The weekly update covering notifications, circulars, and judicial developments issued between 18th and 24th May 2026 highlights major regulatory changes across income tax, GST, customs, SEBI, RBI, IBBI, DGFT, and insolvency laws. Key Supreme Court rulings clarified issues relating to AOP taxation, TCS on illegal mining fees, deduction of interest on borrowed funds, VAT jurisdiction on inter-state gas sales, inheritance rights under valid wills, and enforceability of guarantees in insolvency proceedings. GSTN introduced important compliance enhancements including mandatory “Ship-To GSTIN” capture in e-way bills and a standardized Annexure-B utility for refund applications. SEBI released multiple consultation papers on IPO price discovery, mutual fund third-party payments, STP reforms, and relaxation of call-record maintenance for institutional clients. RBI issued extensive amendments relating to Investment Fluctuation Reserve norms, banking disclosures, recovery agent conduct, and capital adequacy requirements. Overall, the developments reflect increasing emphasis on digital compliance, transparency, governance, risk management, and system-driven regulatory oversight.
Notifications & Circulars issued during week (18th – 24th May 2026)
(Income Tax, GST, Central Excise, Custom Duty, DGFT, SEBI, MCA, IBBI, RBI)
(Click the Link for Notification/ Circular as issued)
A. Income Tax
SC, Income from AOP held Non-Taxable in hands of Members as it was Share of Profit: Case of Sanand Properties Pvt Ltd vs Jt Commissioner of Income Tax, SC Judgement Dated 12th May 2026. The apex court held that contractual right to withdraw 35% of gross sale proceeds upfront, before meeting project expenses (borne from the remaining 65%), creates an overriding title and amounts to diversion of income at source. The 35% is therefore taxable as a business receipt and cannot be treated as a mere ‘profit share’ exempt under the AOP-member pass-through provisions.
(Link: SC Judgement Dated 12/05/2026)
SC, No TCS on Illegal Mining Compounding Fees: Case of DCIT Vs Collector Mining Kanker, SC Judgement Dated 12th May 2026. The apex court upheld that tax collection at source (TCS) under Section 206C(1C) of the Income Tax Act, is not applicable on compounding fees or fines collected from persons involved in illegal mining activities.
(Link: SC Judgement Dated 16/06/2026)
SC, Interest on Borrowed Funds allowed even for Investment through Group Concerns: Case of LK Trust vs CIT, SC Judgement Dated 7th May 2026. The apex court held that interest paid on borrowed capital is allowable under Section 36(1)(iii) where the borrowing was for business purposes, even if the funds ultimately moved through a group concern for acquisition of shares.
(Link: SC Judgement Dated 07/05/2026)
SC Allows deduction of Grants as they were part of Statutory Business Activity: Case of National Cooperative Development Corporation Vs ACIT, SC Judgement Dated 10th December 2025. The apex court ruled that grants and subsidies disbursed by the NCDC (intended to aid cooperative societies) qualify as permissible revenue expenditure under Section 37 of the Income Tax Act. The expenditures are deductible regardless of whether the funds originate from the Central Government or interest earned on idle funds.
(Link: SC Judgement Dated 10/12/2025)
HC, Assessment Upheld as Material Seized in Search can be used Even if Search Is Later Challenged: Case of Hari Bhoomi Communications Pvt Ltd vs ACIT, HC Delhi Judgement Dated 21st April 2026. HC held that reassessment proceedings initiated against third parties based on material recovered during a search are perfectly valid, even if the primary search against the original entity is temporarily stayed by another court.
(Link: HC Delhi Judgement Dated 21/04/2026)
B. GST
GSTN Advisory on Enhancements in the e-Way Bill (EWB) Portal: The major change is the mandatory capture of “Ship-To GSTIN” in Bill-To/Ship-To transactions during EWB generation. In cases where the consignee is unregistered, “URP” must be entered in the relevant field. Another significant enhancement is the introduction of a voluntary e-Way Bill Closure facility enabling suppliers, recipients, transporters, drivers, or authorized persons to close e-Way Bills after delivery of goods. Closure can be done EWB wise or date wise, including through mobile number based functionality and APIs.
