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𝐒𝐮𝐩𝐫𝐞𝐦𝐞 𝐂𝐨𝐮𝐫𝐭 𝐚𝐟𝐟𝐢𝐫𝐦𝐬 𝐨𝐮𝐭𝐠𝐨𝐢𝐧𝐠 𝐩𝐚𝐫𝐭𝐧𝐞𝐫'𝐬 𝐫𝐢𝐠𝐡𝐭𝐬 𝐭𝐨 𝐟𝐢𝐫𝐦’𝐬 𝐩𝐫𝐨𝐟𝐢𝐭𝐬 𝐚𝐧𝐝 𝐚𝐜𝐜𝐨𝐮𝐧𝐭𝐬 The Supreme Court recently held that an ex-partner of a dissolved company is entitled to accounts and a portion of the profits made from the company's assets, even if those assets are acquired by another party without the partner's approval. 𝑼𝒏𝒅𝒆𝒓𝒔𝒕𝒂𝒏𝒅𝒊𝒏𝒈 𝒕𝒉𝒆 𝒎𝒂𝒕𝒕𝒆𝒓: In M/s Crystal Transport Pvt. Ltd. v. Fathima Fareed Unisa, a partnership dispute arose after three partners allegedly diverted assets to a private company without the plaintiff’s consent. The court ruled that an outgoing partner is entitled to profits derived from firm assets until final settlement, provided the business continues using those assets. It emphasised fair compensation for outgoing partners and required evidence to determine the quantum of profits post-dissolution. The ruling has emphasised the right of outgoing-partner to profits and accounts of firm, which is not waived upon exit from the firm. Comments are appreciated. Credits of image to respective artists/owners. Author: Chaitanya Narad, student of Law Centre- ll, Faculty of Law, University of Delhi Seradena #DebtResolution #CorporateLaw  #FinancialRecovery  #AssetValuation  #CorporateRestructuring  #BusinessNews  #FinancialMarkets #Partnership #Settlement  #SupremeCourt #Insolvency  #CorporateLaw  #LegalUpdates  #IBCUpdates  #IBCNews  #CIRP  #CorporateInsolvency  #Law  #Legal  #Seradena

Yesterday marked the end of an era in Indian aviation, with Vistara - TATA SIA Airlines Ltd. operating its final flights before fully merging with Air India Limited. This merger, initiated by Tata Group’s acquisition of Air India in 2022, combines the strengths of both airlines under one brand and opens a new chapter for Air India, which will emerge as India’s sole full-service carrier. From a legal perspective, this consolidation brings both opportunities and challenges. Regulatory approval has been secured to allow Singapore Airlines (Vistara’s co-owner) to increase its stake in Air India to 25.1%, further integrating foreign investment into Indian aviation. This merger also creates a competitive advantage for Air India as it now holds an extensive international network in cooperation with Singapore Airlines, extending services across 40 international destinations and enhancing codeshare agreements. However, potential monopolization of the full-service sector may lead to increased scrutiny from antitrust regulators, especially if customer service standards decline due to reduced competition. Additionally, transitioning Vistara’s bookings, loyalty programs, and flight codes into Air India is a massive operational and legal task. Air India has promised to maintain service standards, yet ensuring a smooth experience for travelers during this transition period will require meticulous attention to regulatory compliance and customer service protocols. As Vistara makes its final flights, many in the legal and aviation communities view this merger as a milestone in India’s aviation landscape, underscoring the importance of streamlined yet competitive operations in a globalized market. Author: Pronnati Rajasvi, student of RMNLU, Lucknow #IndianAviation #Vistara #AirIndia #Aviation #MergerNews #Law #Legal #Seradena

☎𝐍𝐂𝐋𝐀𝐓 𝐂𝐨𝐧𝐟𝐢𝐫𝐦𝐬 𝐈𝐁𝐂 𝐒𝐮𝐩𝐫𝐞𝐦𝐚𝐜𝐲 𝐎𝐯𝐞𝐫 𝐓𝐑𝐀𝐈☎ In ongoing Reliance Communications (R.Com) matter, the NCLAT bench has recently held that Insolvency and Bankruptcy Code (IBC) being a special statute and having a non-obstante clause under section 238 of IBC would prevail over the provisions of the Telecom Service Regulatory Authority of India (TRAI) Act. An additional reference was made to decision passed by Supreme Court, wherein it was held that Section 238 of the IBC has an overriding effect over any other law. Therefore, any penalty imposed by the TRAI on the corporate debtor would be recovered as per the scheme of the IBC. No special treatment can be given to the TRAI over other creditors of the corporate debtor. This ruling upholds the IBCs position as the main framework for insolvency cases, guaranteeing consistency across sectors, including TRAI Act which is the law governing all aspects of the provision of telecommunications services in India. Comments are appreciated. Credits of image to respective artists/owners. Author: Chaitanya Narad, student of Law Centre- ll, Faculty of Law, University of Delhi Seradena #DebtResolution #CorporateLaw #FinancialRecovery #AssetValuation #CorporateRestructuring #BusinessNews #FinancialMarkets #NCLAT #Insolvency #CorporateLaw #LegalUpdates #IBCUpdates #IBCNews #CIRP #CorporateInsolvency #Law #Legal #Seradena

