Companies Act, 1956

The Supreme Court examined the constitutional validity of Chapters 1B and 1C of the Companies Act, 1956 (as amended by the Companies (Second Amendment) Act, 2002) which created the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) and transferred the jurisdiction of High Court…

The Madras Bar Association challenged the constitutional validity of the National Tax Tribunal Act, 2005 and the provisions of Article 323B (and Article 3238) of the Constitution, arguing that the Act undermines the basic structure by creating a parallel tribunal system under executive control. The petition also contes…

The managing director of Shubh Shanti Services Ltd. was allotted a company flat during his employment; after his death his widow and daughter continued to occupy it. The company served notice to vacate, but the respondents claimed they were allowed to stay until another flat was provided, based on an oral assurance fro…

The Registrar of Companies (appellant) filed a criminal complaint against Rajshree Sugar and Chemicals Ltd. and others (respondents) alleging default in transferring share certificates in violation of Section 113 of the Companies Act, 1956. The Chief Judicial Magistrate dismissed the complaint on the ground that it was…

The U.P. State Industrial Development Corporation, a state undertaking, underwrites shares of companies and, when the public does not subscribe, purchases the shares itself, receiving underwriting commission and brokerage. It adjusts the commission against the cost of those shares, treating it as a reduction in share c…

Prof. Yashpal and other petitioners filed writ petitions under Article 32 challenging the Chhattisgarh Niji Kshetra Vishwavidyalaya (Sthapana Aur Viniyaman) Act, 2002 and its 2004 amendment, alleging that Sections 5 and 6, which allow the State to create private universities by Gazette notification without any infrastr…

The case concerned whether a Non‑Banking Financial Company (NBFC) could treat the "Provision for NPA" debited to its profit‑and‑loss account, as required by RBI Directions 1998, as income under s.2(24) of the Income Tax Act or claim a deduction under s.36(1)(vii). The Supreme Court held that the RBI Directions are mere…

The Union of India sold a 51% stake in Bharat Aluminium Company Ltd (BALCO), a public sector undertaking, to Sterlite Industries, prompting challenges by the BALCO Employees Union, the State of Madhya Pradesh, and a public‑interest litigant. The petitioners argued that the disinvestment violated constitutional provisio…

Arvind Mills Ltd. imported plant and machinery from abroad and financed the purchase with a foreign loan. After the 1966 devaluation of the rupee, the rupee liability on the loan increased. The assessee claimed a development rebate under Section 33 of the Income‑Tax Act on the revised (higher) cost of the asset, while …

The case arose when a group of shareholders filed a winding‑up petition against Ramakrishna Industries Ltd. and obtained an interim injunction that threatened the payment of wages and supplies to the company's employees. Three trade unions representing the workers applied to be impleaded as respondents, arguing that th…

Jaswant Singh Gill, a chief general manager of Bharat Coking Coal Ltd., faced departmental proceedings for alleged shortage of coal. While the disciplinary inquiry was pending, he retired and applied for gratuity under the Payment of Gratuity Act, 1972, which was denied on the ground that his gratuity was forfeited by …

In a suit for specific performance filed in the original side of the Bombay High Court, the plaintiff sought the appointment of a receiver and an interim injunction. The single Judge dismissed the application, and the plaintiff appealed to a Division Bench, which held the appeal was not maintainable because the order w…

The Government of India disinvested its stake in ITDC, creating Hotel Queen Road Ltd (HQRL) as a special purpose vehicle. After Moral Trading & Investment Ltd acquired 99.97% of HQRL, the directors (the Mittals) passed three board resolutions in 2004‑2005 allotting and transferring shares to themselves without giving n…

The Registrar of Companies filed a complaint alleging that V.L.S. Finance Ltd. misrepresented land holdings in its balance sheet, an offence punishable under Section 211(7) of the Companies Act, 1956. While criminal prosecution was pending, the company and its managing director applied to the Company Law Board (CLB) fo…

Malayala Manorama Co. Ltd. consistently claimed depreciation in its profit and loss account at the rates prescribed by the Income‑Tax Rules, not at the rates in Schedule XIV of the Companies Act. The Assessing Officer, invoking section 115J of the Income‑Tax Act, recomputed the company’s book profit by substituting the…

Naresh Kumar Madan, a civil engineer employed by the Madhya Pradesh Electricity Board, was caught accepting a bribe of Rs.1,000 for granting an electrical connection and was charged under the Prevention of Corruption Act, 1988. He contended that he was not a "public servant" within the meaning of the Act because the de…

Everest Advertising Pvt. Ltd. filed a complaint under the Negotiable Instruments Act against Dalmia Industries Ltd. and its Chairman and Managing Director for dishonour of post‑dated cheques. A Metropolitan Magistrate issued summons against the respondents under CrPC s.204, but later recalled the order for the Chairman…

Allahabad Bank obtained a decree against M.S.Shoes (East) Co. Ltd. before the Debt Recovery Tribunal (DRT) under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, and the Recovery Officer sold the company's assets. Canara Bank, whose claim was pending before the same DRT, sought to be impleaded i…

Harmony Innovation Shipping Ltd. entered into a charter agreement with Gupta Coal India Ltd. that stipulated arbitration in London, governed by English law, and specified the arbitrators as members of the London Arbitration Association. The appellant sought interim relief under Section 9 of the Arbitration and Concilia…

The Union of India challenged the liability of several private companies, including Future Gaming Solutions, to pay service tax on the sale of paper and online lottery tickets for the Government of Sikkim. The High Court of Sikkim had set aside service‑tax notices issued under various amendments to the Finance Act, 199…

