Legal News & Views

Cause Title :  MSTC Ltd. v/s. Standard Chartered Bank, Appeal No. 10/2023, Debts Recovery Appellate Tribunal, At Mumbai Date of Judgment/Order : 07/08/2023 Corum : Mr Justice Ashok Menon, Chairperson Citied:  Uttam Singh Duggal vs. United Bank of India & Ors. (2000) 7 SCC 120 Ultramatrix Systems Pvt. Ltd. Vs. State Bank of India & Ors 2007 (4) Mh. L. J. 847 Inteltech Automation Pvt. Ltd. & Ors vs. IndusInd Bank Ltd. & Anr. 2011 (1) Mh. L. J. 935 Shantez & Anr. vs. Applause Bhansali Films Pvt. Ltd. Company, Mumbai & Ors. 2009 (4) Mh.L.J. 37 Pankaj Unit No. 1 Housing Development Company Pvt. Ltd. & Anr vs. Oshiwara Land Development Company Pvt. Ltd. & Anr. 2014 SCC OnLine Bom 203 Microcosm Metal & Energy vs. State Bank of India 2015 SCC OnLine Bom 7896 Bareilly Electricity Supply vs. The Workmen & Ors. 1971 (2) SCC 617 Assets Reconstruction Company (India) Ltd. vs. Bishal Jaiswal & Anr. (2021) 6 SCC 366 Background The Respondent Standard Charte

Cause Title : SVA Family Welfare Trust & Anr. Vs. Ujaas Energy Ltd. & Ors., Company Appeal (AT) (Insolvency) No. 266 of 2023, NCLAT-Delhi Date of Judgment/Order : 21/8/2023 Corum : Justice Ashok Bhushan, Chairperson & Barun Mitra, Member (Technical) Citied:  Vijay Kumar Jain vs. Standard Chartered Bank and Ors.- (2019) 20 SCC 455 Lalit Kumar Jain v. Union of India- (2021) 9 SCC 321 State Bank of India vs. V. Ramakrishnan and Anr- (2018) 17 SCC 394 Nitin Chandrakant Naik and Anr. vs. Sanidhya Industries LLP and Ors.- 2021 SCC OnLine NCLAT 302 Karad Urban Cooperative Bank Limited vs. Swwapnil Bhingardevay and Ors.- (2020) 9 SCC 729 K. Sashidhar v. Indian Overseas Bank- (2019) 12 SCC 150 Essar Steel (India) Ltd. Committee of Creditors v. Satish Kumar Gupta- (2020) 8 SCC 531 M.K. Rajagopalan vs. Dr. Periasamy Palani Gounder and Anr.- 2023 SCC OnLine SC 574 Edelweiss Asset Reconstruction Company Ltd. vs. Mr. Anuj Jain, Resolution Professional of Ballarpur, Company Appeal (AT) (I

Cause Title :  State Of Kerala vs Sri. V. C. Vinod, Kerala High Court, St. Rev. No.2 Of 2016 Date of Judgment/Order : 24/7/2023 Corum : Justice Mohammed Nias C. P. & Justice A. K. Jayasankaran Nambiar Citied:  Tata Consultancy Services v. State of Andhra Pradesh – [(2005) 1 SCC 308] Commissioner of Service Tax, Delhi v. Quick Heal Technologies Limited – [(2023) 5 SCC 469] Background The respondent/assessee was doing business in software. Computer software attracted tax @ 4% ad valorem was introduced into the KGST Act with effect from 1.4.2002. As the respondent/assessee had not taken any registration  or paid tax  in respect of the sale of software  to its clients under the KGST Act, penalty proposals were initiated by the Sales Tax Department for each of the assessment years,  against which the assessee argued that customised software was not goods and sales tax could not be demanded from it for the supply of customised software to its clients. When the first and second appeals pr

