Smart Timing Steel Ltd. vs. National Steel and Agro Industries Ltd.

In order to initiate corporate insolvency resolution process against a corporate debtor, an operational creditor must obtain a certificate from the Financial Institution maintaining its account, confirming that that there is no payment of an unpaid operational debt by the Corporate Debtor.… Read More Smart Timing Steel Ltd. vs. National Steel and Agro Industries Ltd.

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Ashok Commercial Enterprises vs. Parekh Aluminex Ltd.

NCLT has jurisdiction over all winding up proceedings, including, inter alia, winding up on the ground of inability to pay debt, where such petition is served to a respondent after 15th December, 2016. For all other winding up petitions served before 15th December, 2016, High Court will continue to have jurisdiction.… Read More Ashok Commercial Enterprises vs. Parekh Aluminex Ltd.

FDI IN REAL ESTATE BUSINESS & CONSTRUCTION DEVELOPMENT SECTOR

FDI IN REAL ESTATE BUSINESS & CONSTRUCTION DEVELOPMENT SECTOR FDI is not permitted in an entity which is engaged or proposes to engage in real estate business, construction of farm houses and trading in Transferable Development Rights (TDRs).[1] For this purpose of FDI investment in real estate business, the term “Real Estate Business” means dealing… Read More FDI IN REAL ESTATE BUSINESS & CONSTRUCTION DEVELOPMENT SECTOR

Do Directors Owe Fiduciary Duty to Shareholders?

Scope and Definition of ‘fiduciary’, “fiduciary capacity” and “fiduciary relationship” The Hon’ble Supreme Court in Sri Marcel Martins vs. M. Printer and Ors.[1] defined the term ‘fiduciary’ as- “The word ‘fiduciary’, as a noun, means one who holds a thing in trust for another, a trustee, a person holding the character of a trustee, or… Read More Do Directors Owe Fiduciary Duty to Shareholders?

Application of Principle of ‘Dissolution of Partnership’ to invoke Winding Up

Application of principle of ‘dissolution of partnership’ to invoke winding up of Company under Section 433(f) of Companies Act, 1956 Deadlock in the management of the company is one of the grounds which may make it equitable and just for the court to wind up a company under Section 433(f). Section 433 provides for the… Read More Application of Principle of ‘Dissolution of Partnership’ to invoke Winding Up

Case List: Articles of Association vs. Shareholders Agreements – Which one prevails?

Section 36 of the Companies Act, 1956 makes the Memorandum and Articles of Company, when registered, binding not only on the company but also the members inter-se to the same extent as if they had been signed by the company and by each member and covenanted to by the company and each shareholder to observe… Read More Case List: Articles of Association vs. Shareholders Agreements – Which one prevails?

In Re: Mohan Exports India Ltd. vs. Tarun Overseas Pvt. Ltd.

In case the proposed scheme is bona fide and genuine and is not against public interest then mere fact that certain immovable properties or right to recover debts etc. are transferred to the transferee company would not mean that they are in violation of any provisions of the Transfer of Property Act. However, if such scheme is only with the ulterior motive to transfer the immovable properties without payment of Government or statutory dues, then the same would be against the public interest and the Court will not approve the scheme. … Read More In Re: Mohan Exports India Ltd. vs. Tarun Overseas Pvt. Ltd.

IN RE Tecumseh Products India Private Ltd.

CITATION: 82 (1999) DLT 518 DECIDED on: 13.08.1999 FACTS In this case a Company Petition was filed by M/s. Tecumseh India Private Limited (“Transferee Company”) seeking amalgamation of M/s. Tecumseh Products India Limited (“Transferor Company”) with the Transferee Company. Both the Transferor and Transferee Company belonged to same group. The scheme of amalgamation provided that all… Read More IN RE Tecumseh Products India Private Ltd.