Companies Act

The appellant, Udaipur Phosphates Fertilizers Ltd., manufactured Single Super Phosphate (SSP) under the Government's Retention Price and Subsidy Scheme. It applied for re‑endorsement of its plant capacity under Press Note No. 9 (1988) based on actual production between April 1988 and March 1990. The Government approved…

The appellant, IL & FS Financial Services Ltd., entered into a term loan agreement with the respondent, Adhunik Meghalaya Steels Pvt. Ltd., in 2015, which became a non‑performing asset on 1 March 2018. The appellant filed a Section 7 application under the Insolvency and Bankruptcy Code on 15 January 2024, relying on th…

The City and Industrial Development Corporation of Maharashtra (CIDCO) invited a tender for leasing land for hotel development and allotted the plot to the highest bidder, Metropolis Hotels, which later changed the land use and subdivided the plot, assigning part to Shishir Realty. Complaints of irregularities led to a…

M.R. Pratap, the Managing Director of Rayala Corporation Private Ltd., signed and verified the company's income‑tax return for AY 1965‑66, which was later found to be false. He was prosecuted under section 277 of the Income‑Tax Act for wilfully making a false verification. The appellant contended that the term "person"…

The appellants, heirs of Durgaprasad Lashkari, sought to prevent the Official Liquidator from selling a 199‑year leasehold property of Prasad Mills Ltd., which was under winding‑up. The High Court held that the landlord could not evict on the ground of non‑payment of rent because the secured creditors were ready and wi…

The appellant, Mis. Sun Beverages Ltd., set up a pioneer industrial unit in a zero‑industrial area of Uttar Pradesh and was registered as a Medium Scale Industry with the Director General of Technical Development (DGTD). It received a cash subsidy of Rs.15 lacs under the State's Capital Grant Scheme. After the Governme…

The Himachal Pradesh Government introduced the 1999 Pension Scheme for employees of state-owned corporations, replacing the Employees' Provident Funds Scheme, 1995. After a high‑level committee found the scheme financially unsustainable, the Government issued a notification on 2 December 2004 repealing the scheme, allo…

Berger Paints India Ltd. claimed a deduction under section 35D of the Income Tax Act for preliminary expenses, treating the premium received on its issued share capital as part of the "capital employed in the business of the company". The Assessing Officer disallowed the claim, the Commissioner of Income Tax allowed it…

The Commissioner of Income Tax appealed against the Madras High Court’s decision that the Completed Contract Method of accounting for chit discount, used by M/s Bilahari Investment (P) Ltd., was valid. The assessee companies, engaged in chit fund business, had historically applied the Completed Contract Method, which t…

M. Viswanathan filed a criminal complaint alleging theft of documents, forgery, and intimidation by S.K. Tiles & Potteries Ltd. and others, leading to charges under IPC sections 379, 468, 471, 420 and 506(ii). The respondents sought quashing of the proceedings under Section 482 of the CrPC, arguing that the grievance w…

The workmen of Rohtas Industries Ltd., whose four industrial units were closed on 9 September 1984, filed a writ petition under Article 32 seeking payment of arrears, compensation and other statutory dues. The Patna High Court had appointed a provisional liquidator, but the Supreme Court, invoking the Sick Industrial C…

S. Nagoor Meera, a Superintendent in the Collegiate Education Department, was convicted under IPC s.420 and the Prevention of Corruption Act s.5 and sentenced to one year rigorous imprisonment. The High Court suspended the sentence and released him on bail. The Deputy Director issued a show‑cause notice seeking his dis…

Vedanta Aluminium Ltd (formerly Vedanta Alumina Ltd) sought judicial clearance to divert 58.943 hectares of reserve forest land in the ecologically sensitive Niyamgiri Hills of Orissa for a one‑million‑tonne alumina refinery. The project required mining of bauxite from the hills, which are a wildlife corridor, a water …

A Panama‑registered vessel carrying Ukrainian crew entered Indian territorial waters without authorization and was arrested by the Coast Guard. The Customs Department seized the cargo and later confiscated the vessel under the Customs Act, 1962. The chief officer and other crew members filed applications seeking paymen…

The Uttar Pradesh State Financial Corporation (SFC) had sanctioned a Rs 30 lakh term loan to Naini Oxygen and Acetylene Gas Ltd. (the Company). The Company repeatedly defaulted, leading to a recovery certificate under the U.P. Public Moneys (Recovery of Dues) Act and a notice under Section 29 of the U.P. State Financia…

The respondent, Zakir Hussain, was appointed as a daily‑wage conductor on a two‑year probation and was terminated for unsatisfactory performance without any enquiry. He appealed to the departmental authority, which dismissed his grievance, and then filed a suit in a civil court seeking a declaration that the terminatio…

The appellants, directors of Priknit Apparel Ltd, received an investment of Rs 2.5 crore from Respondent No. 2 (SMC Global Securities) in exchange for 2,50,000 equity shares, but failed to launch an IPO as per the memorandum of understanding. The complainant filed a police complaint in Delhi which was dismissed, and su…

