Between The Lines - February 2024

• Supreme Court: Nomination process under the Companies Act, 1956/ Companies Act, 2013 does not override succession laws.
• Supreme Court: Statutory set-off or insolvency set-off inapplicable to Corporate Insolvency Resolution Process. 
• Bombay High Court: High Court upholds the termination of an employee stating that freedom of speech and expression cannot be allowed beyond reasonableness.
• NCLAT: Liquidator is not entitled to charge any fee from a scheme proponent submitting a scheme under Section 230 of the Companies Act

I. Supreme Court: Nomination process under the Companies Act, 1956/ Companies Act, 2013 does not override succession laws.

The Supreme Court, vide its judgment dated December 14, 2023, in the matter of Shakti Yezdani and Another v. Jayanand Jayant Salgaonkar and Others [Civil Appeal No. 7107 of 2017], held that the Companies Act, 1956 ("CA, 1956") does not deal with the law of succession nor does it override the laws of succession and