Blog

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.

/* Copy to Clipboard */