New NCLT Bench in Kochi
The Ministry of Commercial Affairs (MCA), on July 27, 2018 notified the constitution of a National Company Law Tribunal (“NCLT”) bench in Kochi which will be effective from August 1, 2018.
Insolvency Code Amendment Approved in Lok Sabha
The Lok Sabha, on July 31, 2018 has passed the Insolvency and Bankruptcy (Second Amendment) Bill, 2018 (“Bill”). The Bill recognizes home buyers, who have invested money in real estate projects for allotment of residential flats, as ‘financial creditors’ and not just ‘operational creditors’, under the Insolvency and Bankruptcy Code, 2016.
Karnataka High Court on Illegal Consideration in a Contract
The Karnataka High Court, on July 06, 2018 in the case of R. Parimala Bai v. Bhaskar Narasimhiah has held that as per Section 138 of the Negotiable Instruments Act, 1881, there is no legally enforceable debt if the cheque is issued for illegal or unlawful consideration in a void contract.