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Frequent Buzz on Corporate Laws: Legal Updates 16 Feb., 2016

Some of the important Court decided judgements:

  • Negotiable Instruments Act, 1881 – S. 142(2)(a), vests jurisdiction for initiating proceedings under S. 138, inter alia, in the territorial jurisdiction of court, where cheque is delivered for collection (through an account of branch of bank where payee or holder in due course maintains an account). Again, insofar as offence under S. 138 is concerned, on the issue of jurisdiction, provisions of CrPC would have to give way to provisions of instant enactment on account of non obstante clause in S. 142-A(1). [Bridgestone India (P) Ltd. v. Inderpal Singh, (2016) 2 SCC 75]

 

  • Women can be Karta of Hindu Undivided Family (HUF): A vital question addressed in this judgement is: whether a female being the first born (eldest) amongst the coparceners of the Hindu Undivided Family (HUF) property, particularly after her marriage, would by virtue of her birth, be entitled to be a  Karta? In a path breaking decision the Bench of Najmi Waziri, J., observed that the law provides no restrictions so as to prevent the eldest female coparcener of a HUF, from being its Karta. [Sujata Sharma v. Manu Gupta, 2015 SCC OnLine Del 14424, decided on 22-12-2015]

 

  • Patna High Court:  Deciding the moot question as to whether a Division Bench of a High Court can exercise its power of superintendence under Article 227 of the Constitution  against an order made in a suit by a Single Bench, the Court held that a Single Judge or a Single Bench of a High Court is not a court subordinate to the Division Bench and, therefore, the power of superintendence vested in a High Court by Article 227, is not exercisable against an order or decision of its own Single Bench. [Anil Kumar Shrivastava  v. Shaurya Sunil, 2016 SCC OnLine Pat 21 decided on January 20, 2016]
  • ICAI issues Guidance notes on accounting for Depreciation: The Accounting Standard (AS) 6, deals with Depreciation Accounting in the case of companies. However, some issues have arisen due to the practical application of Schedule II to the Companies Act, 2013, in the context of AS 6. With a view to provide an authoritative position of ICAI on the issues arising out of Schedule II to the Companies Act, 2013, ICAI has formulated the Guidance Note on Accounting for Depreciation in companies in the context of Schedule II to the Companies Act, 2013. The same can be accessed from http://resource.cdn.icai.org/41241research31047.pdf
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