The appellant, Sharad Kumar Sanghi, Managing Director of Sanghi Brothers (Indore) Ltd., was charged under Section 420 IPC for allegedly cheating a buyer by delivering a vehicle with a replaced engine after an accident. The complaint, filed under Section 200 of the CrPC, primarily alleged wrongdoing by the company but d…

The case concerned the sale of a mortgaged property by a bank under the SARFAESI Act. The Supreme Court examined whether the bank, as a secured creditor, had complied with Section 13(8) of the Act and Rules 8 and 9, which require a 30‑day individual notice and a public notice before any sale. It held that the sale effe…

The appellant, a joint managing director of a large export company, was arrested in 2010 on several economic offences alleged by multiple banks and the CBI. After a prolonged period of custody, intermittent interim bail on medical grounds, and the filing of charge sheets without framing of charges, the High Court rejec…

The Supreme Court examined the rejection of Zoom Developers’ consortium bid for the Vizhinjam seaport PPP project. The issues were whether the modified consortium agreement dated 11‑March‑2008 altered the membership of the consortium after the 31‑Jan‑2008 cut‑off, and whether the use of the term “joint and several resp…

Venture Global Engineering (VGE) and Satyam Computer Services Ltd. (SCSL) entered into a joint venture and shareholders agreement that provided for arbitration of disputes. A dispute arose and SCSL obtained an award from the London Court of International Arbitration directing VGE to transfer its shares in the joint ven…

The Industrial Papers (Assam) Ltd. Employees Union filed a writ petition alleging that the Assam Industrial Development Corporation Ltd. (AIDC) failed to pay salaries to its members after the Extensible Sack Kraft Paper Project was closed, contending that AIDC was the owner of the project and thus responsible for the e…

The appellants, who claimed to have purchased 94.8% of the equity shares of M/s. Lexus Technologies Pvt. Ltd., filed a company petition before the NCLT seeking rectification of the Register of Members under Sections 59 and 88 of the Companies Act, 2013 and relief for oppression, mismanagement and fraud. The NCLT, and s…

Bloom Dekor Ltd., a public company, issued a public share offering that was oversubscribed. A group of investors, seeking to avoid losses from speculative out‑of‑the‑ring transactions, filed a series of suits and applications in various courts (Morvi, Prantij, Baroda, Ahmedabad) alleging that the company had not obtain…

The appellant, a shareholder of Peerless General Finance & Investment Co. Ltd., challenged the company's resolution to issue bonus shares out of its revaluation reserve. The dispute centered on whether Section 205 of the Companies Act, 1956 and Article 182 of the company's Articles of Association permitted such capital…

The appellant, A.P. State Financial Corporation, had granted loans to two companies that later went into liquidation. To recover its dues, it filed applications under Section 446(1) of the Companies Act read with Sections 29 and 46 of the State Financial Corporation Act, 1951, seeking to stay outside the winding‑up pro…

British Motor Car Company (1939) Ltd., the landlord, leased premises to Hindustan Commercial Bank (HCB). In 1986 HCB was amalgamated into Punjab National Bank (PNB) under a scheme framed by the RBI pursuant to Section 45 of the Banking Regulation Act, 1949, causing HCB to cease to exist and its tenancy rights to vest i…

Peerless General Finance and Investment Co. Ltd. floated collective investment schemes where subscribers deposited money that was to be repaid with interest and could be forfeited under certain clauses. For assessment years 1985-86 and 1986-87 no forfeiture occurred, yet the company recorded the subscription receipts a…

The Central Bureau of Investigation (CBI) sought to continue investigations into two FIRs alleging criminal breach of trust, forgery and cheating against Duncans Agro Industries Ltd. and its officers. The Calcutta High Court quashed the FIRs, holding that the allegations did not prima facie constitute an offence and th…

Birla Corporation filed a criminal complaint alleging that respondents had stolen or misappropriated 54 confidential company documents and sought prosecution under IPC sections 379, 403, 411 read with 120B. The trial magistrate, relying on vague statements of the company representative and an employee, issued summons a…

The Supreme Court examined petitions seeking to shift investigation of the multi‑state chit‑fund (Ponzi) scam, which defrauded lakhs of depositors of roughly Rs 10,000 crore, from the State Police to the Central Bureau of Investigation (CBI). The scam involved companies operating across West Bengal, Tripura, Assam and …

Garware Polyester Ltd., after incurring massive losses, sought a restructuring scheme under Section 391 of the Companies Act, 1956, which was approved by the majority of its debenture holders. The Administrator of the Specified Undertaking of the Unit Trust of India (UTI) challenged the scheme, arguing that clause 7.5 …

The Supreme Court entertained a public‑interest writ petition alleging that numerous Bihar‑owned public sector undertakings had failed to pay salaries for years, leading to starvation deaths and suicides of employees and their families. The petition sought directions for payment of arrears and held the State of Bihar l…

Rishabh Agro Industries Ltd., ordered to be wound up by a High Court Single Judge for defaulting on a bank loan, obtained a stay of that order from the Division Bench. The company then filed a reference under Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 before the BIFR and sought, under…

McDowell & Co Ltd acquired the sick company Hindustan Polymers Ltd (HPL) by amalgamation effective 1 April 1977. HPL’s banks waived interest on loans, which under Section 41(1) of the Income‑Tax Act would normally be taxable income. The assessee claimed the benefit of Section 72A, allowing it to set off HPL’s accumulat…

