Insights & Resources

The NCLAT has reaffirmed the commercial supremacy of the CoC in insolvency proceedings. The Tribunal clarified that Regulation 39(1A) of the CIRP Regulations limits only the resolution professional, not the CoC, and held that procedural mechanisms like the challenge process are facilitative, not mandatory. This judgment reinforces creditor autonomy and balances procedural compliance with commercial pragmatism.

The Supreme Court has quashed a cheque bounce complaint under Section 138 of the NI Act, citing deliberate suppression of critical defence documents by the complainant. The judgment reinforces that criminal prosecution cannot proceed where procedural fairness is compromised. This decision underscores the duty of complainants to disclose all material facts when initiating criminal process.

The ITAT Mumbai ruled in favour of Vanguard, holding that gains from sale of rights entitlements by FPIs are not taxable in India under Article 13(6) of the India-Ireland DTAA. The Tribunal distinguished REs from shares and disallowed the Revenue’s attempt to offset exempt gains against Indian capital losses. This judgment reinforces treaty-based protections and clarity on the treatment of financial instruments distinct from equity.

SEBI has passed a landmark order against CNBC anchor Hemant Ghai for abusing media privilege to front-run stock tips for personal gain. By executing trades ahead of on-air recommendations via family accounts, and falsifying records, he violated market integrity norms. The order reaffirms SEBI’s stance on treating media-driven tip-offs as material non-public information under PFUTP regulations.

The ITAT clarified that mutual settlement deeds between brothers, executed to preserve family harmony, are not ‘transfers’ under Section 2(47) and thus fall within the exemption provided under Section 47(iii) of the Income-tax Act. The decision reiterates that genuine family arrangements, executed without monetary consideration, cannot be subjected to capital gains tax. This sets a precedent on interpreting intra-family property settlements.

The Central Government has revised the investment and turnover thresholds for classifying Micro, Small, and Medium Enterprises under the MSME Act, effective from 1 April 2025. The updated limits aim to broaden MSME coverage and enhance access to statutory benefits for a wider base of enterprises, subject to timely Udyam re-registration.

The SAFEMA Appellate Tribunal has upheld the Enforcement Directorate’s attachment of iSec Services’ assets, following findings of unauthorised call interception at NSE. The Tribunal held that the actions amounted to cheating and money laundering, triggering provisions under the IPC and PMLA. The judgment underscores that fraudulent conduct disguised as formal contracts cannot escape penal consequences under Indian law.

Can AI be a legal person? This article explores liability, agency, and the legal challenges of regulating autonomous intelligent systems.

The CBDT has issued clarificatory FAQs to operationalise the 2024 Guidelines on compounding of offences under the Income-tax Act, 1961. This update explains the legal position on key procedural issues such as filing timelines, multi-jurisdictional applications, post-conviction compounding, and treatment of co-accused. The write-up unpacks the framework and highlights areas where discretion remains with the tax authorities.

The Gauhati High Court, in Principal Commissioner of Income-tax v. Greenply Industries Ltd., held that excise duty exemptions granted under a notified industrial policy constitute capital receipts. Consequently, such receipts are neither taxable under regular provisions of the Income-tax Act, 1961 nor includible in book profits for MAT purposes under section 115JB.

The Delhi High Court, in Christian James Michel v. Directorate of Enforcement, granted bail under PMLA on grounds of prolonged undertrial incarceration. The judgment highlights the constitutional imperative under Article 21 and harmonises it with the stringent bail provisions of Section 45 PMLA, reinforcing the jurisprudence against indefinite pre-trial detention in economic offences.

The SAFEMA Appellate Tribunal upheld the ED's attachment of property acquired before the commission of a scheduled offence, holding it to be ‘proceeds of crime’ under PMLA. It ruled that the date of detection of laundering, not the original offence, governs applicability. The decision underscores key compliance principles around equivalent value attachment, retrospective prosecution, and statutory timelines impacted by COVID-19.