLP) be allowed to amalgamate with an Indian private limited company under a scheme of amalgamation filed before the National Company Law Tribunal (NCLT)?The NCLT has answered the question in affirmative.“…the legislative intent behind enacting both the LLP Act, 2008 and the Companies Act, 2013 is to facilitate the ease of doing business and create a desirable business atmosphere for companies and LLPs.“For this purpose, both the Acts have provided...

MCA Constitutes 10 Member Committee To Review Offences Under Companies Act, 2013

The Ministry of Corporate Affairs (MCA) has constituted a 10-member committee to review the penal provisions in the Companies Act, 2013, and examine the need to decriminalise certain offences.As per an official release, the Committee will be submitting its recommendations within thirty days, and will comprise of: Secretary, Ministry of Corporate Affairs T.K. Vishwanathan, Former Secretary General Lok Sabha and Chairman, BLRC Uday Kotak, MD, Kotak Mahindra Bank Shardul S Shroff, Executive ...

Natural Justice vis-a-vis The Insolvency & Bankruptcy Code, 2016- Audi alteram partem : An Unravelled Mystery!

IntroductionThe Insolvency & Bankruptcy Code, 2016 (“the Code”) has been one of the most path-breaking laws promulgated in the country in recent times. There has been a paradigm shift in the debt recovery scenario in the country, consequent to the implementation of the Code. It is undoubtedly a welcome overhaul of the framework that had been in existence in the past, thereby consolidating all the laws pertaining to insolvency and debt recovery that had been scattered into a number of...

Companies Act: MCA Permits Cross-Border Mergers [Read Notification]

To stimulate a surge in mergers, the Ministry of Corporate of Affairs (MCA) brings into effect Section 234 of the Companies Act 2013, from this April 13, enabling an Indian company to merge with a foreign company.The erstwhile Companies Act 1956 (section 391-394), permitted just the merger of a foreign company with an Indian company and prohibited merger of an Indian company with a foreign company.It was so to ensure that the merged entity remains to be an Indian company and is subjected to...

Recasting Of Financial Statements By Partners Of LLP

IntroductionSuppose a Limited Liability Partnership (‘LLP’) has filed its financial statements prepared for a financial year with the Registrar in terms of the applicable provisions of the Limited Liability Partnership Act, 2008 (‘Act’). However, due to certain reasons, there was a need to recast/ restate the said financial statements. The Act does not prescribe any provision for recasting of financial statements of an LLP unlike the Companies Act, 2013 (‘CA, 13’) which enables the companies to...

Government Proposes To Cap Cash Transactions At 2 Lakhs, Introduces 40 Amendments

The Government, on Tuesday, proposed to amend 40 Acts, including Companies Act, Employees Provident Fund, Smuggling and Foreign Exchange Act, TRAI Act and Information Technology Act, through amendments to the Finance Bill, reports PTI.One of the amendments proposes to cap cash transactions at Rs 2 lakh, instead of Rs 3 lakh as earlier proposed by Finance Minister Arun Jaitley. According to a tweet by Revenue Secretary Hasmukh Adhia, a penalty of equal amount would be levied in case of violation...

Tata Group V. Mistry: Minority Investors Cite Fiduciary Rules Under Companies Act, Challenge Nusli Wadia's Removal

Three minority shareholders in Tata Chemicals, Tata Motors and Tata Steel have filed a suit at the Bombay High Court challenging the removal of Nusli Wadia as an Independent Director by Tata Sons. Today, the single bench of Justice SJ Kathawalla directed the plaintiffs to provide a copy of the plaint to the Centre.The plaintiffs who are non-promoter shareholders in these three companies are seeking to restrain the promoters from voting in order to remove Nusli Wadia as an independent director....

Tata Group V. Mistry: Minority Investors Cite Fiduciary Rules Under Companies Act, Challenge Nusli Wadia's Removal

Three minority shareholders in Tata Chemicals, Tata Motors and Tata Steel have filed a suit at the Bombay High Court challenging the removal of Nusli Wadia as an Independent Director by Tata Sons. Today, the single bench of Justice SJ Kathawalla directed the plaintiffs to provide a copy of the plaint to the Centre.The plaintiffs who are non-promoter shareholders in these three companies are seeking to restrain the promoters from voting in order to remove Nusli Wadia as an independent director....

No proposal to review investigation mechanism under Companies Act: Minister

Arjun Ram Meghwal, Minister of State in the Ministry of Corporate Affairs today said that presently, there is no proposal to review the existing investigation mechanism under the Companies Act, 2013.In a written reply the Minister stated that Government has taken the following measures to curb and prevent corporate frauds:(i) ‘Fraud’ as a substantive offence has been introduced in the Companies Act, 2013(ii) Statutory status to the Serious Fraud Investigation Office has been granted under the...