Transfer pricing comparability requires functional alignment, reliable financial data, and careful review of working capital and receivables adjustmen...
Transfer pricing rules require benchmarking corporate guarantees and associated-enterprise advances, while invalid domestic-transaction adjustments ca...
Prospective sugar export prohibition required registered letters of credit; private contracts and export quotas created no enforceable continuation ri...
Retroactive interim-moratorium exclusion permits protective asset disclosure and preservation measures against personal guarantors pending arbitration...
The court examined whether the suit is barred u/s 34 of the SARFAESI Act. The petitioner, being a shareholder, lacks locus standi to challenge the secured creditor's actions. However, the pleadings allege fraud and collusion between the respondents, including the bank, in sanctioning the loan without due process. The court held that averments of fraud and collusion cannot be rejected outright, and the relief sought for declaring the loan facility and mortgage as null is not within DRT's jurisdiction under SARFAESI Act but permissible under Specific Relief Act. The lower courts erred in considering documents contrary to pleadings. The petitioner cannot be denied remedy against secured creditors' actions. Consequently, the High Court quashed the lower court orders, restoring the plaint to the Commercial Court for adjudication in accordance with law.
The court examined whether the suit is barred u/s 34 of the SARFAESI Act. The petitioner, being a shareholder, lacks locus standi to challenge the secured creditor's actions. However, the pleadings allege fraud and collusion between the respondents, including the bank, in sanctioning the loan without due process. The court held that averments of fraud and collusion cannot be rejected outright, and the relief sought for declaring the loan facility and mortgage as null is not within DRT's jurisdiction under SARFAESI Act but permissible under Specific Relief Act. The lower courts erred in considering documents contrary to pleadings. The petitioner cannot be denied remedy against secured creditors' actions. Consequently, the High Court quashed the lower court orders, restoring the plaint to the Commercial Court for adjudication in accordance with law.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4780
Join Channel
TaxTMI 
