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...

Flat In Possession Of Allottee Not To Be Included In Liquidation Estate; IBBI Introduces Key Amendments To Liquidation Process Regulations

The Insolvency and Bankruptcy Board of India (“IBBI”) has amended the IBBI (Liquidation Process) Regulations, 2016, with effect from 12.02.2024. The amendments have been introduced to strengthen the regulatory framework of liquidation process by ensure accountability and bolstering the confidence of stakeholders in the liquidation process. Key Amendments The liquidator may reduce the reserve price by up to 25% for assets with existing valuation of the Corporate Insolvency...

IBBI Directs Liquidator To Make Certain Declaration When Financial Service Provider Undergoes Voluntary Liquidation

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 13.02.2024, intimating that when a Financial Service Provider undergoes voluntary liquidation under IBC, then the Liquidator shall declare that: (i) the category of Financial Service Providers has been notified by the Central Government under Section 227 of IBC, and (ii) the corporate person has obtained prior permission from the appropriate regulator. Brief Background The Insolvency and Bankruptcy...

IBBI Directs Resolution Professionals To Provide Copy Of Report Prepared Under Section 99 Of IBC To Creditors & Debtor

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 12.02.2024, directing that the Resolution Professional shall provide the report prepared under Section 99 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) to both debtor and creditor. The Resolution Professional (RP) in an insolvency resolution process of a debtor under Chapter III of Part III of IBC examines the application filed under Section 94 or 95 of IBC. Thereafter, the Resolution Professional...

Special Bench At NCLT Mumbai From 26th February To 1st March 2024

The National Company Law Tribunal (“NCLT”) has issued a circular dated 22.02.2024, intimating the constitution of Special Bench in NCLT Mumbai (Court VI) for the period of 26.02.2024 to 01.03.2024, since Shri Sanjiv Dutt (Technical Member) is on leave in that duration. The Special Bench shall attend to the matters listed before Shri KR Saji Kumar (Judicial Member) and Shri Sanjiv Dutt (Technical Member). The Special Bench shall comprise of: NCLT Mumbai Bench (Court No. VI) ...

NCLAT Delhi: NCLT Has Jurisdiction To Decide The Issue Of Trademark U/S 60(5)(c) Of IBC

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 NCLT has the jurisdiction to decide the whether Trademark forms part of the assets of the Corporate Debtor under Section 60(5)(c) of Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: While the Resolution Plan submitted by Gloster Limited (Respondent 2) for Fort Gloster Industries Ltd. (Corporate...

Weekly Digest Of IBC Cases: 12th To 18th 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 Delhi Sets Aside NCLT Order Permitting Suspended Director To Enter Settlement During Pendency Of Plan Approval Application

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 set aside a direction given by the NCLT, whereby the Suspended Director was given opportunity to enter settlement during the pendency of application filed by Resolution Professional for approval of Resolution Plan. The Bench has held that since the application for approval of resolution...

IBBI Committee Proposes Framework For Voluntary Mediation Under IBC

The Insolvency and Bankruptcy Board of India (“IBBI”) has published a report dated 31.01.2024 on “Framework for Use of Mediation under the Insolvency and Bankruptcy Code, 2016”. The Report has been prepared by an Expert Committee constituted by the IBBI and the Report contains recommendations on framework for introduction of voluntary mediation, as a complementary disputes resolution mechanism around the processes under IBC. Summary Of Recommendations Of The Committee The mediation...

NCLT Mumbai Orders Dream 11's Sports Platform Owner Sporta Technologies Pvt. Ltd. Into CIRP Under IBC

The National Company Law Tribunal ('NCLT') Mumbai, comprising Justice Reeta Kohli (Judicial Member) and Shri. Anil Raj Chellan (Technical Member) allowed the petition and ordered Sporta Technologies Pvt. Ltd. (Corporate Debtor) into the Corporate Insolvency Resolution Process ('CIRP') under Section 9 of the Insolvency and Bankruptcy Code, 2016 ('IBC'). The Corporate Debtor is Dream 11's sports platform owner. Background Facts: A Lease and License Agreement dated 27.12. 2019 was...

NCLT Imposes Rs. 2.5 Lakh Cost On Personal Guarantor For Delayed Filing Of Reply, NCLAT Delhi Reduces Cost To Rs. 25,000

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 reduced the cost imposed by NCLT on Personal Guarantor for 6 days delay in filing of Reply from Rs. 2.5 Lakhs to Rs. 25,000. The Bench opined that the imposition of Rs. 2.5 Lakh cost is excessive as delay in filing of Reply to application under Section 95 of IBC was of mere 6 days. ...

NCLT Mumbai: CIRP Can't Be Initiated U/S 7 Of IBC Based On Transfer Agreement For Purchase Of Debentures From Financial Creditors

The National Company Law Tribunal ('NCLT') Mumbai, comprising Justice V.G. Bisht, (Retd.) (Judicial Member) and Mr. Prabhat Kumar (Technical Member) held that the Corporate Insolvency Resolution Process ('CIRP') under Section 7 of Insolvency and Bankruptcy Code, 2016 ('IBC') cannot be initiated based on Transfer Agreement/promise for purchase of Debentures from Financial Creditors. Background Facts: Meeti Developers Pvt. Ltd. ('MDPL') had executed a Development Agreement with New...