NCLT Can't Direct CoC To Consider Suspended Management's Settlement Proposal, Without Opportunity To SRA: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson), Shri Barun Mitra (Technical Member) and Shri Arun Baroka (Technical Member), has held that the NCLT cannot direct the CoC to consider settlement proposal of Suspended Management of Corporate Debtor, without granting an opportunity to be heard to the Successful Resolution Applicant (SRA). During the pendency of plan approval application before NCLT, the Suspended...

Weekly Digest Of IBC Cases: 19th February To 3rd March 2024

NCLAT Voting For Section 12A Proposal To Be Computed As Per Proviso To Section 25A(3A) R/w Section 25A(3) Of IBC: NCLAT Delhi Case title: Vijay Saini v Shri Devender Singh & Ors Case No.: Comp. App. (AT) (Ins.) No. 1194 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has held that for computing voting with regard to proposal under Section 12A of IBC,...

NCLAT Delhi: Resolution Professional Is An Aggrieved Person If NCLT Overturns His Decision

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), held that the Resolution Professional (RP) is an aggrieved when the decision of the National Company Law Tribunal (“NCLT”) directly overturns his decision. Background Facts: The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor, and the Appellant was appointed as the Resolution...

Whether The Vote Of Each Homebuyer Is Required During The Voting On CIRP Withdrawal Resolutions? NCLAT Clarifies S 12A of IBC

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), held that for voting on Corporate Insolvency Resolution Process (CIRP) withdrawals under Section 12A of the Insolvency and Bankruptcy Code (IBC), the vote of each homebuyer must be counted individually, rather than as a collective class of financial creditors. Section 12A stipulates statutory provisions governing “withdrawal...

NCLAT Delhi: Trademark Hypothecated For Higher Amount And Assignment For Lower Amount Can't Be Sole Criteria To Treat It As 'Undervalued Transaction'

The National Company Law Appellate Tribunal ('NCLAT') New Delhi, comprising Mr. Justice Rakesh Kumar Jain (Judicial Member) and Mr. Naresh Salecha (Technical Member) held that the mere fact that the trademark was hypothecated for a higher amount and subsequently assigned for a lower amount would not be the sole criteria for deeming it an undervalued transaction. Background Facts: While the Resolution Plan submitted by Gloster Limited (Respondent 2) for Fort Gloster Industries Ltd. ...

Once Insolvency Proceedings Are Initiated, NCLT Would Adjudicate On Consumer Claims; Punjab State Commission Dismisses Appeal Against Jet Airways

The Punjab State Consumer Disputes Redressal Commission adjudicated a dispute concerning the cancellation of the flight run by Jet Airways and booked through Make My Trip after insolvency proceedings had been initiated against Jet Airways under the Insolvency and Bankruptcy Code. The State Commission set aside the order of the District Commission and held that the District Commission failed to take the T&C and Jet Airways' Resolution Plan into consideration. It was held that the...

Voting For Section 12A Proposal To Be Computed As Per Proviso To Section 25A(3A) R/w Section 25A(3) Of IBC: NCLAT Delhi

The National Company Law Appellate Tribunal (“NCLAT”), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has held that for computing voting with regard to proposal under Section 12A of IBC, the voting has to be computed as per proviso to Section 25A(3A) read with Section 25A(3) of IBC. It has been further clarified that a proposal under Section 12A which statutorily requires 90% votes for approval, would not stand approved if...

NCLT Kolkata: Corporate Debtor Can't Take Shelter U/S 186 Of Companies Act To Avoid CIRP When Loan Has Been Advanced In Breach Of Section 186(2) Of Companies Act

The National Company Law Tribunal ('NCLT') Kolkata, comprising Smt. Justice Bidisha Banerjee (Judicial Member) and Shri D. Arvind (Technical Member) held that the Corporate Debtor cannot take shelter under Section 186 of the Companies Act, 2013 to avoid Corporate Insolvency Resolution Process ('CIRP') under Section 7 of Insolvency and Bankruptcy Code, 2016 ('IBC') wherein the Financial Creditor has advanced loan in breach of Section 186(2) to the Corporate Debtor. Background Facts: ...

Monthly Digest Of IBC Cases: February 2024

Supreme Court IBC | Resolution Plan Requires Closer Examination If Plan Envisages Use Of Asset Owned By Statutory Authority: Supreme Court Case Title: Greater Noida Industrial Development Authority Versus Prabhjit Singh Soni & Anr. Case No.: CIVIL APPEAL NOS.7590-7591 OF 2023 The Supreme Court bench comprising Chief Justice of India Dr. DY Chandrachud, Justice J.B. Pardiwala, and Justice Manoj Misra, has observed that ordinarily feasibility and viability of a resolution...

NCLAT Registrar Issues Notice For Oath Ceremony Of Hon'ble Shri Indevar Pandey As Technical Member In NCLAT

The Registrar of the National Company Law Appellate Tribunal (“NCLAT”) has issued a notice dated 27.02.2024, intimating that the Oath taking Ceremony of Hon'ble Shri Indevar Pandey as Technical Member in the NCLAT.The Ceremony shall take place at 10:30 A.M. on 01st March 2024 (Friday) in the Court of Hon'ble Chairperson, NCLAT, 2nd Floor, Mahanagar Doorsanchar Sadan (M.T.N.L. Building), 9, C.G.O Complex, Lodhi Road, New Delhi – 110003. The Registrar has cordially invited all Learned Senior...

NCLAT Delhi: Liquidator Can Pursue Writ Petition On Behalf Of Corporate Debtor When NCLT Has Allowed Liquidator To Prosecute As Per Sec. 33(5) Of IBC

The National Company Law Appellate Tribunal ('NCLAT') Delhi, comprising Mr. Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that the Liquidator can pursue a Writ Petition on behalf of the Corporate Debtor when the Adjudicating Authority has allowed the Liquidator to prosecute on behalf of the Corporate Debtor as per Section 33(5) of Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: The Appellant, CA...

Enhancing Transparency And Stakeholder Engagement In Liquidation Process – IBBI Issues Circular

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 22.02.2024 on the enhancement of transparency and stakeholder engagement in the liquidation process via the circulation of progress reports to stakeholders, preparation of the preliminary report and sharing of final report, Form H, and process closure/dissolution order with IBBI. Circulation of progress reports to stakeholders 1. Regulation 15 of IBBI (Liquidation Process) Regulations, 2016...