Tag: Mandatory Notice

Supreme Court Ruling: Defective Affidavit Can Be Corrected in Insolvency Petitions
10Feb By The Legal ChamberNo Comments
Supreme Court

Supreme Court Ruling: Defective Affidavit Can Be Corrected in Insolvency Petitions

The Supreme Court held that a defective affidavit filed in support of a Section 7 IBC application is a curable procedural irregularity and does not render the application non est. The Court emphasized that the mandatory notice under Section 7(5)(b) of the IBC must be specifically issued to the applicant before rejection, and procedural rules should not defeat substantive rights. Facts Of The Case: HDFC Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Livein Aqua Solutions Pvt. Ltd. for a defaulted loan of ₹5.5 crores. The application, verified on July 26, 2023, was supported by an affidavit deposed on July 17, 2023. The NCLT Ahmedabad Bench rejected the petition at the threshold, citing this date discrepancy in the affidavit as a fatal ...
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Tenant Evicted for Wilful Default: Supreme Court Upholds Rent Arrears Ruling
31Jan By The Legal ChamberNo Comments
Supreme Court

Tenant Evicted for Wilful Default: Supreme Court Upholds Rent Arrears Ruling

The Supreme Court upheld the eviction order, ruling that the lessee’s failure to pay the statutorily fixed fair rent—despite not seeking a stay of the fair rent order—constituted wilful default under Section 10(2)(i) of the Tamil Nadu Rent Control Act, 1960. The Court affirmed that pending appeals do not automatically suspend the tenant’s obligation to pay determined rent. Facts Of The Case: The dispute arose from a lease agreement dated 11.10.1999, whereby M/s. Krishna Mills Pvt. Ltd. (landlord) leased portions of a godown in Coimbatore to K. Subramanian (tenant) for a total monthly rent of Rs. 48,000. The tenant, however, contended the rent was only Rs. 33,000. In 2004, the landlord applied for fixation of fair rent. The Rent Controller, on 10.01.2007, fixed the fair rent at Rs. 2,43,6...
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Cheque Bounce Notice Must Demand Exact Cheque Amount, Rules Supreme Court
10Nov By The Legal ChamberNo Comments
Supreme Court

Cheque Bounce Notice Must Demand Exact Cheque Amount, Rules Supreme Court

In a significant ruling under the Negotiable Instruments Act, 1881, the Supreme Court held that a demand notice under Section 138 Proviso (b) must specify the exact cheque amount. Demanding a different sum, even due to a typographical error, renders the notice legally invalid and fatal to the complaint, as the provision mandates strict compliance. Facts Of The Case: The appellant, Kaveri Plastics, filed a complaint under Section 138 of the Negotiable Instruments Act, 1881, against the respondents. The case originated from a Memorandum of Understanding related to the sale of land. As part of this agreement, the accused company issued a cheque for Rs. 1,00,00,000/- in favour of the appellant. However, upon presentation, the cheque was dishonoured by the bank due to "insufficient fund...
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Supreme Court Quashes Decree Against Odisha Corp, Clarifies Law on Interest for Pre-1992 Transactions
5Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Quashes Decree Against Odisha Corp, Clarifies Law on Interest for Pre-1992 Transactions

The Supreme Court held that the suit against the State Financial Corporation was not maintainable due to non-compliance with the mandatory notice under Section 80 CPC. The decree was declared a nullity as it erroneously applied the Interest on Delayed Payments Act, 1993, to a pre-enactment transaction and fastened liability without privity of contract. Execution proceedings were quashed. Facts Of The Case: In 1985, Respondent No. 1, M/s. Vigyan Chemical Industries, supplied raw materials to Respondent No. 2, an industrial unit. Due to a loan default, the Appellant, Odisha State Financial Corporation (OSFC), took possession of Respondent No. 2's unit in 1987 under the State Financial Corporations Act, 1951. In 1988, Respondent No. 1 filed a recovery suit for its unpaid dues. OSFC was impl...
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