The Pradeshiya Industrial & Investment Corporation of Uttar Pradesh (appellant) entered into a promoters agreement with Dalmia Dairy Industries Ltd (second respondent) to promote North India Petro Chemicals Ltd (first respondent). The agreement was later cancelled by the appellant on 31 October 1992. The first responde…

B.P.L. Ltd., facing severe financial distress, sought approval of a scheme of arrangement under Section 391 of the Companies Act, 1956. Infrastructure Leasing & Financial Services Ltd. (the appellant) was a secured creditor with a hypothecation charge registered against B.P.L. but later argued that a consent arbitratio…

Anita Malhotra, a former non‑executive director of Lapareil Exports (P) Ltd., resigned on 31‑08‑1998. In 2004 the company issued cheques that were later dishonoured, and the Apparel Export Promotion Council filed a complaint under Section 138 of the Negotiable Instruments Act, naming Malhotra as accused director. Malho…

The appellants, who together held over 90 lakh shares in Apollo Tyres, had their holdings attached under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992. The Custodian prepared a scheme for sale of the attached shares, which the Special Court approved, categorising the shares and …

The dispute arose in Biological E. Ltd. after the death of its promoter, when the widow (respondent No.1) and her three daughters were appointed directors. The widow challenged the validity of board meetings held on 9‑4‑2013, 10‑4‑2013 and 11‑4‑2013, the appointment of her daughters as directors and the continuance of …

The National Federation of the Blind filed a writ petition seeking enforcement of Section 33 of the Persons with Disabilities Act, 1995, alleging that the Union failed to provide the mandated 3% reservation for persons with disabilities, especially the blind and low‑vision categories. The High Court directed modificati…

Dozco India Ltd entered a distributorship agreement with Doosan Infracore Co. Ltd, a Korean company. The agreement contained an arbitration clause (Article 23) stating that disputes would be finally settled by arbitration in Seoul, Korea, under ICC Rules, and Article 22 made Korean law the governing law. When the respo…

Hindustan Construction Co. Ltd. (HCCL) entered into a dam construction contract with the State of Bihar and furnished two bank guarantees – a Performance Guarantee to the Chief Engineer and a Mobilisation Advance Guarantee to the Executive Engineer. The State invoked both guarantees, prompting HCCL to seek an injunctio…

Mehra and Dubey, the original promoters of Kilpest Pvt. Ltd., fell out and Mehra was removed as director and denied notice of meetings that led to share allotments favoring Dubey. Mehra filed a petition under Sections 397 and 398 of the Companies Act, 1956 alleging oppression and mismanagement, which the High Court tri…

The appellant company, Jenson and Nicholson (India) Ltd., had taken a flat on a leave‑and‑licence basis for its employees. The first respondent, Atul Kalra, a divisional sales manager, signed the agreement as the company’s attorney and occupied the flat as an employee. After three years he filed a civil suit claiming t…

The appellant, a former Indian Air Force air corporal who later served with the Department of Atomic Energy and Nuclear Power Corporation, had elected a pro‑rata pension on retirement and subsequently sought to change his option to a combined civil‑military pension. His multiple representations to the authorities from …

Two business groups that had entered into a joint venture fell out over shareholding and director appointments, leading to a cascade of more than 80 proceedings, including company law petitions, contempt suits and criminal complaints under Section 340 Cr.P.C. The Supreme Court noted the deadlock and, rather than adjudi…

National Aluminium Company Ltd. (NALCO) had established two schools for the children of its employees and entered into management agreements with external trusts. The school staff filed writ petitions claiming they were employees of NALCO and entitled to parity of pay with NALCO's own workers. The High Court held that …

Indian Bank advanced money to Chemmeens Exports Pvt. Ltd. secured by an equitable mortgage and, after the company was wound up, obtained leave to sue the company in liquidation. A preliminary decree was passed ordering the company to pay the debt by a specified date, failing which the bank could obtain a sale order. Th…

The Supreme Court examined whether receipts received by several members' clubs, including Bankipur Club Ltd., for drinks, refreshments, rent, admission fees and subscriptions constitute taxable income under the Income‑Tax Act. The clubs, registered as non‑profit companies under Section 25 of the Companies Act, claimed …

The assessee, a former partner of Larsen & Toubro and later Chairman of the company, was allotted a large number of right shares under Section 81 of the Companies Act, 1956. Over several years he bought and sold both right and ordinary shares, making a profit of Rs.1,65,581. The Income Tax Officer and the Appellate Ass…

S.S. Dhanoa, an IAS officer, was deputed as General Manager of the Super Bazaars run by the Cooperative Store Ltd., a society registered under the Bombay Cooperative Societies Act. He was charged under the Prevention of Food Adulteration Act for selling adulterated honey and argued that he was a public servant under cl…

Augustan Textile Colours Ltd., a revived sick industrial unit, was granted sales‑tax/works‑contract‑tax exemption under a Government Order dated 20 March 2004 as part of a BIFR rehabilitation scheme. In 2006 the Kerala Government withdrew the exemption under Section 10(3) of the Kerala General Sales Tax Act, 1963. The …

The Supreme Court examined whether the holding company Shaw Wallace and its subsidiary Detergents India Ltd. were "related persons" under Section 4(4)(c) of the Central Excise and Salt Act, 1944 and whether proviso (iii) to Section 4(1)(a) applied to the valuation of excisable goods sold at a lower price. The Court hel…

The Commissioner of Income Tax appealed against the Delhi High Court’s order allowing M/s Woodward Governor India Ltd. to deduct unrealised foreign‑exchange losses on loans taken for revenue purposes. The Court examined whether such losses could be claimed under section 37(1) in the year the exchange rate fluctuated or…