(Link: GSTN Advisory Dated 18/05/2024)
GSTN Advisory, Filing of Annexure-B for Refund Applications involving Accumulated ITC using the Offline Utility in GST Portal: A standardized Annexure-B Offline Utility has been introduced in Excel format for refund applications involving accumulated Input Tax Credit (ITC) under categories such as exports without payment of tax, supplies to SEZs, inverted tax structure refunds, and export of electricity. The utility aims to automate refund processing and enable system-based verification of invoices and documents. Taxpayers must now furnish invoice-wise inward supply details HSN/SAC-wise and separately classify inputs, input services, and capital goods. Uploaded invoices will be validated with GSTR-2B, and mismatches for invoices relating to November 2024 onwards will appear in an Invalid Documents Report.
(Link: GSTN Advisory Dated 18/05/2024, Tutorial)
SC, VAT Levy on Natural Gas as State claimed Sale Occurred in UP: Case of State of Uttar Pradesh vs Reliance Industries Limited, SC Judgement Dated 15th May 2026. The apex court ruled that the supply of natural gas by Reliance Industries from the KG-D6 basin in Andhra Pradesh to buyers in Uttar Pradesh constitutes an inter-state sale. The Court held that the State of Uttar Pradesh lacks the jurisdiction to levy Value Added Tax (VAT) on these transaction. The court dismissed the appeal, affirming that the authority to tax inter-state transactions belongs exclusively to the Union Government.
(Link: SC Judgement Dated 15/05/2026)
HC, Refund cannot be withheld merely on the basis of a departmental Decision or Intention to File an Appeal: Case of Truth Fashion vs SK Singh Spl Commissioner, HC Delhi Judgement Dated 5th May 2026. HC held that mere intention or decision to file an appeal does not permit withholding of refund under Section 54(11) of CGST Act, unless the refund order is actually the subject matter of pending appeal proceedings. The court directed release of refund along with statutory interest.
(Link: HC Delhi Judgement Dated 04/05/2026)
C. Central Excise
Amendments to HSNS Cess Rules to Remove Quarterly Transfer Requirement: The notification amends Health Security and National Security Cess (HSNS) Rules. The amendment omits sub rule (3) which earlier mandated that the Department of Revenue transfer the cess to the Health Security and National Security Cess Fund on a quarterly basis. The amended rules provide that the cess, including interest and penalty, shall first be credited to the Consolidated Fund of India and thereafter transferred to the designated fund upon parliamentary appropriation.
(Link: HSNS Notification 03/2026 Dated 20/05/2026)
D. Custom Duty
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver: CBDT notified the Tariff Values of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver, which shall come into force w.e.f. 20th May 2026. The tariff value for crude palm oil is set at USD 1205 per metric ton, while gold and silver have tariff values of USD 1508 per 10 grams and USD 2455 per kilogram, respectively. The tariff value for areca nuts is fixed at USD 9155 per metric ton.
(Link: Customs Notification 47/2026 (NT) Dated 19/05/2026)
Anti-Dumping Duty on ‘Natural Mica based Pearl Industrial Pigments excluding cosmetic grade’ imported from China Extended: The notification amends earlier notification No. 47/2021 dated 26th August 2021, inserts a new paragraph clarifying that the existing anti-dumping duty will continue to remain in force till 25th November 2026.
(Link: Customs Notification 09/2026 (ADD) Dated 22/05/2026)
Anti-Dumping Duty on Monoisopropylamine originating in or exported from China: Anti-dumping Duty has been imposed on imports of Monoisopropylamine originating in or exported from China, and imported into India. It shall be effective for a period of five years.
(Link: Customs Notification 08/2026 (ADD) Dated 22/05/2026)
Provisional Assessment ordered pending New Shipper Review of Chinese Solar Frame Imports: The Central Government ordered provisional assessment of imports of ‘Anodized Aluminium Frames for Solar Panels/Modules’ originating in or exported from China PR by Anhui Krant Aluminum Products Co Ltd pending completion of a new shipper review by DGTR. Thus, imports made during the review period will remain subject to provisional assessment and may require security or guarantees to cover any future duty liability.
(Link: Customs Notification 07/2026 (ADD) Dated 19/05/2026)
Standardisation of procedures relating to grant of Entry Inward and Vessel Sail-out Clearance: CBIC clarified that Entry Inward and Sail-out Clearance under Sections 30, 31, 41, and 42 are independent of vessel boarding procedures governed by Section 37 and related regulations. The circular directs customs authorities to grant clearances promptly upon filing required documents such as Sea Arrival Manifest (SAM) and Sea Departure Manifest (SDM) through SCMTR and e-Sanchit systems, without insisting on physical boarding. Physical boarding is to be conducted only on a risk-based assessment considering compliance history, cargo nature, voyage details, and security concerns.