Cause Title : Mr. Arun Kumar vs Ms. Sripriya Kumar, National Company Law Appellate Tribunal, Company Appeal (At) (Ch) (Ins.) No. 431/2022 Date of Judgment/Order : 08/08/2023 Corum : Abhay S. Oka; J., Rajesh Bindal; J. Citied:  Central Bank of India Vs. Ravindra and Ors.’ reported in [(2002) 1 SCC 367]  S.P. Chengalvaraya Naidu (Debt) by LRs Vs. Jagganath (Debt) by LRs & Ors. Irrigation Department, State of Orissa Vs. G.Roy’ reported in [(1992) 1 SCC 508] Kottayam District Co-Operative Bank Vs. Annie John, [(2002) SCC Online KER 184] Small Scale Industrial Manufactures Association Vs. Union of India & Ors., [(2021 8 SCC 511] Binani Industries Vs. Bank of Baroda and Anr., Company Appeal (AT) (Ins) No. 32/2018 Central Bank of India Vs. Ravindra and Ors.’, [(2002) 1 SCC 367] Background This appeal was filed against the order of the NCLT rejecting the objection of the appellant against the Adjudicating Authority (AA) approving the Resolution Plan in relation to project ‘Arun Aurovil

Cause Title :  M/s. Isnar Aqua Farms Vs. United India Insurance Co. Ltd., Civil Appeal No. 1077 Of 2013, Supreme Court Of India Date of Judgment/Order : 8/8/2023 Corum : A. S. Bopanna, J & Sanjay Kumar, J Citied:  General Assurance Society Limited Vs. Chandumull Jain and another [AIR 1966 SC 1644] Jacob Punnen and another Vs. United India Insurance Company Limited [(2022) 3 SCC 655] Modern Insulators Limited Vs. Oriental Insurance Company Limited [(2000) 2 SCC 734] Background The petitioner a prawn cultivation farm, obtained insurance coverage from the respondent Insurance Company for a period of five months from in relation to all the 37 ponds in its operation.  Subsequently there was a major outbreak of a bacterial disease called ‘White Spot Disease’ along the east coast of Andhra Pradesh, which led to mass mortality of prawns in the area, including the appellant’s farm. This led to invocation of the insurance policy by the appellant. However, upon submission of a claim thereunde

Cause Title :  Commissioner Of Income Tax vs M/s Eltek Sgs Pvt. Ltd., Delhi High Court, ITA 475/2022 Date of Judgment/Order : 01.08.2023 Corum : Hon'ble Mr. Justice Yashwant Varma & Hon'ble Mr. Justice Dharmesh Sharma Citied: Commissioner of Income Tax, Kolkata vs. Smifs Securities Limited, (2012) 13 SCC 488 Background The respondent had amalgamated with M/s Valere Power India Limited in terms of a Scheme of Amalgamation which came to be sanctioned by Delhi High Court on 05 February 2014. As per the scheme of amalgamation, where value of liabilities and amount of equity capital allotted /payment to the equity shareholders exceeds the value of assets of the transferor company taken over, such excess shall debited to the goodwill account. Accordingly, the assessee claimed on depreciation on goodwill which claim was denied by the AO. On appeals, the CIT (Appeals) as well as the Appellate Tribunal allowed the depreciation. Hence this appeal. Judgment The High Court referring to

Cause Title : Mr. Latif Yusuf Manikkoth vs Bank of Baroda, Writ Petition (L) No. 9116 Of 2023, Bombay  High Court Date of Judgment/Order : 20/07/2023 Corum : G. S. Kulkarni & Rajesh S. Patil, JJ. Citied:  M/s. Innoventive Industries Ltd. Vs. ICICI Bank1 (Para No. 11) Authorized Officer, State Bank of Travancore Vs. Mathew K.C.2 (Para Nos. 4, 11) Phoenix ARC Private Ltd. Vs. Vishwa Bharati Vidhya Mandir3 (Para Nos. 7, 8, 9 & 13.2) Surinder Kumar Verma Vs. Union of India4 (Para No. 7) State of Bank India Vs. Ramakrishnan5 (Para Nos. 5.8) Kotak Mahindra Bank Vs. Girnar Corrugators Pvt. Ltd. 6 (Para Nos. 5, 6, 7, 8, 9, 10, 11, 12) Background The Petitioner is personal guarantor against loan sanctioned by the Bank in favour of One Alaska Creations Pvt. Ltd. The Respondent No. 4 was the supplier of footwear to the borrower. When the borrower failed to pay their dues, the  Respondent No. 4  filed an application under Section 9 of Insolvency and Bankruptcy Code which was admitted and