President Gives Assent to IBC Amendment
The President has given his approval to the Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 wherein homebuyers have been recognized as financial creditors. Further, the amended Insolvency and Bankruptcy Code 2016 (“IBC”) has allowed withdrawal of a resolution application with the approval of 80% of the Committee of Creditors.
Supreme Court on IBC 2016
The Supreme Court (“SC”), on August 14, 2018 in the case of State bank of India v. Ramakrishnan has clarified that a moratorium under Section 14 of the IBC does not apply with respect to personal guarantees. The SC ruled that personal guarantees can be invoked when the company in favour of whom the guarantee was extended, is under moratorium.
The SC on August 10, 2018 in the case of Commissioner of Income Tax v. Monnet Ispat and Energy Ltd, held that the IBC will override anything inconsistent contained in any other enactment, including the Income Tax Act. The Court held that, “Given Section 238 of the Insolvency and Bankruptcy Code, 2016, it is obvious that the Code will override anything inconsistent contained in any other enactment, including the Income Tax Act.”
Kerala HC on Penalty and Detention Under CGST Act
The Kerala High Court (“HC”), on August 09, 2018 in the case of Garuda Timber Traders v. Assistant Sales Tax Officer and others has held that technical glitches in uploading Part B of E-Way Bill cannot be a ground for setting aside penalty and detention under the Central Goods and Services Tax Act (“CGST”).
Mandatory Disclosure of Compliance With Sexual Harassment Act
The Ministry of Corporate Affairs (“MCA”) on July 31, 2018 issued a notification though which it has amended the Companies (Accounts) Rules, 2014 (“Rules”) to mandate the disclosure regarding the implementation of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act (“POSH Act”) in the Director’s Report of every company. The notification inserted the following Clause (X) under Section 134 of the POSH Act, “A statement that the Company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013”.