What is Decentralized Finance. ♦ Global open alternative to the current financial system. ♦ DeFi will let you borrow, save, invest, trade and other related financial services. ♦ It is based on open source technology that everyone can access the financial using internal connect and apps to access these products. ♦ With DeFi market are […]
The enactment of GST Law has marked 4 years and yet the most buzzing issue that has always been in talks is Transitional Credit be it the availment or the retrospective amendment of Section 140 or the refund of the cess. Of late various rulings/judgements have come into picture on the issue of refund of […]
1. Background of Debate Effectuated December 2016, the Sick Industrial Companies Act[1] was repealed to pave way to the Insolvency and Bankruptcy Code, 2016[2] (hereinafter “IBC”). The objects of the two acts were different in one substantial aspect: the latter focused on reviving a company so as it continues to survive as a going concern, aimed to act as a beneficial legislation and not merely focused on recovery. Recovery however being quintessential to IBC we saw that it and the Limitation Act, 1963[3] (hereinafter “Limitation Act”), which bars the right to recover money claims after a time lapse of 3 years from the cause of action, came face to face with each other and so became a long debate culminating finally this year. This debate arose on two counts. First, IBC was always meant to be a complete code in itself, an exhaustive code on the subject matter[4] and so the remedies given thereunder comprehensively cover all matters that it apprehends. Thus, it was naturally understood that IBC is not guided by any other legislative enactment. However it does not have a clause expressly barring application of limitation act which attracts Section 29 of the limitation act which brings us to the second. Second, the mandate of Section 29 of the Limitation Act makes it abundantly clear that all legislative enactments are to be guided by the Limitation Act “unless such enactment expressly excludes itself”. Now, even the words “expressly excluded” in the section have been interpreted to have a wider import by the Supreme Court (hereinafter “SC”) giving itself the power to interpret by reading of all the provisions of an act to infer such exclusion[5]. The interpretation of such an intention or otherwise rested again with the apex court. 2. Prior to Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 Initially the NCLT held in Neelkanth Township and Construction Pvt. Ltd. v Urban Infrastructure Trustee Ltd.[6] that the “provisions of the IBC cannot be shackled by the Limitation Act”. The court noted: “There is nothing on the record that Limitation Act, 2013 is applicable to IBC. Learned Counsel for the appellant also failed to lay hand on any of the provision of IBC to suggest that the Law of Limitation Act is applicable. The IBC, 2016 is not an Act for recovery of money claim, it relates to the initiation of Corporate Insolvency Resolution Process. If there is a debt which includes interest and there is default of debt and having a continuous course of action, the argument that the claim of money by Respondent is barred by Limitation cannot be accepted.” The NCLAT based its decision on the observation in Innoventive Industries Limited v ICICI Bank & Anr [7] that IBC is a comprehensive code which implies that it is independent of other laws. Now even though there was no provision in IBC that expressly barred the Limitation Act, the court observed that it remains open for the court to conclude so on a meaningful and comprehensive reading of the provisions. This view was further supported by M/S. Speculum Plast Pvt. Ltd. v Ptc Techno Pvt. Ltd[8]. and B.K. Educational Services Private Limited v Parag Gupta.[9] Even so, acting cautiously, the courts prescribed that the underlying utility of the doctrines like that of limitation must not be forsaken and it must be ensured that a deliberate delay does not go unpunished. Undoubtedly, the above ruling was bound to result in an increase in the number of applications and appeals. In the above background the Report of the Insolvency Law Committee of March 2018[10] came in which opined that “since the intent of the Code was not to array the Code as a fresh opportunity for creditors and claimants who did not exercise their remedy under existing laws within the prescribed limitation period, the Committee thought it fit to insert a specific section applying the Limitation Act to the Code”. The legislature finally taking note of this situation came up with Section 238A inserted vide an amendment[11] which clearly provided that the Limitation Act would apply to all the proceedings or appeals before the NCLT, NCLAT, DRT and DRAT.
In a major move aimed at boosting exports and offering relief to exporters, the government on 17th August 2021 notified Remission of Duties and Taxes on Exported Products (RoDTEP) (guidelines) as part of the Chapter 4 provisions of the Foreign Trade Policy 2015-20– Notification No. 19/ 2015-20 dated 17 August 2021 to replace the Merchandise […]
As the world moves increasingly towards economic integration and globalization there is a lot of cross border trade, investment and business which will only increase as more and more developing and least developed countries open up their borders for more business with the international community.
All about E-form AOC-5 (Notice of address at which Books of Accounts of Company are maintained) As per the provisions of Section 2(13) of Companies Act, 2013, ‘Books of Accounts’ includes records maintained in respect of: i. All sums of money received and expended by a Company and matters in relation to which the receipts […]
SC enlarges the ambit of Limitation Act, 1963 for recovery of debts. Learn about the changes and implications of this landmark judgment.
Understanding agricultural income and its implications. Learn about the accounting and reporting requirements for agricultural produce and its nature.
Meditation can bring you to nature. It can help you to all the perversions. It can make you intelligent. It can make you loving. It can make you spontaneous. It can make you responsible. It can make you a benediction to your self and to existence. Except meditation there is no other method which can help. This the key, the master key.
Blockchain- A blockchain is digital ledger created to capture transaction conducted among various parties in network. It’s a peer to peer network which included all transaction since its creation. Blockchain is managed by the network of nodes and all participants use the shared database are “nodes” connected to the blockchain. Like its name implies, blockchain […]
