Corporate Updates 11 March 2014


the Hon’ble Supreme Court of India, dismissed the SLP filed by the Union of India against the judgment of the Hon’ble Delhi High Court in the case of Union of India Vs. Delhi Chit Fund Association, meaning thereby that the decision of the Hon’ble Delhi High Court in the said matter holds good. The consideration received for providing services in relation to the chit fund business, being merely a transaction in money, falls outside the purview of the term ‘service’ as defined under Section 65B(44) of the Finance Act. Hence, it is not eligible to service tax.


The Mumbai Suburban District Forum in the case of Sh. Anant Nitare versus the Managing Director, ICICI Bank, held that when one- time settlement had been signed, stamped and sealed and acknowledged by the bank, thereafter, the bank was not entitled to make a demand for further payment of the amount which had been waived off. It restrained ICICI Bank from making any further demand. A bank cannot induce a customer to opt for a one- time settlement and then back out on the settlement.

Corporate Updates 26 Feb 2014


The advisory committee headed by former Reserve Bank of India (RBI) Governor, Sh. Bimal Jalan, which is screening the 25 bank licence applications, is expected to give its report by this weekend. RBI had constituted the Jalan committee to examine the fit-and-proper criteria, business plans, corporate governance practices, etc, of applicants. After securing RBI’s in-principle approval for a bank licence, an entity will a year and a half to set up banks, failing which their licences will be cancelled.


SAT in one of the recent cases reduced the penalty imposed upon appellant company for failure to redress investors grievance and stated that penalty was reduced in view of fact that appellant had become defunct and had tried its best to redress investors grievances.