Supreme Court Upholds Piramal's Resolution Plan For DHFL, Sets Aside NCLAT Order

The Supreme Court today (April 1) approved the Resolution Plan proposed by Piramal Capita and Housing Finance for the erstwhile Dewan Housing Finance Corporation Ltd(DHFL).The Court held that funds recovered from the fraudulent transactions at Dewan Housing Finance Corporation Ltd (DHFL) will go to Piramal Capital & Housing Finance Ltd.The Court set aside the NCLAT order, which directed the creditors of Dewan Housing Finance Corporation Limited (DHFL) to reconsider the resolution plan...

Supreme Court Issues Notice In Challenge To West Bengal Taxes On Entry Of Goods Act

The Supreme Court is set to examine the constitutional validity of the West Bengal Taxes on Entry of Goods into the Local Areas Act, 2012, as amended by the West Bengal Finance Act, 2017, along with related Rules and notifications.A bench of Justice JB Pardiwala and Justice R Mahadevan recently issued notice returnable on April 22, 2025 in a batch of petitions challenging the constitutional validity of the Act. The Finance Act amended various provisions of the Entry Tax Act with retrospective...

Supreme Court Directs Customs Authorities To Upgrade Lab Facilities For Proper Testing Of Disputed Articles On All Parameters

In a key decision, the Supreme Court today overturned the confiscation of imported goods labelled as "Base Oil SN 50," which customs authorities had classified as High-Speed Diesel (HSD), which only the State entities can import. The Court found that the Customs Department failed to provide conclusive evidence proving the goods were High-Speed Diesel (HSD), due to inadequate laboratory testing and conflicting expert opinions. In this regard, the bench comprising Justices BV Nagarathna and N...

Can GST Act Timelines Be Relaxed For Bonafide Errors? Supreme Court Appoints Amicus Curiae, Issues Notice To CBIC

The Supreme Court recently issued notice to the Central Board of Indirect Taxes and Customs (CBIC) over the recurrent issue of not allowing rectification of bonafide errors made after the lapse of prescribed deadlines under the CGST Act. The bench of CJI Sanjiv Khanna and Justices Sanjay Kumar and KV Viswanathan was hearing a challenge by the Union against the decision of the Bombay High Court which allowed the rectification of bonafide errors by the assessee in GSTR-1 Form despite missing...

'Timelines To Rectify Bonafide GST Form Errors Must Be Realistic' : Supreme Court Asks CBIC To Re-examine Provisions

The Supreme Court recently underscored the need for the Central Board of Indirect Taxes and Customs to fix realistic timelines for correcting bonafide errors by the assesses in forms when filing GST returns. The bench of CJI Sanjiv Khanna and Justice Sanjay Kumar was hearing a challenge to the Bombay High Court order which allowed an assesee to rectify its form GSTR-1 after missing the deadline under S. 39(9) of the CGST Act. The order was challenged by the Central Board of Indirect Taxes...

IBC | Supreme Court Accepts Apology Of Tax Authorities For Asking Successful Resolution Applicant To Pay Dues Not Covered By Approved Plan

Giving the benefit of doubt and accepting their unconditional apology, the Supreme Court today disposed of a contempt petition filed against Chhattisgarh tax authorities for raising demand notices against a successful resolution applicant over claims in respect of a period prior to the approval of the resolution plan."we have no hesitation in holding that the demands raised by the respondents/authorities for a period prior to the date on which the learned NCLT has approved the Resolution Plan...

PMLA | Person Need Not Be Named As Accused In Complaint To Retain Seized Property Under Section 8(3) : Supreme Court

While dealing with a challenge to retention of an accused's electronic items, documents, etc. under the Prevention of Money Laundering Act, the Supreme Court recently observed that a person need not be named as an accused in the complaint in order for Section 8(3)(a) (dealing with continuation of retention) to apply. Rather, it is sufficient if a complaint alleging commission of an offense under Section 3 of the Act is pending."clause (a) will apply during the continuation of the proceedings...

IBC | Once Resolution Plan Approved, Dues Not Part Of It Get Extinguished : Supreme Court Rejects Post-Resolution Income Tax Demand

The Supreme Court today (March 20) declined a claim raised by the Income Tax Department to include a tax demand in a Resolution Plan after it was approved by the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016 (IBC).Citing the case of Ghanashyam Mishra and Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction Company Ltd. (2021) 9 SCC 657, which held that all claims not included in the resolution plan are extinguished upon its approval, the bench comprising Justices Abhay S. Oka...

International Commercial Arbitration | How To Determine Law Governing Arbitration Agreement? Supreme Court Discusses Tests

In a significant judgment relating to International Commercial Arbitration, the Supreme Court today (March 18) ruled that in the absence of an express law governing the arbitration agreement, the applicable law should be determined based on the parties' intentions, with a strong presumption in favor of the law governing the main contract (lex contractus). The bench comprising Chief Justice Sanjiv Khanna, Justice Sanjay Kumar, and Justice KV Viswanathan heard the case where the plea was made for...

No S.138 NI Act Case Against Ex-Director Of Company When Cause Of Action Arose After IBC Moratorium Was Declared: Supreme Court

The Supreme Court held that if the cause of action for the offence of cheque dishonour under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) has arisen after the declaration of moratorium with respect to the company as per the Insolvency & Bankruptcy Code, 2016 (IBC), then the proceedings under S.138 NI Act cannot be continued against the ex-director of the company. The Court reasoned that upon imposition of the moratorium, the board of directors' powers are suspended, and...

Supreme Court Upholds Allahabad HC Decision That Chargers Sold With Cell Phones Cannot Be Taxed Separately Under UP VAT Act 2008

The Supreme Court recently upheld the decision of the Allahabad High Court which observed that the charger sold with a cell phone under the MRP cannot be taxed separately under the UP VAT Act 2008. The bench of Justice BV Nagarathna and Justice SC Sharma was hearing a challenge to the order of the Allahabad High Court which held that a mobile charger contained in a composite package with the cell phone cannot be taxed separately under Entry 28 Part B Schedule II U.P. VAT Act 2008. The...

Supreme Court Wonders Why NCLAT Wrote Long Order On Delay Condonation Application Despite High Pendency

The Supreme Court recently expressed surprise that the National Company Law Appellate Tribunal (NCLAT), despite having a high pendency of cases, devoted extensive time and effort to writing a 17-page order on a delay condonation application.A bench of Justice Abhay Oka and Justice Ujjal Bhuyan remarked that lengthy submissions and pleadings by members of the Bar often contribute to unnecessarily verbose orders.“We wonder why the NCLAT which has a high pendency should devote so much of time and...