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NCLAT dismissed the appeal, holding that contempt proceedings cannot be extended beyond the ambit of the principal proceedings before the Principal Special Court; the interim status quo order dated 19.07.2024 must be read restrictively in relation to "transactions" within the execution context and does not operate as an absolute bar on amalgamation proceedings under Section 230. The Tribunal held that non-disclosure of the status quo order by entities that were not parties to the principal or contempt proceedings does not constitute suppression of a material fact where no gravamen arises, and that the Intervention Application was correctly refused because the Appellant failed to demonstrate a legally cognizable interest under the proviso to Section 230(4).
NCLAT dismissed the appeal, holding that contempt proceedings cannot be extended beyond the ambit of the principal proceedings before the Principal Special Court; the interim status quo order dated 19.07.2024 must be read restrictively in relation to "transactions" within the execution context and does not operate as an absolute bar on amalgamation proceedings under Section 230. The Tribunal held that non-disclosure of the status quo order by entities that were not parties to the principal or contempt proceedings does not constitute suppression of a material fact where no gravamen arises, and that the Intervention Application was correctly refused because the Appellant failed to demonstrate a legally cognizable interest under the proviso to Section 230(4).
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