Companies Act, 1956

Reliance Natural Resources Ltd. (RNRL) and Reliance Industries Ltd. (RIL) entered into a Scheme of Arrangement under the Companies Act, 1956, based on a family Memorandum of Understanding (MoU) between the Ambani brothers. RNRL sought enforcement of gas supply terms from RIL, alleging that the Gas Sales Master Agreemen…

The petitioners, minority shareholders of a joint venture company (APAKSH Broadband Ltd.), alleged that the majority shareholder, which was also the EPC contractor, mismanaged funds and oppressed them, seeking winding up under Sections 397, 398, 402 and 403 of the Companies Act, 1956. The Company Law Board and the High…

The Securities and Exchange Board of India (SEBI) issued show‑cause notices to Vital Communications Ltd (VCL) and related entities for misleading advertisements, leading to a series of orders: a 2008 restraint order, a 2014 order imposing market bans, and a 2018 disgorgement order. The Securities Appellate Tribunal set…

The appellants sought to enforce a foreign arbitral award in Gujarat High Court, which ordered enforcement. They then challenged the order by filing an appeal under Section 13(1) of the Commercial Courts Act, arguing that an appeal was permissible even though Section 50 of the Arbitration and Conciliation Act, 1996 doe…

NRC Ltd, a sick industrial company, entered into a memorandum of understanding and subsequent agreements with K. Raheja Universal Ltd for the sale of 344 acres of land to raise funds for restructuring. The sale was only partially paid and the company later sought a corporate debt restructuring (CDR) scheme, which was a…

Sesa Industries Ltd. (SIL), a subsidiary of Sesa Goa Ltd. (SGL), sought court sanction for a scheme of amalgamation with SGL. The sole dissenting shareholder, Krishna H. Bajaj, intervened, highlighting an inspection report under s.209A that alleged financial irregularities and siphoning of funds. The High Court’s Singl…

The respondent, a beneficiary of shares bequeathed by his mother, sought registration of the transmission of those shares after the company refused to register them. The refusal triggered an appeal under the erstwhile Companies Act, 1956, which the respondent failed to file within the prescribed two‑month period; he la…

The Union of India sought to retain Rs.134.66 crore that it had encashed from bank guarantees of Reliance Communication Ltd (RCL) and Reliance Telecom Ltd (RTL) after they failed to pay deferred spectrum charges of Rs.774.25 crore. The respondents furnished fresh bank guarantees for the same amount and petitioned the T…

The appeal concerned a chit fund operated by Oriental Kuries Ltd., where the respondents defaulted on twelve instalments. The lower courts had allowed recovery of the past instalments but barred recovery of future instalments, holding that a chitty agreement creates only a promise to pay, not a debt. The Supreme Court …

Baccarose Perfumes and Beauty Products Pvt. Ltd (the appellant) challenged the Special Judge's order taking cognizance of alleged offences relating to the payment of Countervailing Duty (CVD) on invoice value instead of Maximum Retail Price (MRP). The company claimed that it had been granted immunity from prosecution u…

The Securities and Exchange Board of India (SEBI) debarred Panasia Advisors Ltd. and its managing director for ten years, alleging that as lead managers they facilitated a fraudulent scheme involving Global Depository Receipts (GDRs) of six Indian companies, creating a false appearance of foreign investment and harming…

Shital Fibers Ltd. (appellant) sought to avoid a winding‑up petition filed by Indian Acrylics Ltd. (respondent) under Sections 433 and 434 of the Companies Act, 1956, alleging inability to pay an admitted debt of Rs 8,92,723. The respondent claimed the debt arose from supply of raw material, while the appellant contend…

The Securities and Exchange Board of India (SEBI) filed a criminal complaint against Reliance Industries Ltd (RIL) alleging violation of Section 77 of the Companies Act, 1956 for alleged fraudulent allotment of shares. SEBI’s investigation report of 2005 was inconclusive, prompting SEBI to obtain two opinions from reti…

National Organic Chemical Industries Ltd. increased its authorized share capital from Rs.600 crores to Rs.1,200 crores and paid Rs.25 lakh stamp duty on the Form No.5 notice filed under Section 97 of the Companies Act, 1956. The company later sought a refund, arguing that the Articles of Association— the only instrumen…

Mahagun Realtors Private Ltd. (MRPL) merged with Mahagun India Private Ltd. (MIPL) by a court‑sanctioned scheme effective 1 April 2006. The Income Tax Department issued assessment notices and later an assessment order in the name of MRPL, which had ceased to exist after the amalgamation. The revenue argued that the ass…

The partnership firm Chetak Enterprises entered into an agreement with the Government of Rajasthan to construct a road and collect tolls. The road was completed on 27‑03‑2000 and the firm was converted into a private limited company on 28‑03‑2000 under Part IX of the Companies Act, 1956. The company claimed a deduction…

