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Limitation Act Applies Only To Courts Not Tribunals Unless Statute Expressly Permits It: Supreme Court
The Supreme Court has recently clarified that the Limitation Act applies only to cases filed before courts and cannot be used in proceedings before tribunals or other quasi-judicial bodies unless the statute expressly gives them that power. The ruling was delivered by a bench of Justices J B Pardiwala and R Mahadevan while allowing an appeal filed by The Property Company (P) Ltd., which challenged orders of the Company Law Board and the Calcutta High Court condoning a substantial delay...
Full Payment Of Admitted Claim In Guarantor's CIRP Bars Creditor's Recovery From Principal Borrower
The NCLT Guwahati has recently held that full settlement of an admitted claim under a resolution plan in the corporate guarantor's CIRP discharges the debt, extinguishing the creditor's rights against both the borrower and the guarantor.A coram of Judicial Member Rammurti Kushawaha and Technical Member Yogendra Kumar Singh was dealing with applications arising out of the Corporate Insolvency Resolution Process of National Plywood Industries Limited.“Upon implementation of the Resolution Plan and...
Mere Filing Of Personal Insolvency After SARFAESI Plea Doesn't Show Intent To Stall Recovery: NCLT Chennai
The National Company Law Tribunal (NCLT) at Chennai has recently observed that merely filing an insolvency petition after the initiation of proceedings under the SARFAESI Act does not, by itself, indicate an attempt to delay or obstruct recovery proceedings.A coram of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramanian was hearing a petition filed by a personal guarantor seeking initiation of personal insolvency resolution proceedings under Section 94 of the Insolvency and...
Supreme Court Grants Bail To Four Accused In Fake ITC Case After Consistent Trial Appearance
The Supreme Court recently granted bail to four persons accused of operating a network of fake firms to fraudulently avail Input Tax Credit (ITC) under the GST law. The top court held that their continuous appearance before the trial court amounted to “constructive custody” and that remanding them to jail would serve no useful purpose at this stage. A bench of Justice Dipankar Datta and Justice Satish Chandra Sharma was hearing appeals filed by the accused, who were arrested in 2021 by the...
Heavy Earth Moving Machinery Not 'Motor Vehicles' Liable For Road Tax: Supreme Court
The Supreme Court has recently held that Heavy Earth Moving Machinery (HEMM) and construction equipment vehicles used exclusively within private premises are not 'motor vehicles' liable to be taxed within the ambit of the Motor Vehicles Act, 1988 (the Act).A Bench of Justice Pankaj Mithal and Justice Prasanna B. Varale held,“We are of the conclusive opinion that the vehicles used by the appellants are vehicles of special types, precisely construction equipment vehicles which are suitable and are...
Financial Creditor Cannot Avoid Liquidation Costs After Settling Dues Through OTS: NCLT Bengaluru
The National Company Law Tribunal (NCLT) at Bengaluru has held that a financial creditor that participated in the liquidation process and secured its dues through a one-time settlement cannot later avoid paying its share of liquidation costs for the ime it had taken part in it. A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada directed Jammu & Kashmir Bank Ltd to bear its proportionate share of liquidation expenses in the liquidation of Alpine...
Courts Cannot Decide Arbitrability While Appointing Arbitrators: Supreme Court Dismisses Motilal Oswal's Appeal
The Supreme Court of India recently held that courts cannot decide questions of arbitrability while appointing arbitrators, even when a party relies on a special statute to oppose arbitration. At the Section 11 stage, the court said judges are required to “confine to the examination of the existence of an arbitration agreement” and nothing beyond that. On that basis, the court dismissed an appeal filed by Motilal Oswal Financial Services Limited challenging the appointment of an...
CESTAT Mumbai Allows CENVAT Credit On Kinder Joy Plastic Toys Despite Excise Exemption On Toys
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed CENVAT credit on duty paid inputs and capital goods used to make plastic toys supplied with Kinder Joy chocolates. It held that such credit cannot be denied only because the toys were exempt from central excise duty. A coram of Judicial Member C.J. Mathew and Technical Member Ajay Sharma said that entitlement to CENVAT credit arises once duty-paid inputs or capital goods enter the factory. It can be...
CESTAT Delhi Allows Importer To Claim Tax-Free Imports From Least Developed Countries Despite Licence Terms
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Customs authorities cannot deny duty-free benefits available to imports from Least Developed Countries merely because an import licence issued by the Directorate General of Foreign Trade refers to a separate concessional duty notification. A coram of President Justice Dilip Gupta and Technical Member P.V. Subba Rao set aside a customs duty demand, along with interest, penalty, and redemption fine,...