NCLAT Dismisses Senior Advocate's Plea Over Non-Payment Of Over ₹6 Crore In Fees By Company, Says Pre-Existing Dispute Bars Initiation Of CIRP

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, consisting of Justice Ashok Bhushan (Chairperson) and Arun Baroka (Member - Technical), dismissed an appeal arising from the final order by the NCLT New Delhi Bench-IV regarding the initiation of CIRP under Section 9 of the Insolvency and Bankruptcy Code (IBC).The appeal was filed by a Senior Advocate seeking CIRP over non-payment of fees. The NCLAT concurred with the ruling of the Adjudicating Authority,...

Adjudicating Authority Can Extend Time For Payment Of Sale Consideration Beyond 90 Days U/S 35 Of IBC Read With Rule 11 Of NCLT Rules: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that the 90-day period for payment of sale consideration under Schedule 1, Clause 1(12) of the Liquidation Regulations, 2016, is mandatory and can only be extended by the Adjudicating Authority, not the Liquidator. Brief Facts: The Corporate Insolvency Resolution Process (CIRP) against the...

CoC Cannot Remit Approved Resolution Plan Post-Submission To Adjudicating Authority: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench comprising Justice Ashok Bhushan (Chairperson), Barun Mita (Technical Member) and Arun Baroka (Technical Member) have held that once a resolution plan has been approved by the CoC and submitted to the Adjudicating Authority, the CoC cannot seek remit it back to the CoC for fresh consideration. Brief Facts On 13.10.2020, the Adjudicating Authority (NCLT, Chandigarh bench) admitted the Section 9 application under IBC...

Information To The NeSL/Information Utility Is Not Mandatory For Ascertainment Of Default: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench of Ms. Reeta Kohli, Member (Judicial) and Ms. Madhu Sinha, Member (Technical) admitted the Section 7 application filed by Asset Care and Reconstruction Enterprise Ltd on seeking to initiate Corporate Insolvency Resolution Process against Rajesh Buildspace Private Limited due to default in payment of interest. Brief Facts The present application filed before the National Company Law Tribunal, Mumbai Bench, by Assets Care &...

Resolution Plan Can Be Approved Beyond 330-Day Time Limit If There Are Valid Grounds For Extension: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, consisting of Justice Ashok Bhushan (Chairperson), Barun Mitra (Member - Technical), and Arun Baroka (Member - Technical), dismissed an appeal arising from an order by the NCLT Ahmedabad Bench-II regarding the initiation of CIRP under Section 9 of the Insolvency and Bankruptcy Code (IBC). The tribunal held that even if the timeline has been exhausted, the resolution plan can still be approved, especially when...

While Deciding Application U/S 7 Of IBC, Adjudicating Authority Is Not Required To Interfere With Terms Of Contract Between Parties: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that while dealing with an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (Code) neither the Adjudicating Authority nor the Appellate Authority is expected to interfere with the terms of the contract entered into between the concerned parties. All that is required to be seen is whether the debt and default...

After Submission Of Final Revised Resolution Plan Within Stipulated Time Frame, Resolution Applicant Cannot Be Permitted To Modify It: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that After submission of the final revised Resolution Plan within the stipulated timeframe, the Resolution Applicant cannot be permitted to modify it. Brief Facts: On an Application filed by State Bank of India (“SBI”) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (Code)...

Successful Resolution Applicant Can Be Directed To Make Upfront Payment To Dissenting Financial Creditors If Resolution Plan Includes Such Provision: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that the Successful Resolution Applicant(SRA) can be directed to make an upfront payment to the dissenting financial creditors under the Resolution Plan when there is a clause in the Plan itself providing for such payment. Brief Facts: Corporate Insolvency Resolution Process (CIRP) against...

Adjudicating Authority Cannot Direct Committee Of Creditors To Consider Expression Of Interest Submitted After Due Date: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that when the Committee of Creditors (CoC) has decided not to accept Expressions of Interest (EoI) submitted after the due date, the Adjudicating Authority cannot direct fresh consideration of such EoI by the CoC. Brief Facts: The last date for submitting EoI was 24 July 2023. The Appellant...

IBC Only Overrides Another Statue When There Is A Clear And Direct Conflict: NCLAT

The National Company Law Appellate Tribunal, Principal Bench, New Delhi (NCLAT) comprising of Justice Rakesh Kumar Jain (Member (Judicial), Mr. Naresh Salecha (Member (Technical) and Mr. Indevar Pandey (Member (Technical) dismissed appeal filed against the impugned order of NCLT, Jaipur allowing Respondent to recover Fuel Surcharge (FS) and Special Fuel Surcharge (SFS) from Appellant for periods prior to the admission of the Company in Pre-Packaged Insolvency Resolution Process (PPIRP). ...

Order Admitting CIRP Cannot Be Recalled In Absence Of Fraud Or Misrepresentation: NCLT Mumbai

The National Company Law Tribunal, Mumbai comprising of Justice V.G. Bisht (Member (Judicial) and Prabhat Kumar (Member (Technical) partly allowed an interim application filed by Canara Bank in relation to the CIRP of Carnival Techno Park Pt. Ltd (CTPPL). The Tribunal rejected Canara Bank's plea to recall CIRP admission but allowed the forensic audit to investigate the legitimacy of RCFL claim and its classification as secured financial debt. Brief Facts The Application arises...

Consideration And Subsequent Rejection Of Resolution Plan By Committee Of Creditors Submitted After Due Date Cannot Be Questioned: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that the consideration and subsequent rejection of a resolution plan by the Committee of Creditors submitted after the due date cannot be questioned. Brief Facts: Corporate Insolvency Resolution Process (CIRP) of the corporate debtor, AA Estate Private Limited, commenced by order dated 06.12.2022. Resolution Professional...