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Transfer of Property Act, 1882 — Section 52 — Doctrine of Lis Pendens — Transfers of property made during the pendency of litigation are subject to the doctrine of lis pendens and are subservient to the final decision of the court — Such transfers are not void ab initio but remain invalid if the litigation goes against the transferor. Insolvency and Bankruptcy Code, 2016 — Section 9 — Application for corporate insolvency resolution process — Existence of a pre-existing dispute — Adjudicating authority must reject the application if notice of dispute has been received by the operational creditor or there is a record of dispute — The dispute must bring to the notice of the operational creditor the “existence” of a dispute or the fact that a suit or arbitration proceeding relating to a dispute is pending — The authority needs to see if there is a plausible contention which requires further investigation and that the “dispute” is not a patently feeble legal argument or an assertion of fact unsupported by evidence — It is important to separate the grain from the chaff and to reject a spurious defence which is mere bluster — However, in doing so, the Court does not need to be satisfied that the defence is likely to succeed — The Court does not at this stage examine the merits of the dispute except to the extent indicated above — So long as a dispute truly exists in fact and is not spurious, hypothetical or illusory, the adjudicating authority has to reject the application. Civil Procedure Code, 1908 (CPC) — Section 105(1) — Challenge to interlocutory orders — Rejection of an application under Order 2 Rule 2 CPC does not preclude the party from raising that issue again in an appeal against the final decree, as per Section 105(1) CPC, unless a separate appellate remedy is expressly provided. Arbitration and Conciliation Act, 1996 — Section 11 — Appointment of Arbitrator — Scope of Inquiry — Limited to prima facie existence of arbitration agreement — Questions like ‘accord and satisfaction’, limitation, dishonesty, frivolity and arbitrability of subject matter are to be left to the arbitral tribunal under Section 16, reflecting the principle of Kompetenz-Kompetenz. Multi-State Cooperative Societies Act, 2002 — Section 64(d) — Investment of funds by Multi-State Co-operative Society (MSCS) — Permitted investments are in subsidiary institutions or institutions in the same line of business — Amendment aimed at preventing misuse of funds and ensuring financial discipline — “Same line of business” requires substantial or predominant sameness in core business activities, determined by MSCS’s bye-laws — Not to be construed expansively.

Insolvency and Bankruptcy Code, 2016 — Section 9 — Application for corporate insolvency resolution process — Existence of a pre-existing dispute — Adjudicating authority must reject the application if notice of dispute has been received by the operational creditor or there is a record of dispute — The dispute must bring to the notice of the operational creditor the “existence” of a dispute or the fact that a suit or arbitration proceeding relating to a dispute is pending — The authority needs to see if there is a plausible contention which requires further investigation and that the “dispute” is not a patently feeble legal argument or an assertion of fact unsupported by evidence — It is important to separate the grain from the chaff and to reject a spurious defence which is mere bluster — However, in doing so, the Court does not need to be satisfied that the defence is likely to succeed — The Court does not at this stage examine the merits of the dispute except to the extent indicated above — So long as a dispute truly exists in fact and is not spurious, hypothetical or illusory, the adjudicating authority has to reject the application.

Power Project Agreement – Railway transportation cost – Change in Law – Cost of saving in the railway transportation on account of ‘Change in Law’ needs to be worked out and passed on to the appropriate DISCOMS, which can further be passed on to the consumers – CERC, which is a body of experts, is best suited to do so –

SUPREME COURT OF INDIA DIVISION BENCH UTTAR HARYANA BIJLI VITRAN NIGAM LIMITED AND ANOTHER — Appellant Vs. ADANI POWER (MUNDRA) LIMITED AND ANOTHER — Respondent ( Before : B.R. Gavai…

Power Purchase Agreement – Adani Power Mundra Limited – the finding of the CERC and the learned APTEL is to the effect that AP(M)L would not be entitled to any benefit of Change in Law beyond 70% of the installed capacity i.e. 1386 MW – Findings cannot be said to not be based on the material on record, or based on extraneous considerations.

SUPREME COURT OF INDIA DIVISION BENCH UTTAR HARYANA BIJLI VITRAN NIGAM LTD. AND ANOTHER — Appellant Vs. ADANI POWER (MUNDRA) LIMITED AND OTHERS — Respondent ( Before : B.R. Gavai…

Power Project Agreement – Compensation on account of ‘Change in Law’ – What has been granted under the said methodology is the additional cost of transport which APML would be required to incur for transporting the coal from other locations on account of deallocation of Lohara Coal Blocks – No reason to interfere with the said finding with regard to methodology of arriving at the compensation payable on account of ‘Change in Law’ event.

SUPREME COURT OF INDIA DIVISION BENCH MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED — Appellant Vs. ADANI POWER MAHARASHTRA LIMITED AND OTHERS — Respondent ( Before : B.R. Gavai and Vikram…

Power Purchase Agreement – When the PPA itself provides a mechanism for payment of compensation on the ground of ‘Change in Law’, unwarranted litigation, which wastes the time of the Court as well as adds to the ultimate cost of electricity consumed by the end consumer, ought to be avoided

SUPREME COURT OF INDIA DIVISION BENCH GMR WARORA ENERGY LIMITED — Appellant Vs. CENTRAL ELECTRICITY REGULATORY COMMISSION (CERC) AND OTHERS — Respondent ( Before : B.R. Gavai and Vikram Nath,…

Income Tax Act, 1961 – Section 260A – Determination of arm’s length price – there cannot be any absolute proposition of law that in all cases where the Tribunal has determined the arm’s length price the same is final and cannot be the subject matter of scrutiny by the High Court in an appeal under Section 260A of the IT Act

SUPREME COURT OF INDIA DIVISION BENCH SAP LABS INDIA PRIVATE LIMITED — Appellant Vs. INCOME TAX OFFICER, CIRCLE 6, BANGALORE — Respondent ( Before : M.R. Shah and M.M. Sundresh,…

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 – Section 24(2) – Lapse of acquisition proceedings – Appeal against – possession of the land in question was taken over on 14.07.1987, there shall not be any deemed lapse of acquisition as observed and held by the High Court. Under the circumstances, the impugned judgment and order passed by the High Court is unsustainable – Appeal allowed.

SUPREME COURT OF INDIA DIVISION BENCH LAND ACQUISITION COLLECTOR (SOUTH) — Appellant Vs. HARI CHAND AND ANOTHER — Respondent ( Before : M.R. Shah and Ahsanuddin Amanullah, JJ. ) Civil…

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 – Section 24(2) – Lapse of acquisition proceedings – Appeal against – – the possession of the land in question was taken over on 21.04.2006, there shall not be any deemed lapse of acquisition as observed and held by the High Court. Under the circumstances, the impugned judgment and order passed by the High Court is unsustainable – Appeal allowed.

SUPREME COURT OF INDIA DIVISION BENCH DELHI DEVELOPMENT AUTHORITY — Appellant Vs. SHIV RAJ AND OTHERS — Respondent ( Before : M.R. Shah And Ahsanuddin Amanullah, JJ. ) Civil Appeal…

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