The suit was filed by the heirs of a property owner to recover service charges from a sub-tenant, respondent No.3, who failed to appear, leading to an ex‑parte decree. The appellant, NAK Engineering Company Pvt. Ltd., later sought to be impleaded, claiming it was the successor of respondent No.3 under the Companies Act…

Indo Rama Synthetics (I) Ltd. revalued its fixed assets in FY 2000, creating a revaluation reserve of Rs 288.58 crore. In FY 2001 it transferred Rs 26.11 crore of differential depreciation from that reserve to its profit‑and‑loss account, thereby reducing depreciation expense and showing a profit. The Assessing Officer…

The Maharashtra State Co‑operative Bank Ltd. (the Bank) took possession of mortgaged property of Vainganga Sahakari Sakhar Karkhana Ltd. (the Karkhana) after the Karkhana defaulted on a loan and later sold the property to Wainganga Sugar and Power Ltd. The Karkhana’s employees obtained a recovery certificate under the …

The Madhya Pradesh Madhya Kshetra Vidyut Vitran Company and its officers entered into a supply agreement with Bapuna Alcobrew Private Ltd, which required the latter to consume a minimum amount of electricity. The respondent installed a turbo‑generating set contrary to conditions, leading the appellant to issue show‑cau…

DUNCANS INDUSTRIES Ltd., a corporate debtor managing fourteen tea gardens, defaulted on payments to operational creditor A.J. Agrochem. The creditor filed an insolvency petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The debtor argued that, because the Central Government had issued a notific…

Deve Sugars Ltd. was ordered to be wound up and its assets were taken over by an Official Liquidator. The State Bank of Mysore sought to recover a debt under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and obtained leave from the Company Court (High Court, Madras) on 10 March 2000, subject t…

The Central Government, alleging mismanagement and public‑interest prejudice in IL&FS and its group companies, obtained an order from the National Company Law Tribunal (NCLT) suspending the existing board and appointing a new one under Sections 241 and 242 of the Companies Act. Subsequently, the Government applied unde…

The dispute arose when Dhananjay Pande (respondent No.1) invested substantial funds in Dr. Bais Surgical and Medical Institute Pvt. Ltd and was appointed Managing Director, but the company failed to enter his name in the register of members despite allotting shares. Pande filed petitions under Sections 397 and 398 of t…

The Official Liquidator (OL) of IISCO Ujjain Pipe and Foundry Co. Ltd., wound up under the Companies Act, sold the company's assets on an "as is where is whatever there is" basis. Ujjain Nagar Palika Nigam (respondent No.1) claimed arrears of property tax and water tax for the period from the winding‑up order (10 July …

Bhagwati Developers Pvt. Ltd. (the appellant) sought to revive a winding‑up petition filed under Sections 397 and 398 of the Companies Act, 1956 by two shareholders with its consent after the original petitioners withdrew their appeals. The High Court dismissed the appellant's applications, holding that the withdrawal …

Bharat Steel Tubes Ltd. challenged a Delhi High Court order that held IFCI Ltd. to be a "public financial institution" under Section 4A of the Companies Act, 1956 and therefore entitled to enforce a security interest under the SARFAESI Act, 2002. The petitioner argued that the Central Government no longer held 51% of I…

The petitioners challenged the constitutional validity of the Tamil Nadu Protection of Interests of Depositors (in Financial Establishments) Act, 1997 (as amended in 2003), arguing that it encroached upon Union legislative competence (entries 43‑45 of List I) and violated Articles 14, 19(1)(g) and 21 of the Constitutio…

IFB Agro Industries, a listed company, alleged that SICGIL India Ltd. and related persons acquired more than 5% of its shares from the open market without making the disclosures required under SEBI's Substantial Acquisition of Shares and Takeover (SAST) Regulations and Insider Trading (PIT) Regulations. The appellant f…

The case concerned the rehabilitation of about 800 slum dwellers in Mumbai who owned the land through a cooperative society. Susme Builders (the appellant) and J.G. Developers (respondent No.4) each claimed to have the consent of at least 70% of the eligible slum dwellers required under the Development Control Regulati…

The Mineral Exploration Corporation Ltd, a government-owned public sector undertaking, faced severe financial losses and, under a government‑approved restructuring plan, announced a wage revision effective from 1 April 2003 and to be implemented from 1 April 2006. Employees who had voluntarily retired before 1 April 20…

The Supreme Court dealt with the sale of immovable property of Jay Electric Wire Corporation Ltd., a company under liquidation, which had been sold to the appellants for Rs. 2.50 crore in 2006. Secured creditors and the workmen's union challenged the sale, alleging procedural irregularities, unfair price, and the limit…

The case concerned stock brokers who had converted their individual or partnership membership into a corporate entity before 1 April 1997 and sought the fee‑continuity benefit under paragraph 4 of Schedule III of the SEBI (Stock Brokers and Sub‑Brokers) Regulations, 1992. SEBI denied the benefit, arguing that the provi…