✈𝐒𝐂 𝐎𝐫𝐝𝐞𝐫𝐬 𝐋𝐢𝐪𝐮𝐢𝐝𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐉𝐞𝐭 𝐀𝐢𝐫𝐰𝐚𝐲𝐬✈ The Supreme Court delivers landmark judgement on the liquidation of Jet Airways under the Insolvency and Bankruptcy Code (IBC). This marks a dramatic shift in the nation's aviation and corporate landscape. 𝑼𝒏𝒅𝒆𝒓𝒔𝒕𝒂𝒏𝒅𝒊𝒏𝒈 𝒕𝒉𝒆 𝒎𝒂𝒕𝒕𝒆𝒓: The airlines lender challenged the decision of the National Company Law Appellate Tribunals (NCLAT), pertaining to transferring of airlines ownership to the Successful Resolution Applicant without paying the full Rs. 350 crores as specified in the approved Resolution Plan. The apex court criticised the NCLAT as it misled evidence on record since the performance bank guarantee of Rs. 150 crores could not have been adjusted against the payment of Rs. 350 crores. The court further observed that the SRA contravened the terms of Resolution Plan and failed to fulfil the conditions necessary to revive Jet Airways. Since the Resolution Plan was not possible to be implemented, the court directed for liquidation of Jet Airways. The matter provides a paradigm shift in the approach of SRA to an IBC proceeding, and requirement of higher due diligence from Resolution Professional and Committee of Creditors on scrutinization of prospective Resolution Applicants. Comments are appreciated. Author: Chaitanya Narad, student of Law Centre- ll, Faculty of Law, University of Delhi Seradena #JetAirways #IndianAviation #SupremeCourt #CorporateGovernance #Airlines #NCLAT #CIRP #CorporateInsolvency #Law #Legal #Seradena

Wishing a prosperous and safe diwali to our fellow connections! #Law #Legal #LawyersofLinkedIn #Diwali #Consult #Seradena

Ex-Director Receiving Salary Under CIRP? NCLAT Says No Ground to Claim Same Salary After Commencement of CIRP The National Company Law Tribunal (NCLAT) has ruled that a former director is not entitled to receive the same salary they were receiving before the commencement of Corporate Insolvency Resolution Process (CIRP). This judgement comes in a case where an ex-director challenged the decision to reduce their salary during CIRP. Key Points: a. NCLAT highlighted that CIRP aims to revive the company, and salary payments need to be rationalized during this period. b. The tribunal considered factors like the company's financial situation and the director's role while determining the revised salary. Hashtags: #NCLAT #CIRP #CorporateInsolvency #Salary #Directors #Law #Legal #Seradena

Delhi High Court Considers Wikipedia's Role in Defamation Suit by ANI The Delhi High Court has issued a notice to Wikipedia in response to a defamation lawsuit filed by the news agency ANI. The agency claims that Wikipedia's page about them contains defamatory content and seeks its removal along with INR 2 Cr. in damages. Key Points: a. ANI alleges Wikipedia published "false and defamatory content" damaging their reputation. b. Specific accusations on Wikipedia's page include ANI's journalistic approach and alleged misreporting. c. The court will consider ANI's plea for interim relief, potentially including content removal. d. The next hearing is scheduled for August 20, 2024. Discussion Prompts: How should platforms like Wikipedia balance free speech with protecting reputations? What are the challenges of moderating user-generated content on online encyclopedias? Does this case raise concerns about the potential for defamation lawsuits to stifle free expression? Looking forward to hear few perspectives in this domain. #Defamation #Wikipedia #ANI #DelhiHighCourt #FreeSpeech #ContentModeration #Seradena #legal

Breaking News: Go First Insolvency Hearing Adjourned Until July The NCLT has postponed Go First's insolvency hearing to July 11th, 2024. This follows a critical development - a Delhi High Court order deregistering Go First's leased aircraft. The airline's future is uncertain as the Resolution Professional declined to comment on their next steps. Engine lessors are pressuring the tribunal for a swift resolution. This case is a cautionary tale for the aviation industry, highlighting the challenges faced by airlines and lessors in financial distress. Stay connected for further updates on this ongoing saga. 🔗 Details of the order: https://lnkd.in/ecFRsmTq #GoFirst #Insolvency #NCLT #AviationIndustry #DelhiHighCourt #IBC #Seradena

📢 Important Update for LLPs! 📢 The Ministry of Corporate Affairs has announced a significant relaxation regarding additional fees for the filing of LLP Form BEN-2 and LLP Form 4D. The deadline for these filings has been extended, providing much-needed relief to Limited Liability Partnerships (LLPs) amidst ongoing challenges. This extension aims to ease compliance burdens and ensure smoother operations for LLPs across the country. 🔗 Details of the order: https://lnkd.in/g-cHdYfj #LLP #CorporateLaw #Compliance #LegalUpdate #MCA #LiveLaw #CS #Seradena

🔍 Important Update from the Supreme Court of India 🔍 In a significant ruling, the Supreme Court has clarified that the sale of a judgment debtor's entire property is impermissible when the sale of a part of the property can satisfy the decree. The decision underscores the importance of proportionality and fairness in the execution of decrees, ensuring that the rights of judgment debtors are not unduly compromised. 🔗 Details of the order: https://lnkd.in/giPwCPvf #SupremeCourt #LegalUpdate #PropertyLaw #JudicialRulings #LegalNews #LiveLaw #IBC #Seradena