This week saw significant updates across various regulatory bodies. In Income Tax, the Food Safety and Standards Authority of India received income exemption, and the India-Oman DTAA Protocol came into force, reducing withholding tax on royalties and technical fees. A time limit relaxation was granted for processing delayed Income Tax Returns filed by March 31, 2024. High Court rulings clarified that a buyer’s TDS form error would not deny an NRI seller credit and that Common Area Maintenance charges fall under TDS Section 194C.
For GST, clarified review and appellate procedures for orders issued by the Common Adjudicating Authority (CAA) concerning DGGI show cause notices. Advance Rulings determined GST on composite value for construction and land sale and stated that TR-6 challan is not eligible for ITC availment. The Supreme Court rejected tactics of offering money for bail and then challenging conditions.
Custom Duty saw the imposition of anti-dumping duties on Linear Alkyl Benzene (LAB) from Iran and Qatar, Potassium Tertiary Butoxide (KTB) from China PR and USA, Sodium Tertiary Butoxide (STB) from China, and Plastic Processing Machines from China and Taiwan. Anti-dumping duty on Chinese Decor Paper was also modified. Counter-veiling duties were imposed on effect pearlescent pigments and Digital Offset Printing Plates from China and Taiwan.
The DGFT amended import rules for Quality Control Order (QCO) products and precious metal alloys, and introduced port restrictions for select flax and jute goods from Bangladesh. The Silk & Rayon Textiles Export Promotion Council was renamed MATEXIL. SEBI revised certification rules for AIF Key Staff and issued Master Circulars for Registrars to an Issue & Share Transfer Agents, Investment Advisers, and Research Analysts. Timelines for rebalancing mutual fund portfolios in passive breach cases were clarified, and standards for Audit Committee and Shareholder Disclosures on Related Party Transactions were revised. SEBI also released a consultation paper on strengthening governance of Market Infrastructure Institutions.
The MCA proposed relaxations for ‘Finance Companies’ registered with IFSCA under Rule 11(2) of Meeting of Board and its Powers.
IBBI saw NCLAT rulings on CIRP termination when corporate debtor funds cover CoC claims, threshold requirements under IBC Section 4, funds use by suspended management post-moratorium, and that arbitrary rejection of settlement offers can be overruled. NCLAT also ruled on no right to possession after hotel lease expiry during CIRP moratorium and included gratuity with interest as operational debt. IBBI penalized a Resolution Professional for negligence.
The RBI revised operational guidelines for the Depositor Education & Awareness (DEA) Fund Scheme and issued guidelines for Aadhaar Enabled Payment System (AePS) Due Diligence. A draft of RBI Rupee Interest Rate Derivatives Master Directions was also released for stakeholder comments.
Lastly, Miscellaneous updates included extending gratuity benefits to Central Government employees under NPS and providing options for Old Pension benefits on death/disability under NPS. The Supreme Court clarified vicarious liability, stating that a director’s role need not be detailed in a cheque dishonor complaint.
Notifications & Circulars issued during week (23rd– 29th Jun 2025)
A. Income Tax
Exemptions to Food Safety and Standards Authority of India: Food Safety and Standards Authority of India, an authority constituted under the Food Safety and Standards Act 2006, has been notified under section 10(46A) for exemption on its income, provided the authority continues to operate for the specified purposes under Section 10(46A)(a) of the Income Tax Act.
(Link: Income Tax Notification 68/2025 Dated 24/06/2025)
India-Oman Double Taxation Avoidance Agreement (DTAA) Protocol comes into force: A Protocol amending DTAA between the Republic of India and the Sultanate of Oman became effective on 28th May 2025. The key changes include updated definitions for “competent authority” and “tax year,” revised rules for determining residency for non-individuals, a reduction in withholding tax rates on royalties and technical fees from 15% to 10%, and the introduction of new articles on non-discrimination, enhanced exchange of information, and assistance in the collection of taxes.
(Link: Income Tax Notification 69/2025 Dated 25/06/2025)
Relaxation of time limit to process delayed Income Tax Returns: The relaxation applies to returns filed by 31st March 2024, for which the prescribed intimation period under Section 143(1) has lapsed. These returns, delayed due to technical reasons, will now be processed. Intimation for such cases will be issued by 31st March 2026. This measure excludes cases where proceedings for assessment, reassessment, re-computation, or revision of income have already been completed. Also, the refunds with applicable interest will be issued for eligible cases, barring instances where PAN-Aadhaar linkage is not found.
