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Arbitration
SUPREME COURT OF INDIA
Supreme Court Draws Bright Line on Section 29A: Extinguished Dues Cannot Be Resurrected to Bar a Resolution Applicant
Impacted Stakeholders: Resolution Applicants, Committees of Creditors, Resolution Professionals, Prospective Bidders
The Supreme Court restored a resolution applicant's eligibility to bid in a CIRP after lower forums disqualified it under Section 29A using dues that had already been extinguished under an earlier, separately approved resolution plan. Section 29A, the Court held, cannot penalise applicants for liabilities that have ceased to exist in law.
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SUPREME COURT OF INDIA
Arbitration Clause in Flat-Buyer Agreement Cannot Oust Consumer Forum's Jurisdiction Once Complaint Is Admitted
Impacted Stakeholders: Homebuyers & Allottees, Real Estate Developers, Cooperative Housing Societies
The Supreme Court set aside orders diverting a nearly two-decade-old consumer complaint over delayed possession into arbitration, holding that an arbitration clause cannot override a consumer forum's jurisdiction once a complaint has been admitted. Accepting possession midway through a dispute does not, by itself, extinguish the buyer's claim or consumer status.
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DELHI HIGH COURT
Arbitrator's Finding on Quantum of Compensation for Delayed Possession Is Not Open to Reappraisal in a Section 37 Appeal
Impacted Stakeholders: Commercial & Residential Property Buyers, Real Estate Developers, Arbitration Practitioners
The Delhi High Court dismissed an appeal seeking enhanced compensation for delayed possession of commercial space, holding that findings on quantum and contractual interpretation are essentially findings of fact that an appellate court under Section 37 cannot reappraise absent perversity. The claim for a higher rate failed for want of properly proved comparable evidence. Read Full
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DELHI HIGH COURT
Contractor Cannot Revive Prolongation and Overhead Claims After Acquiescing in the Engineer's Rejection of the Same
Impacted Stakeholders: Government & PSU Contracting Authorities, EPC Contractors, FIDIC-Style Tribunals
The Delhi High Court set aside an arbitral award granting a contractor Rs. 35.15 crore in prolongation and overhead costs, holding the contractor could not resurrect claims it had accepted without protest for years under the Engineer's repeated determinations. A related claim of over Rs. 7.7 crore for machinery residual value was also struck down for want of evidence, though loss of profits flowing from illegal termination was upheld.
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Insolvency & Bankruptcy
SUPREME COURT OF INDIA
Supreme Court Draws Bright Line on Section 29A: Extinguished Dues Cannot Be Resurrected to Bar a Resolution Applicant
Impacted Stakeholders: Resolution Applicants, Committees of Creditors, Resolution Professionals, Prospective Bidders
The Supreme Court restored a resolution applicant's eligibility to bid in a CIRP after lower forums disqualified it under Section 29A using dues that had already been extinguished under an earlier, separately approved resolution plan. Section 29A, the Court held, cannot penalise applicants for liabilities that have ceased to exist in law.
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NCLT, GUWAHATI
A Creditor Who Cries Fraud in One Forum Cannot Claim Clean Debt in Another
Impacted Stakeholders: Financial Creditors, Banks & NBFCs, Resolution Professionals, Corporate Debtors
NCLT Guwahati refused to admit a Section 7 petition where the creditor itself had alleged, in parallel proceedings, that the very same transactions were fraudulent. An established, undisputed financial debt is a prerequisite for admission that cannot be assumed amid contradictory pleadings across forums.
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NCLAT, CHENNAI
Going Concern Sale in Liquidation Does Not Transfer Subsidiaries Outside the Liquidation Estate
Impacted Stakeholders: Successful Bidders, Liquidators, Financial Creditors, Subsidiary Companies
NCLAT Chennai held that a going concern purchaser cannot claim rights over the corporate debtor's subsidiaries and group entities merely by virtue of the acquisition. A going concern sale transfers only the Section 36 liquidation estate; subsidiaries remain independent legal entities with their own creditors and shareholders.
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NCLT, NEW DELHI NCLT
Terminates CIRP After 330-Day Breach: Irregularity and Statutory Timeline Cannot Both Be Ignored
Impacted Stakeholders: Corporate Debtors, Committees of Creditors, Resolution Professionals, Educational Institutions
NCLT Delhi terminated CIRPs against two educational institutions after the process breached the 330-day statutory limit without yielding a resolution plan and was marred by procedural irregularities, recalling the admission orders and withdrawing the moratorium.
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NCLT, KOCHI
Approved Resolution Plan Binds Income Tax Department; Pre-CIRP Attachment Cannot Survive Plan Approval
Impacted Stakeholders: Successful Resolution Applicants, Income Tax Department, Tax Authorities
NCLT Kochi directed the lifting of a pre-CIRP income tax attachment, holding that an approved resolution plan binds all creditors, including government authorities, and that the clean-slate doctrine extinguishes claims — including tax attachments — not addressed within the plan.
