Section 21 Of Companies Act Does Not Bar Oral Agreements Between Companies: Rajasthan High Court

The Rajasthan High Court on 15 September held that Section 21 of the Companies Act, 2013, does not bar oral agreements between companies, clarifying that the provision governing authorised signatories does not require every agreement to be in writing. Justice Rekha Borana dismissed a civil revision petition filed by Gnex Impex Private Limited and its director against an order dated 22 May 2025, by which the District Judge, Jodhpur Metropolitan, rejected their application to dismiss a suit filed...

Karnataka High Court Closes Morgan Securities' Contempt Plea Against BPL Over Alleged Property Encumbrance

The Karnataka High Court has closed a contempt petition filed by Morgan Securities and Credits Private Limited against BPL Limited and its directors over the alleged violation of a 2020 order restraining the company from alienating or encumbering its properties.A Division Bench of Justice Jayant Banerji and Justice Tara Vitasta Ganju found that Morgan Securities had failed to produce documentary evidence of a breach. The court observed that the petitioner had not established that any of BPL's...

Arbitration Clause In Articles Of Association Operates Independently Of Companies Act: Calcutta High Court

On Monday, 28 September, the Calcutta High Court held that an arbitration clause contained in a company's Articles of Association operates as an independent agreement and does not make disputes covered by the clause subject exclusively to the jurisdiction of the National Company Law Tribunal (NCLT). A Division Bench comprising Justices Sabyasachi Bhattacharyya and Sandip Kumar De made the observation while allowing an appeal filed by Ambica Beri against the District Judge's refusal to grant...

Calcutta High Court Stays SFIO Probe Into Alleged Misuse Of HNGIL Exempted Employees' Provident Fund Trust

The Calcutta High Court on Wednesday stayed a Serious Fraud Investigation Office (SFIO) investigation into alleged financial irregularities involving funds of an exempted provident fund Trust operated by Hindusthan National Glass and Industries Limited (HNGIL) for its employees.A Division Bench of Justices Debangsu Basak and Aryak Dutt modified the August 3, 2026, order of the Single Judge. The order had extended an ex parte ad interim injunction and continued the direction for an SFIO...

Delhi High Court Refuses To Quash Criminal Case Against Supertech Directors Over Hill Town Project

The Delhi High Court has refused to quash criminal proceedings against directors of real estate company Supertech Limited over allegations of cheating, criminal breach of trust and criminal conspiracy linked to its Hill Town project in Sohna, Haryana.Justice Madhu Jain was dealing with three connected petitions arising from an FIR registered by the Economic Offences Wing over alleged non-delivery of flats, discontinuation of pre-EMI payments and alleged diversion and utilisation of funds...

Official Liquidator Gets 3 Years From Winding Up Order To File Claim: Kerala High Court

The Kerala High Court on 31 August held that a claim instituted by an Official Liquidator under Section 446 of the Companies Act, 1956, in respect of a legally enforceable claim is governed by the three year limitation period under Article 137 of the Limitation Act, 1963, reckoned from the date of the winding up order, with the benefit of the additional one year period under Section 458A of the Companies Act. Justice Harisankar V Menon rejected the respondent, Miny Zachariah's objection that...

Delhi High Court Dismisses PIL Against IFCI's ₹440.93 Cr NSE Share Sale For Petitioner's Forum Shopping

On 19 August, the Delhi High Court dismissed a Public Interest Litigation (PIL) challenging IFCI Ltd's sale of shares in the National Stock Exchange of India Ltd (NSE), holding that the petitioner had suppressed an earlier proceeding before the Bombay High Court on the same issue. A Division Bench comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia held that the petitioner's suppression of the earlier proceeding disentitled him to relief and imposed exemplary costs of Rs....

Delhi High Court Dismisses Anil Biyani's Challenge To SFIO Probe, Says Mumbai Has Principal Nexus

The Delhi High Court on 25 August dismissed Future Group Director, Anil Laxminarayan Biyani's, challenge to the Ministry of Corporate Affairs' (MCA) order directing the Serious Fraud Investigation Office (SFIO) to investigate the affairs of Future Retail Ltd (FRL) and Future Consumer Retail Pvt Ltd (FCRPL). Justice Swarana Kanta Sharma held that the case had its principal and substantial nexus with Mumbai and not Delhi. Therefore, the Delhi High Court lacked territorial jurisdiction to hear it....

Asset Sale Alone Can't Bar Financial Creditor From Seeking NCLT Transfer For Revival: Bombay High Court

The Bombay High Court on 20 August held that a financial creditor can seek transfer of winding up proceedings to the National Company Law Tribunal (NCLT) for revival under the Insolvency and Bankruptcy Code, 2016 (IBC), even where secured creditors have sold the company's assets outside the winding up proceedings, as such sale does not by itself make revival irreversible.A Division Bench of Justices A.S. Gadkari and Kamal Khata dismissed Omkara Assets Reconstruction Pvt Ltd's appeal against the...

Conditional Votes Cannot Be Treated As Unconditional Approval Of Companies Act Revival Scheme: Delhi High Court

The Delhi High Court recently ruled that votes cast “for, with modification” cannot automatically be treated as unconditional assent to a Revival Scheme under the Companies Act, 1956.The court must first examine the legal effect of the conditions attached to those votes before deciding whether they amount to approval of the Scheme.“A vote cast “for” the Scheme simpliciter expresses assent to the Scheme as placed before the meeting. A vote cast “for, with modification” is, by its very...

Delhi High Court Upholds Restoration Of Shareholding After 964 Shares Allotted During Restraint Order

The Delhi High Court has upheld an order directing restoration of the shareholding pattern of Moral Properties Private Limited after its Board allotted 964 fresh shares while a restraint order concerning the company's properties was in force.Justice Manoj Kumar Ohri dismissed an appeal against the order passed by the Additional District Judge, South District, Saket Courts, which found that the allotment violated the restraint order and directed restoration of the earlier shareholding pattern.The...

Company Cannot Deny Employee Equity By Relying On Its Own Failure To Frame ESOP Scheme: Bombay High Court

The Bombay High Court has recently held that a company cannot rely on its own failure to frame an Employee Stock Option Plan (ESOP) to deny an employee equity that was offered as part of his remuneration package.Justice N.J. Jamadar made the observation while dismissing Waterfield Advisors Private Limited's petition under Section 34 of the Arbitration and Conciliation Act, 1996. The company had challenged an arbitral award directing it to allot 31,878 equity shares to its former Director...