(Link: Income Tax Circular 07/2025 Dated 25/06/2025)
HC, Buyer’s TDS Form error would not deny NRI seller credit: Case of Parag Keshav Boparrdika vs ITO, HC Delhi Judgement Dated 27th May 2025. High Court ruled in favour of Non-Resident Indian (NRI), directing the Income Tax Department to grant him full Tax Deducted at Source (TDS) credit, despite an error by the buyers of his property in filing the incorrect TDS form.
HC, Common Area Maintenance charges fall under TDS Section 194C: Case of CIT vs Liberty Retail Revolutions Limited, HC Delhi Judgement Dated 22nd May 2025. High Court has held that Common Area Maintenance (CAM) charges are subject to TDS under Section 194C (payments for works contracts), rather than Section 194-I (rent) of the Income Tax Act.
B. GST
Reviewing authority, Revisional Authority and Appellate Authority in respect of orders passed by Common Adjudicating Authority (CAA) for show cause notices issued by DGGI: The circular clarifies the review, revision, and appellate procedures related to Orders-in-Original (O-I-Os) passed by CAA, particularly for show cause notices issued by the Directorate General of GST Intelligence (DGGI). It clarifies that under Section 107 of the CGST Act, the Principal Commissioner or Commissioner of Central Tax under whom the CAA (Joint/Additional Commissioner) is posted will act as the Reviewing Authority. Likewise, for revisions under Section 108, the same Principal/Commissioner will function as Revisional Authority. Appeals against CAA orders will lie with Commissioner (Appeals) corresponding to the territorial jurisdiction of the posting Commissionerate.
(Link: GST Circular 250/2025 Dated 24/06/2025)
AAR, GST on Composite Value for Construction & Land Sale: Case of Sripriya Constructions Private Limited, AAR Tamil Nadu Ruling Dated 09th May 2025. The applicant entered a Joint Development Agreement (JDA) to construct four apartments, with two allocated to the landowner and two for sale. The applicant executed separate sale deeds for the undivided share (UDS) of land and construction agreements, paying stamp duty on UDS and GST on construction. AAR ruled that the applicant claim of exclusion of entire value of UDS and the area including the built up area as ‘Sale of Land’ resulting in non-liability in their hands, does not fall under Item-5 Schedule III. The applicant activity constitutes supply of services as per Entry 5(b) Schedule II and appropriate levy of GST is attracted.
AAR, TR-6 challan not eligible document for ITC availment: Case of Becton Dickinson India Private Limited, AAR Tamil Nadu Ruling Dated 09th May 2025. The applicant, involved in importing medical equipment from related overseas companies, frequently made “true-up” adjustments to import prices based on Arm’s Length Price (ALP) principles. AAR ruled that neither TR-6 challan as such, nor TR-6 challan read with SVB order and letters issued by tax authorities, as claimed by applicant can bbe considered as an eligible document for availment of ITC. Availment of ITC on import IGST on basis of re-assesses bill of entry is governed by time limit as per section 16(4) of CGST Act. The time limit would begin from date of re-assessment of bill of entry.
SC rejects tactics of offering money for bail, then challenging conditions: Case of Kundan Singh vs Superintendent of CGST and Central Excise, SC Judgement Dated 23rd June 2025. The Court highlighted a troubling pattern, parties voluntarily offer substantial monetary deposits during bail applications to demonstrate bona fide and secure liberty. Courts, relying on these undertakings, grant bail without fully delving into the merits. Subsequently, the same parties challenge these conditions before higher courts, claiming they are onerous or illegal.
— The apex court termed this behaviour as ‘approbating and reprobating’, emphasizing the sanctity of the judicial process. It firmly stated that parties cannot be allowed to ‘play ducks and drakes with the Court’. It concluded that both the original bail order and the modification order, granting final relief, had to be set aside. The matter was consequently remanded to the High Court for a fresh consideration on merits.
C. Central Excise
No Notifications/ Circular during the week.
D. Custom Duty
Anti-dumping Duty on Linear Alkyl Benzene(LAB) originating in or exported from Iran and Qatar: Anti-dumping Duty has been imposed on imports of Linear Alkyl Benzene (LAB) originating in or exported from Iran and Qatar and imported into India. The anti-dumping duty shall be effective for a period of five years.