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Company Law
NCLT, MUMBAI
Allegations of Oppression to Be Tested Only at the Final Hearing, Not at the Amendment Stage
Impacted Stakeholders: Companies, Majority & Minority Shareholders, Directors, Management
NCLT Mumbai allowed amendment of a company petition to add fresh allegations of oppression arising from events after the original filing, holding that whether the conduct actually amounts to oppression or mismanagement can only be decided at the final hearing — not while ruling on an amendment application.
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NCLT, INDORE
No Minimum Shareholding Required to Seek Restoration of a Struck-Off Company
Impacted Stakeholders: Struck-Off Companies, Minority Shareholders, Creditors, Tax Authorities
NCLT Indore restored a company struck off for non-filing, holding that Section 252(3) grants “any member or creditor” the right to seek restoration regardless of shareholding size — here just 0.1% — provided there is no evidence of fraud and restoration serves the interests of justice and revenue.
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NCLAT, CHENNAI NCLT
Cannot Recall a Merits-Based Order by Invoking Inherent Powers
Impacted Stakeholders: Companies in Winding-Up, Creditors, Interim Administrators, Insolvency Professionals
NCLAT Chennai set aside an NCLT order that had recalled its own reasoned order appointing an Interim Administrator, holding that inherent powers under Rule 9 cannot substitute for the statutory appeal process once an order has been made on merits after hearing the parties.
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CALCUTTA HIGH COURT
Company Court May Transfer Winding-Up Proceedings to NCLT Even Without a Formal Transfer Application
Impacted Stakeholders: Companies in Liquidation, Creditors, Official Liquidators
The Calcutta High Court upheld transfer of a winding-up proceeding to the NCLT despite the absence of a formal transfer application, holding that pending proceedings should ordinarily move to the NCLT unless they have reached an irreversible stage.
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Competition Law
COMPETITION COMMISSION OF INDIA CCI
Clarifies That Consumer Contractual Disputes Do Not Constitute Abuse of Dominant Position
Impacted Stakeholders: Digital Platforms & SaaS Providers, AI Companies, Consumers
The CCI closed a complaint against an AI video platform alleging abuse of dominance over subscription cancellation and denial of credits, holding the grievance was a private contractual dispute with no prima facie effect on competition and that the informant's remedy lay before a consumer forum.
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COMPETITION COMMISSION OF INDIA
Airport Taxi Licence Does Not Confer Exclusive Rights Under Competition Law
Impacted Stakeholders: Airport Authorities, Taxi Operators, App-Based Mobility Platforms
The CCI held that an airport taxi operator's licence, won through competitive tender, conferred no exclusivity since the agreement expressly permitted other operators and passengers retained app based alternatives; allegations of intimidation were held to fall within criminal, not competition, law.
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COMPETITION COMMISSION OF INDIA CCI
Reaffirms That Anti-Competitive Agreements Must Be Established Through Cogent Evidence
Impacted Stakeholders: Pharmaceutical Manufacturers, Chemist & Druggist Associations, Stockists & Distributors
The CCI closed a 14-year-old proceeding against pharmaceutical trade bodies over alleged NOC and boycott practices, holding the investigation relied on stale pre-2011 material without accounting for later compliance measures, and that liability requires proof of a continuing, actually-enforced arrangement.
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Corporate & Commercial
KERALA HIGH COURT
Suppression of Foreign Bankruptcy Proceedings Is Grounds for Striking Off Parties Under Section 151 CPC
Impacted Stakeholders: Foreign Bankruptcy Trustees, Resolution Professionals, Multinational Corporations
The Kerala High Court removed a US Chapter 11 Trustee from a domestic suit after finding the plaintiffs had suppressed their participation and adverse orders in parallel US bankruptcy proceedings, terming the Indian suit “a clever piece of drafting” designed to create an illusory cause of action.
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NCLT, NEW DELHI NCLT
Recalls CIRP Admission Order Under Inherent Powers to Prevent Fraudulent Shielding by Promoters
Impacted Stakeholders: Insolvency Professionals, Committee of Creditors, Financial Creditors, Suspended Management
NCLT Delhi invoked its inherent powers to recall a CIRP admission order rather than grant a further extension, finding that absconding promoters had diverted the debtor's business through third-party trusts, leaving no realisable assets and no purpose in continuing the process.
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KARNATAKA HIGH COURT NCLT
Possesses Threshold Jurisdiction to Determine an Applicant's Locus Standi Under Section 94 Without Appointing a Resolution Professional
Impacted Stakeholders: Financial Creditors, Corporate Debtors, Co-Borrowers, Personal Guarantors
The Karnataka High Court held that adjudicating authorities may verify at the threshold whether an applicant genuinely holds personal-guarantor status before triggering Section 94's interim moratorium, rejecting the argument that a Resolution Professional must be appointed automatically upon filing.
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BOMBAY HIGH COURT IBC
Moratorium Does Not Bar Grant of Deemed Conveyance Under MOFA Impacted
Stakeholders: Co-Operative Housing Societies, Real Estate Developers, Flat Purchasers
The Bombay High Court held that a developer's CIRP does not bar the Competent Authority from granting deemed conveyance under Section 11 of MOFA, since conveyance perfects flat purchasers' title rather than alienating an asset of the corporate debtor, placing it outside the Section 14 moratorium.
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