Limitation for final assessment under sections 144C and 153 treated jointly, resulting in quashing of timebarred assessment order and liberty to reviv...
Deductibility of settlement payments for securities law penalties and treatment of unexplained cash credits in share trading -- Tribunal upholds posit...
Threshold for allottee-initiated insolvency petitions in leasehold real estate upheld; petition admitted after possession letters deemed legally ineff...
Contravention of foreign exchange rules in crossborder diamond payments; appellate tribunal reduces one appellant's penalty for delay and proportional...
The dominant issue was whether a Section 7 application against a corporate guarantor was maintainable when the guarantee deed capped liability at Rs. 75 lakhs, below the Rs. 1 crore threshold under Section 4 IBC. Construing Clauses 1 and 2 strictly as a contractual document, the tribunal held that "not exceeding in the aggregate" fixed an outer ceiling of Rs. 75 lakhs for the entire basket of dues, including principal, interest, and charges, and "all moneys" could not expand liability beyond that cap. Since the capped default could not meet the statutory threshold, the admission order was set aside and CIRP against the corporate guarantor was terminated - NCLAT
The dominant issue was whether a Section 7 application against a corporate guarantor was maintainable when the guarantee deed capped liability at Rs. 75 lakhs, below the Rs. 1 crore threshold under Section 4 IBC. Construing Clauses 1 and 2 strictly as a contractual document, the tribunal held that "not exceeding in the aggregate" fixed an outer ceiling of Rs. 75 lakhs for the entire basket of dues, including principal, interest, and charges, and "all moneys" could not expand liability beyond that cap. Since the capped default could not meet the statutory threshold, the admission order was set aside and CIRP against the corporate guarantor was terminated - NCLAT
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