(Link: Custom Notification 18/2025 (ADD) Dated 23/06/2025)
Anti-Dumping Duty modification on Chinese Decor Paper originating in or exported from China: The existing anti-dumping duty was originally imposed vide notification 77/2021 dated 27th December 2021. Based on the findings of the review, the government has substituted the duty table with a new one. As per revised structure, specific Chinese producers such as Shandong Boxing Ouhua Special Paper Co Ltd and Zibo OU-MU Special Paper Co Ltd will face a duty of 110 USD per metric ton. Hangzhou Huawang New Material Technology Co Ltd will face a duty of 297 USD per metric ton. All other producers from China, as well as Decor Paper originating from any country but exported from China, will be subject to a duty of 542 USD per metric ton.
(Link: Custom Notification 19/2025 (ADD) Dated 24/06/2025)
Anti-dumping Duty on Potassium Tertiary Butoxide (KTB) from China PR and USA, and Sodium Tertiary Butoxide (STB) from China: Anti-dumping Duty has been imposed on imports of Potassium Tertiary Butoxide (KTB) originating in, or exported from China and USA and imported into India, and Sodium Tertiary Butoxide (STB) originating in or exported from China and imported into India. The anti-dumping duty shall be effective for a period of five years. Vide corrigendum dated 24/06/2025, the entry in table, for
‘29051490, 29051990, 29051990 and 29054900’ to be read as ‘29051490, 29051920, 29051990 and 29054900’.
(Link: Custom Notification 20/2025 (ADD) Dated 24/06/2025, Corrigendum)
Anti-dumping Duty on Plastic Processing Machines originating in or exported from China and Taiwan: Anti-dumping Duty has been imposed on imports of Plastic Processing Machines originating in or exported from China and Taiwan and imported into India. The anti-dumping duty shall be effective for a period of five years.
(Link: Custom Notification 21/2025 (ADD) Dated 26/06/2025)
Counter-veiling Duty on Effect pearlescent pigments or mica pearlescent pigments, excluding effect pigments for automotive applications from China: Counter-veiling Duty has been imposed on imports of Effect pearlescent pigments or mica pearlescent pigments, excluding effect pigments for automotive applications originating in or exported from China and imported into India. The counter-veiling duty shall be effective for a period of five years.
(Link:Custom Notification 04/2025 (CVD) Dated 26/06/2025)
Counter-veiling Duty on Digital Offset Printing Plates from China and Taiwan: Counter-veiling Duty has been imposed on imports of Digital Offset Printing Plates originating in or exported from China and Taiwan, and imported into India. The counter-veiling duty shall be effective for a period of five years.
(Link: Custom Notification 05/2025 (CVD) Dated 27/06/2025)
E. Directorate General of Foreign Trade (DGFT)
Amendment in Import Rules for Quality Control Order (QCO) Products: The amendment relates to the Export Obligation (EO) period for imports under Advance Authorisation, Export Oriented Units (EOU), and Special Economic Zones (SEZ) that are subject to mandatory Quality Control Orders (QCOs). Previously, the EO period for QCO-exempt textile and chemical products was restricted to 180 days from import clearance. As per revision, the 180-day restriction now only applies to chemical products notified by the Department of Chemicals & Petrochemicals (DCPC).
(DGFT Notification 20/2025 Dated 23/06/2025)
Amendment in Import Policy for Precious Metal Alloys: The corrigendum relates to notification 18/2025 dated 17th June 2025. The amendment relates to the import policy conditions for specific items classified under Chapter 71 of the ITC. The updated policy now uniformly restricts imports of iridium, osmium, and ruthenium alloys containing over 1% gold by weight, under both ITC (HS) codes 71104100 and 71104900.
(DGFT Corrigendum Dated 25/06/2025 to Notification 18/2025)
Port restriction on import of select flax & jute goods from Bangladesh to India: The new provision prohibits imports of selected flax and jute products, identified by specific HS codes, from entering India via land ports along the India-Bangladesh border. These imports are now permitted only through the Nhava Sheva seaport. The restricted goods include flax tow and waste, raw or retted jute, single and multiple yarns of flax and jute, and woven fabrics of these materials. The restriction does not apply to Bangladesh exports that are transiting through India en-route to Nepal or Bhutan.