(Link: Customs Circular 26/2026 Dated 15/05/2026)
E. Directorate General of Foreign Trade (DGFT)
Allocation of raw cane sugar to USA under TRQ scheme for US Fiscal Year 2026: The Public Notice allocating 8606 MTRV of raw cane sugar for export to the United States under the Tariff Rate Quota (TRQ) scheme for the US fiscal year 2026, covering the period from 1st October 2025 to 30th September 2026. It clarified that export of sugar under HS Code 17010000 to the USA and EU under the TRQ scheme remains ‘Free’ subject to prescribed conditions.
(Link: DGFT Public Notice 12/2026 Dated 22/05/2026)
Launch of online module for issuance of Certificate of Origin (COO) for Agarwood on Trade Connect Platform: The module enables exporters to apply digitally for CoO by submitting details relating to source, stock particulars, chain of custody, inspection records, and supporting documents. Applications are routed electronically to the jurisdictional Divisional Forest Officer for verification and thereafter to the State Nodal Officer for approval, following which the CoO is issued digitally. It also provides online tracking, digital verification of certificates, and reduced physical interaction between exporters and authorities.
(Link: DGFT Trade Notice 05/2026 Dated 22/05/2026)
Review of allocated Export Quota of Pharma Grade Sugar by Special EXIM Facilitation Committee (SEFC): DGFT directed all exporters who had received quota allocations to submit a Chartered Accountant certified utilization certificate showing quantities exported against allocated authorizations and to indicate any requirement for additional quota along with justification and export contracts or purchase orders. It states that authorizations with more than 50% utilization may be revalidated for six months, while unutilized quantities in cases below 50% utilization may be shifted to a common pool for redistribution unless supported by valid export orders.
(Link: DGFT Trade Notice 04/2026 Dated 22/05/2026)
F. Securities and Exchange Board of India (SEBI)
Revision of Monthly Cumulative Report (MCR) Format for Mutual Funds: The revised format of the Monthly Cumulative Report (MCR) shall be applicable to Mutual Funds, Asset Management Companies (AMCs), Trustee Companies, Boards of Trustees, and AMFI. The revised reporting format is provided in Annexure A, while the MCR SIF format is enclosed in Annexure B.
(Link: SEBI Circular Dated 19/05/2026)
Consultation Paper on Review of price discovery mechanism through Pre-open Call Auction Session for IPO and Re-listed scrips: The paper proposes a revised methodology for determining base prices for re-listed scrips, including the use of recent market prices or valuation certificates from independent Chartered Accountants or valuation agencies. It has also proposed automatic and uniform flexing of dummy price bands across exchanges, including during the random closure period, and extending flexing mechanisms to SME IPOs. It proposes that successful price discovery should require orders from at least five PAN-based unique buyers and sellers, while unsuccessful re-listing auctions would continue on subsequent trading days until equilibrium prices are discovered. The feedback/comments from stakeholders are invited.
(Link: SEBI Consultation Paper Dated 21/05/2026)
Consultation Paper, Draft Circular on Enabling third party payments in Mutual Funds in Certain Scenarios: Under the current framework, mutual fund investments must originate from the investor’s own bank account through RBI authorised payment aggregators or SEBI recognised clearing corporations. SEBI proposes permitting employer sponsored investments through payroll deductions for employees of listed and EPFO registered companies, and payment of commissions to empanelled mutual fund distributors in the form of mutual fund units. It also proposed enabling donations or contributions towards social causes through mutual funds, including investments in Zero Coupon Zero Principal instruments of Not-for-Profit Organisations registered on the Social Stock Exchange. The feedback/comments from stakeholders are invited.
(Link: SEBI Consultation Paper Dated 20/05/2026)
Consultation Paper on Easing of framework for Straight Through Processing (STP) of Trades: It has been observed that the present architecture, which routes inter-SSP communications through a centralized STP Hub, results in higher latency, additional transmission costs, operational inefficiencies, concentration risk, and potential single point of failure. The paper proposes replacing the centralized STP Hub with a decentralized API- based connectivity framework between STP Service Providers (SSPs). The SSPs would communicate directly through standardized APIs while ensuring authenticity, integrity, and non-repudiation of messages. The paper also proposes optional API-based communication between STP users serviced by the same SSP to reduce manual intervention. The feedback/comments from stakeholders are invited.