The Supreme Court examined the constitutionality of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, enacted to facilitate speedy recovery of non‑performing assets. The Court held that the Act is valid and serves a public‑interest goal of improving liquidity, but…

Pravin Electricals alleged that no consultancy agreement dated 7 July 2014 existed with Galaxy Infra, while Galaxy claimed such an agreement, containing an arbitration clause, was executed and sought appointment of a sole arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996. The Delhi High Court…

Gujarat Urja Vikas Nigam Ltd (GUVNL) allocated a 25‑MW solar project to Astonfield Solar (the corporate debtor) under a 25‑year Power Purchase Agreement (PPA) executed in 2010. After severe flood damage the plant operated at a fraction of capacity and the corporate debtor was declared a non‑performing asset, prompting …

The Securities and Exchange Board of India (SEBI) issued a notice to Deccan Chronicle Holdings Ltd (DCHL) and its Company Secretary, V. Shankar, imposing a Rs 10 lakh penalty for alleged violations in a Rs 270 crore share buy‑back. The SEBI Whole Time Member held the Company Secretary liable for not exercising due dili…

The complainants placed orders with Rifa Healthcare (India) Pvt. Ltd. and issued demand drafts, but the company failed to deliver the goods and later issued 18 cheques that were dishonoured. The complainants filed complaints under Sections 138 and 141 of the Negotiable Instruments Act, implicating the company and one o…

The appellants, former directors and guarantors of Adhunik Detergent Ltd., were joined as defendants in a civil suit filed by Union Bank of India for recovery of a loan. They appeared in the civil court, filed a written statement and raised preliminary objections, but the suit was later transferred to a Debt Recovery T…

Mysore Paper Mills Ltd., a government company incorporated under the Companies Act, transferred a senior employee to Calcutta. The employee challenged the transfer as being vitiated by malafides and argued that the company was not a "State" within Article 12, thus the writ petition was not maintainable. The High Court …

VST Industries Ltd., a cigarette manufacturing company, operated a canteen for its workers under Section 46 of the Factories Act, 1948. After 1982 the canteen was managed by private contractors, but the workers continued to be employed and received wages, ESI and PF benefits through the contractors, while the company s…

M/s Tranvancore Titanium Products Ltd obtained a loan of Rs. 491 lakhs from the Kerala Government and created a "Loan Redemption Reserve" of Rs. 1 crore to meet the loan liability. The assessing authority treated the amount as a provision and excluded it from capital for the purpose of surtax under the Companies (Profi…

The Madhya Pradesh Hastashilp Vikas Nigam Ltd., a government company, appointed five individuals as temporary Junior Managers in July 1989, contrary to a State Government order dated 1‑April‑1989 that required prior approval for such appointments. The appointments were later terminated on 31‑July‑1989 by the succeeding…

The appellants Pramod Jain and others made a hostile public offer to acquire 25% of Golden Tobacco Ltd. and later sought to withdraw the offer, alleging that SEBI’s undue delay in approving their draft letter of offer allowed the target company to siphon assets and erode its net worth, defeating the offer’s purpose. SE…

E. Bapanaiah, a depositor, filed a contempt petition against K.S. Raju, promoter director of Nagarjuna Finance Ltd., alleging wilful breach of an undertaking given to the Company Law Board (CLB) to repay deposits. The High Court division bench set aside the conviction and sentence imposed by a single judge, finding Raj…

The case concerned the grant of an LPG distributorship by Bharat Petroleum Corporation (BPC). An advertisement invited applications, disqualifying persons convicted of offences involving moral turpitude or those against whom charges had been framed. Respondent No.5 was selected but his empanelment was cancelled after a…

Fourteen garden workers employed by a contractor for Bharat Heavy Electricals Ltd. (BHEL) had their services terminated by the contractor on 1 December 1988 without complying with Section 6‑N of the Uttar Pradesh Industrial Disputes Act, 1947. They filed an individual dispute under Section 2‑A, which was referred to th…

The respondent, Pradip Kumar Sarkar, lodged fully paid‑up shares with Luxmi Tea Co. for transfer to his name, but the Board of Directors refused to register the transfer. He filed an application under section 155 of the Companies Act, 1956 for rectification of the share register, which the Calcutta High Court allowed. …

The dispute involved the Sanwalka group, who alleged oppression by the Gupta group after the latter took control of Tin Plate Dealers Association Pvt. Ltd. The Sanwalka group filed a company petition under ss.397/398 of the Companies Act, 1956 challenging the forfeiture of their shares, the issuance of bonus shares out…

N.K. Sharma, a Class‑I officer of the Haryana Government, was deputed as Managing Director of the Haryana State Cooperative Land Development Bank Ltd. A criminal complaint for defamation (IPC s.500) was filed against him after he sent a letter alleging false implication of a colleague. Sharma was summoned and applied t…

The Supreme Court considered applications filed by the purchaser of Bengal Paper Mills' assets seeking clarification of its earlier judgment that ordered a refund of the Rs.2 crore purchase price but denied interest. The Court examined whether interest could be awarded under Order XXI Rule 93 of the CPC and whether res…

The Supreme Court examined the interpretation of Section 4 of the Central Excises and Salt Act, 1944, both before and after its amendment by the Central Excises and Salt (Amendment) Act, 1973, to determine how the "value" of an excisable article should be computed for excise duty. The Court held that the value is not l…