(DGFT Notification 21/2025 Dated 27/06/2025)
Silk & Rayon Textiles Export Promotion Council renamed as MATEXIL (Appendix 2E): The Public Notice amend Appendix 2E of the Foreign Trade Policy (FTP) 2023. “The Silk & Rayon Textiles Export Promotion Council” has been renamed to “Manmade and Technical Textiles Export Promotion Council (MATEXIL)”, for issuing non-preferential certificates of origin, used for trade purposes when tariff preferences do not apply.
(DGFT Public Notice 12/2025 Dated 25/06/2025)
Silk & Rayon Textiles Export Promotion Council renamed as MATEXIL (Appendix 2T: The Public Notice amend Appendix 2T of the Foreign Trade Policy (FTP) 2023. “The Silk & Rayon Textiles Export Promotion Council” has been renamed to “Manmade and Technical Textiles Export Promotion Council (MATEXIL)”, for issuing Registration cum Membership Certificates (RCMC) for specified items related to textiles.
(DGFT Public Notice 13/2025 Dated 25/06/2025)
F. Securities and Exchange Board of India (SEBI)
SEBI revises Certification Rules for AIF Key Staff: As per the revised norms, at least one key personnel in the investment team of Alternative Investment Funds (AIF) managers must obtain specific certifications from the National Institute of Securities Market (NISM). For Category I and II AIFs, the required certification can be either NISM Series-XIX-C or the newly introduced Series-XIX-D. For Category III AIFs, the requirement can be fulfilled by passing either Series-XIX-C or the new Series-XIX-E.
(Link: SEBI Notification Dated 25/06/2025)
Master Circular for Registrars to an Issue and Share Transfer Agents: The updated circular aims to provide a single, consolidated resource for all applicable guidelines and directions previously issued by SEBI to RTAs. It supersedes the prior Master Circular along with all subsequent circulars on the subject. However, any actions taken, approvals granted, fees collected, or ongoing investigations under the superseded circulars remain valid and are deemed to be conducted under the corresponding provisions of this new Master Circular. Similarly, any rights, privileges, obligations, or penalties incurred under the rescinded circulars will remain unaffected.
(Link: SEBI Circular Dated 23/06/2025)
Master Circular for Investment Advisers (IAs): The updated circular consolidates all applicable directions and guidelines, providing a single reference document for ease of compliance, and supersedes the previous Master Circular dated 21st May 2024. However, any actions, applications, rights, obligations, or penalties arising from the rescinded circulars before this rescission will remain valid and enforceable under the current Master Circular.
(Link: SEBI Master Circular Dated 27/06/2025)
Master Circular for Research Analysts (RAs): The updated circular consolidate all applicable guidelines and directions issued by SEBI to RAs into a single document, enhancing accessibility for users, and supersedes the previous Master Circular dated 21st May 2024. However, any actions, applications, rights, obligations, or penalties arising from the rescinded circulars before this rescission will remain valid and enforceable under the current Master Circular.
(Link: SEBI Master Circular Dated 27/06/2025)
Timelines for rebalancing of portfolios of mutual fund schemes in cases of all passive breaches: Passive breaches occur when deviations from mandated asset allocation, or prudential limits (like issuer, group, or sector limits), happen due to factors not attributable to the Asset Management Company’s (AMC) omission or commission. These factors can include corporate actions, significant price fluctuations of underlying securities, maturity of holdings, or large redemptions. SEBI has now explicitly stated that the provisions outlined in paragraph 2.9 of the ‘Master Circular for Mutual Funds’ which outlines a 30-business-day window for portfolio rebalancing, will apply to all types of such passive breaches.
(Link: SEBI Circular Dated 26/06/2025)
Revision in Standards for Audit Committee & Shareholder Disclosures on Related Party Transactions: The circular details revised Industry Standards for the Minimum information to be provided to the Audit Committee and Shareholders for approval of Related Party Transactions (RPTs), and aims to standardize the information presented for RPT approvals, as mandated by LODR Regulations. The listed entities must adhere to these RPT Industry Standards for all RPT proposals submitted to audit committees and in notices sent to shareholders.
(Link: SEBI Circular Dated 26/06/2025)
Consultation Paper on Strengthening Governance of Market Infrastructure Institutions (MIIs): There is significant growth in MIIs’ investor base, volumes, revenue, and profitability, emphasizing their critical role as first-line regulators and public utilities. The proposals focus on three key areas,
1.Mandating the appointment of two Executive Directors (EDs) to the Governing Board, one for “Critical Operations” and another for ‘Regulatory, Compliance, Risk Management, and Investor Grievances’,
2. Clearly defining the roles and responsibilities of the Managing Director (MD), the proposed EDs, and key management personnel such as the Chief Technology Officer (CTO) and Chief Information Security Officer (CISO),
3. Establishing clear norms for directorships of MDs and EDs in other companies.
— These measures aim to ensure that MIIs prioritize public interest, technology, operations, and risk/compliance over commercial considerations, foster robust succession planning, and enhance the safety and reliability of the securities market. The comments/ suggestions from stakeholders are invited.
