[Dhiraj Abraham Philip is an Advocate-on-Record of the Supreme Court of India and a Partner at the law firm, Dua Associates] The Supreme Court in its judgment dated 20 July 2022 in Indian Oil Corporation Limited v. NCC Limited, held that even after the insertion of sub-section (6-A) in section 11, the scope of inquiry by the Court was not confined to the examination of whether a binding...
SC Clarifies Discretionary Nature of Section 7(5)(a), IBC for Admission of Application
[Anshita Dave and Abhyudaya Yadav are 4th year B.A., LL.B. (Hons.) students at Dharmashastra National Law University, Jabalpur] The issue concerning the nature of section 7(5)(a) of the Insolvency and Bankruptcy Code, 2016 (the “Code”) has been addressed by the Supreme Court of India in its recent decision in Vidharbha Industries Power Ltd v. Axis Bank Ltd. (12 July 2022), wherein the Court has...
The Conundrum of Inter-se Priorities between Secured Creditors in Liquidation
[Arvind Tiwari is a IV year student at the National Law University, Delhi] The recent ruling of the National Company Law Appellate Tribunal (“NCLAT”) in Oriental Bank of Commerce v. Anil Anchalia has rekindled the debate concerning the significance of inter-se priorities among secured creditors in the process of liquidation. In this matter, it was held that once a secured financial...
Rectifying the Law: CoC Approval for Withdrawal of CIRP Proceedings
[Pradhyuman Singh is a V year student of law from Gujarat National Law University, Gandhinagar] On 4 January 2022 in Vinayak Deshpande v. Nexo Industries, the National Company Law Appellate Tribunal (“NCLAT”), Chennai allowed a corporate debtor to settle the matter with the creditor. Accordingly, the National Company Law Tribunal (“NCLT”) was directed to allow the application for withdrawing the...
Delhi High Court on the Overriding Effect of IBC over PMLA
[Pallavi Meena is a IV Year BSW, LL.B (Hons.) student and Ridhi Arora a IV Year B.A., LL.B (Hons.) student, both at Gujarat National Law University] In Nitin Jain, Liquidator, PSL Limited. v. Enforcement Directorate (15 December 2021), the Delhi High Court ruled that the power under the Prevention of Money Laundering Act, 2002 (“PMLA”) to attach properties ceases to exist when an order of...
Assessing the Recently Reinterpreted Period of Limitation under Section 61 of the IBC
[Raghav Sengupta is pursuing the B.A., LL. B (Hons.) course at Jindal Global Law School] In its recent decision in V. Nagarajan v. SKS Ispat and Power Ltd. (22 October 2021), the Supreme Court of India has ruled that the period of limitation to file an appeal against an order under section 61 of the Insolvency and Bankruptcy Code (“IBC”) would commence from the time of the decision’s...
Law Over Equity in Condonation of Delay under the IBC
[Anumeha Smiti is a final year B.A.LL.B (Hons.) student at National University of Study and Research in Law, Ranchi] In the recent matter of National Spot Exchange Limited v. Mr Anil Kohli, Resolution Professional for Dunar Foods Limited (14 September 2021), the Supreme Court reiterated the position of law on condonation of delay by the National Company Law Appellate Tribunal [NCLAT] under...
Provisional Attachment Orders under GST: Exception or the Norm?
[Amritesh Anand is a penultimate year student at NALSAR University of Law, Hyderabad] Enforcement authorities under the GST regime have been vested with a powerful tool under section 83 of the Central Goods & Services Tax Act, 2017 (“CGST Act”) to carry out provisional attachment of property of assessees. The rationale is to ensure that Government interest in revenue is not prejudiced by...
Validity of Arbitration Clause in Unstamped Instruments: The Saga Continues
[Abhishek Mishra is an alumnus of Symbiosis Law School, Pune and practices at the Delhi High Court] By way of its judgment dated January 11, 2021 in N.N. Global Mercantile Pvt. Ltd. v. Indo Unique Flame Ltd., the Supreme Court reopened the seemingly settled issue of whether non-payment of stamp duty on a contract will invalidate the constituent arbitration clause as well. Due to contrary...
FIU’s Penalty on PayPal: The Wisdom of Jurisprudence by Committee
Last week, the Supreme Court’s order constituting a committee to settle the ongoing farmer agitation was critiqued across the entire spectrum of left-to-right wing commentary. At about the same time, in a case involving PayPal, a popular online payment gateway service in India, the Delhi High Court passed an order directing the Finance Ministry to set up a committee to address the following...
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