The management of Bharat Coking Coal Ltd. (BCCL), a Central Government undertaking, recruited SC/ST miners/loaders in 1986 through the Employment Exchange as mandated by the Employment Exchange (Compulsory Notification of Vacancies) Act, 1959. Thirty‑eight workmen were later alleged to have obtained appointments fraudu…

The Supreme Court considered an appeal by Laxmi Fibres Ltd., a company under liquidation, challenging a condition imposed by the High Court that the Official Liquidator must adjudicate the claims of A.P. Industrial Development Corporation and A.P. State Financial Corporation, both secured creditors under Section 29 of …

The Supreme Court considered appeals by Ashoka Marketing Ltd. and other tenants whose leases in premises owned by nationalised banks and the Life Insurance Corporation had expired and who were facing eviction under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 as well as proceedings under the Delhi…

The case involved a dispute between the heirs of the late Dwarka Prasad Agarwal and his partner Ramesh Chandra Agarwal over control of the printing press and newspaper business of Dainik Bhaskar. Ramesh Chandra Agarwal allegedly forged a lease, altered the partnership settlement, and took forcible possession of the pre…

The Bank of Maharashtra obtained a recovery certificate against Paper and Pulp Conversions Ltd. and, through the Debt Recovery Tribunal (DRT), sold the company's movable assets, retaining a portion of the proceeds. The company was subsequently ordered to be wound up and an official liquidator was appointed. The workmen…

The Supreme Court Bar Association (SCBA) had been directed by the Supreme Court in 2011 to identify regular practitioners for voting rights under the "One Bar One Vote" principle. While the Implementation Committee was carrying out this task, the SCBA held a General Body Meeting on 16 January 2012 that passed resolutio…

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 appellant, Gajraj Jain, a director of Mis Katihar Flour Mills, challenged the sale of the company's flour mill assets by Bihar State Credit and Investment Corporation Ltd (BICICO) to Stichworth Exports Pvt Ltd. BICICO, as the first charge holder under the State Financial Corporation Act, 1951, had taken possession …

Needle Industries (India) Ltd. (NHL) was required by the Reserve Bank of India to reduce the foreign holding in its capital from 60% to 40% under the Foreign Exchange Regulation Act. To comply, the board resolved on April 6, 1977 to issue 16,000 rights shares at par and, on May 2, 1977, allotted them solely to Indian s…

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 Supreme Court examined the findings of the Justice Bahri Commission on alleged diversion of funds by Skipper Construction in the Barakhamba Road project and on the claims of purchasers in the Technology Parks Ltd. schemes. The Court held that the Commission’s detailed valuation and accounting analysis was reliable …

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 Assam State Legislature enacted the Bharat Hydro Power Corporation Limited (Acquisition and Transfer of Undertaking) Act, 1996 to acquire a stalled hydro‑electric project and vest it in the State Electricity Board. The appellants, Bharat Hydro Power Corporation Ltd. and its partner, challenged the Act as ultra vire…

The petitioners, an unaided school governed by the Delhi School Education Act, challenged the Election Commission’s practice of deploying teachers from government schools for election‑related duties during school hours, alleging that it disrupted education and violated the right to education. The Delhi High Court had d…

The appellant, a guarantor and director of a liquidated company, challenged the Punjab National Bank's attempt to recover a debt by filing execution petitions. The High Court transferred the third execution petition, filed in 1999, to the Debt Recovery Tribunal (DRT) invoking inherent powers. The Supreme Court held tha…

The Bharat Diamond Bourse, a company limited by guarantee, claimed exemption under Section 11 of the Income Tax Act for AY 1989‑90 and 1990‑91, asserting it was a charitable institution. The Assessing Officer denied the exemption, holding that the Bourse’s objects were not charitable and that it had breached Section 13…

The Air India Statutory Corporation, originally a statutory authority and later a company, employed union members as contract labour for cleaning and related services. The Central Government, as the appropriate Government under the Contract Labour (Regulation and Abolition) Act, 1970, issued a 1976 notification abolish…

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 …

United Bank of India sued the Official Liquidator of Naskarpara Jute Mills Ltd., which was in liquidation, to recover a debt and to prevent the sale of the mortgaged land. The High Court, acting under Section 535 of the Companies Act, ordered the liquidator to disclaimer the lease of the land on the ground that it was …

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…

Bharat Coking Coal Ltd (appellant), a government-owned company, sold hard coke to Steel Abrasers & Allied Products Ltd (respondent) for foundry use. The Central Government, under the Colliery Control Order, 1945, issued a 1991 notification fixing prices for coke but allowing additional charges for "special sizing or be…

The appellant, a company in liquidation, sold its assets and invested the proceeds in fixed deposits, earning interest income. The liquidator incurred various expenses (salaries, legal fees, etc.) which the company sought to deduct from the interest under section 57(iii) of the Income Tax Act. The Assessing Officer tax…

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…

The appellant filed complaints under section 138 of the Negotiable Instruments Act against a company and its officers, including the Deputy General Manager (first respondent), for dishonoured cheques. The trial court issued summons to all accused, but the Deputy General Manager sought quashing of the summons on the gro…

Mis. Mediline India (P) Ltd obtained a loan of Rs.5,00,000 and issued two cheques which bounced for insufficient funds. A complaint under Section 138 of the Negotiable Instruments Act and Section 420 IPC was filed against two directors, Ashish Narula and Manish Arora, who were later convicted. While the case was pendin…

