The Insolvency and Bankruptcy Code, 2016 (IBC) lays emphasis on an elaborate process by which a corporate insolvency resolution plan (CIRP) can be proposed, considered, decided, and approved. The principal actors involved in the process include the resolution professional, the committee of creditors (CoC) and the adjudicating authority (being the National Company Law Tribunal (NCLT) and, on...
Resolution Professional as the Occupier: A Recipe for Disaster?
[Tanish Arora is a 3rd year B.B.A.LL.B. student at National Law University Odisha] In December 2023, the Madras High Court in Subrata Monindranath Maity v The State, Represented by Deputy Director, Industrial Safety and Health-II stipulated that a person who is the resolution professional (“RP”) in respect of an establishment is also an occupier under the Factories Act, 1948. Hence, the RP would...
Navigating the Doctrine of Election under the IBC
[Akshita Shrivastava is a IV year B.A.LL.B. (Hons.) student at National Law Institute University in Bhopal (M.P.)] The doctrine of election, a fundamental principle in evidentiary law, has been a subject of extensive discussion and legal interpretation in recent times, particularly in its application within the intricate landscape of insolvency and bankruptcy proceedings. This doctrine comes into...
Unravelling the Rights of Successors vis-à-vis Nominees to the Shares of a Company
[Snigdha is a 3rd year B.A., LL.B. student at Gujarat National Law University, Gandhinagar] The Supreme Court on 14 December 2023 in Shakti Yezdani v. Jayanand Jayant Salgaonkar settled the position of conflict between the rights of a nominee under section 109A of the Companies Act, 1956 (the “Act”) and that of a successor to the shares/securities of a company. The Court clarified the...
Supreme Court Holds Maternity Benefits Could Extend Even Beyond Contractual Term
[Lavanya Chawla is an Associate at J-Law Offices, New Delhi.] A three Judge bench of the Supreme Court in Dr. Kavita Yadav v The Secretary, Ministry of Health and Family Welfare Department & Ors (17 August 2023) held that if a woman has worked in an establishment for 80 days, she would be eligible for full maternity benefits, even if such benefits exceed the term of contract. Facts An...
IBC Overrides Electricity Act: Capturing the Fallacy in Rainbow Papers
[Praveen Sharma is a 5th Year Student at MNLU Mumbai] Recently in Paschimanchal Vidyut Vitran Nigam Ltd. v. Raman Ispat Private Limited, the Supreme Court of India ruled that the Insolvency and Bankruptcy Code, 2016 (IBC) overrides the Electricity Act, 2003. While dismissing the appeal of Paschimanchal Vidyut Vitran Nigam Limited (PVVNL), the Court provided crucial clarification regarding the...
Analysis of SAT Order: Appointment of Independent Director Above 75 years
[Gaurav Pingle is a practising company secretary and can be reached at [email protected]] Considering the importance of independent directors on the boards of listed entities, the Securities and Exchange Board of India (“SEBI”) has been amending the provisions relating to their appointment, re-appointment, appointment process, remuneration, and the like under the SEBI (Listing Obligations and...
Preserving the IBC’s rationale: The Tussle with the Benami Act
[Rohan Srivastava and Rupam Dubey are currently B.A., LL.B. (Hons.) students at the National Law School of India University, Bengaluru] Presently, the Supreme Court is considering an appeal in the C Ramasubramaniam Liquidator v. Deputy Commssioner of Income Tax (Benami Prohibition) , which will potentially establish the extent to which the Insolvency and Bankruptcy Code (‘IBC’), [year] is given...
Liability of Authorized Signatory of a Company to Pay Interim Compensation Under the Negotiable Instruments Act, 1881
[Khush Bhachawat is a III year B.A., LL.B. (Hons.) student at NALSAR University of Law, Hyderabad] The Bombay High Court (“HC”) recently held that authorised signatory of a company who signs a cheque on its behalf is not a ‘drawer’ of the cheque and hence is not liable to pay interim compensation under section 143A of the Negotiable Instruments Act, 1881 (“NI Act”) in a case of...
Reassessing the Validity of Dawn Raid in Light of French Supermarket Judgment
[Shubham Gandhi and Sreeya Sengupta are students at NLU Jabalpur & Nirma Law Institute respectively.] The Competition Act, 2002 (“Act”) vide section 41 grants the power to the Director General (“DG”) to carry out dawn raids, i.e., a sudden, unannounced raid on the company’s offices to seize relevant documents to corroborate the investigation. This power has been largely unguided and...
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