(Link: SEBI Consultation Paper Dated 24/06/2025)
G. Ministry of Corporate Affairs (MCA)
Draft Notification for relaxations to ‘Finance Companies’ registered with IFSCA under rule 11(2) of Meeting of Board and its Powers: As per the request made by International Financial Services Centres Authority (IFSCA) to the Ministry of Corporate Affairs (MCA), it is proposed to amend Rule 11(2) of Companies (Meetings of Board and its Powers) Rules, 2014 to include ‘Finance Companies’ registered with IFSCA within the scope of such rule 11(2), so that relaxation available with NBFCs registered with RBI is available to such Finance Companies also. The comments/ suggestions are invited from stakeholders.
(Link: MCA Public Notice Dated 26/06/2025 and Draft Notification)
H. Insolvency and Bankruptcy Board of India (IBBI)
NCLAT, CIRP terminated as Corporate Debtor funds cover CoC claims: Case of Rajputana Constructions Pvt Ltd vs Rajasthan Land Holdings Limited, NCLAT Delhi Judgement Dated 16th May 2025. The appellant authority held that continuing Corporate Insolvency Resolution Process [CIRP] not justified as Corporate Debtor has sufficient funds to discharge the admitted claims of CoC. Thus, adjudicating authority rightly terminated CIRP of Corporate Debtor.
NCLAT, Threshold under IBC section 4 must be met at CIRP filing/admission: Case of Devika Resources Pvt Ltd vs MAA Manasha Devi Alloys Pvt Ltd, NCLAT Delhi Judgement Dated 14th May 2025. According to appellant, Section 5(11) of the IBC stipulates that the date of application submission by the financial or operational creditor is the date of CIRP initiation, and the date of application admission is regarded as the insolvency commencement date under Section 5(12) of the IBC. Appellant had relied upon the decisions of the Hon’ble Supreme Court that the threshold had to be considered at the time of filing of the application and not at the time of the admission. The bench allowed the appeal and restored the Section 9 application back to the tribunal to decide the application in accordance with the law.
NCLAT, Funds use by suspended Management Post-Moratorium needs IRP nod: Case of Sunil Gutte vs Avil Menezes, NCLAT Delhi Judgement Dated 30th May 2025. The appellant authority held that once moratorium is declared, suspended management is also strictly prohibited from directly or indirectly deploying the funds of the Corporate Debtor unilaterally, without the authorisation of IRP, to clear any dues of any Financial Creditor or Operational Creditor.
NCLAT, CoC’s arbitrary rejection of just settlement offer can be overruled: Case of Jayshree Agnihotri vs Nirmal Kumar Jain, NCLAT Delhi Judgement Dated 20th May 2025. The appellant authority held that if the CoC arbitrarily rejects a just settlement offer, the Adjudicating Authority as well as the Appellate Authority can always set aside such a decision.
NCLAT, No right to possession after hotel lease expiry during CIRP moratorium: Case of Nazru S Basheer vs Pancard Clubs Limited, NCLAT Delhi Judgement Dated 30th May 2025. The appellant authority has affirmed NCLT order directing a hotel operator, to vacate the hotel property belonging to Pancard Clubs, the corporate debtor currently undergoing CIRP.
NCLAT, Claim of gratuity with interest included within meaning of operational debt: Case of Sashi Kanta Jha vs Devi Prasad, NCLAT Delhi Judgement Dated 30th April 2025. The appellant authority held that claim of gratuity with interest was fully included within the meaning of operational debt under section 5(21) of the Insolvency and Bankruptcy Code, and accordingly, application under Section 9 of IBC was maintainable.
IBBI penalises Resolution Professional (RP) Mr Pankaj Ramandas Majithia for asset negligence, approval failure and auction without proper process: Considering the fact that he has already attained the age of 70 years, the DC imposed a penalty of 30% of the total fees payable (both paid and pending for payment).