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 State of Madhya Pradesh prosecuted directors of Indore Premier Co-operative Bank for allegedly sanctioning loans without proper verification, invoking Sections 409, 418, 420, 120‑B IPC and Section 13(1)(d) read with 13(2) of the Prevention of Corruption Act, 1988. The Trial Court framed charges, but the High Court …

Rahul Subodh Windoor Ltd received a Rs 20 lakh cheque from A.K. Menon (respondent No. 2) for purchase of shares. The Custodian (respondent No. 1), appointed under the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, informed the company that the money was liable to be attached as prop…

Three shareholders of Jeypore Sugar Co. Ltd., including a daughter residing in the USA, filed a petition under sections 397/398 of the Companies Act, 1956. The daughter had executed a General Power of Attorney (GPA) in favour of her father, who gave written consent on her behalf as required by section 399(3). The respo…

The Supreme Court examined whether the Central Inland Water Transport Corporation Ltd., a government‑owned company under section 617 of the Companies Act, qualifies as "the State" under Article 12 of the Constitution and whether clause (i) of Rule 9 in its service rules – which allows termination of a permanent employe…

The Supreme Court examined an appeal challenging a Bombay High Court interim order that appointed the High Court’s Official Receiver for the assets of a company and gave Sudha A. Chowgule exclusive powers to execute documents and induct tenants. The Court reiterated that under Order 40 Rule 1 of the Code of Civil Proce…

Canara Bank appealed a decision of the Company Law Board (CLB) that had refused to register bonds purchased from Nuclear Power Corporation of India Ltd. The CLB had been hearing the bank's application under Section 111 of the Companies Act when the Special Court (Trial of Offences Relating to Transactions in Securities…

Mahabir Auto Stores, a partnership firm that had been distributing Indian Oil Corporation's (IOC) lubricants since 1965, filed a writ petition under Article 226 seeking a mandamus directing IOC to continue supply after the corporation abruptly stopped deliveries on 27 May 1983. The High Court dismissed the petition, ho…

Testees Ltd. entered into contracts with Malaysia's National Electricity Board for transmission towers and registered them under the 1969/1970 cash‑assistance scheme. The company received assistance for some contracts but was denied for later contracts, the government arguing that exports made after the dates prescribe…

The Union of India and other appellants sought to recover central excise dues from SICOM Ltd., which had defaulted on a loan secured by a mortgage under the State Financial Corporation Act, 1951. The State Financial Corporation had taken possession of the mortgaged assets and claimed a first charge over them. The appel…

Speech & Software Technologies (India) Pvt. Ltd. entered into a Services Agreement with Neos Interactive Ltd. on 15 July 2006 for monthly service fees. The respondent argued that the Services Agreement was a schedule to a later Tripartite Share Purchase Agreement (TSPA) and that, because the TSPA was automatically term…

The Tamilnad Mercantile Bank Share Holders Welfare Association (appellant) sought to restrain the election of directors at the bank's 83rd, 84th and 85th Annual General Meetings, alleging that the meetings violated a 26 July 2006 injunction that allowed only certain agenda items to be considered. After the High Court a…

Canara Bank, as the principal trustee of Canara Bank Mutual Fund, purchased NTPC bonds from a bank that later went into liquidation and sought registration of the bonds in the trustee's name and payment of redemption proceeds. NTPC refused registration without a no‑objection certificate from the liquidator and later at…

Ashok Transport Agency filed a money suit against Mis OMC Alloys Ltd, a government company, which was dismissed for default. While the suit was pending restoration, the Government of India issued an amalgamation order under Section 396 of the Companies Act, 1956, merging the company with Orissa Mining Corporation Ltd a…

The Transport Corporation of India, a public carrier with its registered head office in Secunderabad, Andhra Pradesh, was covered by a notification issued by the Andhra Pradesh Government under Section 1(5) of the Employees' State Insurance Act, 1948. The corporation argued that this notification should not extend to i…

The Rajasthan Financial Corporation and the Rajasthan State Industrial Development and Investment Corporation, as secured creditors of Vikas Woolen Mills Ltd., sought to sell the company's assets outside the winding‑up proceeding under Section 29 of the State Financial Corporations Act and to distribute the net proceed…

The appellants, Stridewell Leathers Ltd., filed a petition under Sections 397/398 of the Companies Act, 1956 before the Company Law Board concerning Shoe Specialities Pvt. Ltd., whose registered office was in Madras. The Board, sitting in Delhi, passed an order which a shareholder appealed to the Delhi High Court under…

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…

The appellant, Maghendra Pal Tyagi, claimed loss of 200 shares of Hero Honda Company and obtained duplicate share certificates by misrepresenting that the originals were lost. He transferred these duplicate shares to the first respondent, Jayant Davar, who later sought recovery of the purchase price, asserting ownershi…

The case concerns the ownership of Rs. 50 crore 9% tax‑free bonds (the "suit bonds") issued by Nuclear Power Corporation Ltd. (NPCL). Andhra Bank Financial Services Ltd. (ABFSL) sold the bonds to Standard Chartered Bank (SCB) on 26‑27 February 1992, and SCB paid consideration and received a Banker's Receipt. Canbank Mu…

Real Value Appliances Ltd. faced a winding‑up petition and a suit for recovery of money filed by Canara Bank and Union Bank. The Bombay High Court appointed a provisional liquidator and later, in a separate proceeding, a receiver, holding that the mere registration of a reference under s.15 of the Sick Industrial Compa…

Gujarat Steel Tubes Ltd., a manufacturer of black and galvanised steel tubes, challenged the Kerala tax authorities' assessment that its galvanised pipes were taxable under Entry 46 of the Kerala General Sales Tax Act. The company argued that the galvanised pipes were "declared goods" and should not attract additional …

