IBC
IBBI Issues Circular Directing Insolvency Professionals To File Forms To Monitor Voluntary Liquidation Processes On Electronic Platform Only
The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 28.06.2024 directing the Insolvency Professionals to file the forms to monitor the Voluntary Liquidation processes under IBC on the electronic platform hosted on IBBI's website at https://www.ibbi.gov.in. only. The circular provides that the Insolvency Professionals shall access the platform with a unique username and password provided by the IBBI and upload/submit the Forms, along with relevant...
IBBI Issues Circular Directing IPs To File Liquidation Process Forms On Electronic Platform Only
The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 28.06.2024 directing the Insolvency Professionals to file the forms to monitor the liquidation process under IBC on the electronic platform hosted on IBBI's website at https://www.ibbi.gov.in. only. The circular provides that the Insolvency Professionals handling the liquidation assignment shall access the platform with a unique username and password provided by the IBBI and upload/submit the Forms,...
Weekly Digest Of IBC Cases: 24th June 2024 To 30th June 2024
HIGH COURTS Indian Courts Are Not Bound By Foreign Insolvency Judgments From Non-Reciprocating Countries: Calcutta High Court Case Title: Uphealth Holdings, INC. vs Dr. Syed Sabahat Azim & Ors. Case No.: C.O. No. 241 of 2024 The Calcutta High Court single judge bench of Justice Shampa Sarkar held that without a comprehensive cross-border insolvency framework, Indian courts do not recognize or enforce moratorium orders from non-reciprocating countries, such as the U.S.,...
Indian Courts Are Not Bound By Foreign Insolvency Judgments From Non-Reciprocating Countries: Calcutta High Court
The Calcutta High Court single judge bench of Justice Shampa Sarkar held that without a comprehensive cross-border insolvency framework, Indian courts do not recognize or enforce moratorium orders from non-reciprocating countries, such as the U.S., and thus are not obligated to stay ongoing suits due to such foreign proceedings. It was held that the Trial Court could consider the foreign proceedings while deciding on the Section 45 application filed by the Petitioners. However, it was...
ZEE-Sony Failed Merger: NCLT Grants Zee Entertainment Permission To Withdraw Merger Implementation
The National Company Law Tribunal (NCLT) Mumbai bench has granted Zee Entertainment Enterprises Limited (ZEEL) permission to withdraw its application seeking the implementation of a merger arrangement with Sony Group Corp-owned Culver Max Entertainment and Bangla Entertainment. This decision follows the termination of the merger agreement by Culver Max and Bangla Entertainment on January 22, 2024 for an alleged breach of the merger cooperation agreement (MCA). The initial merger...
NCLAT: Assignment Agreement By Corporate Debtor, Malafide Exercise To Prolong CIRP.
The National Company Law Appellate Tribunal, Principal Bench, New Delhi of Justice Ashok Bhushan (Chairperson), Barun Mitra (Technicial Member) and Arun Baroka (Technical Member) has upheld a decision of NCLT, Mumbai and held Assignment Agreement initiated by the Corporate Debtor was a deliberate strategy intended to introduce obstacles and prolong the Corporate Insolvency Resolution Process (CIRP). Brief Facts: Rolta Private Limited, Corporate Debtor, submitted a substantial claim...
NCLT Recalls Order Following Karnataka High Court Decision To Maintain Status Quo On IBBI Recommendation
The National Company Law Tribunal (NCLT), Chennai Bench of Ravichandran Ramasamy (Technical Member) and Jyoti Kumar Tripathi (Judicial Member) has recalled its order. This order follows a directive from the Karnataka High Court, which ordered maintaining the status quo on the Insolvency and Bankruptcy Board of India's (IBBI) recommendations for appointment of liquidator other than Insolvency Resolution Professional (IRP)/Resolution Professional (RP). IBBI issued directive via...
Essel Group's Shirpur Gold Refinery, NCLT Initiates Insolvency Proceedings Following ₹92 Crore Default
Subhash Chandra-promoted Essel Group's Shirpur Gold Refinery Limited (SGRL) has been admitted for corporate insolvency resolution following an application filed by Prudent ARC at the Mumbai bench of the National Company Law Tribunal (NCLT). The application arose after SGRL defaulted on dues of approximately ₹92 crore, which included a ₹65-crore loan and accumulated interest of ₹27 crore up to October 14, 2021. To secure this loan, SGRL had pledged to maintain its own ...
NCLT Hyderabad: Tribunals Have Jurisdiction Under S. 59 Of Companies Act To Refer Seriously Disputed Questions To Civil Court For Detailed Investigation
The National Company Law Tribunal ('NCLT') Hyderabad bench comprising Justice Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri Charan Singh (Technical Member) dismissed a petition filed under Section 59 of the Companies Act, 2013 and referred the matter to Civil Court for a detailed investigation. It held that: “The only embargo on the Jurisdiction of the Tribunal constituted under the Companies Act 2013, while exercising its rectificatory jurisdiction under...
NCLT Mumbai: Assets Of CD Held By Third Parties Must Be Released To RP For Revival And Resolution Of CD
The National Company Law Tribunal ('NCLT') Mumbai bench comprising Justice V.G. Bisht (Retd.) (Judicial Member) and Mr. Prabhat Kumar (Technical Member) held that assets of the Corporate Debtor held by third parties must be released to the Resolution Professional ('RP') for the resolution and revival Corporate Debtor. It also ruled that charge holders may file their claims in the appropriate class if they believe to hold a charge over such assets. Background Facts: In 2017, TWC...
NCLT Kochi: Creditors Can't Initiate Insolvency Proceedings Against Personal Guarantor Without Establishing Independent Default By CD
The National Company Law Tribunal ('NCLT') Kochi, comprising Justice T Krishna Valli (Judicial Member) and Mr. Shyam Babu Gautam (Technical Member) dismissed the application to initiate insolvency proceedings against the Personal guarantors under Section 95 of Insolvency and Bankruptcy Code, 2016 ('IBC'). It held that creditors cannot initiate insolvency proceedings against personal guarantors solely based on the initiation of the Corporate Insolvency Resolution Process ('CIRP') without...
NCLT Asks IBBI To Incorporate Provisions In CIRP Regulations For Treating Transferred Winding-Up Cases
The National Company Law Tribunal (NCLT) Principle Bench of Ramalingam Sudhakar (President) and Avinash K. Srivastava (Technical Member) has asked the Insolvency and Bankruptcy Board of India (IBBI) to amend the Corporate Insolvency Resolution Process (CIRP) regulations. This directive was issued by NCLT to address the handling of cases involving the winding up of companies that have been transferred to the NCLT under Section 433(1) of the Companies Act, 2013. The ...