IBC
NCLAT E-Filing Glitch Caused One-Day Delay: Supreme Court Sets Aside Order Dismissing IBC Appeal As Time-Barred
The Supreme court has held that a litigant cannot be made to suffer when a court or tribunal's e-filing system prevents papers from being filed despite a bona fide attempt within the prescribed limitation period. “When the system of the court/tribunal fails to receive the papers, which are sought to be presented bona fide and within the prescribed time, the litigant cannot be rendered remediless on the specious ground that the court/tribunal has no power to condone the delay,” a bench of...
Subsequent Buyer's Post-CIRP Electricity Dues Dispute Outside Insolvency Jurisdiction: NCLT Ahmedabad
The Ahmedabad bench of the National Company Law Tribunal (NCLT) has held that a subsequent purchaser could not invoke its insolvency jurisdiction over an electricity dues dispute that arose after completion of the insolvency process and transfer of the property.The bench comprising Judicial Member Shammi Khan and Technical Member Sanjeev Sharma observed, “The declaration sought regarding all dues of the Corporate Debtor is also beyond the scope of the jurisdiction invoked, particularly when the...
NCLT Ahmedabad Dismisses Make India Impex's ₹9.10 Crore Insolvency Plea Against Elite Green
The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 9 September dismissed an insolvency petition filed by Make India Impex against Elite Green Pvt. Ltd. over an alleged default of Rs. 9.10 crore. A Bench comprising Judicial Member Chitra Hankare and Technical Member Dr. V.G. Venkata Chalapathy observed: “There by the demand notice issued under Section 8(1) is not in order and the applicant has not complied with Section 9 (3) (b) as applicant has not furnished “no pre-existing...
NCLT Ahmedabad Admits Immacule Lifesciences' Insolvency Plea Against FTF Pharma Over ₹2.18 Cr. Debt
The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 9 September admitted an insolvency petition filed by Immacule Lifesciences Pvt. Ltd. against FTF Pharma Pvt. Ltd. under the Insolvency and Bankruptcy Code, 2016 (IBC). Judicial Member Chitra Hankare and Technical Member Dr. V.G. Venkata Chalapathy admitted the petition after finding that the outstanding debt exceeded Rs. 1 crore and that FTF Pharma's reliance on bankruptcy proceedings involving another entity did not establish a...
IBC Can Apply To Personal Guarantors Residing Abroad, Nationality No Bar: NCLT Chennai
The National Company Law Tribunal (NCLT), Chennai, on 7 September held that the Insolvency and Bankruptcy Code (IBC) can be invoked against a personal guarantor residing abroad, as the Code does not restrict its applicability based on the guarantor's nationality or citizenship. A Bench of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam admitted a Section 95 IBC petition filed by M. Gagan Bothra against Senthil Kumar, personal guarantor of PRC International Hotels...
NCLT Ahmedabad Rejects Benzo Chem's Insolvency Plea Against Aether Industries Over Pre-Existing Dispute
On 8 September, the Ahmedabad Bench of the National Company Law Tribunal (NCLT) dismissed an insolvency petition filed by Benzo Chem Industries Pvt. Ltd. against Aether Industries Ltd. after finding a pre-existing dispute over the quality of chemicals supplied before the demand notice was issued. A Bench comprising Judicial Member Chitra Hankare and Technical Member Dr. Velamur G Venkata Chalapathy observed: “...it appears that the Corporate Debtor had raised the issue regarding defective...
Mere Inclusion Of Company's Name In Loan Documents Not Enough To Trigger Insolvency: NCLT Delhi
The Delhi bench of the National Company Law Tribunal (NCLT) has ruled that merely including a company's name in loan and sanction documents is not enough to establish that the company itself is the real obligor for the purpose of initiating insolvency proceedings.“The insolvency jurisdiction under Section 7 cannot be permitted to be invoked merely because the name of a company appears in the sanction letter, absent clear evidence that the company itself is the real obligor in respect of the...
Bombay High Court Rejects Patanjali Foods' Reliance On NCLT Plan To Oppose Impleadment In Labour Case
On 7 September, the Nagpur Bench of the Bombay High Court rejected Patanjali Foods Ltd.'s challenge to its impleadment in a pending labour dispute concerning an employee of Ruchi Soya Industries Ltd. Justice Nandesh S. Deshpande dismissed Patanjali Foods's writ petition and upheld the orders of the Labour Court and Industrial Court, while leaving it free to raise its defences based on the resolution plan before the Labour Court. The Bench held:“Two factors are against the petitioner; firstly,...
IBC Prevails Over RERA Where Resolution Plan Conflicts With Individual Refund Rights: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai, on 9 September held that a resolution plan cannot be required to incorporate individual homebuyers' refund rights under Section 18 of the Real Estate (Regulation and Development) Act, 2016, where doing so conflicts with the collective insolvency resolution process. A Bench comprising Judicial Member K.R. Saji Kumar and Technical Member Anil Raj Chellan dismissed an application by homebuyers Vivek Talwar, Aditi Talwar, Vishal Joshi and Anjana...
Professional Entitled To Fees Based On Work, Payment Can't Rely On Court-Fee Refund: NCLT Mumbai
The National Company Law Tribunal, Mumbai Bench on 11 September held that professionals engaged by a corporate debtor are entitled to fees commensurate with the work performed, and that payment of professional fees cannot be made conditional upon the refund of court fees. A Bench comprising Judicial Member Lakshmi Gurung and Technical Member Hariharan Neelakanta Iyer directed the Liquidator of Abhay Nutrition Pvt Ltd. to pay Advocate Roshan Raghunath Totla's fees in accordance with the...
Arbitration Is A Private Remedy, It Cannot Override Statutory Rights Under IBC: NCLAT Chennai
The National Company Law Appellate Tribunal (NCLAT), Chennai on 27 August observed that an arbitration clause in a contract, being a private remedy agreed between parties, cannot override or take away the statutory remedy available under the Insolvency and Bankruptcy Code, 2016 (IBC). A Bench comprising Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindraath Swain set aside the NCLT, Amravati order and directed it to admit Posco International Corporation's application...
NCLT Delhi Dismisses CIRP Plea Against WAPCOS Over Pre-existing Disputes
The Delhi bench of the National Company Law Tribunal has dismissed an insolvency plea against Mini-Ratna Government of India undertaking WAPCOS Limited. The bench found that WAPCOS had raised concerns over the quality and completeness of survey work well before the payment demand was issued.The bench of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Reena Sinha Puri observed,“The material placed on record therefore shows that the Corporate Debtor had raised issues...