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 complainant, a registered partnership firm, filed a complaint under Section 138 of the Negotiable Instruments Act alleging that a cheque issued by a business concern named Fine Tubes was dishonoured. The complaint named several persons, including the appellant who was described as "in charge, Manager, Director" of …

Associated Cement Companies Ltd. manufactures cement at Kymore and was levied a terminal export tax of 0.50% on cement by the Kymore Municipal Council under a 1991 notification. The State Government later issued a circular on 15 December 1995 prescribing a uniform rate of 0.20% for cement across Madhya Pradesh. The com…

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 Supreme Court examined whether State Financial Corporations (SFCs) could exercise their statutory power under Section 29 of the State Financial Corporation Act, 1951 to sell mortgaged assets of a company that had been ordered to be wound up, without involving the Company Court. The Court held that once a winding‑up…

The Supreme Court examined the constitutional validity of Chapter III‑C of the Reserve Bank of India Act, 1934 (Section 45S and Section 58B(5A)) introduced by the Banking Laws (Amendment) Act, 1983, which limit the number of depositors an individual, firm or unincorporated association may accept and prescribe a two‑yea…

The partnership firm Keshavji Ravji & Co. paid interest to its partners on their capital credits and also received interest from the same partners on borrowings during the assessment year 1975-76. The Assessing Officer disallowed the interest paid to partners without setting off the interest received, leading to a high…

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 appellants, Chembra Orchard Produce Ltd. and others, filed applications under Section 391(1) of the Companies Act, 1956 seeking a court order to convene meetings of creditors and members for a proposed amalgamation scheme. The Karnataka High Court held that such applications must be heard with the parties present b…

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…

The case concerned employees engaged by Official Liquidators under Rule 308 of the Companies (Court) Rules, 1959 who were paid from the liquidated company's fund ("company paid staff"). They sought regularisation, absorption into the regular cadre of the Department of Company Affairs and parity in pay with Central Gove…

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…

Navinchandra N. Majithia entered into a share‑sale agreement that was later terminated, after which the buyer filed a false complaint in Shillong, Meghalaya. Majithia filed a writ petition in the Bombay High Court under Article 226 seeking to quash the complaint or, alternatively, to direct the Meghalaya police to tran…

Ammonia Supplies Corp. (P) Ltd. claimed it had invested in 50% of the shares of Modern Plastic Containers Pvt. Ltd., a claim the respondent denied. The appellant filed a petition under Sections 397, 398 and 155 of the Companies Act, 1956 seeking rectification of the register of members. The Delhi High Court dismissed t…

The appellant bought 90 non‑cumulative preference shares of Rs 1,000 face value at Rs 420 each. The company reduced the share capital twice, first paying Rs 500 per share in 1965 and later reducing the face value to Rs 50 and paying Rs 450 per share in 1966. The Income Tax Officer treated the Rs 450 per share received …

Saraswati Industrial Syndicate Ltd. (the appellant) claimed exemption from tax on Rs.58,735, a trading liability that had been allowed to the Indian Sugar Company before it was amalgamated into Saraswati in 1962. The Income Tax Officer and the Appellate Assistant Commissioner disallowed the claim, but the Income Tax Tr…

Shree Baidyanath Ayurved Bhawan Pvt. Ltd. filed a FIR and the respondents applied for anticipatory bail. The Punjab & Haryana High Court, by an ex parte order dated 27‑12‑2005, directed the Chief Judicial Magistrate to release the respondents on bail, effectively making the interim order a final one. The Supreme Court …

Polychem Ltd., a manufacturer of alcoholic beverages, paid supervision charges in advance each quarter as required by Section 58-A of the Bombay Prohibition Act, 1949. After the government raised the wages and dearness allowance of its supervising staff retrospectively, it demanded a differential amount of supervision …

Gujarat Bottling Co. Ltd (GBC) entered into a 1993 licence agreement with Coca Cola to bottle and distribute beverages under several trade marks, which included a negative covenant prohibiting GBC from dealing in competing products during the agreement's term. A subsequent 1994 agreement, intended to register GBC as a …

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 …

The appellants, five trade‑union workmen of Shree Synthetics Ltd., were dismissed after a domestic enquiry that found them guilty of assaulting a co‑worker. They challenged the dismissal before the Labour Court under Section 61 of the Madhya Pradesh Industrial Relations Act, 1960, which upheld the enquiry. The Industri…

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 Punjab State Industrial Development Corporation Ltd (PSIDC) promoted Punjab National Fertiliser & Chemical Ltd (PNFC), which was wound up under the Sick Industrial Companies (Special Provisions) Act, 1985. PNFC failed to pay wages to its workers, who approached the Punjab Chief Minister, who issued a note requestin…

The appellants, directors of Nalanda Ceramic & Industries Ltd., had secured a loan from State Bank of India by mortgaging the company's assets and providing personal guarantees. The bank filed a title mortgage suit against the company and the directors, but the High Court later ordered the winding up of the company. Th…

The State of West Bengal appealed against a Calcutta High Court order that granted exemption under Section 20 of the Urban Land (Ceiling and Regulation) Act, 1976 and confirmed the sale of a sick company's excess land to a third party, despite pending winding‑up proceedings under the Companies Act, 1956. The Supreme Co…

The Supreme Court entertained a public‑interest writ filed by Common Cause seeking enforcement of statutory provisions that require political parties to disclose their sources of funding and maintain audited accounts. The Court examined the obligations under Section 293A of the Companies Act, 1956, Sections 13A, 139(48…

