Between The Lines... December 2021

Key Highlights

1. Supreme Court: NCLT cannot adjudicate contractual dispute if termination of contract is based on grounds unrelated to Corporate Debtor's insolvency.
2. Karnataka High Court: An application for compounding under Section 15 of the Foreign Exchange Management Act, 1999 cannot be rejected on the basis of Rule 11 of Foreign Exchange (Compounding Proceedings) Rules, 2000.
3. Supreme Court: The dishonor of cheque issued as a security can attract offence under Section 138 of the Negotiable Instruments Act.
4. Supreme Court: Arbitral Tribunal cannot award interest when the parties to the contract have agreed that it is not payable.

I. Supreme Court: NCLT cannot adjudicate contractual dispute if termination of contract is based on grounds unrelated to Corporate Debtor's insolvency