RULES OF LAW

Article 226: Power of High Courts to issue certain writs 1)     Notwithstanding anything in Article 32 every High Court shall have powers, throughout the territories in relation to which it exercise jurisdiction, to issue to any person or authority, including in appropriate cases, any Government, within those territories directions, orders or writs, including writs in the nature of habeas corpus, mandamus, prohibitions, quo warranto and certiorari, or any of them, for the enforcement of any of the rights conferred by Part III and for any other purpose. 2)    The power conferred by clause (1) to issue directions, orders or writs to any Government, authority or person may also be exercised by any High Court exercising jurisdiction in relation to the territories within which the cause of action, wholly or in part, arises for the exercise of such power, notwithstanding that the seat of such Government or authority or the residence of such person is not within th...

Insolvency and bankruptcy Code, 2016 is to ensure revival and continuation of the Corporate Debtor, where liquidation would be the last resort and scheme and structure of the code should be interpreted keeping in view the objectives of the code. Supreme Court of India in the matter of Jaypee Kensington Boulevard Apartments Welfare Association & ORS. VS NBCC (India) Ltd. & ors. observed the same. The code is a linear process that both creditors and debtors follow when insolvency is triggered; a collective mechanism for resolving insolvency within a framework of equity and fairness to all stakeholders to preserve economic value in the process; a time bound process either ends in keeping the firm as a going enterprise, or liquidates and distributes the assets to the various stakeholders. The Preamble of Insolvency and Bankruptcy Code. 2016 gives an insight into what is sought to be achieved by the Code. Preamble states the code as: “An Act to consolidate and amend the laws r...

BSE on 31.03.2021 issued circular no.  20210331-2 and stated that the exchange  has introduced facility of filing of Annual Secretarial Compliance Report in XBRL mode under Securities and Exchange Board of India (Listing  Obligations and Disclosure Requirements) Regulations, 2015 with immediate effect as per SEBI Circular CIR/CFD/CMD1/27/2019 dated February 08,2019. The disclosure to the Stock Exchange(s) shall be made by listed entities within 60 days of end of the Financial year. The listed companies are required to submit Annual Secretarial compliance report in PDF mode along with the submission of the Annual Secretarial compliance report in XBRL mode.

A Company in law is equal to a natural person and has a separate legal entity of its own. The entity of a Company in entirely separate from that of its shareholders; it bears its own name, its assets are separate and distinct from those of its members; it can sue and be sued exclusively for its own purpose; its creditors cannot obtain satisfaction from the assets of its members; the liability of the members or shareholders is limited to the capital invested by them; similarly, the creditors of the members have no right to the assets of the corporation. This position has been well-established in the case of Salomon v. Salomon & Co. (1897) A.C. 22, H.L. which was pronounced in 1897 by the House of Lords. But the  concept of Corporate Veil was established to encourage and promote trade and commerce, not to defraud people, evade obligations of law or to commit illegalities which are otherwise not permissible in law. Therefore, where a Company is established with the purpose of de...

As per Section 137 (1) of the Companies Act, 2013 copy of the financial statements, including consolidated financial statement, if any, along with all the documents which are required to be or attached to such financial statements under the Companies Act,2013 duly adopted at the annual general meeting of the company, shall be filed with the Registrar within thirty days of the date of annual general meeting in Form AOC-4 and the consolidated financial statements, if any, with form AOC-4 CFS, with the prescribed fee. The following class of companies shall file their financial statements and other documents under section 137 of the Act with the Registrar in e-form AOC-4 XBRL:-   (i) companies listed with stock exchanges in India and their Indian subsidiaries; (ii) companies having paid up capital of five crore rupees or above; (iii) companies having turnover of one hundred crore rupees or above; (iv) all companies which are required to prepare their financial statements i...

The Insolvency and Bankruptcy Code, 2016 is single unified  umbrella of insolvency law which consolidates and amends the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy board of India, and for matters connected therewith or incidental thereto. Before the Insolvency and Bankruptcy Code, 2016 there was no single law in India that dealt with insolvency and bankruptcy. Provisions relating to insolvency and bankruptcy for companies could be found in the in the Sick Industrial Companies (Special Provisions) Act, 1985, the Recovery of Debt Due to Banks and Financial Institutions Act, 1993, the Securitisation and Reconstruct...

The first and most elementary rule of construction is that the words of a statue must prima facie be given their ordinary meaning. Ordinary words must be given their ordinary meanings and technical meanings, unless absurdity would result. This is called the golden rule of interpretation. This rule is also called “literal rule of Construction”. The intention of the Legislature is primarily to be gathered from the language used in the statute, thus paying attention to what has been said as also to what has not been said. When the words used are not ambiguous, literal meaning has to be applied. Effect should be given to the plain words, not because there is any charm or magic in the plainness of such words but because plain words may be expected to convey plainly the intention of the Legislature. Intention of the legislature and not the words is paramount. Even where the words of statutes appear to be prima facie clear and unambiguous it may sometimes be possible that the pl...