IBC
IBC | Settlement In Section 7 Or Dropping Of Sec. 66 Proceedings Does Not Automatically End Proceedings Under Section 43: NCLT Mumbai
The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri Kuldip Kumar Kareer (Judicial Member) and Shri Anil Raj Chellan (Technical Member), has held that the proceedings under Section 43 of IBC would not automatically end against a party, if the parties enter settlement in Section 7 of IBC proceedings or proceedings under Section 66 of IBC are dropped. “We again wish to reiterate that merely because the Applicant has settled the matter with regard to the said...
NCLAT Delhi Terminates Insolvency Proceedings Against Asian Hotels (West) Ltd., Accepts Settlement Proposal By Promoters
The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has terminated Corporate Insolvency Resolution Process (“CIRP”) of Asian Hotels (West) Ltd., which was initiated by NCLT in September 2022. The Bench has accepted the Settlement Proposal submitted by Promoters and Suspended Directors of Asian Hotels (West), wherein 100% dues of Financial Creditors along with interest and 100%...
NCLAT Chennai: CoC's Commercial Wisdom Includes Approval Of Resolution Plan Below Liquidation Value
The National Company Law Appellate Tribunal ('NCLAT') Chennai Bench, comprising Justice Rakesh Kumar Jain (Judicial Member) and Shreesha Merla (Technical Member) held that the approval of the Resolution Plan below the Liquidation value is within the commercial wisdom of the Committee of Creditors ('CoC') as the Insolvency and Bankruptcy Code, 2016 ('IBC') does not expressly bar that the Resolution Plan value should be over and above the Liquidation value. Background Facts: On...
Weekly Digest Of IBC Cases: 15th To 21st January 2024
NCLAT NCLAT Delhi Upholds Dismissal Of Insolvency Plea Against Aditya Birla Fashion And Retail Ltd., An Aditya Birla Group Company Case title: In Style Fashion v Aditya Birla Fashion and Retail Limited Case No.: Company Appeal (AT)(Insolvency) No. 1679 of 2023 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 declined to...
NCLAT Delhi: Ex-Promoter, Who Resigned Before CIRP Commencement, Is Eligible To Submit Resolution Plan
The National Company Law Appellate Tribunal ('NCLAT') New Delhi Bench, comprising Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that an Ex-Promoter/Director who resigned from Corporate Debtor before initiation of Corporate Insolvency Resolution Process ('CIRP') under Section 10 of Insolvency and Bankruptcy Code, 2016 ('IBC') is eligible to submit a Resolution Plan under Section 29A of IBC. Background Facts: On...
NCLT Indore: Insolvency Resolution Professional Can Continue To Function Till Appointment Of RP U/S 16(5) Of IBC
The National Company Law Tribunal ('NCLT') Indore, comprising Shri P. Mohan Raj (Judicial Member) and Kaushalendra Kumar Singh (Technical Member) held that the Interim Resolution Professional ('IRP') can continue to function till the date of appointment of the Resolution Professional ('RP') as per the amended provisions of Section 16(5) of Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: On 03.03.2023, the Corporate Insolvency Resolution Process ('CIRP') of Indison...
NCLAT Delhi Upholds Dismissal Of Insolvency Plea Against Aditya Birla Fashion And Retail Ltd., An Aditya Birla Group Company
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 declined to initiate insolvency proceedings against Aditya Birla Fashion and Retail Limited under Section 9 of IBC, on the premise that there is pre-existing dispute between Parties which cannot be investigated upon by NCLT or NCLAT. Aditya Birla Fashion and Retail Limited is a part...
NCLAT Delhi: Optionally Convertible Debentures Constitute 'Financial Debt' U/s 5(8)(c) Of IBC
The National Company Law Appellate Tribunal ('NCLAT') New Delhi Bench, comprising Justice Ashok Bhushan (Chairperson), Mr. Barun Mitra (Technical Member), and Mr. Arun Baroka (Technical Member) held that the Optionally Convertible Debentures ('OCDs') are Financial Debt within the meaning of Section 5(8)(c) of Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: ASK Trusteeship Services Pvt. Ltd. (Respondent 1), a Financial Creditor subscribed to unlisted OCDs under a...
NCLT Mumbai: Non-Acceptance Of Goods By Corporate Debtor Does Not Equate To Operational Debt U/S 5(21) Of IBC
The National Company Law Tribunal ('NCLT') Mumbai Bench, comprising Justice Kuldip Kumar Kareer (Judicial Member) and Mr. Anil Raj Chellan (Technical Member) held that the non-acceptance of the goods by the Corporate Debtor cannot be equated with the default in respect of an Operational debt under Section 5(21) of Insolvency and Bankruptcy Code, 2016 ('IBC'). Background Facts: Adishank Chemicals Pvt. Ltd. ('Operational Creditor') was engaged with Baerlocher India Additives Pvt. Ltd. ...
NCLT Hyderabad: IBC Overrides The Provisions Of Andhra Pradesh Revenue Recovery Act, 1864
The National Company Law Tribunal ('NCLT') Hyderabad, comprising Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri. Charan Singh (Technical Member) held that the Insolvency and Bankruptcy Code, 2016 ('IBC') overrides the provisions of the Andhra Pradesh Revenue Recovery Act, 1864. Background Facts: NCS Sugars Ltd. (Corporate Debtor) involved in the sugarcane business defaulted in payment of the price for the sugarcane supplied by farmers. Proceedings under the...
NCLT Hyderabad: Moratorium U/s 14 Of IBC Imposes Legal 'Embargo' Not Only On Financial Creditors But On Any Other Person For Sale Of Assets In CIRP
The National Company Law Tribunal ('NCLT') Hyderabad, comprising Dr. Venkata Ramakrishna Badarinath Nandula (Judicial Member) and Shri. Charan Singh (Technical Member) held that the moratorium u/s 14 of the Insolvency and Bankruptcy Code, 2016 ('IBC') operates as a legal 'embargo' on the sale or alienation of the assets of the Corporate Debtor during the CIRP of the Corporate Debtor not only on the Financial Creditor but also on any person. Background Facts: NCS Sugars Ltd....
Weekly Digest Of IBC Cases: 8th To 14th January 2024
NCLAT Resolution Professional Can't Question COC Decision Of Replacement: NCLAT Delhi Case title: Partha Sarathy Sarkar v Specified Undertaking of Unit Trust of India Ltd (SUUTI) & Ors. Case No.: Company Appeal (AT) (Insolvency) No. 1340 of 2023 The National Company Law Appellate Tribunal (“NCLAT”), New Delhi Bench, comprising of Justice Ashok Bhushan (Chairperson) and Shri Barun Mitra (Technical Member), has held that when the Committee of Creditors (CoC) passes a ...