The Supreme Court examined appeals filed by teachers and staff of a proprietary school who claimed they were employees of Hindustan Copper Ltd (HCL) and Bharat Coking Coal Ltd (BCCL) and sought mandamus to compel payment of salaries and pay parity with clerks of the companies. The Court held that HCL and BCCL merely pr…

The Comptroller and Auditor General (CAG) issued an advertisement inviting applications from Chartered Accountant firms for empanelment to audit government companies, restricting eligibility to partnership firms except in certain states where proprietary firms could apply. K.V. Mehta, a sole proprietor, was rejected an…

Mis. George Williamson (Assam) Ltd. acquired the Indian undertakings of twelve UK‑registered tea companies under a scheme of arrangement approved by the High Courts and the RBI, which required that the net assets of the acquired business not be depleted. The consideration paid (Rs 490 lakhs) was lower than the net asse…

The petitioners, a trade union and former employees of Hindustan Zinc Ltd (HZL), challenged the Union Government's plan to sell its remaining 29.54% stake in HZL, arguing that the Nationalisation Act, 1976 required a parliamentary amendment for any such disinvestment. The Court examined whether the earlier decision in …

The Assistant Commissioner of Income Tax sought the release of tax liabilities amounting to Rs. 80,80,198.34 of several notified persons from funds held by a Custodian under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992. The Special Court ordered that the notified persons could …

The respondents, senior officers of Mahanadi Coalfields Ltd., a government company, were recommended for promotion but were denied promotion because vigilance cases were pending against them, while their juniors were promoted. They filed writ petitions seeking notional promotion from the date their juniors were promote…

The appellants, promoter‑directors of a listed finance company, were found to have purchased shares in violation of SEBI's insider‑trading regulations and were penalised by an SEBI Adjudicating Officer on 28‑08‑2014. The penalty orders required payment within 45 days and were affirmed by the Supreme Court in 2019, afte…

The appellant, Booz‑Allen & Hamilton Inc., sought to refer a mortgage suit filed by SBI Home Finance Ltd. to arbitration under clause 16 of a tripartite deposit agreement. The High Court rejected the application, holding that the dispute was not covered by the arbitration clause, that the appellant had waived its right…

Ashim Kumar Roy, a trade‑union secretary, filed a criminal complaint alleging that Bipinbhai Vadilal Mehta and his son conspired to commit criminal breach of trust and conspiracy (IPC §§120‑B, 409) and violated Section 77 of the Companies Act by diverting company funds to acquire control of Sayaji Industries Ltd. A mag…

Arun Kumar Agarwal and others filed a writ petition in the Karnataka High Court seeking the cancellation of a 1,000 MW thermal power project at Mangalore and the registration of a FIR for alleged corruption. The High Court, without detailed analysis, directed the CBI to investigate based on thirteen points of alleged s…

The workmen employed in the canteen of Air India, which was operated by Chef Air, a unit of the Hotel Corporation of India (HCI), claimed they were regular employees of Air India. Air India argued that HCI was a separate legal entity and that it had no control over the workers' hiring, wages, or discipline. The Supreme…

Som Prakash Rekhi, a clerk of Burmah Shell Oil Storage Ltd., retired with a pension of Rs.165.99 per month under a 1950 trust deed and was also covered by the Employees Provident Fund Act, 1952 and the Payment of Gratuity Act, 1972. The employer deducted amounts for PF contributions and gratuity, reducing his pension t…

The dispute arose between members of the Nanda family over Kidarsons Industries Pvt. Ltd., whose main income from an agency contract had ceased. A family settlement was reached whereby appellant No.2 (Narendra Nath Nanda) would transfer his 30.14% share in the company in exchange for an equivalent portion of the compan…

Haryana Telecom Ltd filed a winding‑up petition against Sterlite Industries before the Punjab & Haryana High Court. The petitioner then moved an application under Section 8 of the Arbitration and Conciliation Act, 1996, seeking to have the dispute referred to arbitration on the basis of an existing arbitration agreemen…

The Supreme Court examined the interpretation of Section 11 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, which governs the discharge of liabilities and distribution of attached property of notified persons such as Harshad Mehta. It held that only taxes finally assessed for …

The Supreme Court addressed a series of applications concerning bail procedures, directing that any non‑compliance with Sections 41 and 41A of the Code of Criminal Procedure (CrPC) automatically entitles the accused to bail. It emphasized that courts must verify compliance with these sections before authorising detenti…

In 1983 the Government of India, responding to a prolonged textile strike, promulgated an Ordinance and later an Act to take over the management of thirteen textile mills pending their nationalisation. Three Bombay mills – Elphinstone Spinning & Weaving, Jam Manufacturing and New City – challenged the legislation, alle…

The Supreme Court examined a public‑interest writ filed by Padma challenging CIDCO's bulk sale of developable land in Aurangabad. The High Court had held that the allotments to several private entities were made without Board approval, at prices below the reserve price, and in violation of Section 115 of the Maharashtr…

