Commercial & Corporate Law
Common questions
Can I file an insolvency petition against a company that owes me money?
Yes. An operational creditor owed more than Rs 1 crore (threshold as of 2024) can file a Section 9 CIRP petition before NCLT Chandigarh if the company has not paid and has not raised a genuine dispute. A demand notice under Section 8 must be served first, giving the company 10 days to pay or raise a dispute. If there is no response or the dispute is not genuine, the petition can be filed before NCLT.
On what grounds can an arbitration award be challenged?
Section 34 of the Arbitration Act allows a court to set aside an award on specific grounds — incapacity of a party, invalid arbitration agreement, improper notice or opportunity to present the case, award dealing with matters beyond the submission, improper composition of the tribunal, or conflict with public policy of India. The grounds are narrow. A challenge on the merits of the award — that the arbitrator decided wrongly — is generally not available. The application must be filed within three months of receiving the award.
What is the difference between NCLT and the High Court for company matters?
After the Companies Act, 2013 came into force, most company law matters — insolvency, winding up, oppression, mismanagement — moved from the High Court to NCLT. The NCLT Chandigarh Bench handles matters for companies registered in Punjab, Haryana, Chandigarh and Himachal Pradesh. Appeals from NCLT lie before the National Company Law Appellate Tribunal (NCLAT) in Delhi, and further to the Supreme Court. The High Court retains jurisdiction over certain company matters, arbitration challenges and commercial disputes not covered by NCLT's jurisdiction.
Commercial and corporate matters require specialised preparation — whether before the NCLT Chandigarh Bench, in arbitration challenges before the High Court, or in commercial litigation proceedings.
Forums
- NCLT Chandigarh Bench — insolvency, winding up, oppression.
- Punjab & Haryana High Court — arbitration challenges, commercial disputes.
- Commercial Courts — high value commercial suits.
Documents useful for initial assessment
- Company incorporation documents and shareholding pattern.
- Relevant contracts, invoices or loan agreements.
- Arbitration agreement and award (for Section 34 matters).
- Board resolutions or shareholder correspondence in dispute.
Insolvency Proceedings Before NCLT Chandigarh
Insolvency matters before the National Company Law Tribunal, Chandigarh Bench include Corporate Insolvency Resolution Process (CIRP) petitions under Section 7 (by financial creditors), Section 9 (by operational creditors) and Section 10 (by the corporate debtor). Representation includes filing and contesting admission, participating in CIRP, challenging resolution plans and liquidation matters.
Oppression and Mismanagement: Section 241–242 Companies Act
Petitions alleging oppression of minority shareholders and mismanagement of company affairs are filed before NCLT. These matters involve examination of shareholding patterns, board conduct, financial records, alleged diversion of funds and shareholder agreements. Interim relief including injunctions on share transfers and management changes can be sought.
Winding Up Petitions
Winding up petitions on the grounds of inability to pay debts, just and equitable grounds or following deadlock between shareholders are filed before NCLT under the Companies Act, 2013. The process involves service, advertisement, filing of statement of affairs and appointment of official liquidator.
Challenging Arbitration Awards: Section 34 Applications
An arbitration award can be challenged before the appropriate court under Section 34 of the Arbitration and Conciliation Act, 1996 on the grounds of incapacity, invalid agreement, improper notice, award beyond scope of submission, improper composition of tribunal, or conflict with public policy. Section 34 applications before Punjab & Haryana High Court are prepared with detailed grounds challenging the award on law and fact.
Section 37 Appeals in Arbitration Matters
Appeals against orders passed under Sections 8, 9, 16 and 17 of the Arbitration Act, and against Section 34 orders, lie before the High Court under Section 37. These appeals concern jurisdiction, interim measures and the validity of arbitration proceedings.
Commercial Disputes at Punjab & Haryana High Court
High-value commercial disputes including contract breaches, partnership disputes, shareholder deadlocks, fraud in commercial transactions and injunctions in business matters are handled through writ petitions, original jurisdiction proceedings or appeals before the High Court.
Recovery of Money and Summary Suits
Recovery proceedings under Order 37 CPC (summary suits on negotiable instruments and written contracts) and execution proceedings for recovery of commercial dues are handled before the appropriate civil and commercial courts.
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Commercial or corporate matter?
NCLT Chandigarh, arbitration challenges and commercial litigation. Call +91 94171 85127.