Financial Liability - The Legal Chamber

The Supreme Court held that a second Special Leave Petition challenging the same judgment is not maintainable after an earlier SLP was dismissed and a subsequent recall petition was withdrawn without liberty to approach the Court again. The principle of finality in litigation bars re-agitating the same issue inter-partes, even if questions of law are kept open. Facts Of The Case: The litigation originated from a judgment dated May 15, 2012, passed by a learned Single Judge of the Himachal Pradesh High Court in CWP No.1679/2010, concerning pensionary benefits payable by the Kangra Central Cooperative Bank Limited to its retirees. This judgment was subsequently upheld by a Division Bench of the High Court on February 26, 2024, in LPA No.316/2012. The Bank challenged this Division Ben...

The Supreme Court held that Cumulative Redeemable Preference Shares (CRPS) represent an equity investment, not a financial debt under the IBC. Preference shareholders are not creditors, and redemption is contingent upon company profits under the Companies Act. Therefore, they cannot initiate insolvency proceedings under Section 7 of the IBC for non-redemption. Facts Of The Case: EPC Constructions India Limited (EPCC) held outstanding receivables from Matix Fertilizers and Chemicals Limited for construction work. In 2015, to help Matix meet lender-mandated debt-equity ratios, the parties agreed to convert ₹400 crores of dues into 8% Cumulative Redeemable Preference Shares (CRPS). Matix subsequently allotted CRPS worth ₹250 crores to EPCC. When the shares matured after three years, M...

Tag: Financial Liability

Supreme Court Clarifies: No Fresh SLP Allowed After Unconditional Withdrawal of Earlier Petition