Companies (Amendment) Act, 2020 – Key Highlights – By Adv. Garv Sood

In view of the constant attempt of the Government to facilitate greater ease of living to law-abiding corporates, The Companies (Amendment) Act, 2020, was published in the Official Gazette of India on 28th September 2020, in accordance with the assent from the respected President of India, Mr. Ram Nath Kovind was passed to decriminalize many offenses and decrease the penal provisions laid down under the Companies Act, 2013, thus paving easier ways for a direct overseas listing of Indian companies.

No commissioner can be appointed to act as witness for the cause of the party, particularly, the SARFAESI proceedings, wherein there is no explicit provision for appointment of Advocate Commissioner and the procedure adopted for adjudication/trial is summery in nature – Bank of Baroda Vs. M/s Shri Lakshmi Defence Solutions Limited – DRAT, Allahabad Bench

DRAT held the appointment of Advocate Commissioner be ordered sparingly. However, no commissioner can be appointed to act as witness for the cause of the party, particularly, the SARFAESI proceedings, wherein there is no explicit provision for appointment of Advocate Commissioner and the procedure adopted for adjudication/trial is summery in nature. In an application filed under section 17 of the SARFAESI Act, the Tribunal is required to examine the steps taken by the Bank, as to whether those are in accordance with the SARFAESI Act and the Rules made thereunder or not. If the Bank had left any lapses, while taking possession of the property or preparing the inventory list, then it would face the consequences, but the Tribunal cannot direct that in what manner the inventory is to be prepared or to appoint the Advocate Commissioner for preparing the fresh inventory list.

Even when a statute provides that all orders of a tribunal are appealable no appeal will be maintainable against simple procedural orders – M/s Facor Power Ltd. & Anr. Vs. Rural Electrification Corporation Ltd. – DRAT Delhi Bench

I. Case Reference Case Citation : (2021) ibclaw.in 06 DRAT Case Name : M/s Facor Power Ltd. & Anr. Vs. Rural Electrification Corporation Ltd. Appeal No. : Misc. Appeal No.164/2020 Judgment Date : 04-Jan-21 Court/Bench : DRAT Delhi Bench Act…

After deposit of sale price, the sale certificate has been issued and sale deed has been executed in favour of the auction purchaser, therefore, right to redeem the property has otherwise been extinguished – Anita Chaurasia Vs. Bank of Baroda – DRAT Allahabad Bench

I. Case Reference Case Citation : (2021) ibclaw.in 03 DRAT Case Name : Anita Chaurasia Vs. Bank of Baroda Appeal No. : Regular Appeal No. 16/2020 Judgment Date : 08-Jan-21 Court/Bench : DRAT Allahabad Bench Act : SARFAESI Act 2002…

The issue of service of demand notice and the possession notice was not raised just after filing the reply by the Bank before the DRT and even this fact was not mentioned in the rejoinder filed by the appellant – Sri Chand Yadav Vs. Authorized Officer, Punjab National Bank – DRAT Allahabad Bench 

The issue of service of demand notice and the possession notice was not raised just after filing the reply by the Bank before the DRT and even this fact was not mentioned in the rejoinder filed by the appellant and instead the amendment application was filed after more than one year, which goes to show that it was an after though contention to raise such unfounded issues. Thus, I find no infirmity in the findings of the Tribunal below with regard to the service of these notices.

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