Ex-Management Of Corporate Debtor Cannot File Proposal U/S 12A During Consideration Of Resolution Plan When Earlier Proposal Was Rejected: NCLT New Delhi

The National Company Law Tribunal, New Delhi Bench, comprising Shri Ashok Kumar Bhardwaj (Judicial Member) and Shri Subrata Kumar Dash (Technical Member), held that settlement proposal under section 12A of the Insolvency and Bankruptcy Code (IBC) cannot be considered after the approval of resolution plan. The Tribunal further held that multiple such proposals had already been proposed on previous occasions and all of them were rejected by Committee of creditors (CoC). Brief Facts The...

NCLAT Rejects Condonation Of Delay Application Due To Non-Compliance With Limitation Period U/S 61 Of IBC

The National Company Law Appellate Tribunal (NCLAT), Chennai, comprising of Justice Sharad Kumar Sharma, Member (Judicial) and Shri Jatindranath Swain (Technical Member), dismissed an appeal under Section 61 of the Insolvency and Bankruptcy Code (IBC). The appeal was filed by the Southern Power Distribution Company of Telangana Ltd. against Kalvakolanu Murali Krishna Prasad (Resolution Professional for Vaksh Steels Pvt. Ltd.,). The NCLAT observed that the appellant cannot file an application for...

Without Allegations Of Fraud, Objections Raised By Applicant Cannot Be Entertained At Belated Stage After Sale Has Already Been Confirmed: NCLT

The National Company Law Tribunal (NCLT), Mumbai Bench, comprising shri Kuldip Kumar Kareer (Judicial Member) and Shri Anil Raj Chellan (Technical Member), dismissed an application filed under section 60(5) of the Insolvency and Bankruptcy Code (IBC) by a prospective bidder in which e-auction sale of the corporate debtor in liquidation was challenged. The Tribunal observed that the sale was conducted in accordance with Liquidation Regulations, 2016 and objections raised by the applicant were...

Resolution Professional Becomes Functus Officio After Approval Of Plan, Ceases To Have Authority To File Fresh Application Under IBC: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench, comprising Justice (Retd) Mr. Virendrasingh Gyansingh Bisht (Judicial Member) and Mr. Prabhat Kumar (Technical Member), observed that Resolution Professional (RP) is not empowered to file an application after the approval of resolution plan. The Tribunal further held that Insolvency and Bankruptcy Board of India (IBBI) should investigate into the conduct of both the RP and respondent 1 to 3 based on the findings of the forensic...

[IBC] Pendency Of Civil Suit Doesn't Preclude Admission Of S. 7 Application When Debt & Default Are Proven: NCLAT

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi comprising Justice Ashok Bhushan (Chairperson), Barun Mitra (Member Technical), Arun Baroka (Member Technical) has held that the pendency of the Civil Suit is no reason for not proceeding to admit the Section 7 Application when the debt and default are proved. Background Facts: The Financial Creditor (Respondent) initially filed a winding-up Petition, which was transferred to the Adjudicating Authority...

“Clean Slate" Principle Does Not Extend To Liabilities On Date Of E-Auction Sale Of Corporate Debtor As 'Going Concern': NCLAT

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi bench comprising Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical member) and Arun Baroka (Technical member) has held that when the claim itself are on the liquidation commencement date in the liquidation process, the argument that extinguishment of claims and liabilities should be granted till the date of sale by e-auction is not in accord with the statutory scheme as delineated by IBBI...

Interest Cannot Be Raised Unilaterally In Insolvency Petition, Without Prior Intimation To Corporate Debtor: NCLT Bengaluru

The National Company Law Tribunal (NCLT), Bengaluru, comprising Shri K. Biswal (Judicial Member) and Shri Manoj Kumar Dubey (Technical Member), dismissed a petition under section 9 of the Insolvency and Bankruptcy Code (IBC). The petition was filed by Janus GBAC Ltd. (operational creditor) against Beloorbayir Biotech Ltd. (corporate debtor). The NCLT observed that no interest can be claimed in the petition when it has not been agreed upon in an agreement. Brief Facts The corporate...

Corporate Debtor Not Responsible For Non-Supply Of Materials By Third Party Being An Agent: Mumbai NCLT

In a crucial decision, the National Company Law Tribunal (NCLT) Mumbai Bench, comprising Justice V.G. Bisht (Judicial Member) and Prabhat Kumar (Technical Member), dismissed a petition filed by JM Steels (Operational Creditor) under section 9 of the Insolvency and Bankruptcy Code (IBC) against Nirav Metals Pvt. Ltd. (Corporate Debtor). The petition sought to initiate Corporate Insolvency Resolution Process (CIRP) for the default of Rs. 3,63,07,924.89 against the corporate debtor for...

Successful Resolution Applicant Entitled Benefit Of Protection U/S 32A IBC To Lift ED's Attachment Over Corporate Debtor's Assets: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Mr. Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member), in a crucial judgment observed that the benefit of section 32A of the Insolvency and Bankruptcy Code (IBC) will be extended to the new management of the Alchemist Infra Reality Ltd.(corporate debtor) after the approval of resolution plan. In this case, the tribunal ordered to lift the...

Related Party Prohibited From Participating In CoC, Cannot Overcome Bar Merely By Assignment Of Debt: NCLT Mumbai

The National Company Law Tribunal (NCLT), Mumbai Bench , comprising Ms. Reeta Kohli (Judicial Member) and Ms. Madhu Sinha (Technical Member), dismissed an application in which voting rights in the committee of creditors (CoC) was sought in the Corporate Insolvency Resolution Process (CIRP) of Rolta Bi & Big Data Analytics Pvt. Ltd. (corporate debtor). Greenshift Initiatives Private Limited (Assignee) who acquired the debt from a related party of the corporate debtor, filed this ...

Obtaining Prior NOC From Stock Exchanges/SEBI Not Mandatory Before Submitting Scheme Of Arrangement For Company In Liquidation: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Mr. Justice Yogesh Khanna (Judicial Member) and Shri Ajai Das Mehrotra (Technical Member), observed that it is not mandatory to obtain No Objection Certificate (NOC) before submitting a scheme of arrangement to revive a company in liquidation under Insolvency and Bankruptcy Code (IBC) before the National Company Law Tribunal (NCLT) under section 230 of the Companies Act. The NCLAT held that it is...

Limitation U/S 61 Of IBC Is To Be Calculated From Date Of E-Filing, Rules Prevalent When Application Is Considered To Be Applied: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Mr. Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member) and Mr. Indevar Pandey (Technical Member), held that the period of limitation for appeal should be counted from the date of e-filing and not from the physical presentation. The tribunal condoned the delay of 3 days in filing the appeal as sufficient cause was shown and it was in accordance with the Standard...