The Supreme Court examined whether the surplus lands owned by Shree Sitaram Mills formed part of the "assets in relation to the textile undertaking" under sub‑section (2) of section 3 of the Textile Undertakings (Taking Over of Management) Act, 1983. The mill, a sick textile undertaking, had been disposing of surplus l…

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…

Raymond Synthetics Ltd. and others issued a prospectus for a public issue of shares and debentures, seeking permission from several stock exchanges to list the securities. The company received massive oversubscription, allotted shares before the statutory 10‑week deadline for obtaining exchange permission, and later fa…

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 Karnataka Small Scale Industries Development Corporation Ltd. and several other companies were assessed under Section 115‑J of the Income‑Tax Act, 1961, which imposes tax at 30 % of book profit when the normal taxable income is less than that threshold. The assessee‑companies claimed that deductions such as depreci…

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 Supreme Court examined whether manufacturers of chewing tobacco could claim input relief under exemption Notification No.121/94‑CE when they had not complied with the Chapter X procedure of the Central Excise Rules, 1944. The assessees argued that the intended use of the intermediate product (kimam) was evident fro…

The case arose from a family dispute between two brothers who were shareholders of a family concern. The petitioners filed a company petition under Sections 397 and 398 of the Companies Act alleging mis‑management and sought to compel the respondents to buy their shares at a price fixed by a valuer appointed by the Com…

The appellant, a workers' union, challenged the constitutional validity of Sections 9(2), 10(2), 12(1) and 26 of the Central India Spinning, Weaving and Manufacturing Company Limited, the Empress Mills, Nagpur (Acquisition and Transfer of Undertaking) Act, 1986, alleging violations of Articles 14, 19(1)(c) and 21 of th…

The Supreme Court examined the validity of the Controller of Capital Issues' (CCI) consent to Reliance Petrochemicals Ltd.'s (RPL) issue of fully convertible debentures, which petitioners alleged was granted with undue haste, without proper application of mind, and in violation of non‑statutory guidelines, security req…

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’…

Star India Pvt. Ltd., a broadcaster, entered into an exclusive distribution agreement with Moon Network Pvt. Ltd., a multi‑system operator (MSO), for the Agra territory. Sea TV Network Ltd., another MSO, sought direct signals from Star India but was directed to obtain them from Moon Network, its competitor. Sea TV file…

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…

The assessee, a partnership firm dealing in shares, bought all equity shares of a company in 1945 and treated those shares as stock-in-trade for tax purposes. When the company was liquidated, the liquidator distributed a surplus to the shareholders, and the assessee received Rs. 32,25,550. The Income Tax Officer includ…

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…

Mahindra & Mahindra Ltd. (M&M) sought a declaration under Section 72A of the Income‑Tax Act, 1961, to carry forward the accumulated loss and unabsorbed depreciation of International Tractor Company of India Ltd. (ITCI) after their amalgamation. The Specified Authority, after a screening committee, recommended that ITCI…

Investors who had subscribed to fixed deposit and saving schemes of M/s Habib Investments Ltd. alleged that the company failed to honour certificates on maturity and filed FIRs. They obtained an order from a Metropolitan Magistrate for appointment of a receiver and attachment of five properties, but the attachment orde…

The appellant, M.V. Janardhan Reddy, purchased a property of a company in liquidation at a public auction. The sale was to be confirmed by the Company Court, but the Recovery Officer of the Debt Recovery Tribunal confirmed it without court approval. The Company Court later set aside the sale, a decision upheld by the H…

The Uttar Pradesh State Mineral Development Corporation decided to retrench about half of its workforce, prompting the employees' Samiti to file a writ petition under Article 226 seeking absorption in other government departments or public sector undertakings and compensation. The Allahabad High Court entertained the p…

The Supreme Court examined whether the Election Commission could be directed to require candidates to disclose criminal cases, assets, liabilities and educational qualifications, as ordered by the Delhi High Court, despite the absence of a specific provision in the Representation of the People Act, 1951 or the Conduct …

The U.P. State Sugar Corporation Ltd., a government‑owned company, sought to sell eight loss‑making sugar units. Its net‑worth had fallen by more than 50%, making it a potentially sick industrial company under the Sick Industrial Companies (Special Provisions) Act, 1985. The corporation sent a letter dated 7‑11 May 199…

The petitioners, owners of twelve sugar undertakings, challenged the constitutional validity of the U.P. Sugar Undertakings (Acquisition) Act, 1971, which transferred those undertakings to a government corporation. They argued that the State legislature lacked competence because sugar is a "declared industry" under the…

The Central Bureau of Investigation (CBI) relied on two spiral notebooks and related documents recovered from J.K. Jain's premises to charge politicians V.C. Shukla and L.K. Advani, alleging they received bribes through a hawala scheme. The Supreme Court examined whether the notebooks qualified as "books of account" un…

The Gupta group, originally holding a 50.9% stake in Aar Gee Board Mills, alleged that the Garg group illegally allotted 9,507 equity shares, reducing the Gupta shareholding to a minority and constituting oppression and mismanagement under Sections 397 and 398 of the Companies Act, 1956. The Company Law Board set aside…

Dove Investments Pvt. Ltd. and others had taken a loan of Rs.4.5 crore from Gujarat Industrial Investment Corporation (GIC) which was secured by 25,92,800 shares pledged by three other companies. GIC lodged the share certificates and transfer forms with Dove for registration, but the application was filed two months af…