The Micro, Small And Medium Enterprises Development Act, 2006 - A Subject Of Increasing Misuse

The small scale sector plays an important role in the development of the Indian economy, by providing employment and facilitating growth of the industrial sector, while requiring a relatively small amount of initial capital investment. A substantial contribution is made by this sector to industrial output and exports. By some estimates there were in excess of 19.40 lakh such in the year 1990-1991. In the early 1990's, Parliament recognising the importance of this sector and in order to ...

Breaking: Bombay HC Stays Bail Granted To Former IL&FS CEO & Vice Chairman As Offences Are Punishable With More Than 7 yrs

A special bench of the Bombay High Court on Saturday stayed the bail granted to former MD and CEO of Infrastructure Leasing and Financial Services (IL&FS) Financial Services Ltd (IFIN) Ramesh Bawa and former Vice Chairman Hari Sankaran, observing that they have been accused of offences punishable with more than 7 years, making them ineligible to be released on parole. Justice AK Menon noted that the said case does not fall under the category of "extremely urgent matter" which...

Cabinet Approves 72 Changes To Decriminalize Companies Act, 2013 [Read Bill]

The Union Cabinet on Wednesday approved the Companies (Second Amendment) Bill, 2019 to amend the Companies Act, 2013, with an aim to increase the ease of doing business in India. As per the press release issued by the Finance Ministry, the Amendment Bill will, inter alia, enable the listing of Indian companies on stock exchanges in foreign jurisdictions. This is expected to increase the competitiveness of Indian companies in terms of access to capital, broader investor base and better...

Cochin International Airport Ltd Not A State Instrumentality Under Art 12 Of Constitution : Kerala HC [Read Judgement]

The High Court of Kerala has held that Cochin International Airport Ltd (CIAL) cannot be said to be an instrumentality of State within the meaning of Article 12 of the Constitution of India. The Court added that the employment of the persons by CIAL or the termination of their services do not involve any public element. The Court was considering petitions regarding the termination of the petitioners service by the Cochin International AIrport Limited (CIAL). The CIAL (respondent),...

Delhi HC Reserves Order In Malvinder Singh's Plea Challenging Parallel Investigation By Economic Offences Wing

Delhi High Court has reserved order on issuance of notice to Economic Offences Wing (EOW) and Serious Fraud Investigation Office (SFIO) in an application filed by former Fortis promoter Malvinder Mohan Singh seeking quashing of the FIR lodged by EOW. Malvinder Singh had filed a criminal writ petition on the ground that when an investigation on offences under the Companies Act is already being conducted by SFIO, there cannot be a parallel investigation carried out by EOW on the same transactions...

MCA Issues Circular Clarifying The Issue Of 'Appointed Date' In Amalgamation Or Merger Schemes

The Ministry of Corporate Affairs (MCA) has issued a clarification with regard to the interpretation of the provision of section 232(6) of the Companies Act, 2013. The MCA said that it had received several queries on whether it is mandatory to indicate a specific calendar date as 'appointed date' in the schemes referred to in the section. After examining the matter in detail in light of the provisions of the act, applicable rules, prevalent practices and orders passed by...

'No Public Interest'-SC Sets Aside The First Forced Merger Of Two Companies Ordered By Central Govt [Read Judgment]

The expression "public interest" would mean the welfare of the public or the interest of society as a whole, as contrasted with the "selfish" interest of a group of private individuals.

'No Public Interest'-SC Sets Aside The First Forced Merger Of Two Companies Ordered By Central Govt [Read Judgment]

The expression "public interest" would mean the welfare of the public or the interest of society as a whole, as contrasted with the "selfish" interest of a group of private individuals.

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...