IBC
Lender Banks Must Furnish Copy Of Audit Reports Before Classifying Loan Account As Fraud: Gujarat High Court
Recently, the Gujarat High Court bench of Justice Sangeeta K. Vishen observed that the Lender Banks must provide a reasonable opportunity to the Borrower by furnishing a copy of Audit Reports and allowing him to submit a representation before classifying the account as fraud. Background Facts: Amit Dineshchandra Patel (Petitioner) are the promoters, suspended directors, and shareholders of Syntex Industries Ltd. (Company). On 06.04.2021, the company was ordered into a Corporate...
Weekly Digest Of IBC Cases: 5th To 11th February 2024
NCLAT NCLAT Delhi: Adjudicating Authority Should Grant Extension Of Time To Consider Resolution Plan Crucial To Fulfill Object Of IBC Case Title: Nimai Gautam Shah, Resolution Professional of Sintex Plastics Technology Ltd. vs. RBL Bank Ltd. Case No.: Company Appeal (AT) (Insolvency) No.82 of 2024 The National Company Law Appellate Tribunal ('NCLAT') New Delhi, comprising Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical...
IBC | Claim Submitted With Proof Cannot Be Overlooked Merely Because It Was Submitted In Wrong Form: Supreme Court
The Supreme Court on Monday (February 12) observed that the claim submitted by the Resolution Applicant (“RA”) under the Corporate Insolvency Resolution Process (“CIRP”) cannot be rejected/overlooked merely on the fact that the claim submitted appears to be in a different form other than the form in which the claim needs to be submitted. In the instant case, the resolution application has submitted a claim to the Resolution Professional (“RP”) under Form C of Regulation 8 of CIRP Regulations...
NCLT Orders Liquidation Of Mehul Choksi-Promoted Gitanjali Gems
Recently, the National Company Law Tribunal (NCLAT) Mumbai Bench has ruled for the liquidation of Gitanjali Gems, a jewelry retailing company headed by fugitive Mehul Choksi, under Section 33 of the Insolvency and Bankruptcy Code, 2016.The bench, comprising Kuldip Kumar Kareer as the judicial member and Anil Raj Chellan as the Technical member, stated, “On perusal of records, it is evident that the assets of the Corporate Debtor were under attachment by the Directorate of Enforcement under the...
NCLAT Delhi: Definition Of Financial Debt U/S 5(8) Does Not Provide Disbursal To Be Made To Corporate Debtor Only
The National Company Law Appellate Tribunal ('NCLAT') New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Naresh Salecha (Technical Member) held that the definition of Financial Debt under Section 5(8) of Insolvency and Bankruptcy Code, 2016 ('IBC') does not use the expression that disbursal should be made to the Corporate Debtor only. Background Facts: Unicast Autotech Pvt. Ltd. (Corporate Debtor) carries out the business of manufacturing aluminum die casts, whereas...
Department Of State Tax Submits Claim Post Approval Of Resolution Plan By CoC, NCLAT Delhi Upholds Rejection Of Claim
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 a claim submitted post approval of resolution plan by the Committee of Creditors (“CoC”) is not liable to be admitted. Accordingly, the Bench has upheld the rejection of claim of Department of State Tax, which was submitted post approval of resolution plan by CoC. Background ...
NCLT Mumbai Allows Withdrawal Of Liquidation Application On Receipt Of Resolution Plan
The National Company Law Tribunal ('NCLT') Mumbai, comprising Justice Shri. Kuldip Kumar Kareer (Judicial Member) and Shri. Anil Raj Chellan (Technical Member) allowed the withdrawal of the liquidation application since one resolution plan was received by the Committee of Creditors ('CoC') during the pendency of the liquidation application upholding the aim of Insolvency and Bankruptcy, 2016 ('IBC'). Background Facts: Rubique Technologies India Pvt. Ltd. (Corporate Debtor) entered...
NCLT Mumbai: Society Not Entitled To Recover Past Arrears Of Applicant's Purchase In The Auction From Liquidator Of Corporate Debtor
The National Company Law Tribunal ('NCLT') Mumbai, comprising Justice Shri. Kuldip Kumar Kareer (Judicial Member) and Shri. Anil Raj Chellan (Technical Member) held that the Society is not entitled to recover the past arrears in respect of the unit purchased by the Applicant in the auction from the Liquidator of the Corporate Debtor. Background Facts: On 23.09.2022, liquidation commenced against Max Flex & Imaging Systems Ltd. (Corporate Debtor), and Mr. Fanendra H Munot,...
Appeal Under Section 42 Of IBC Would Only Lie Against An 'Adjudicating' Order Of The Liquidator: NCLT Mumbai
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Smt. Lakshmi Gurung (Judicial Member) and Shri Charanjeet Singh Gulati (Technical Member), has held that an appeal under Section 42 of IBC would only lie against an 'adjudicating' order passed by the Liquidator. The Bench has rejected an appeal filed under Section 42 of IBC, whereby Employees Provident Fund Organization challenged a letter sent by the Liquidator at a time when he stood discharged from his duties...
NCLAT Delhi: Payment By Third Party For Corporate Debtor For Raw Material Or Working Capital Is “Financial Debt”
The National Company Law Appellate Tribunal ('NCLAT') New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Mr. Naresh Salecha (Technical Member) held that the payment of raw material made by a third party at the instructions of Corporate Debtor or financial assistance towards working capital constitutes 'Financial Debt' under Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: Unicast Autotech Pvt. Ltd. (Corporate Debtor) carries out the business of manufacturing...
IBBI Issues Clarification Regarding Conduct Of Process By Insolvency Professionals
The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 01.02.2024, intimating measures for facilitating efficient conduct of the processes by the Insolvency Professionals. The IBBI has clarified an Insolvency Professional may render professional service in relation to implementation of resolution plan approved by Adjudicating Authority, provided details of such service are mentioned in the resolution plan approved by Adjudicating Authority. The IBBI has...