High Court
HSCC MD Not A 'Civil Post' Under Union, CAT Lacks Jurisdiction: Delhi High Court
The Delhi High Court has held that the managing director of HSCC India, a government-owned company, does not hold a civil post under the Union and therefore cannot invoke the jurisdiction of the Central Administrative Tribunal.A bench of Justices Anil Kshetarpal and Amit Mahajan said the position was corporate in nature. “Having meticulously examined the nature of the post held by the Respondent No.1, and upon drawing a clear distinction between an employee of the Union and an employee of an...
Service Of Notice On One Partner Deemed Service On All Under Presidency Towns Insolvency Act: Bombay HC
The Bombay High Court has held that service of an insolvency notice on a firm or any one of its partners amounts to valid service on all partners under the Presidency Towns Insolvency Act, 1909. The court rejected the argument that limitation should be counted from the last date of service on each partner. A single-judge bench of Justice Jitendra Jain was hearing an insolvency petition where the judgment debtors challenged its maintainability under Section 12(1)(c) of the Presidency Towns...
Bombay High Court Allows Raj Kundra's Company To Challenge UK Anti-Suit Injunction In Rajasthan Royals Dispute
The Bombay High Court on Monday granted leave under Clause XII of the Letters Patent to Kuki Investments Limited, a company owned by Raj Kundra, to institute a suit challenging an anti-suit injunction passed by the High Court of England and Wales in a dispute relating to the affairs of IPL franchise Rajasthan Royals. Allowing the petition seeking permission to file the suit against Emerging Media Ventures Ltd. and others, Justice Abhay Ahuja observed that the court was satisfied that grounds...
Calcutta High Court Holds Issue Of Appointing Woman Director Triable In Case Against Rashmi Metaliks
Today, the Calcutta High Court refused to quash criminal proceedings against Rashmi Metaliks Ltd and its directors for alleged non-compliance with the mandatory requirement under Section 149 of the Companies Act to appoint at least one woman director. A Single-Judge Bench of Justice Ajay Kumar Gupta was hearing a criminal revision petition under Section 482 CrPC challenging proceedings pending before the Chief Judicial Magistrate, Alipore, including an order dated 19 September 2015. He...
Extending Vigil Mechanism To Unlisted Companies Is Policy Decision; Delhi High Court Asks MCA To Consider After Consultation
The Delhi High Court has observed that the question of extending the vigil/whistleblower mechanism prescribed under Section 177 of the Companies Act, 2013, to unlisted companies is a matter of legislative policy and cannot be directed by courts through judicial orders.A Division Bench of Justices Prathiba M. Singh and Madhu Jain thus directed the Union Ministry of Corporate Affairs to undertake a stakeholder consultation in this regard, and thereafter take a decision, within a reasonable period,...
Karnataka High Court Holds Pre‑Winding-Up Lease By Mysore Kirloskar Ltd To KIAMS Fraudulent
The Karnataka High Court on 17 February held that a lease executed by the erstwhile management of Mysore Kirloskar Ltd in favour of Kirloskar Institute of Advanced Management Studies (KIAMS) was a fraudulent and sham transaction intended to defeat creditors and was therefore void from inception. A Division Bench of Justices D.K. Singh and Venkatesh Naik T heard an appeal by the official liquidator, challenging the Company Court's 21 July 2015 order that had rejected a request to cancel the...
Indemnity Bond Not Required When Succession Certificate Is Filed Under IEPF Rules: Gujarat High Court
The Gujarat High Court on 9 March held that where a claimant has already furnished a valid succession certificate under the Investor Education and Protection Fund (IEPF) Rules for transfer of shares, an indemnity bond cannot be insisted upon. Justice Hemant M Prachchhak observed that the requirement to furnish an indemnity bond arises only in the absence of documents such as a succession certificate, and authorities cannot impose additional conditions not contemplated under the Rules. He noted:...
Condonation Of Delay In Filing Returns For Company Not Available To Directors: Kerala High Court
The Kerala High Court on Thursday held that condonation of delay in filing annual returns does not wipe out the statutory disqualification incurred by directors for failure to file returns for consecutive financial years. The court observed that the benefit of condonation available to the company cannot be extended to its directors. The court held that the office-bearers of the Aruvipuram Sree Narayana Dharma Paripalana Yogam, including V.K. Natesan, Dr. M.N. Soman, Thushar Vellappally and...
Calcutta High Court Sets Aside Order Restraining IIBI From Redemption Of ₹221.08 Crore Preference Shares At 20% Value
The Calcutta High Court on March 12 allowed an appeal filed by Industrial Investment Bank of India Limited (IIBI). The court set aside a single judge's order that had confirmed an interim direction requiring the bank to set apart properties worth Rs 2 crore in a dispute relating to a resolution adopted in its 13th Annual General Meeting regarding redemption of preference shares. While allowing IIBI's appeal, the Division Bench of Justices Debangsu Basak and Md. Shabbar Rashidi observed: ...
Maharashtra Stamp Authorities Have No Jurisdiction Over NCLT Chennai Order: Bombay High Court
The Bombay High Court on 18 February held that Maharashtra stamp authorities have no jurisdiction to assess stamp duty on an order passed by the NCLT, Chennai Bench, merely because the same scheme was also sanctioned by the NCLT, Mumbai Bench. A Single-Judge Bench of Justice Sharmila U. Deshmukh clarified that even if stamp duty had not been paid on the Chennai order, that question falls within the domain of authorities in Tamil Nadu and is irrelevant to the assessment of the Mumbai order. The...
Common Independent Director Not 'Common Management': Gujarat High Court Sets Aside GeM Bid Rejection
The Gujarat High Court has held that an Independent Director cannot be treated as part of the common management of a company for the purpose of disqualifying bids under Clause 29 of the Government e-Marketplace General Terms and Conditions, setting aside the rejection of NR Agarwal Industries Ltd's technical bid in a public tender. A Division Bench of Justice Bhargav D. Karia and Justice L.S. Pirzada observed, “the Independent Director stands on a different foot than the Director whether he is...
Recovery Impact Not Valid Ground To Oppose Transfer Of Winding-Up Proceedings To NCLT: Bombay High Court
The Bombay High Court has recently observed that objections raised by secured creditors and the Official Liquidator to the transfer of winding-up proceedings from the High Court to the National Company Law Tribunal (NCLT) cannot be sustained merely because such a transfer may affect their recovery actions. Justice Arif S. Doctor made the observation while allowing a company application filed by Sahjun Impex Trading Pvt. Ltd. The application sought transfer of a pending winding-up petition...