(Link: SEBI Consultation Paper Dated 19/05/2026)
Consultation Paper on Relaxation in requirement of maintenance of call records for institutional clients: The paper proposes relaxation in the requirement for Research Analysts (RAs) to maintain call recordings for interactions with institutional investors. It propose that RAs may be exempted from mandatory maintenance of call recordings for institutional investors while continuing to maintain other interaction records such as emails, SMS records, and legally verifiable communications. It also introduces a definition of ‘institutional investor’ by linking it to the SEBI ICDR Regulations 2018. The feedback/comments from stakeholders are invited.
(Link: SEBI Consultation Paper Dated 18/05/2026)
G. Ministry of Corporate Affairs (MCA)
No notification/ Circular during the week.
H. Insolvency and Bankruptcy Board of India (IBBI)
Amendments to IBBI Pre Packaged Insolvency Resolution Process Regulations: The amendments streamline the appointment and functioning of registered valuers. Under revised Regulation 38, the resolution professional must appoint a set of registered valuers within three days of his appointment, unless the committee decides to appoint two sets with recorded reasons. It also disqualifies related parties, recent auditors, partners or directors linked to the insolvency professional entity, and relatives of such persons from acting as valuers. Regulation 39 clarifies the methodology for determining fair value and liquidation value, including averaging mechanisms where two sets of valuers are appointed.
(Link: IBBI Notification Dated 19/05/2026)
Amendments to IBBI Liquidation Process Regulations: The amendment introduces a special valuation framework for corporate debtors classified as MSME. The liquidator is required to appoint one registered valuer for each asset class of the corporate debtor. However, after consultation with the consultation committee and with recorded reasons, the liquidator may appoint two registered valuers where necessary.
(Link: IBBI Notification Dated 19/05/2026)
Amendments to IBBI Insolvency Resolution Process for Corporate Persons Regulations: The amendment introduces a simplified valuation mechanism for corporate debtors classified MSMEs. The resolution professional is required to appoint one set of registered valuers for MSME corporate debtors. However, the committee of creditors may decide, with recorded reasons, to appoint two sets of registered valuers where circumstances justify additional valuation scrutiny.
(Link: IBBI Notification Dated 19/05/2026)
Guidelines for Insolvency Professional Appointments: The guidelines provide for preparing advance panels for use by the National Company Law Tribunal (NCLT) and Debt Recovery Tribunal (DRT), in appointing Insolvency Professionals (IPs). To qualify, IPs must have no pending disciplinary proceedings, no conviction within the previous three years, and must possess a valid Authorisation for Assignment throughout the panel period. It require unconditional consent from IPs to accept appointments and warn that refusal without justification may result in removal from the panel for six months. The panel will be organized zone wise and bench wise, with eligible IPs ranked according to ongoing assignments. The adjudicating authorities retain discretion to appoint professionals from within or outside the panel.
(Link: IBBI Guidelines Dated 18/05/2026)
NCLAT, Subsidiary Company Assets cannot Form Part of Parent Company Insolvency: Case of State Bank of India vs Venugopal Dhoot, NCLAT Delhi Judgement Dated 14th May 2026. The appellate tribunal held that assets of subsidiaries cannot form part of the CIRP of the parent corporate debtor. It set aside the NCLT order directing inclusion of foreign oil and gas assets in the CIRP of Videocon Industries Ltd.
NCLAT Upholds CIRP Admission as Conditional Payment Email Acknowledged Operational Debt: Case of Rakesh Dalpatram Panchal vs Kisaan Steels Pvt Ltd, NCLAT Delhi Judgement Dated 11th May 2026. The appellate tribunal held that the company could not rely on disputes over delayed deliveries and defective goods to resist the case after it had itself quantified deductions for those issues and reflected a balance amount payable to the supplier.
NCLAT, Resolution applicant could not alter Financial Proposal through Last Minute Addendum: Case of Vedanta Ltd vs Bhuvan Madan RP of Jaiprakash Associates Ltd, NCLAT Delhi Judgement Dated 4th May 2026. The appellate tribunal concluded that a resolution applicant could not unilaterally alter its financial proposal through a last minute addendum after completion of the challenge process and commencement of voting under the Corporate Insolvency Resolution Process (CIRP). It dismissed Vedanta Limited appeal challenging the approval of Adani Enterprises Limited resolution plan for Jaiprakash Associates Limited. It upheld the Committee of Creditors decision, not to consider addendum, holding that decision was not an invalid and untenable decision.
I. Reserve Bank of India (RBI)
Updates on UNSC Sanctions List Under UAPA Compliance: MEA has informed about the UNSC amendments on its ISIL & Al-Qaida Sanctions List of individuals and entities (Removal of Seven Entities), which are subject to the assets freeze, travel ban and arms embargo. Regulated Entities (REs) are advised to take note for necessary compliance in terms of Master Directions on KYC.
