It gives us immense pleasure to circulate the second edition of DMD Advocates' Newsletter.
In this edition, we have covered recent and relevant judgements/ orders of the Supreme Court of India, the National Company Law Appellate Tribunal (NCLAT), the National Company Law Tribunal (NCLT) and the Competition Commission of India (CCI).
We hope you enjoy reading this edition and find it useful in your area of work.
All of us at DMD Advocates wish you a prosperous New Year 2019 !!
CASE LAW UPDATES
A conditional gift only becomes complete on compliance of the conditions in the gift deed: Supreme Court ( S. Sarojini Amma vs. Velayudhan Pillai Sreekumar)
A two judge bench of the Supreme Court comprising Justice Indra Banerjee and Justice Arun Mishra, set aside a judgement of the High Court of Kerala, holding that a conditional gift only becomes complete on compliance of the conditions in the gift deed. The court stated that a conditional gift with no recital of acceptance and no evidence in proof of acceptance, where possession remains with the donor as long as he is alive, does not become complete during lifetime of the donor. When a gift is incomplete and title remains with the donor the deed of gift might be cancelled.
The court relying on its own judgement in Reninkuntla Rajamma vs. K. Sarwanamma ((2014) 9 SCC 445), opined that the fact that the donor had reserved the right to enjoy the property during her lifetime did not affect the validity of the deed. The court held that a gift made by registered instrument duly executed by or on behalf of the donor and attested by at least two witnesses is valid, if the same is accepted by or on behalf of the donee. Such acceptance must, however, be made during the lifetime of the donor and while the donee is still capable of making an acceptance.
The court agreeing with the decision in Reninkuntla Rajamma vs. K. Sarwanamma stated there is no provision in law that ownership in property cannot be gifted without transfer of possession of such property. However, the conditions precedent of a gift as defined in Section 122 of the Transfer of Property Act must be satisfied. A gift is transfer of property without consideration. Moreover, a conditional gift only becomes complete on compliance of the conditions in the deed.
An application under Section 7 of the Insolvency and Bankruptcy Code, 2016 cannot be rejected on the ground of "usurious and extortionate penal interest": National Company Law Appellate Tribunal (Sh. Naveen Luthra vs. Bell Finvest (India) Ltd. & Anr.)
A National Company Law Appellate...