NCLT Kolkata: IBC Prevails Over State Financial Corporation Act, 1951

The National Company Law Tribunal ('NCLT') Kolkata, comprising Justice Ms. Bidisha Banerjee (Judicial Member) and Shri Arvind Devanathan (Technical Member) held that the Insolvency and Bankruptcy Code, 2016 ('IBC') prevails over State Financial Corporation Act, 1951 ('SFC Act'). Background Facts: On 21.08.2009, Basukinath Food Processors Limited (Corporate Debtor) entered into a Loan Agreement ('Agreement') with West Bengal Industrial Development Corporation Ltd. (Respondent) for an...

NCLT Chennai: Adjudicating Authority Under IBC Is Not The Appropriate Forum To Decide On Revocation Of Attachment Made By ED Under PMLA During CIRP

The National Company Law Tribunal ('NCLT') Chennai, comprising Shri Justice Jyoti Kumar Tripathi (Judicial Member) and Shri Ravichandran Ramasamy (Technical Member) held that the Adjudicating Authority under Insolvency and Bankruptcy Code, 2016 ('IBC') is not the appropriate fora to decide on revocation of attachment made by Enforcement Directorate ('ED') under Prevention of Money Laundering Act, 2002 ('PMLA') during Corporate Insolvency Resolution Process ('CIRP'). Background Facts: ...

NCLT Mumbai Approves Rs. 9,661 Crore Resolution Plan By Indusind International Holdings For Reliance Capital

The National Company Law Tribunal ('NCLT') Mumbai, comprising Justice V.G. Bisht (Judicial Member) and Mr. Prabhat Kumar (Technical Member) has approved the Rs. 9,661 crore resolution plan submitted by IndusInd International Holdings Ltd ('IIHL') for Reliance Capital under Section 31 of the Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: On 06.12.2021, NCLT Mumbai admitted the Corporate Insolvency Resolution Process ('CIRP') application and appointed Mr. Nageswara Rao...

Relief To Home Buyers, NCLAT Upholds Resolution Plan Outlining Provisions For Completion Of 96 Residential Towers By Jaypee Infratech Pending Since 2011

The NCLAT recently upheld a Resolution Plan which outlined provisions for the completion of approximately 96 residential towers that had remained under construction since 2011 by Jaypee Infratech Limited. The homebuyers' plea revolved around the delay in the implementation of the Resolution Plan and their earnest desire to acquire possession of their units. Brief Facts: Jaypee Infratech Limited (“JIL”) was formed as a Special Purpose Vehicle (“SPV”) for a project involving the...

Weekly Digest Of IBC Cases: 4th To 10th March 2024

NCLAT NCLAT Delhi: Treatment Of Income Tax Dues In The Resolution Plan As 'Operational Creditor' Doesn't Violate Section 30(2) Of IBC Case Title: Jaiprakash Associates Ltd. vs. Jaypee Infratech Ltd. and Ors. Case No.: Company Appeal (AT) (Insolvency) No. 548 of 2023 The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), has held that treatment of the Income Tax Department's dues in...

IBBI Issues Circular Regarding Withdrawal Of Unclaimed/Undistributed Amounts From Corporate Liquidation Account

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 22.02.2024, intimating the procedure to be followed by the Liquidator for release of unclaimed dividends/ undistributed proceeds from the Corporate Liquidation Account in favour of entitled stakeholders. Brief background Regulation 46 of the IBBI (Liquidation Process) Regulations, 2016 (“Liquidation Regulations”) provides a framework for management of unclaimed deposits and undistributed proceeds...

IBBI Amends CIRP Regulations W.E.F. 15th February 2024

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a notification dated 15.02.2024, whereby amendments have been made to the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”). The key amendments are: Operating separate bank accounts for real estate projects: To ensure financial transparency and accountability, the amendment makes it mandatory to have a separate bank account for each real estate project under a corporate ...

IBBI Issues Circular Regarding Withdrawal Of Unclaimed/Undistributed Amounts From Corporate Voluntary Liquidation Account

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 13.02.2024, intimating the procedure to be followed by the Liquidator for release of unclaimed dividends/ undistributed proceeds from the Corporate Voluntary Liquidation Account in favour of entitled stakeholders. Brief background Regulation 39 of IBBI (Voluntary Liquidation Process) Regulations, 2017 provides a framework for management of unclaimed deposits and undistributed proceeds during the...

NCLAT Delhi: Non-Grant Of Reliefs And Concessions By NCLT Does Not Have Any Adverse Effect On The Validity Of The Resolution Plan And Is Not Violative Of The Law

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that non-grant of any reliefs and concessions by NCLT does not have any adverse effect on the validity of the Resolution Plan and is not a violation of the law. Background Facts: On 07.02.2003, Yamuna Expressway Industrial Development Authority and Jaiprakash Associates Limited ('JAL') entered into a Concession Agreement with JAL...

NCLAT Delhi: Treatment Of Income Tax Dues In The Resolution Plan As 'Operational Creditor' Doesn't Violate Section 30(2) Of IBC

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that treatment of the Income Tax Department's dues in the Resolution Plan as 'Operational Creditor' is not violative of Section 30(2) of Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: On 07.02.2003, Yamuna Expressway Industrial Development Authority and Jaiprakash Associates Limited ('JAL') entered into a Concession...

NCLAT Delhi: Personal And Corporate Guarantors Have No Right Of Subrogation After Approval Of Resolution Plan

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that the personal guarantors and corporate guarantors have no right of subrogation after the approval of the Resolution Plan under Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: On 07.02.2003, Yamuna Expressway Industrial Development Authority and Jaiprakash Associates Limited ('JAL') entered into a Concession...

NCLAT Delhi: Section 29A(C) Disqualifies Those Managing And Controlling Corporate Debtor Who Failed To Clear Debts

The National Company Law Appellate Tribunal ('NCLAT') New Delhi, comprising Mr. Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member) held that Section 29A(c) of Insolvency and Bankruptcy Code, 2016 ('IBC') disqualifies not only those in management and control of the Corporate Debtor when its account was declared Non-Performing Asset ('NPA') but also those in management and control of the Corporate Debtor in close proximity of time before the Resolution Plan was...