NCLAT Delhi: Set-Off With Refund Of Claim Between Expiry Of CIRP And Before Passing Liquidation Order Amounts To Violation Of Moratorium Under IBC

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that the set-off/adjustment of demand with refund by Income Tax Department during the intervening period when the Corporate Insolvency Resolution Process ('CIRP') timeline period has expired but before passing of Liquidation Order under Section 33 of Insolvency and Bankruptcy Code, 2016 ('IBC') amounts...

NCLAT Upholds Suraksha Realty's Resolution Plan For Jaypee Infratech, Directs Additional ₹1,334 Crore Payment To YEIDA

The National Company Law Appellate Tribunal (NCLAT) confirmed the resolution plan proposed by Suraksha Realty Limited for Jaypee Infratech Limited (JIL) as part of its Corporate Insolvency Resolution Process (CIRP). The NCLAT's bench, comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra, held that Suraksha Realty must pay ₹1,334.31 crore to YEIDA over the next four years. This payment is intended to enable YEIDA to increase land compensation for...

Weekly Digest Of IBC Cases: 20th To 26th May 2024

High Court Resolution Professional Not To Be Hauled Up In Criminal Case Against Company: Kerala High Court Stays ED Notice To RP Case Title: M/s Kerala Chamber Of Commerce And Industry vs. Directorate of Enforcement Case Number: CRL.MC No. 3605 of 2024 The Kerala High Court stated that prima facie, a Resolution Professional appointed under the Insolvency and Bankruptcy ('IB') Code for carrying the Corporate Insolvency Resolution Process ('CIRP') of the Company cannot be ...

NCLT Hyderabad Holds Port Authority Officers Guilty Of Contempt Of Court, Imposes Month Imprisonment And Fine

The National Company Law Tribunal ('NCLT') Hyderabad, comprising Justice Rajeev Bhardwaj (Judicial Member) and Mr. Sanjay Puri (Technical Member) held Mr. Ravi Kiran Saladi Konda, Deputy Traffic Manager, New Mangalore Port Authority and Mr. Sriman Nayan Mishra, Senior Assistant Traffic Manager, Paradip Port Authority ('Respondents') guilty of contempt for disobeying the directions of the Adjudicating Authority and sentenced them to simple imprisonment of 1 month each with a fine of Rs ...

Winding Up Proceedings On Nascent Stage , To Be Transferred To NCLT: Delhi High Court

The Delhi High Court bench of Justice Dharmesh Sharma held that winding up proceedings pending before High Courts, which are at a nascent stage and have not progressed to an advanced stage, ought to be transferred to the NCLT. The bench held that: “It is but evident that the present company petition has not yet reached an advanced stage and no substantive orders have been passed towards the winding up of the respondent company.” Brief Facts: The Respondent Company is engaged...

[IBC] Party Must Be Provided With All Requisite Documents That Form Basis Of Show Cause Notice: Delhi High Court

The Delhi High Court bench of Justice Mini Pushkarna held that the concerned party must be provided with all requisite documents that form the basis of Show Cause Notices (SCNs) by the banks. It held that this enables the party to submit a proper reply and address all allegations effectively. Without access to these underlying documents, the procedure of issuing an SCN and filing a response would be rendered meaningless. Brief Facts: The Petitioner is an ex-director and guarantor...

Resolution Professional Not To Be Hauled Up In Criminal Case Against Company: Kerala High Court Stays ED Notice To RP

The Kerala High Court stated that prima facie, a Resolution Professional appointed under the Insolvency and Bankruptcy (IB) Code for carrying the Corporate Insolvency Resolution Process (CRIP) of the Company cannot be hauled up in a criminal proceeding initiated against the Company.The plea, filed by the first petitioner (Company) and the second petitioner (Resolution Professional of the Company), seeks to quash the complaint insofar it pertains to the Resolution Professional under the...

NCLAT Delhi: Adjudicating Authority Has No Right To Substitute Its Own Assumption With CoC's Commercial Wisdom, Sets Aside Order On Violation Of Natural Justice

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Arun Baroka (Technical Member) sets aside an order on violation of natural justice holding that the Adjudicating Authority (NCLT Mumbai) has no right to substitute its own assumption over the commercial wisdom of Committee of Creditors (CoC). Background Facts: SKS Power Generation Chhattisgarh Limited (Corporate Debtor) was admitted into the Corporate Insolvency ...

NCLT Issues Three Notices To Byju's Over Unpaid Dues, Hearing Scheduled For July 3

The National Company Law Tribunal (NCLT) has issued notices to Think and Learn Pvt Ltd, the parent company of Byju's, due to claims of unpaid dues from several creditors. Three companies, McGraw Hill, Cogent E-services, and AG Automation, have filed cases against Byju's. McGraw Hill claims that Byju's owes them Rs 1.43 crore, while Cogent E-services says they are owed Rs 6 crore. The NCLT has set hearings for these cases on July 3, giving Byju's two weeks to respond and...

NCLAT Delhi: Corporate Debtor Can't Escape Liability By Contending To Be Merely An Agent Of Principal

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that the Corporate Debtor cannot escape liability by contending that it is merely an agent and by taking recourse under Section 230 of the Indian Contract Act, 1872. Background Facts: Topaki Media Private Limited (“TMPL”), the Corporate Debtor, provided advertising services by acting as an agent for...

NCLT Mumbai Allows ND Studios RPs' Plea To Exclude 116 Days From CIRP Period Due To Criminal Proceedings

The National Company Law Tribunal ('NCLT') Mumbai, comprising Justice Virendra Singh Bisht (Retd.) (Judicial Member) and Mr. Prabhat Kumar (Technical Member) allowed the plea of ND Studio Resolution Professional's (“RP”) granting exclusion of 116 days from the Corporate Insolvency Resolution Process (“CIRP”) period acknowledging the genuine hardships due to the ongoing criminal proceedings. Background Facts: NCLT Mumbai admitted ND's Art World Private Limited (Corporate Debtor) into...

NCLAT Delhi: Issuance Of Demand Notice U/S 8 Of IBC Is Fulfilled By Documentary Evidence Including Postal Receipt

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that documentary evidence including postal receipt mentioning the registered address of the Corporate Debtor confirms the issuance of a Demand Notice under Section 8 of Insolvency and Bankruptcy Code (IBC). Background Facts: Topaki Media Private Limited (TMPL), the Corporate Debtor, provided...