(Link: IBBI DC Order Dated 24/06/2025)
I. Reserve Bank of India (RBI)
Revised Operational Guidelines for Depositor Education & Awareness (DEA) Fund Scheme: These consolidated and rationalised instructions, apply to all commercial banks and co-operative banks covered under the scheme. Banks are now required to register under the DEA Fund module on the e-Kuber system. Banks are mandated to transfer unclaimed amounts (inoperative accounts and balances unclaimed for 10 years or more, plus accrued interest) to the DEA Fund during the last five working days of the subsequent month. The claims for refunds from the Fund can be submitted once a month during the first 10 working days. Banks must repay customers before lodging a claim for refund and conduct due diligence as per KYC norms.
(Link: RBI Notification 62/2025 Dated 25/06/2025)
Guidelines for Aadhaar Enabled Payment System(AePS) Due Diligence: These directions focus on due diligence and risk oversight of AePS Touchpoint Operators (ATOs), individuals who facilitate transactions using Aadhaar authentication at designated points. Banks onboarding ATOs are now required to follow the Customer Due Diligence (CDD) procedure as per RBI’s KYC guidelines. If the ATO has already undergone CDD as a Business Correspondent or sub-agent, that record may be used. Inactive ATOs, with no transactions for three consecutive months, must undergo a fresh KYC process before resuming operations.
(Link: RBI Notification 63/2025 Dated 27/06/2025, Press Release)
Draft RBI Rupee Interest Rate Derivatives Master Directions: The draft outlines new participation guidelines, product offerings, and reporting obligations. Both residents and non-residents are eligible to participate, with specific conditions for non-residents, including a cap on their aggregate long position in Interest Rate Futures (IRFs) at ₹5,000 crore. Market-makers, including Scheduled Banks and Primary Dealers, are categorized, and a user classification framework distinguishes between retail and non-retail users, influencing the types of IRD products they can access. For instance, retail users are generally restricted to buying certain products for hedging purposes.
— A notable change is the requirement for market-makers to report global IRD transactions undertaken by their offshore related parties to the Trade Repository of Clearing Corporation of India Ltd. (CCIL), aiming for comprehensive oversight. Additionally, non-resident transactions for purposes other than hedging will be subject to an overall Price Value of a Basis Point (PVBP) limit of ₹1,000 crore, monitored by CCIL. The comments/ suggestions from stakeholders are invited.
(Link: Draft RBI Master Directions Dated 16/06/2025, Press Release)
J. Miscellaneous
Gratuity benefits extended to Central Govt employees under NPS: The government has extended Retirement Gratuity and Death Gratuity benefits to Central Government employees covered by the Unified Pension Scheme. This clarification follows the Ministry of Finance notification of 24th January 2025, introducing the Unified Pension Scheme as an option for new Central Government employees. Employees opting into this scheme, which provides a one-time option for those initially under the National Pension System (NPS), will now be eligible for the gratuity benefits under the existing Central Civil Service (Payment of Gratuity under National Pension System) Rules.
(Deptt of Pension Office Memo Dated 18/06/2025)
Options for Old Pension benefits on Death/Disability under NPS: The newly introduced Unified Pension Scheme (UPS), provides a one- time option for existing National Pension System (NPS) members to transition to UPS. It has been clarified that employees opting for UPS will now have the choice to avail benefits either under the UPS itself or under the Central Civil Services (Pension) Rules, 2021 (OPS), or the Central Civil Services (Extraordinary Pension) Rules, 2023, in scenarios of death during service or discharge due to invalidation or disablement. Employees are required to exercise this option in Form 1 at the time of joining or as soon as possible for existing employees, and they can revise their choice multiple times before retirement.
(Deptt of Pension Office Memo Dated 18/06/2025)
SC, Director’s role need not be detailed in cheque dishonour complaint, clarifies Vicarious Liability: Case of HDFC Bank Limited vs State of Maharashtra, SC Judgement Dated 22nd May 2025. In a landmark clarification of the legal requirements under Section 141 of the Negotiable Instruments Act, 1881, the apex court ruled that a complaint need not set out detailed roles of company directors verbatim from the statute to attract vicarious liability for dishonour of cheques. It held that substantive compliance, wherein a complaint indicates the director was in charge of and responsible for the conduct of the business, is sufficient for process to be issued. This decision reinforces the principle that directors cannot avoid liability merely on the ground of technical omissions at the pre-summons stage.
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Compiled by CMA Yash Paul Bhola, MBA, FCMA, and former Director (Finance) at 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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