Retention of seized property survives where recorded reasons support proceeds of crime, while stayed investigation periods are excluded from limitatio...
Specified income of Baddi Barotiwala Nalagarh Development Authority receives conditional tax exemption, retrospectively covering its designated assess...
Specified development authority income receives retrospective tax exemption, subject to non-commercial activity, unchanged income sources, and return-...
Unified Brand India framework introduces voluntary Trust Mark certification and funding support for export branding, packaging and global promotional ...
Origin Declaration authentication governs preferential tariff claims under India-UK CETA, requiring a validated reference number before import clearan...
Separate assessment orders for different years remain valid when distinct notices and hearing opportunities prevent prejudice from combined proceeding...
Insolvency and BankruptcyAugust 7, 2024Case LawsHC
Seeking to quash the demand notice for arrears of unpaid electricity charges, the court examined the scope of the Insolvency and Bankruptcy Code (IBC) and the potential for misuse. It held that operational creditors have a right to property under Article 300A of the Constitution, which is a facet of the right to life under Article 21. The Adjudicating Authority is a neutral tribunal to secure the rights of operational creditors against unfair treatment by the Committee of Creditors (CoC). While the Adjudicating Authority cannot substitute its sense of fairness for the CoC's commercial wisdom, it has a revisional jurisdiction to ascertain the correctness of the CoC's actions. The court discussed the finality of the resolution plan, the applicability of the doctrine of Constructive Res Judicata (CST), and the potential for fraud and manipulation in the IBC process. It emphasized the need to protect the interests of operational creditors and questioned the intent of bending backwards to protect one corporate debtor at the risk of exposing public interest to peril.
Seeking to quash the demand notice for arrears of unpaid electricity charges, the court examined the scope of the Insolvency and Bankruptcy Code (IBC) and the potential for misuse. It held that operational creditors have a right to property under Article 300A of the Constitution, which is a facet of the right to life under Article 21. The Adjudicating Authority is a neutral tribunal to secure the rights of operational creditors against unfair treatment by the Committee of Creditors (CoC). While the Adjudicating Authority cannot substitute its sense of fairness for the CoC's commercial wisdom, it has a revisional jurisdiction to ascertain the correctness of the CoC's actions. The court discussed the finality of the resolution plan, the applicability of the doctrine of Constructive Res Judicata (CST), and the potential for fraud and manipulation in the IBC process. It emphasized the need to protect the interests of operational creditors and questioned the intent of bending backwards to protect one corporate debtor at the risk of exposing public interest to peril.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4801
Join Channel
TaxTMI 
