Key Developments in Business & Commercial Law

Several important developments were recorded in the field of business and commercial law, covering taxation, insolvency, and judicial administration.

In a significant ruling under indirect tax law, authorities clarified that environmental activities such as tree plantation and maintenance carried out by charitable organisations in non-forest areas may qualify for tax exemption, provided such activities fall within the scope of public welfare and charitable purpose.

On the insolvency front, the adjudicating authority held that a liquidator cannot claim fees on amounts realised by secured creditors through enforcement proceedings conducted independently and outside the liquidation estate. The ruling reiterates that only assets forming part of the liquidation estate can be considered for fee computation under insolvency regulations.

Another notable clarification was issued regarding corporate insolvency of group companies, where it was observed that appointment of a common resolution professional is permissible, as long as no conflict of interest exists and transparency is maintained throughout the process.

In matters relating to judicial administration, the Union Government issued notifications effecting changes in leadership positions across certain High Courts, as part of routine administrative measures taken in consultation with constitutional authorities.

These developments reflect the evolving legal framework governing taxation, insolvency resolution, and institutional administration in India.