Supreme Court
Committee Of Creditors Continues To Exist Till Resolution Plan Is Implemented Or Liquidation Order Is Passed : Supreme Court
In the JSW Steel matter, the Supreme Court held that the Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code, 2016 (IBC) does not become functus officio merely upon the approval of a resolution plan by the Adjudicating Authority. The Court held that the CoC continues to have a role until the resolution plan is fully implemented or an order of liquidation is passed.A Bench comprising Chief Justice of India BR Gavai, Justice K Vinod Chandran and Justice NV Anjarai observed...
Supreme Court Upholds JSW Steel's Resolution Plan For Bhushan Power & Steel, Says JSW Can't Be Penalised For Reviving Loss-Making Entity
The Supreme Court today upheld the resolution plan of JSW Steel Ltd for Bhushan Power and Steel Ltd (BPSL) and rejected the objections raised by the ex-promoters and certain creditors of BPSL.Allowing the appeals after JSW has revived the loss-making entity by infusing huge amounts of funds will lead to "diastrous results", the Court said.A bench comprising Chief Justice of India BR Gavai, Justices SC Sharma and K Vinod Chandran had re-heard the appeals against the resolution plan after...
Supreme Court Directions Extending Limitation Period During COVID Apply To Attachment Proceedings Under PMLA: Delhi High Court
The Delhi High Court has ruled that the suo motu directions of the Supreme Court extending limitation periods in light of COVID-19 pandemic also apply to adjudication process and confirmation of attachment of properties under Section 8 of the PMLA.A division bench comprising Justice Anil Kshetarpal and Justice Harish Vaidyanathan Shankar said:“…it is evident that the orders of the Hon'ble Supreme Court in In re: Cognizance for Extension of Limitation (supra) were intended to extend limitation...
S. 31(7)(b) Arbitration Act | Claim For Additional Post-Award Interest Barred When Award Fixes Rate Until Payment : Supreme Court
The Supreme Court on Wednesday (Sep. 24) held that if an arbitral award provides a composite interest rate covering the entire period from the cause of action to payment, the award holder cannot claim additional compound interest at the post-award stage under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996 (“Act”). Section 31(7)(b) of the Act provides for post-award interest at 18% from the date of the award until payment. However, if the arbitral award specifies a composite...
Supreme Court Dismisses Airports Authority's Appeal Against Service Tax Levy For Cargo Handling
The Supreme Court on Tuesday dismissed an appeal filed by the Airports Authority of India (AAI) challenging the levy of service tax on services rendered in handling export cargo, ruling that such services fall within the ambit of “taxable services” under the Finance Act, 1994.A Bench of Justice Pankaj Mithal and Justice Prasanna B. Varale held that while “handling of export cargo” is excluded from the definition of “cargo handling service” under Section 65(23) of the Act, cargo handling service...
No Export Duty On Transfer From Domestic Tariff Area To SEZ : Supreme Court Dismisses Union's Appeal Against Adani Power
Observing that the movement of goods from a Domestic Tariff Area (DTA) to a Special Economic Zone (SEZ) is a domestic supply and not an export outside India, the Supreme Court provided relief to Adani Power Ltd. and other entities from paying export duty under the Customs Act, 1962, for the movement of goods from DTA to SEZ. A bench of Justice BV Nagarathna and Justice R Mahadevan dismissed the Union of India's appeal against a judgment of the Gujarat High Court which ruled that export duty...
Customs Act | Provisional Release Of Seized Object Won't Extend Timelimit For Issuing Show Cause Notice In Pre-2018 Cases : Supreme Court
The Supreme Court recently upheld a Delhi High Court order directing release of an imported Maserati car seized by the Directorate of Revenue Intelligence (DRI), upholding the HC's view that failure to issue a show-cause notice within time prescribed under the Customs Act, 1962 entitles the person to release of the seized goods.A bench of Justice JB Pardiwala and Justice Sandeep Mehta further held that provisional release of seized goods under Section 110A of the Customs Act does not stop the...
In Tax Matters, Strict Letter Of Law Must Be Followed; No Tax Can Be Imposed By Inference Or Analogy : Supreme Court
The Supreme Court observed that no tax can be imposed by inference or analogy when the taxing statutes do not authorize the imposition of tax. It added that tax authorities cannot bypass statutory limitation periods by administrative sanction. “In construing fiscal statutes and in determining the liability of a subject to tax one must have regard to the strict letter of law. If the revenue satisfies the court that the case falls strictly within the provisions of the law, the subject can be...
Arbitration | Execution Of Award Cannot Be Stalled Merely Due To Pendency Of Section 37 Appeal : Supreme Court
The Supreme Court held that the execution of an arbitral award cannot be stalled merely on the ground that an appeal under Section 37 of the Arbitration and Conciliation Act is pending.A bench of Justices Manoj Misra and Ujjal Bhuyan heard the case where the appellant (award-holder/decree-holder) sought execution of the arbitral award. The respondents (judgment-debtors) argued that since a Section 37 appeal was pending against the dismissal of their Section 34 objections, the execution should be...
Supreme Court Allows Customs Duty Exemption To LG Electronics For Smart Watch Import From Korea
The Supreme Court recently granted relief to LG Electronics India from paying customs duty on imported 'G Watch W7' smartwatches from South Korea, holding that a certificate of origin from a country with which India has a full customs duty exemption agreement is sufficient to claim such exemption. A bench of Justice JB Pardiwala and Justice Sandeep Mehta heard the LG Electronics appeal against the Customs, Excise and Service Tax Appellate Tribunal (“CESTAT”) order, that declined LG's plea for...
NCLT, NCLAT Vacancies Must Be Filled On War Footing; RERA Must Be Adequately Staffed : Supreme Court
The Supreme Court directed the Union Government to fill up the vacancies at the National Company Law Tribunals(NCLT) and the National Company Law Appellate Tribunal(NCLAT) on a "war-footing"."Dedicated IBC benches with additional strength should be constituted. Services of retired judges may be utilized on ad hoc basis until regular appointments are made," the Court observed.The Court noted that though such directions were issued earlier also, no effective step has been taken on the ground.The...