The Calcutta Club, a Section 25 company operating as a members' club, was served with a notice for non‑payment of sales tax on food and drinks supplied to its permanent members. The Club argued that, under the doctrine of mutuality, no sale occurred because the supplier and the buyer were the same persons, a view uphel…

The appellant New Delhi Television Ltd. challenged a notice issued under section 147 of the Income Tax Act alleging that undisclosed income had escaped assessment. The Court examined whether the revenue had a prima facie reason to believe such escapement, whether the assessee had fully disclosed all material facts, and…

The appellants, who were tenants of premises mortgaged to banks, challenged the seizure of those premises by the secured creditors under the SARFAESI Act. The Supreme Court examined whether a lease made by the mortgagor, either before or after the mortgage, remains valid and binding on the secured creditor, and whether…

The Karnataka State Financial Corporation (KSFC) sold the lease‑hold rights of the closed industrial concern Mysore Panel and Boards Pvt Ltd, whose 83 workmen had earlier been awarded statutory dues of Rs 29,17,062 by courts under Section 33‑C of the Industrial Disputes Act and the Payment of Gratuity Act. The workmen’…

The appellant, claiming to be the sole proprietor of Vijaya Automobiles, filed a complaint under Section 138 of the Negotiable Instruments Act against the respondent who issued a cheque in the name of the firm that later bounced. The trial court and appellate court convicted the respondent, but the High Court set aside…

Muthoot Leasing and Finance Ltd and another, classified as credit institutions, challenged the levy of interest tax on the interest component embedded in hire‑purchase instalments under the Interest‑Tax Act, 1974. The Income Tax Appellate Tribunal (ITAT) held that hire‑purchase agreements are composite transactions wit…

The Supreme Court examined whether the Reserve Bank of India's (RBI) communication dated 9 June 1997 to SIDBI was a binding directive under the RBI Act, 1934 and the Banking Regulation Act, 1949, and whether SIDBI was justified in withholding interest on bonds issued by CRB Capital. The Court held that RBI’s directions…

The Securities and Exchange Board of India (SEBI) appealed against the Securities Appellate Tribunal’s order that had set aside the Adjudicating Officer’s finding of a violation of Regulation 22(7) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. Burren Energy India Ltd acquired 100% of …

The Himachal Pradesh Cricket Association (HPCA) was granted lease of government land to build a world‑class cricket stadium, later receiving additional land for a club house and a hotel at commercial rates. Two FIRs were filed alleging illegal lease grants, cheating, criminal breach of trust and violations of the Preve…

Mrs. Shailja Krishna, a majority shareholder and former executive director of Satori Global Limited, alleged that the company’s board had fraudulently obtained her signature on a gift deed and share transfer forms, thereby oppressing her and mismanaging the company. The NCLT had earlier granted her relief under Section…

The case involved four brothers who owned a family business and entered into an arbitration agreement in 1984 to partition the business. An arbitrator issued an award in 1987, but subsequent litigation in the Bombay, Rajasthan and Delhi High Courts resulted in family settlement schemes in 1994 and an amended settlement…

Venture Global Engineering (Venture) and Tech Mahindra (formerly Satyam) entered into a joint‑venture agreement under which each held 50% of a JV company. An arbitration under the London Court of International Arbitration awarded the shares of Venture to Satyam, finding Venture in default. After the award, the former S…

The petitioner challenged the appointment of U.K. Sinha as Chairman of SEBI on grounds that he failed to satisfy the statutory requirement of "high integrity" under Section 4(5) of the SEBI Act, alleging mis‑representation, irregular deputation, false declarations, and a conspiracy to secure his selection. The Court ex…

The appellant, M/s Triveni Engineering and Industries Ltd., a sugar manufacturer, was ordered by the National Green Tribunal (NGT) to pay Rs.18 crore as environmental compensation for alleged illegal discharge of untreated effluents and related violations. The appellant challenged the orders on the ground that it was n…

The Supreme Court examined an appeal by Asset Reconstruction Company (India) Ltd., a financial creditor, against a NCLAT order that held a Section 7(2) IBC application against V. Hotels Ltd. was time‑barred. The Court clarified that the Limitation Act, 1963 applies to IBC applications and that the three‑year limitation…

The appellant company failed to honour multiple cheques, leading the respondent to issue statutory notices under Sections 138 and 141 of the Negotiable Instruments Act and file criminal complaints. While the corporate debtor was placed under a moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC), the…

A. Navinchandra Steels Private Limited, an operational creditor, challenged the admission of a Section 7 petition filed by SREI Equipment Finance Limited before the NCLT, arguing that a winding‑up petition against the same debtor was already pending in the Bombay High Court and that the Companies Act provisions should …

The appellants sought to have criminal complaints under Section 138 of the Negotiable Instruments Act, read with Section 141, dismissed on the ground that a scheme of compromise approved under Section 391 of the Companies Act had automatically compounded the offences. The Supreme Court examined whether the sanction of …