Supreme Court Dismisses SpiceJet Challenge To ₹144.51 Crore Deposit Order In Dispute With Kalanithi Maran

Calling it “an abuse of the process,” the Supreme Court on Friday refused to interfere with a Delhi High Court order directing SpiceJet Limited and its Chairman Ajay Singh to deposit Rs 144,51,69,887 in their long-running arbitration dispute with former promoter Kalanithi Maran and Kal Airways Pvt. Ltd. Dismissing the Special Leave Petitions with costs of Rs 1 lakh, the bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe observed, “We are not inclined to interfere with the...

Arbitrators Cannot Grant Pre-Award Or Pendente Lite Interest As Compensation If Contract Bars It: Supreme Court

The Supreme Court on Friday held that an arbitral tribunal cannot award pre-award or pendente lite interest when the contract expressly bars payment of interest, even if such amounts are granted in the guise of compensation. A Bench of Justice Sanjay Karol and Justice Vipul M. Pancholi ruled that “The provisions of the Act of 1996, including provisions contained in Section 31(7)(a) give paramount importance to the contract entered into between the parties and categorically restrict the power...

Supreme Court Makes Absolute Interim Protection To Deepak Garg In Rs 1596 Crore SRS Fraud Case

The Supreme Court on Thursday made absolute the interim protection it had earlier granted to Deepak Garg, a Director of SRS Finance Ltd and SRS Shining Ornaments Ltd, during the pendency of his special leave petitions challenging the Punjab and Haryana High Court's refusal of anticipatory bail in the alleged Rs 1,596 crore SRS Group financial fraud case. A Bench of Justices Vikram Nath and Sandeep Mehta said, “Taking into consideration the facts and circumstances of the case and upon hearing...

Supreme Court Refuses To Interfere With NCLAT Order Upholding CIRP Against Kirtiman Cements

The Supreme Court on Friday declined to interfere with a National Company Law Appellate Tribunal (NCLAT) judgment upholding the initiation of Corporate Insolvency Resolution Process (CIRP) against Kirtiman Cements and Packaging Industries Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). A Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan dismissed the Civil Appeal filed under Section 62 of the IBC, stating that it was not inclined to interfere with the NCLAT's...

Byju's Insolvency: Supreme Court Continues NCLAT's No Final Order Direction In Plea To Remove GLAS Trust From CoC

The top court was hearing an appeal filed by the Committee of Creditors challenging the NCLAT's decision upholding the rejection of its plea to implead itself in proceedings seeking removal of GLAS Trust from the CoC of Think & Learn Pvt. Ltd.

Supreme Court Stays Madras HC Order Reviving Sreedevi Video-Saregama Dispute Over Tamil Telugu Film Music

The Supreme Court on Thursday stayed a Madras High Court order that had revived an injunction claim in a copyright dispute between SaReGaMa India Ltd and Sreedevi Video Corporation over the audio rights of iconic Tamil and Telegu films such as Sagara Sangamam, Salangai Oli and Shankara Bharanam. The High Court had held that although Sreedevi's plea seeking declaration of copyright was barred by limitation, its claim for permanent injunction could still be examined independently and remanded the...

Courts Must Remain Vigilant Against Expanding 'Narrow Boundaries' Of IBC Review: Supreme Court

The Supreme Court on Friday upheld the approval of Sarda Energy and Minerals Ltd.'s (SEML) resolution plan for SKS Power Generation (Chhattisgarh) Ltd., cautioning courts against expanding judicial review under the Insolvency and Bankruptcy Code, 2016. Affirming the National Company Law Appellate Tribunal's order, which had upheld the National Company Law Tribunal's approval of the plan, a Bench of Justices BV Nagarathna and R Mahadevan stressed that the IBC prioritises speed and...

CRB Mutual Fund Case: Supreme Court Rejects Former Director's Plea Against Forensic Audit Order

The Supreme Court recently refused to interfere with a Delhi High Court order directing a forensic audit and SEBI supervision of the winding up of the CRB Mutual Fund, dismissing a special leave petition filed by C.R. Bhansali, a former director of CRB Capital Markets Ltd., in the long-running proceedings arising from securities and mutual fund irregularities of the 1990s. A bench of Justices J.B. Pardiwala and K.V. Viswanathan said: “Having heard the learned counsel appearing for the parties...

Supreme Court Refuses To Frame Guidelines On Parallel Insolvency Against Borrower and Guarantor

The Supreme Court on Thursday observed that while simultaneous Corporate Insolvency Resolution Processes (CIRPs) against principal borrowers and corporate guarantors are legally permissible, it will not frame additional judicial guidelines regulating such proceedings, leaving any reform to Parliament and the Insolvency and Bankruptcy Board of India (IBBI). “We, however, decline to lay down guidelines as proposed; and for good reason. IBC is a product of a well-thought, deliberated, and...

Supreme Court Issues Notice In Zoomcar Plea Over Denial Of Appeal Against GST Order By Rajasthan High Court

The Supreme Court on Wednesday issued notice on a special leave petition filed by Zoomcar India Pvt. Ltd., a self-drive car rental platform, challenging a Rajasthan High Court order that disposed of its writ petition without granting liberty to pursue a statutory appeal under the GST law. A bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan heard the matter and directed the issuance of notice. Zoomcar had approached the High Court of Judicature for Rajasthan challenging...

Voluntary Statements To Customs Officers Can Sustain Conviction: Supreme Court

The Supreme Court has recently reiterated that statements recorded by Customs officers under Section 108 of the Customs Act, 1962, constitute substantive evidence and can sustain a conviction if shown to be voluntary. A bench of Justice Vikram Nath and Justice Sandeep Mehta reaffirmed the Gujarat High Court's judgment holding that, “Statements recorded under Section 108 of the Customs Act, 1962 by duly authorized Customs Officers are admissible in evidence and do not attract the bar...

Defunct Scheme Of Arrangement Under Companies Act Cannot Stall IBC Proceedings: Supreme Court

The Supreme Court on Tuesday held that insolvency proceedings under the IBC cannot be kept in abeyance on the basis of a Scheme of Arrangement that has become redundant and inoperative for non-compliance with statutory requirements.The court reiterated that once the statutory requirements of Section 7 are met, insolvency must proceed notwithstanding any parallel company law proceedings.A bench of Justices Sanjay Kumar and K. Vinod Chandran framed the core issue as whether pendency of proceedings...