Issue Of Maintainability Of Application U/S 7 Of IBC Can Be Decided Separately By Adjudicating Authority: NCLAT

The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Arun Baroka (Technical Member) has held that the issue of maintainability of application under section 7 of the code can either be decided separately or with other substantive issues. Brief Facts The present appeal has been filed by the corporate debtor against an order passed by the NCLT. The respondent filed an application under section 7 of the code seeking initiation of the insolvency process against...

Amendments Needed In IBC To Provide NOC To Successful Resolution Applicants When Plan Over Attached Property Is Approved: Sr Adv Mukul Rohatgi

On Friday, 17th January 2025, a roundtable discussion titled "Understanding the Synergy Between PMLA and IBC" was held at India International Centre, New Delhi by the Insolvency Law Academy (ILA) in collaboration with NM Law Chambers. The event brought together legal professionals, policymakers, and academicians to explore the intersection of the Prevention of Money Laundering Act (PMLA) and the Insolvency and Bankruptcy Code (IBC). The discussion featured three distinguished...

IBC Weekly Round Up [13th January To 19th January, 2025]

Nominal Index Ganesh Chandra Bamrana and Ors. vs. Rukmani Gupta, CRL. M.C. 6170/2022 & CRL. M.A. 24285/2022, CRL.M.C. 6178/2022 & CRL.M.A. 24297/2022 Ashmeet Singh Bhatia Versus Rakesh Verma Authorised Representative and Anr., Company Appeal (AT) (Insolvency) No. 1924 of 2024 & I.A. No. 7124 of 2024 M/s Acute Daily Media Pvt. Ltd. & Ors. Versus M/s Rockman Advertising and Marketing (India) Ltd. & Ors., Company Appeal (AT) (Insolvency) No. 1480 of 2024 ...

Authorised Representative Can Be Replaced By Following Procedure Provided Under Regulation 16(3A) Of CIRP Regulations: NCLAT

The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mita (Technical Member) and Mr. Arun Baroka (Technical Member) has held that the Authorised Representative can be replaced by following the procedure engrafted under Regulation 16(3A) of the CIRP Regulations therefore the application of an individual homebuyer seeking replacement of the Authorised Representative before the Adjudicating Authority cannot be entertained.Brief FactsThe present appeal has been filed by a...

Admission Order Of Application U/S 7 Of IBC Can Be Recalled If Fraud Or Malicious Intent Is Proved U/S 65 Of Code: NCLAT

The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mita (Technical Member) and Mr. Arun Baroka (Technical Member) has held that when CIRP proceedings are initiated fraudulently or maliciously, the Adjudicating Authority has jurisdiction under the IBC to consider the allegations of fraudulent and malicious initiation of CIRP proceedings in terms of Section 65 and recall the CIRP admission order.Brief FactsThe appellants filed an application under section 7 of the code...

Initiation Of Recovery Proceedings Before DRT Does Not Preclude Financial Creditor From Filing Application U/S 7 Of IBC: NCLAT

The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that initiation of recovery proceedings before the DRT does not prohibit financial creditors from filing an application under section 7 of the code. Brief Facts: The present appeal has been filed by suspended director of the corporate debtor against an order passed by the Adjudicating Authority by which an application under section 7...

When Entire Liability Is Not Discharged After Selling Pledged Shares, Application U/S 7 IBC Can Be Filed To Claim Remaining Amount: NCLAT

The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that when the entire liability of the corporate debtor after selling the pledged shares is not discharged, an application under section 7 of the IBC can be filed for claiming the remaining amount. Brief Facts: The present appeal has been filed by the suspended director of the corporate debtor against an order passed by the NCLT by...

Sale Arising From Collusive Suit Where Bank Isn't Party Does Not Bind Either Bank Or Auction Purchaser: DRAT Chennai

The Debts Recovery Appellate Tribunal Chennai bench of Justice G. Chandrasekharan (Chairperson) has held that a sale arising from a collusive suit, where the bank was not a party to the proceedings, does not bind the bank or the auction purchaser of the property under SARFAESI proceedings. Facts In 1991, the 2nd Respondent Bank sanctioned loans to one Mr. Raju. Ms. D. Ratchaka, as guarantor, mortgaged her property. On 08.09.1991, Ms. Ratchaka entered into a Sale Agreement with Ms. B....

166 Days Delay In Re-Filing Appeal Cannot Be Condoned In Absence Of Genuine And Plausible Explanation: NCLAT

The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Barun Mitra (Technical Member) has held that a delay of 166 in re-filing an appeal cannot be condoned in the absence of a plausible and genuine explanation offered for the same. Brief Facts The present application I.A. No.6903 of 2024 is an application praying for condonation of 166 days delay in refiling an appeal. When the Appeal came up for hearing on 04.11.2024, the Counsel for the Appellant sought ...

Interest On Operational Debt Cannot Be Claimed Unless There Is An Express Agreement: NCLAT

The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that as per section 5(21) of the Insolvency and Bankruptcy Code, interest on invoices cannot be claimed by the operational creditor in the absence of any stipulations in the agreement to this effect. Brief Facts This appeal has been filed under section 61 of the code against an order passed by the Adjudicating Authority by which...

Appeal U/S 61 Of IBC Is Not Maintainable After Dissolution Of Corporate Debtor U/S 54: NCLAT

The NCLAT New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member) has held that an appeal under section 61 of the IBC cannot be entertained after the dissolution of the corporate debtor under section 54 of the code. Brief Facts This appeal is directed against the order dated 14.09.2022 passed by National Company Law Tribunal ('Tribunal') by which an Interlocutory Application bearing IA No. 2144/2022 filed in Company Petition No. (IB) –...

IBC Weekly Round Up [6th January-12th January 2025]

NOMINAL INDEX: Harpal Singh Chawla v. Vivek Khanna & Ors., Civil Appeal No. 14708/2024 Drish Shoes Workers Union Versus Drish Shoes Ltd., Company Appeal (AT) (Insolvency) No.2281 of 2024 & I.A. No.8501 of 2024 Nabard Consultancy Services Pvt. Ltd Versus Dharmendra Kumar, (Official Liquidator for IAP Company Pvt. Ltd.), Company Appeal (AT) (Insolvency) No.2196 of 2024 Indospirit Distribution Limited Vs Kristal Spirits India Pvt Ltd, COMPANY APPEAL (AT)(Ins) No.503...