Proceedings by a secured creditor under SARFAESI Act cannot be interfered with by a Company Judge under the Companies Act #indianlaws

Jan
2
2016


The required provisions of the Companies Act are incorporated in the SARFAESI Act for harmonizing the SARFAESI Act with the Companies Act in respect of dues of workmen and their protection under Section 529 A of the Companies Act. In view of such exercise already done by the legislature, it was held  by the Supreme Court as not trite to take recourse to any provisions of the Companies Act and permit interference in the proceedings under the SARFAESI Act either by the Company Judge or the liquidator.




Official Liquidator cannot adjudicate claim of a Statutory Corporation# indianlaws

Aug
12
2015


 The Supreme Court has held that the Official Liquidator has no jurisdiction to ascertain or adjudicate the claim of a secured creditor who has been permitted by the Company Judge to stand outside the liquidation proceeding with liberty to pursue its remedy as per statutory rights available under the State Financial Corporations Act 1959, subject only to the conditions imposed by the court. The rights of a financial corporation available under the provisions of the SFC Act by the amendment of 1985 in the Companies Act,  is for a  limited purpose of securing the right of the workers but such limited impediment to their rights under the SFC Act will not alter the status of State financial corporations as secured creditors and they will not be required to prove their debt which they are entitled to realize under the provisions of the SFC Act subject to right of the workers to receive their wages also as secured creditors on pari passu basis. 




Official Liquidator steps into the shoes of Director of the Company in liquidation to performing statutory functions

Jan
19
2015


The Official Liquidator was held to be an officer of the Court and that for the purpose of discharging statutory obligations imposed under the Act, 1956, the Official Liquidator merely steps into the shoes of the company in liquidation.




Winding up Petition not a legitimate mean to seek payment of dues when there exist a bonafide dispute

Dec
1
2014


The creditor in order to seek winding up of a company must prove that the debt is clear and unimpeachable in law and the debt must have crystallized and if the accounts are not settled, the debt cannot be said to have crystallized.




Company Court is not a debt collecting agency #indianlaws

May
30
2014


The proceedings before a Company Court are not recovery proceedings and the Company Court cannot be used as a debt collecting agency




Scope of Sections 397 and 398 read with Sections 402 and 403 of the Companies Act, 1956

Feb
17
2014


Section 397 of the Act empowers the Company Law Board to make such orders as it thinks fit with a view to bring an end to the matters complained of.




Whether filing of Form No. 32 or acceptance of resignation submitted by a Director is necessary for the same to be effective?

Feb
11
2014


A Director is placed in a fiduciary position to that of a company and, therefore, it is the duty of a Director to ensure that the assets of the company are preserved and protected.




Scope of Section 446 Companies Act, 1956

Dec
12
2013


Principles governing staying of suit in pursuance of winding up proceedings




Right or Interest to occupy is a Species of Property and is not barred from transferability

Sep
11
2013


A question arose before the Apex Court as to whether the property mortgaged to a Bank by shareholder of a Company can be attached and sold in execution of a decree obtained by Bank




CLB can compound certain offences under Companies Act, 1956, without permission from Court

May
8
2013


Company Law Board if so approached can compound offences and in such case no prior permission of the Court is necessary
 








© 2010-15