The appellant, representing Income Tax Practitioners, challenged the constitutional validity of Section 44(AB) of the Income Tax Act, 1961, which mandates that the accounts of businesses with turnover exceeding Rs 40 lakh and professionals with receipts exceeding Rs 10 lakh be audited only by a Chartered Accountant. Th…

The Supreme Court examined whether sugar bags pledged by two cooperative sugar mills to Maharashtra State Co‑operative Bank Ltd. could be attached and sold to satisfy the employer's liabilities under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The Court held that Section 11(2) of the Act crea…

The Supreme Court considered an interlocutory application filed by Sterlite Industries (Siil) seeking clarification on the rehabilitation package and the proposed transfer of the Niyamgiri bauxite mining lease to a Special Purpose Vehicle (SPV) as suggested by the Central Empowered Committee (CEC). The Court held that …

The case arose from the division of the original State of Bihar into Bihar and Jharkhand under the Bihar Reorganisation Act, 2000, which created the Jharkhand Hill Area Lift Irrigation Corporation (JHALCO) to take over the Bihar Hill Area Lift Irrigation Corporation (BHALCO). Employees of BHALCO alleged non‑payment of …

M/s Tuticorin Alkali Chemicals and Fertilizers Ltd., a newly incorporated heavy‑chemical manufacturer, raised term loans for setting up its plant and invested surplus funds in short‑term bank deposits before commercial production began. The company earned interest on these deposits and claimed that, under accepted acco…

The Supreme Court considered appeals by several coal traders (including S.J. Coke Industries) seeking a refund of excess amounts paid under a government‑mandated e‑auction scheme for coal, which had been declared ultra vires and void by the Court in the Ashoka Smokeless Coal case. The Central Coalfields Ltd. (CCL) oppo…

The State of Jharkhand challenged two writ petitions filed by Shiv Shankar Sharma as public‑interest litigations (PILs) that sought a mandamus directing investigative agencies to probe alleged money‑laundering through shell companies and to prosecute the Chief Minister for a mining lease. The Supreme Court examined whe…

The Central Bank of India had advanced a loan to Siriguppa Sugars & Chemicals Ltd. secured by a pledge of the company's sugar stock. The company defaulted, and the Recovery Authority seized the pledged sugar without the bank's consent, leading to its sale. The High Court, pending a writ appeal, ordered that portions of…

The appellant, Usha Harshad Kumar Dalal, a co‑owner of a building, filed a partition suit in 1978 and a Court Receiver was appointed who took symbolic possession while Suhrid Geigy Trading Ltd. (R‑2) occupied the premises. After the licence expired, the amendment to the Bombay Rents, Hotel and Lodging Houses Rates Cont…

Bishwanath Tea Co. Ltd., a corporate lessee of a tea plantation lease, sought to cut timber from the leased grant for constructing staff houses in other tea estates and challenged the Divisional Forest Officer's demand for royalty, filing a writ petition under Art. 226 for refund and a mandamus to waive royalty. The Hi…

The Municipal Council of Sendhwa invited tenders for an integrated water supply scheme and accepted the bid of M/s P.C. Snehal Construction Company (respondent No.2). Tejas Constructions & Infrastructure Pvt. Ltd. (appellant) challenged the award on two grounds: the successful bidder had not filed audited balance‑sheet…

Kalyan Banerjee, an employee of Eastern Coalfields Ltd., was appointed and later terminated in the Mugma area of Jharkhand. He filed a writ petition in the Calcutta High Court challenging his dismissal, arguing that the High Court had jurisdiction because the company's head office is located in West Bengal. The questio…

Canbank Financial Services Ltd., a subsidiary of Canara Bank, purchased CANCIGO units worth Rs 33 crore from a stock broker (Respondent 2) who had applied for the units through two other banks (Respondents 3 and 4) that held the certificates in their names but transferred possession to the broker. The Special Court hel…

Canara Bank paid interest on fixed deposits to the New Okhla Industrial Development Authority (NOIDA) without deducting tax at source under Section 194A of the Income Tax Act, 1961. The Assessing Officer treated the bank as a defaulter and issued a demand notice, which the bank appealed, relying on Notification dated 2…

The Commissioner of Central Excise appealed against the Customs, Excise & Service Tax Appellate Tribunal’s dismissal of his appeal challenging the exemption granted to M/s Hira Cement, a small‑scale industry (SSI), under Notification No.1193‑CE dated 28‑Feb‑1993. The issue was whether Hira Cement’s use of the brand nam…

The Friends Colony Development Committee (appellant) challenged unauthorized construction by Mis Modem Mechatech Housing Ltd. and its managing director, who built a five‑storey building exceeding the four‑storey plan sanctioned under the Orissa Development Authorities Act. The Development Authority ordered demolition o…

The case involved a dispute between two family groups over shared assets, which was referred to a sole arbitrator who issued two awards. Seven members of one group objected, claiming they had not received reasonable notice and that the arbitrator’s request for a letter not to challenge the award violated natural justic…