Madhya Pradesh High Court Bars Post-Resolution Proceedings Against Corporate Debtor's “New Avatar”

The Madhya Pradesh High Court on 27 May held that once a resolution plan is approved under the Insolvency and Bankruptcy Code, 2016, the corporate debtor in its “new avatar” cannot face pre-resolution claims or proceedings that stand extinguished under the approved plan. Justice Jai Kumar Pillai reiterated that the insolvency framework ensures a “clean slate” to the successful resolution applicant and allowed the petition filed by Pushp Ratna Realty Pvt Ltd, whose resolution plan the NCLT,...

Once GST Appellate Tribunal Is Functional, Parties Must Pursue Statutory Remedy: Madhya Pradesh High Court

The Madhya Pradesh High Court has held that once the Goods and Services Tax Appellate Tribunal (GSTAT) has been constituted and commenced functioning, parties should ordinarily pursue the statutory appellate remedy before the Tribunal rather than invoke the High Court's writ jurisdiction. A division bench of Justice Vivek Rusia and Justice Pradeep Mittal dismissed a writ petition filed by SNS Minerals Pvt. Ltd. challenging an appellate order that had set aside a GST refund of ₹84.26 lakh...

Disputes Relating To Payment For Work Done Not Covered Under “Excepted Matters” Arbitrable: MP High Court

The Indore Bench of the Madhya Pradesh High Court on 4 May appointed an arbitrator in a dispute between Western Railway and a service provider after rejecting the Railway's contention that the dispute was non-arbitrable, holding that claims for payment of dues for work already executed fall outside the “excepted matters” under the contract. Justice Pavan Kumar Dwivedi allowed the petition under Section 11 of the Arbitration and Conciliation Act, 1996, observing: “In view of the above analysis...

Madhya Pradesh High Court Sets Aside ₹4.56 Crore MSME Award, Says Conciliation Cannot Be an 'Eyewash'

The Madhya Pradesh High Court has held that conciliation under the MSMED Act cannot be reduced to an “eyewash”, while setting aside an award passed by the Madhya Pradesh Micro and Small Enterprises Facilitation Council against Aurionpro Solutions Ltd. A Division Bench of Chief Justice Sanjeev Sachdeva and Justice Vinay Saraf held that the Council could not proceed to arbitration without first conducting and terminating conciliation proceedings in the manner prescribed by law. Observing that...

Madhya Pradesh High Court Denies Bail To Tobacco Trader Accused Of ₹3.32 Crore Excise Duty Evasion

The Madhya Pradesh High Court at Gwalior has recently refused bail to a tobacco trader accused of evading around ₹3.32 crore in central excise duty by allegedly concealing tobacco packing machines and illegally manufacturing tobacco products. Justice Rajesh Kumar Gupta observed that the trader's claim that one of the two machines found during the search was non-functional could not, at this stage, weaken the prosecution case. “Mere oral assertion during search proceedings that the machine was...

Madhya Pradesh High Court Holds MPIR Execution Not Barred by Limitation, Reads Down Rule 48-A

The Jabalpur Bench of the Madhya Pradesh High Court on 21 April held that execution proceedings under the Madhya Pradesh Industrial Relations Act, 1960 (MPIR Act) are not barred by limitation even when initiated after more than a decade of the award. Justice Vivek Jain further read down Rule 48-A of the Madhya Pradesh Industrial Relations Rules, 1961, holding that it cannot override Section 108 of the Act by prescribing a limitation period for execution and dismissed a petition filed by the...

MP High Court Sends Bharat Commerce Asset Sale Dispute Back To Company Court To Consider Post-Auction Higher Bid

The Madhya Pradesh High Court has sent back for fresh consideration a dispute over the sale of assets of Bharat Commerce and Industries Ltd., finding that the Company Judge did not consider a bidder's arguments for entertaining a higher post-auction offer. “Upon perusal of the said impugned order, we find that the aforesaid contentions were not considered by the company judge.” A Division Bench of Justice Vijay Kumar Shukla and Justice Alok Awasthi passed the order on April 23 in an...

Time Awaiting MCA Nod Cannot Extend Limitation For Companies Act Prosecution Where Law Mandates No Sanction: MP High Court

The Madhya Pradesh High Court at Gwalior has recently held that where the law does not require prior government sanction to prosecute, authorities cannot rely on time spent awaiting administrative instructions to extend the two-year limitation period for filing a criminal complaint. Justice Rajesh Kumar Gupta observed, “Administrative approvals, departmental communications, or internal procedures cannot override the mandate of Sections 468 and 469 Cr.P.C. Unless the statute specifically...

Limitation In Arbitration Begins From Denial Of Claim, Not Section 21 Notice: Madhya Pradesh High Court

The Madhya Pradesh High Court on 4 May held that limitation for an arbitral claim begins when the claim is denied or repudiated, and not from the date of issuance of notice under Section 21 of the Arbitration and Conciliation Act, 1996. It further held that an arbitral tribunal commits patent illegality if it treats the Section 21 notice as the starting point of limitation. A Bench of Justice Vivek Jain partly allowed the appeal filed by Northern Coal Fields Ltd. (NCL) and set aside portions of...

Madhya Pradesh HC Upholds Continuation Of Court-Granted Interim Relief After Arbitral Tribunal Formation

The Madhya Pradesh High Court has upheld an interim order restraining parties from alienating disputed property in an arbitration matter and held that the interim injunction shall continue during the pendency of arbitration proceedings. “we are of the view that the learned trial Court was right in exercising its jurisdiction under Section 9 of the Act, 1996 considering the fact that the sole arbitrator was appointed and arbitral tribunal was constituted after the learned trial Court had applied...

Madhya Pradesh HC Stays Arrest In Recovery Case Arising From RERA Order Against Insolvency-Bound Developer

The Madhya Pradesh High Court at Jabalpur has recently stayed the execution of an arrest warrant in recovery proceedings arising from a RERA order against a real estate developer undergoing insolvency, noting that enforcing civil jail despite a subsisting moratorium would cause serious prejudice.A bench of Justice Sanjeev S. Kalgaonkar observed, “The petitioner would be seriously prejudice, if the order regarding civil jail is executed in furtherance of the warrant of arrest despite there...

MP High Court Upholds Remand To Arbitrator In NHAI Land Compensation Case After He Ignored Land's Urban Status

The Madhya Pradesh High Court has upheld a district court's decision to send a land compensation dispute back to an arbitrator after finding that the arbitrator ignored that the land had already been declared urban before fixing compensation. “The power of remand as held by the constitution bench permits the Court to send the award to the Tribunal for reconsideration of specific aspects and it is not an open ended process rather it is a limited power confined to limited circumstances and issues...