2 Important Indian Supreme Court Cases Decided Today [Thursday, October 11, 2018]

1. B.K. Educational Services Pvt. Ltd. v. Parag Gupta and Associates

Limitation Act, 1963 - Insolvency and Bankruptcy Code, 2016 - Section 238A - Insolvency and Bankruptcy Code (Second Amendment) Act, 2018 - Whether the Limitation Act, 1963 will apply to applications that are made under Section 7 and/or Section 9 of the Code on and from its commencement on 01.12.2016 till 06.06.2018. In all these cases, the Appellate Authority has held that the Limitation Act, 1963 does not so apply. Held, Since the Limitation Act is applicable to applications filed under Sections 7 and 9 of the Code from the inception of the Code, Article 137 of the Limitation Act gets attracted. “The right to sue”, therefore, accrues when a default occurs. If the default has occurred over three years prior to the date of filing of the application, the application would be barred under Article 137 of the Limitation Act, save and except in those cases where, in the facts of the case, Section 5 of the Limitation Act may be applied to condone the delay in filing such application.

Petitioner's Advocate : Dua Associates
Bench : Hon'ble Mr. Justice Rohinton Fali Nariman, Hon'ble Mr. Justice Navin Sinha
Judgment By : Hon'ble Mr. Justice Rohinton Fali Nariman

2. Vedanta Limited v. Shenzhen Shandong Nuclear Power Construction Company Limited

Arbitration & Conciliation Act, 1996 - Section 37 - The Award has granted a uniform rate of 9% S.I. on both the INR and the EUR component. However, when the parties do not operate in the same currency, it is necessary to take into account the complications caused by differential interest rates. Interest rates differ depending upon the currency. It is necessary for the arbitral tribunal to co­ordinate the choice of currency with the interest rate. A uniform rate of Interest for INR and EUR would therefore not be justified. The rate of 9% Interest on the INR component awarded by the arbitral tribunal will remain undisturbed. However, with respect to the EUR component, the award­debtor will be liable to pay Interest at the LIBOR rate + 3 percentage points, prevailing on the date of the Award.

Interest - LIBOR is an average interest rate calculated from time to time, based on inputs given by major banks in London as to their interest rates. Under the LIBOR regime, banks give details vis­a­vis actual interest rate that they are paying, or would be required to pay for borrowing from other banks. LIBOR is a 3­ month rate which has been adopted in some cases of a breach of contract (or other obligation).

Petitioner's Advocate : Divya Roy
Bench : Hon'ble Mr. Justice Abhay Manohar Sapre, Hon'ble Ms. Justice Indu Malhotra
Judgment By : Hon'ble Ms. Justice Indu Malhotra

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