(Link: RBI Circular 93/2026 Dated 22/05/2026)
Amendments to RBI Local Area Banks Financial Statements: Presentation and Disclosures Directions: The amendments clarify the meaning of ‘Revenue Reserve’, stating that it includes all reserves other than capital reserves and excludes provisions made for depreciation, asset diminution, renewals, or known liabilities. It also substitutes the disclosure format relating to ‘Movement of provisions for non-performing investments (NPIs)’, requiring banks to disclose opening balances, provisions made during the year, write-offs or write-backs, and closing balances.
(Link: RBI Circular 92/2026 Dated 18/05/2026)
Amendments to RBI Commercial Banks Financial Statements: Presentation and Disclosures Directions: The amendment substitutes the notes and instructions relating to ‘Revenue and Other Reserves’ under Schedule 2(IV), clarifying that ‘Revenue Reserve’ includes all reserves other than capital reserves and excludes provisions retained for depreciation, diminution in asset value, renewals, or known liabilities. RBI has also amended Paragraph 10(3)(vi) by replacing the disclosure format relating to non-performing investments (NPIs).
(Link: RBI Circular 91/2026 Dated 18/05/2026)
Amendments to RBI Commercial Banks Prudential Norms on Capital Adequacy Directions: The amendment has deleted sub-paragraph 21(i)(b) of the Capital Adequacy Directions. This paragraph relates to the Investment Fluctuation Reserve (IFR), which was previously recognized as an element in the computation of a bank’s Tier-2 capital.
(Link: RBI Circular 90/2026 Dated 18/05/2026)
Amendments to RBI Regional Rural Banks Classification, Valuation, and Operation of Investment Portfolio Directions: Under the revised provision, RRBs must create Investment Fluctuation Reserve (IFR) from realized gains arising from the sale of investments, subject to the availability of net profit, until the reserve reaches at least 2% of the Held for Trading (HFT) and Available for Sale (AFS) portfolio. The minimum IFR requirement will now be assessed annually with reference to the book value of investments in the AFS and HFT categories as on the balance sheet date.
(Link: RBI Circular 89/2026 Dated 18/05/2026)
Amendments to RBI Rural Cooperative Banks Classification, Valuation, and Operation of Investment Portfolio Directions: Under the revised framework, every RCB must maintain an Investment Fluctuation Reserve (IFR) of at least 5% of its investment portfolio classified under the “Current Category.” It shall now be assessed annually and calculated with reference to the book value of investments in the Current Category as on the balance sheet date.
(Link: RBI Circular 88/2026 Dated 18/05/2026)
Amendments to RBI Urban Cooperative Banks Classification, Valuation, and Operation of Investment Portfolio Directions: Under the revised framework, Urban Co-operative Banks (UCBs) are now required to maintain a minimum IFR of 5% of the investment portfolio, calculated annually with reference to the book value of investments classified under Held for Trading (HFT) and Available for Sale (AFS) categories as on the balance sheet date. Banks may maintain higher IFR levels with Board approval.
(Link: RBI Circular 87/2026 Dated 18/05/2026)
Amendments to RBI Local Area Banks Classification, Valuation, and Operation of Investment Portfolio Directions: RBI has discontinued the requirement for maintaining Investment Fluctuation Reserve (IFR) for commercial banks with immediate effect. The circular directs banks to transfer the IFR balance existing as of 17th May 2026, ‘below the line’ to Statutory Reserve, General Reserve, or the Balance of Profit & Loss Account.
(Link: RBI Circular 86/2026 Dated 18/05/2026)
Amendments to RBI Payment Banks Classification, Valuation, and Operation of Investment Portfolio Directions: RBI has mandated that Payment Banks must create Investment Fluctuation Reserve (IFR) out of realised gains on sale of investments, subject to availability of net profit, until the reserve reaches at least 2% of the Available for Sale (AFS) and Fair Value Through Profit and Loss (FVTPL), including Held for Trading (HFT), investment portfolio. The minimum requirement will be assessed annually based on the portfolio value as on the balance sheet date. The transfers to IFR must be made only from net profit after mandatory appropriations.
(Link: RBI Circular 85/2026 Dated 18/05/2026)
Amendments to RBI Small Finance Banks Classification, Valuation, and Operation of Investment Portfolio Directions: RBI has mandated that SFBs must create Investment Fluctuation Reserve (IFR) out of realised gains on sale of investments, subject to availability of net profit, until the reserve reaches at least 2% of the Available for Sale (AFS) and Fair Value Through Profit and Loss (FVTPL), including Held for Trading (HFT), investment portfolio. The minimum requirement will be assessed annually based on the portfolio value as on the balance sheet date. The transfers to IFR must be made only from net profit after mandatory appropriations.
