Between The Lines – Page 39 – Vaish Associates Advocates

NCLAT: Resolution plans must ensure continuity of operations of the Corporate Debtor

The National Company Appellate Law Tribunal (“NCLAT”), in the case of Industrial Services v. Burn Standard Company Limited and Others (decided on May 13, 2019), held that a resolution plan which shall result in closure of the operations of the corporate debtor is against the scope and intent of the Insolvency and Bankruptcy Code, 2016 […]

Supreme Court: Arbitration proceedings once terminated under Section 32 of Arbitration Act cannot be subsequently recalled

The Supreme Court in the case of Sai Babu v. M/S Clariya Steels Private Limited (decided on May 1, 2019), held that once the sole arbitrator terminates the arbitration proceedings under Section 32(2)(c) of Arbitration and Conciliation Act, 1996 (“Arbitration Act”), the same cannot be subsequently recalled. FACTS In an arbitration between Sai Babu (“Appellant”) […]

NCLAT holds that shareholders can file application to approve settlement with creditors even after appointment of official liquidator

In a recent judgement in the case of Rasiklal S. Mardiya v. Amar Dye Chem Limited (decided on April 8, 2019), the National Company Law Appellate Tribunal (“NCLAT”) has stated that shareholders can file application to approve settlement with creditors even after appointment of official liquidator. FACTS The case arises from a winding up petition […]

Supreme Court holds that courts cannot appoint an arbitrator basis an inadequately stamped agreement containing the arbitration clause

A two judge bench of the Supreme Court, in the case of Garware Wall Ropes Limited v. Coastal Marine Constructions and Engineering Limited (decided on April 10, 2019) held that the arbitration clause contained in an agreement or conveyance is not separable from the said agreement or conveyance and hence, if such agreement or conveyance […]

Delhi High Court: Provisions of Recovery of Debts and Bankruptcy Act, SARFAESI and IBC do not prevail over provisions of the PMLA

A division bench of the Delhi High Court in case of The Deputy Director Directorate of Enforcement Delhi v. Axis Bank & Others (decided on April 2, 2019) while jointly considering 5 appeals against the order of Appellate Tribunal under the Prevention of Money Laundering Act, 2002 (“PMLA”) held that provisions of Recovery of Debts […]

Supreme Court decides on authority of a person ineligible to be appointed as an arbitrator to nominate an arbitrator

All sections and schedules cited in this case analysis, unless specified otherwise, refer to the sections and schedules of the Arbitration and Conciliation Act, 1996 In the case of Bharat Broadband Network Limited v. United Telecoms Limited (decided on April 16, 2019), the Supreme Court while upholding its own decision in TRF Limited v. Energo […]