NCLAT Issues Directions Regarding Virtual Hearings

The National Company Law Appellate Tribunal (“NCLAT”) has issued a circular dated 05.02.2024, intimating the manner in which the Counsels/Litigants/Authorized Representatives are supposed to join and remain in the VC hearing of NCLAT. Brief Background NCLAT commenced hearings in hybrid mode and also issued detailed instructions for joining video conferencing which is already available on the website https://nclat.nic.in Further, the links for joining video conferencing are also...

IBBI Issues Clarification Regarding Disciplinary Proceedings, Limit On Assignments & Fee Structure Of Insolvency Professional Entities

IBBI Issues Clarification Regarding Disciplinary Proceedings, Limit On Assignments & Fee Structure Of Insolvency Professional Entities The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 01.02.2024 intimating measures for rationalisation of the regulatory framework of Insolvency Professional Entities (IPE). IBBI has clarified regarding disciplinary proceedings in case of an IP which is an IPE, applicability of limit on number of Assignments to an IP which is...

NCLT Amravati Bench Reconstituted W.E.F. 1st February 2024, Matters To Be Heard Through VC

The National Company Law Tribunal (“NCLT”) has issued a circular dated 31.01.2024, intimating the reconstitution of NCLT Amravati Bench with effect from 01.02.2024. The matters shall be heard through Video Conferencing. The reconstituted bench is as under: NCLT Amravati Bench (Second Half) Shri Rajeev Bhardwaj (Judicial Member)Shri Sanjay Puri (Technical Member) In the first half, Shri Rajeev Bhardwaj (Judicial Member) and Shri Sanjay Puri (Technical Member) shall take...

IBBI Reduces Cooling Off Period Between Two Consecutive Attempts In Limited Insolvency Examination And Valuation Examinations

The Insolvency and Bankruptcy Board of India (“IBBI”) has issued a circular dated 18.01.2024, intimating that the cooling-off period between two consecutive attempts in Limited Insolvency Examination and Valuation Examinations has been reduced to 21 days, from earlier cooling off period of 2 months. Brief background IBBI conducts the Limited Insolvency Examination (“LIE”) in pursuance of Regulation 3 of the IBBI (Insolvency Professionals) Regulations, 2016. The IBBI is empowered...

NCLT Chennai: Liquidation Is A Time-Bound Process And Liquidator Is Accountable To Explain Delay In Liquidation Process

The National Company Law Tribunal ('NCLT') Chennai, comprising Justice Sanjiv Jain (Judicial Member) and Mr. Venkataraman Subramanian (Technical Member) held that Liquidation is a time-bound process and the Liquidator being made accountable is required to explain if there is any delay caused in the liquidation process. Background Facts: On 27.03.2018, liquidation was commenced against Daehsan Trading India Pvt. Ltd. (Corporate Debtor), and S. Rajendran, Respondent 1, was confirmed as...

Section 9 Petition Not Served Upon Corporate Debtor, NCLAT Delhi Sets Aside NCLT Order Initiating CIRP

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 an NCLT order whereby a petition under Section 9 of IBC was admitted and CIRP was initiated without serving a copy of petition to the Corporate Debtor. The Bench has directed that the petition under Section 9 of IBC be revived before the NCLT for fresh consideration and the...

NCLT Ahmedabad: Amount Invested In A Joint Venture Project Of A Promoter And Investor Does Not Constitute Financial Debt Under IBC

The National Company Law Tribunal ('NCLT') Ahmedabad, comprising Justice Mrs. Chitra Hankare (Judicial Member) and Mr. Velamur G Venkata Chalapathy (Technical Member) held that the amount invested in a Joint Venture Project of a promoter and investor is not a Financial Debt under Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: GSEC Monarch and Deccan Aviation Pvt. Ltd. (Corporate Debtor) was incorporated as a Joint Venture between the Corporate Debtor and Deccan...

IBBI Amends Voluntary Liquidation Process Regulations w.e.f. 31st January 2024

The Insolvency and Bankruptcy Board of India (“IBBI”) has amended the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017, with effect from 31.01.2024. Amendments The following amendments have been made to streamline the voluntary liquidation process and facilitate the distribution of unclaimed proceeds to the stakeholders before the dissolution of the corporate person: The directors of the corporate person while initiating the voluntary...

IBBI Amends Regulations Regarding Insolvency Professionals w.e.f. 31st January 2024

The Insolvency and Bankruptcy Board of India (“IBBI”) has amended the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 (“IP Regulations”), with effect from 31.01.2024. Amendments The Clause 22 of First Schedule of IP Regulations deals with occupation, employability and restrictions on Insolvency Professionals. The IBBI has amended the Clause 22 by inserting Clause 22A thereafter, which reads as under: “22A. An insolvency professional...

NCLAT Delhi: Adjudicating Authority Should Grant Extension Of Time To Consider Resolution Plan Crucial To Fulfill Object Of IBC

The National Company Law Appellate Tribunal ('NCLAT') New Delhi, comprising Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that the Adjudicating Authority ought to have granted an exclusion/extension of time when the Resolution Plan received in the process was required to be considered to fulfill the object of the IBC. Background Facts: Nimai Gautam Shah, Resolution Professional ('RP') of Sintex Plastics...

Weekly Digest Of IBC Cases: 29th January To 4th February 2024

Supreme Court IBC | Moratorium Under S 14 No Bar To Execute Decree Against Directors/Officers Of Corporate Debtor: Supreme Court Case Title: Ansal Crown Heights Flat Buyers Association (Regd.) V M/S. Ansal Crown Infrabuild Pvt. Ltd. & Ors. Citation: 2024 LiveLaw (SC) 63 The Supreme Court has held that the imposition of moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) has no effect on the execution of a decree against the Directors or Officers...

NCLT President Withdraws Pending Cases From NCLT Bench 2 Post Heated Exchange Between Hon'ble Members Of NCLT Bench

The Registrar of the National Company Law Tribunal (“NCLT”) has issued a circular dated 03.02.2024, intimating that proceedings of all pending cases of NCLT Bench 2, Chandigarh stand transferred to NCLT Bench 1 Chandigarh. NCLT President has directed NCLT Bench 1 Chandigarh to conduct the proceedings in all cases until further order. However, the Hon'ble Members of NCLT Bench 2, Chandigarh are directed to pronounce orders in reserved matters, at the earliest. The said order was...