Financial Implications - The Legal Chamber

This Supreme Court judgment affirms the paramountcy of the commercial wisdom of the Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code, 2016. It clarifies that the moratorium under Section 14(1)(d) does not bar the return of possession of a corporate debtor's leased asset when such a decision is a conscious business choice made by the CoC and the Resolution Professional to alleviate a financial burden on the estate. Facts Of The Case: The case originated from a dispute over the possession of a property leased by Nandini Impex Private Limited, the corporate debtor. The appellants had provided loans to the company, secured by the title deeds of the property's front and rear portions. Following a default, the property was conveyed to the appellants through separate deeds ...

The Supreme Court of India upheld the Reserve Bank of India's (RBI) decision to fix a cut-off date (July 1, 2020) for pensionary benefits for employees switching from the Contributory Provident Fund (CPF) scheme, rejecting the claim for retrospective arrears from the date of retirement. The Court emphasized that financial implications and administrative exigencies are valid considerations for policy decisions and that employees cannot selectively accept beneficial terms while rejecting unfavorable ones. Facts Of The Case: M.T. Mani, Respondent No. 1, joined the Reserve Bank of India (RBI) in 1981 and was a member of the Contributory Provident Fund (CPF) Scheme. He retired as a Manager on November 30, 2014, having received four prior opportunities between 1990 and 2000 to switch to the Pe...

Tag: Financial Implications

Supreme Court Rules Property Can Be Returned During Insolvency If Not Needed

No Arrears for RBI Pension Opt-Ins: Supreme Court Reinforces Policy Decisions on Pension Benefits