(Link: RBI Circular 84/2026 Dated 18/05/2026)
Amendments to RBI Commercial Banks Classification, Valuation, and Operation of Investment Portfolio Directions: RBI has discontinued the requirement for maintaining Investment Fluctuation Reserve (IFR) for commercial banks with immediate effect. The circular directs banks to transfer the IFR balance existing as of 17th May 2026, ‘below the line’ to Statutory Reserve, General Reserve, or the Balance of Profit & Loss Account. For foreign banks operating in India through branch mode, the IFR balance must be transferred to statutory reserves maintained in Indian books or to non-repatriable retained surplus.
(Link: RBI Circular 83/2026 Dated 18/05/2026)
Draft Amendment Directions on Conduct of Regulated Entities in Recovery of Loans and Engagement of Recovery Agents: The draft directions prescribe detailed standards for recovery practices, borrower protection, grievance redressal, and engagement of recovery agencies. Regulated entities must implement due diligence, training, monitoring, and codes of conduct for recovery agents while prohibiting abusive, coercive, or misleading recovery methods. It also regulates technology-based recovery mechanisms that restrict mobile device functionalities, permitting such actions only under strict safeguards, notice requirements, and compensation provisions for wrongful restrictions. Borrower privacy protections, mandatory call recording, restrictions on communication timing, and transparency obligations have also been introduced. The feedback/ comments from stakeholders are invited.
(Link: RBI Press Release Dated 20/05/2026, Draft CBs, SFBs, LABs, RRBs, UCBs, RCBs, AIFIs, NBFCs and HFCs)
Draft Amendments to RBI Capital Adequacy Directions: The draft amendment directions for Commercial Banks and Small Finance Banks, intends to align Pillar 3 disclosure norms more closely with the Basel Framework. It introduce comprehensive norms on assurance of Pillar 3 data, requiring board approved disclosure policies, internal controls, and written attestation by Whole Time Directors. RBI has emphasized five guiding principles for disclosures, i.e. clarity, comprehensiveness, meaningfulness, consistency, and comparability, while mandating banks to maintain a dedicated ‘Regulatory Disclosure Section, on their websites with archives for at least ten years. It also revises leverage ratio disclosure norms and updates disclosure templates and tables under Annex III.
(Link: RBI Press Release Dated 19/05/2026, Draft CBs and SFBs)
J. Miscellaneous
SC, Inheritance is not a Birthright when a Valid Will Exists: Case of Parvathi Nairthi vs Laxmi Nairthy, SC Judgement Dated 21st May 2026. The apex court upheld the validity of a Will executed by a Chartered Accountant in favour of his sister, rejecting the challenge mounted by his wife and children. The Court reaffirmed that mere exclusion of natural heirs is not a suspicious circumstance and that the very purpose of a Will is often to alter the normal line of succession.
SC, Preliminary Decree Final in Substance, Execution cannot be Blocked on Mere Nomenclature: Case of Jennifer Messias vs Leonard G Lobo, SC Judgement Dated 18th May 2026. The apex court held that a decree labelled as a ‘preliminary decree’ can, in substance, also operate as a final decree if it conclusively determines the rights of parties and provides the mechanism for working out the relief.
SC Settles Law on Guarantee Validity, Stamping and Disclosures in CIRP: Case of State Bank of India vs Doha Bank QPSC, SC Judgement Dated 28th April 2026. The apex court reiterated that a guarantor liability is co-extensive with that of the principal borrower. Therefore, any liability arising from a corporate guarantee falls squarely under the definition of ‘financial debt’. Mere non-disclosure of a corporate guarantee in the corporate debtor’s financial statements does not deprive the creditor of their right to lodge a claim. The court ruled that insufficient stamp duty on guarantee instruments is a curable defect and does not render the guarantee void or unenforceable. The omission of certain corporate guarantees in initial claim filings (like Form-C) does not negate the creditor claim.
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Compiled by: CMA Yash Paul Bhola, MBA, FCMA, Former Director (Finance), National Fertilizers Limited.
Disclaimer: The contents of this article are for informational purposes only. The user may refer to the relevant notification/ circular/ decisions issued by the respective authorities for specific interpretation and compliances related to a particular subject matter)
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