CoC Has Exclusive Power To Fix Resolution Professional Fees, NCLT Can Interfere Only If Fee Not Proposed: NCLAT

The National Company Law Appellate Tribunal (NCLAT) at Delhi has held that the Adjudicating Authority can fix the fees of the Interim Resolution Professional or Resolution Professional only in cases where the applicant initiating the corporate insolvency resolution process (CIRP) has not proposed the fee and that otherwise the power to determine such expenses lies exclusively with the Committee of Creditors (CoC). The tribunal set aside the order of the Mumbai Bench of the National Company Law...

NCLT Chandigarh Admits Paytm Insolvency Plea Against Eyemyeye Over ₹3 Crore Ads' Dues

The Chandigarh Bench of the National Company Law Tribunal (NCLT) has admitted an insolvency petition filed by One97 Communications Ltd. (Paytm) against Eyemyeye Pvt. Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016, over unpaid dues of more than ₹3 crore arising from digital advertising and related services. The bench of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal initiated the Corporate Insolvency Resolution Process (CIRP) against Eyemyeye Private...

IBC Applies To Multi-State Cooperative Societies Despite MSCS Act Excluding Companies Act: NCLAT

The National Company Law Appellate Tribunal (NCLAT) recently held that proceedings under the Insolvency and Bankruptcy Code, 2016, can be maintained against a multi-state cooperative society. It said the jurisdiction of the insolvency tribunal cannot be excluded by relying on the Multi-State Cooperative Societies Act, 2002, which excludes the applicability of the Companies Act, 2013. The ruling came while the tribunal upheld a direction requiring Mehsana Urban Co-Operative Bank Ltd to refund...

Part Payment By Third Party Does Not Discharge Corporate Debtor's Liability Under IBC: NCLT Cuttack

The National Company Law Tribunal (NCLT) at Cuttack recently observed that the acceptance of a part payment from a third party cannot be treated as a substitution of the corporate debtor for the entire outstanding liability, particularly when the corporate debtor itself continued to make substantial payments toward the same debt.A coram of Acting President Deep Chandra Joshi and Technical Member Banwari Lal Meena made the observation while allowing an insolvency application filed by Patnaik...

Subscriber Deposits, Prepaid Balances Must Be Treated As Operational Debt In Dishnet CIRP: NCLT Mumbai

The National Company Law Tribunal (NCLT) at Mumbai has held that security deposits of post-paid subscribers and unspent balances of prepaid subscribers in the insolvency proceedings of Dishnet Wireless Ltd must be treated as operational debt under the Insolvency and Bankruptcy Code. "We have no hesitation in holding that the amount of security deposit balances refundable to post paid subscribers and the amount of un-spent balances in prepaid plans are the money collected in excess of the rates...

LiveLawBiz IBC Weekly Digest: March 9 To March 14

HIGH COURT IBC Moratorium Does Not Bar MPID Attachment Proceedings In NSEL Scam: Bombay High CourtCase Title : Dulisons Cereals vs State of Maharashtra, National Spot Exchange Ltd Case Number : CRIMINAL APPEAL NO.5 OF 2024 CITATION : 2026 LLBiz HC (BOM) 137The Bombay High Court recently held that the interim moratorium under the Insolvency and Bankruptcy Code cannot bar attachment proceedings initiated under the Maharashtra Protection of Interest of Depositors...

NCLAT Declines To Recall Ruling Holding Cosmic CRF Ineligible As Resolution Applicant In Amzen CIRP

The National Company Law Appellate Tribunal (NCLAT) at Delhi recently refused to recall its earlier judgment declaring Cosmic CRF Limited ineligible to participate as a resolution applicant in the insolvency resolution process of Amzen Transportation Industries Ltd., holding that no error had been shown that would justify the exercise of its recall jurisdiction. A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Arun Baroka observed that the earlier judgment had...

IBC Moratorium Does Not Bar MPID Attachment Proceedings In NSEL Scam: Bombay High Court

The Bombay High Court recently held that the interim moratorium under the Insolvency and Bankruptcy Code cannot bar attachment proceedings initiated under the Maharashtra Protection of Interest of Depositors (MPID) Act in connection with the National Spot Exchange Limited (NSEL) payment crisis. A Division Bench of Justice A.S. Gadkari and Justice Shyam C. Chandak dismissed an appeal filed by Dulisons Cereals, a proprietorship firm through its proprietor Kanta Gupta, challenging an order of the...

NCLT Mumbai Dismisses CIRP Plea Against Shapoorji Pallonji, Says Claim Inflated With Unilateral Interest

The National Company Law Tribunal (NCLT) at Mumbai Bench has dismissed an insolvency petition filed by GKS Associates against Shapoorji Pallonji and Company Pvt Ltd, a leading construction company headquartered in Mumbai, holding that an operational creditor cannot artificially inflate the claim amount through unilateral interest entries to meet the statutory threshold under the Insolvency and Bankruptcy Code.A bench comprising Judicial Member Nilesh Sharma and Technical Member Sameer Kakar...

NCLAT Sets Aside NCLT Order, Upholds Auction Sale Confirmed Before CIRP, Says Moratorium Not Applicable

The National Company Law Appellate Tribunal (NCLAT) at New Delhi has recently set aside an order of the National Company Law Tribunal (NCLT), Kolkata, which had declared the confirmation of an auction sale and the sale certificate in respect of the corporate debtor's share in a mortgaged property as null and void, holding that the same had been issued after commencement of the corporate insolvency resolution process (CIRP) and during the moratorium. The appellate tribunal held that since the...

NCLAT Upholds Insolvency Against Al-Dua, Rejects Plea That Debt Was Transferred To Another Company

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently upheld the admission of insolvency proceedings against Al-Dua Food Processing Pvt. Ltd., rejecting the plea of its ex-promoter Mohd. Zaheer that the company was not liable to pay the operational debt as the liability had been transferred to another entity under a Share Purchase Agreement. A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held that the defence of transfer of liability was not...

NCLT Chandigarh Rejects Omkara ARC Plea Over 1267-Day Belated Claim In Vikas WSP CIRP

The National Company Law Tribunal (NCLT) at Chandigarh has dismissed a plea filed by Omkara Assets Reconstruction Pvt. Ltd. seeking admission of its claim in the corporate insolvency resolution process (CIRP) of Vikas WSP Ltd., holding that a claim filed 1267 days after the prescribed deadline and after approval of the resolution plan cannot be entertained under the Insolvency and Bankruptcy Code (IBC). Refusing to condone the delay, the bench of Judicial Member Khetrabasi Biswal and Technical...